geechs inc. (7060) AI Stock Analysis

• Market Cap: ¥6.04B
• Dividend Yield: 1.83%
• Average Volume (3M): 23.06K
• Price to Earnings (P/E): 57.6
• Beta (1Y): 0.59
• Revenue Growth: 8.86%
• EPS Growth: N/A
• Country: JP
• Employees: 268
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 11.05
• Shares Outstanding: 10,330,469
• 10 Day Avg. Volume: 42,570
• 30 Day Avg. Volume: 23,056
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥625.00
• Price Target Upside: 6.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥625.00 ▲(6.47% Upside)

Geechs Inc. shows a promising recovery with strong financial performance and bullish technical indicators. However, the high P/E ratio suggests overvaluation, and technical indicators point to overbought conditions, which could lead to a short-term correction. The absence of earnings call data and corporate events limits further insights.

geechs inc. Business Overview & Revenue Model

Company Description

Geechs Inc. is a Japan-based company primarily engaged in the information technology (IT) services sector. The company's core offerings include IT staffing services, where it connects skilled IT professionals with enterprises needing technical expertise. Geechs Inc. also provides development services, creating software solutions tailored to client needs across various industries. Furthermore, the company invests in and supports IT-related venture businesses, fostering innovation and growth within the tech ecosystem.

How the Company Makes Money

Geechs Inc. generates revenue primarily through its IT staffing services, where it charges enterprises for matching them with suitable IT professionals, either on a project basis or for permanent positions. This model involves fees for recruitment services as well as ongoing charges for contracted IT professionals working with clients. Additionally, the company earns from its software development services, billing clients for the creation and implementation of custom software solutions. Geechs Inc. also gains financial returns from its investments in tech startups, potentially benefiting from equity stakes as these companies grow and succeed. Partnerships with other tech firms and participation in collaborative projects further contribute to its revenue streams, enhancing its market presence and service offerings.

geechs inc. Financial Statement Overview

Summary

Geechs Inc. demonstrates a strong recovery trajectory with improved revenue and profitability metrics. The balance sheet remains robust with a solid equity base and manageable debt levels. Cash flow generation has also improved, although prior volatility indicates the need for cautious cash management. The company's return to profitability and revenue growth in the Information Technology Services sector is a positive indicator of future potential.

Income Statement

The company shows a consistent revenue growth trajectory, with a significant increase from ¥3.4 billion in 2021 to ¥25.1 billion in 2025. While the gross profit margin has decreased over this period, the recent recovery is evidenced by the positive EBIT margin of 1.97% and EBITDA margin of 0.42% in 2025, following previous negative margins in 2024. The net profit margin also improved to 0.2% in 2025, indicating a return to profitability after a loss in 2024.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.75 in 2025, indicating reasonable leverage. The equity ratio stands at 38.53%, showing a strong equity base. The return on equity (ROE) improved to 1.75% in 2025, rebounding from negative values in 2024, highlighting an improvement in profitability. Overall, the company maintains a solid balance sheet with manageable debt levels.

Cash Flow

The cash flow analysis reveals a positive shift in free cash flow, growing to ¥44.2 million in 2025 from a negative ¥8.6 million in 2024. The operating cash flow to net income ratio is less than ideal at 0.94 in 2025, but the free cash flow to net income ratio is positive at 0.89, indicating operational cash generation is closely aligned with reported earnings. Recent improvements suggest better cash management despite prior volatility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.16B	23.74B	16.00B	5.39B	3.43B
Gross Profit	3.57B	4.14B	3.00B	2.78B	2.04B
EBITDA	106.71M	-1.21B	528.07M	1.17B	791.02M
Net Income	49.80M	-1.47B	244.22M	705.19M	457.75M
Balance Sheet
Total Assets	7.37B	7.17B	8.45B	5.87B	6.49B
Cash, Cash Equivalents and Short-Term Investments	3.61B	3.75B	3.76B	3.36B	3.15B
Total Debt	2.14B	1.65B	1.85B	17.51M	18.82M
Total Liabilities	4.50B	4.10B	4.01B	1.40B	2.66B
Stockholders Equity	2.84B	2.88B	4.37B	4.47B	3.83B
Cash Flow
Free Cash Flow	44.25M	-8.63M	680.05M	346.10M	651.44M
Operating Cash Flow	46.81M	-3.83M	688.04M	369.21M	661.72M
Investing Cash Flow	-418.94M	317.15M	-1.56B	-68.65M	-48.91M
Financing Cash Flow	226.95M	-330.21M	1.27B	-91.34M	-22.59M

geechs inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 587.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7060, the sentiment is Positive. The current price of 587 is above the 20-day moving average (MA) of 525.70, above the 50-day MA of 502.40, and above the 200-day MA of 425.51, indicating a bullish trend. The MACD of 20.21 indicates Negative momentum. The RSI at 77.23 is Negative, neither overbought nor oversold. The STOCH value of 92.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7060.

geechs inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3839	77 Outperform	¥4.97B	20.70		1.65%	7.78%	1.78%
4386	75 Outperform	¥4.47B	9.66		3.22%	27.51%	68.04%
7060	63 Neutral	¥6.04B	57.64		1.83%	8.86%	―
Sector *	62 Neutral	£507.79M	27.20	-2.10%	2.80%	3.87%	-14.52%
2493	52 Neutral	¥4.10B	35.63		0.55%	18.43%	22.38%
2375	50 Neutral	¥4.90B	―		0.41%	-9.76%	3.53%
4260	50 Neutral	¥4.45B	108.15		―	-4.94%	-135.39%

geechs inc. Corporate Events

GEECHS Inc. Reports Financial Discrepancies and Extraordinary Loss

GEECHS Inc. reported a significant discrepancy between its forecasted and actual financial results for the fiscal year ending March 31, 2025, primarily due to an extraordinary loss and income tax adjustments. The company’s subsidiary in Australia, Launch Group Holdings Pty Ltd, faced a decline in profitability, leading to an impairment loss and impacting overall earnings. Despite these challenges, the company maintains its dividend forecast, indicating a commitment to shareholder returns.

GEECHS Inc. Reports Strong Financial Turnaround for FY2025

GEECHS Inc. reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 6% and a remarkable turnaround in profitability, achieving a profit attributable to owners of the parent of 49 million yen compared to a loss in the previous year. This positive shift is attributed to substantial growth in operating profit and ordinary profit, positioning the company for continued success in the upcoming fiscal year.