GMO Media, Inc. (6180) AI Stock Analysis

• Market Cap: ¥7.60B
• Dividend Yield: 3.29%
• Average Volume (3M): 6.53K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.49
• Revenue Growth: 7.47%
• EPS Growth: 55.61%
• Country: JP
• Employees: 214
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 30.38
• Shares Outstanding: 1,868,839
• 10 Day Avg. Volume: 7,120
• 30 Day Avg. Volume: 6,533
• PEG Ratio: 1.48
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 11.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥5,254.00 ▼(-6.68% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Fundamentals are the main strength: improved profitability, minimal leverage, and solid cash conversion support a higher score. Valuation is also supportive with a moderate P/E and high dividend yield. Offsetting these positives, technicals are weak—price is below major moving averages with bearish momentum, despite oversold readings.

Positive Factors

Improved Profitability

Margins and profitability have strengthened materially and persistently since the 2020 loss, with 2023–2025 showing consistent profits and 2025 operating/net margins above historical levels. Durable margins improve cash flow resilience and support reinvestment, dividends, or buffer against cyclical downturns.

Very Conservatively Financed Balance Sheet

Extremely low leverage and rising equity give the company durable financial flexibility, reducing default and refinancing risk. Combined with strong ROE, the capital structure supports continued investment, potential shareholder returns, and resilience through industry cycles over the medium term.

Strong Cash Generation in 2025

Operating cash flow and free cash flow converging with net income in 2025 indicates high earnings quality and internal funding capacity. Sustained FCF at this level enables self-funded growth, steady dividends, or balance sheet strengthening without reliance on external capital.

Negative Factors

Top-line Volatility

Revenue has shown episodic declines and only modest growth recently, which undermines predictability of scale and makes long-range planning harder. If top-line momentum remains muted, sustaining margin improvement and expanding absolute profit could be challenged over the medium term.

Free Cash Flow Volatility & Modest Asset Efficiency

Although 2025 showed strong FCF, prior-year swings and a low operating-cash-to-asset coverage ratio indicate modest cash efficiency and operational sensitivity. This variability can constrain consistent reinvestment or dividend smoothing and raises execution risk during slower revenue periods.

Prior Weak Returns Indicate Execution Risk

Historical negative returns signal past structural or execution issues that required a multi-year recovery. While recent ROE is strong, the prior weakness suggests the business remains sensitive to operational shifts, meaning positive trends could reverse if market conditions or execution slip.

GMO Media, Inc. Business Overview & Revenue Model

Company Description

GMO Media Inc. provides Internet and related advertising services to in Asia and internationally. The company develops and operates Internet media comprising Coeteco, an education and learning-related media business that provides options for education and skill enhancement; Kirei Pass that allows users to receive beauty treatments, as well as for searching and making reservations for clinics; PointTown through which users can earn points for free by playing games, answering surveys, and taking other actions; Gesoten, an HTML5 game platform; Easy game box, which provide casual HTML5 games; Kumapon, a coupon site; Prican, a community site for girls; pre-novel, a novel posting service for reading and writing conversational stories; Blockchain game info, a blockchain game information media that delivers a range of content, including game introductions, articles on strategies, and information for beginners. It also offers GMO Repeatas that supports the construction of point sites; Affi Town, which operates performance-based advertising distribution service; Kirei Pass Connect, a DX support tool for various in-house operations at beauty clinics; and coeteco college, a sales and management service for instructors who want to sell courses online. The company was incorporated in 2000 and is based in Tokyo, Japan. GMO Media Inc. is a subsidiary of GMO Internet, Inc.

How the Company Makes Money

GMO Media generates revenue primarily through the sale of in-game purchases, subscriptions, and advertising within its gaming platforms. The company also earns income from partnerships with other gaming developers and publishers, as well as through licensing agreements for its intellectual properties. Additionally, revenue is supplemented by the provision of digital marketing and advertising services, leveraging its extensive user base to attract advertisers seeking to reach a targeted audience. Strategic collaborations with technology companies further enhance its product offerings and revenue potential.

GMO Media, Inc. Financial Statement Overview

Summary

Strong turnaround and now-solid profitability (2025 operating margin ~12.7%, net margin ~9.1%) with very low leverage and strong ROE (~20% in 2024–2025). Cash generation is good with 2025 FCF roughly matching net income, but the top line and free cash flow have shown volatility (notably the 2022 revenue drop and uneven FCF).

Income Statement

Profitability has improved materially over the last several years, moving from a loss in 2020 to strong earnings in 2023–2025. In 2025, revenue grew 2.7% with healthy margins (gross margin ~47%, operating margin ~12.7%, net margin ~9.1%), and earnings rose meaningfully versus earlier years. The main drawback is that revenue growth has moderated versus prior years and the business saw a sharp revenue decline in 2022, indicating some cyclicality/volatility in the top line.

Balance Sheet

The balance sheet is very conservatively financed, with extremely low leverage (debt-to-equity consistently around ~0.3%–1.6% across 2020–2025, and ~0.7% in 2025). Equity has steadily grown alongside rising profitability, and returns on equity are strong (~20% in both 2024 and 2025). Key watch-out is that returns were weak/negative earlier in the period (2020–2021), reflecting prior operating volatility, though the recent trajectory is clearly favorable.

Cash Flow

Cash generation is solid and improving: 2025 operating cash flow was ¥859M and free cash flow was ¥857M, with free cash flow roughly matching net income (about 1.0x), suggesting good earnings quality. However, free cash flow has been volatile (down in 2022 and 2024 before rebounding in 2025), and operating cash flow relative to the company’s asset base remains modest (coverage ratio ~0.27 in 2025), implying cash efficiency is good but not exceptionally high.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.93B	7.12B	6.61B	6.27B	5.59B	8.58B
Gross Profit	3.24B	3.36B	2.97B	2.78B	2.30B	2.16B
EBITDA	977.47M	1.02B	813.03M	573.96M	313.66M	98.39M
Net Income	698.36M	646.88M	571.35M	361.33M	183.03M	7.20M
Balance Sheet
Total Assets	6.12B	6.31B	5.86B	5.47B	4.98B	4.63B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.38B	3.20B	3.28B	2.87B	2.64B
Total Debt	68.02M	20.71M	24.61M	7.45M	14.44M	25.71M
Total Liabilities	3.22B	3.16B	3.05B	3.07B	2.89B	2.74B
Stockholders Equity	2.90B	3.15B	2.81B	2.40B	2.09B	1.89B
Cash Flow
Free Cash Flow	0.00	856.73M	408.47M	503.17M	248.87M	447.22M
Operating Cash Flow	0.00	858.84M	500.64M	592.13M	395.18M	510.77M
Investing Cash Flow	0.00	-315.04M	-399.04M	-111.68M	-171.31M	-54.05M
Financing Cash Flow	0.00	-364.31M	-176.05M	-71.21M	2.10M	-11.17M

GMO Media, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5630.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6180, the sentiment is Negative. The current price of 5630 is above the 20-day moving average (MA) of 4999.50, above the 50-day MA of 5334.30, and above the 200-day MA of 5079.16, indicating a bearish trend. The MACD of -261.57 indicates Positive momentum. The RSI at 20.65 is Positive, neither overbought nor oversold. The STOCH value of 3.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6180.

GMO Media, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	75 Outperform	¥7.60B	12.31	―	3.29%	7.47%	55.61%
3981	67 Neutral	¥7.66B	10.34	―	1.76%	-10.62%	44.02%
7082	65 Neutral	¥6.76B	15.34	―	―	3.38%	47.24%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4176	58 Neutral	¥7.00B	25.00	―	―	42.83%	26.89%
4436	41 Neutral	¥6.84B	-1.56	―	―	-0.30%	-304.34%