geechs inc. (7060) AI Stock Analysis

• Market Cap: ¥6.21B
• Dividend Yield: 3.32%
• Average Volume (3M): 13.10K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.63
• Revenue Growth: 7.77%
• EPS Growth: N/A
• Country: JP
• Employees: 268
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 22.27
• Shares Outstanding: 10,330,469
• 10 Day Avg. Volume: 9,650
• 30 Day Avg. Volume: 13,103
• PEG Ratio: -0.80
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 93.34
• 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): 4,056.36
• Revenue Forecast (FY): ¥3.81T

• Rating: 66 Neutral
• Price Target: ¥684.00 ▲(6.38% Upside)

Geechs Inc. demonstrates strong technical momentum and a solid financial recovery, which are the primary drivers of its stock score. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The consistent revenue growth trajectory indicates strong market demand and effective business strategies, enhancing Geechs Inc.'s market position and long-term sustainability.

Balance Sheet Health

A stable balance sheet with reasonable leverage and a strong equity base provides financial stability and flexibility for future investments and growth opportunities.

Cash Flow Improvement

The positive shift in free cash flow indicates improved cash management and operational efficiency, supporting Geechs Inc.'s ability to fund operations and strategic initiatives.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin could pressure profitability, suggesting potential challenges in cost management or pricing power that may impact long-term financial performance.

Volatile Cash Flow

Historical volatility in cash flow suggests potential risks in cash management, which could affect Geechs Inc.'s ability to consistently fund operations and investments.

Low Operating Cash Flow Ratio

A low operating cash flow ratio indicates that cash generation from operations is not fully aligned with reported earnings, potentially impacting liquidity and financial health.

geechs inc. Business Overview & Revenue Model

Company Description

Geechs Inc. (7060) is a technology-driven company specializing in software development and IT consulting services. Operating primarily in the information technology sector, the company offers a range of products and services that include custom software solutions, cloud computing, and data analytics. Geechs Inc. focuses on delivering innovative technology solutions to businesses across various industries, helping them enhance their operational efficiency and drive digital transformation.

How the Company Makes Money

Geechs Inc. generates revenue through several key streams. Primarily, the company earns money by providing bespoke software development services to clients, which includes project-based work as well as ongoing maintenance and support contracts. Additionally, they monetize their cloud computing platform through subscription fees, offering clients scalable solutions for data storage and processing. Data analytics services also contribute to revenue, providing insights and strategic support for businesses looking to leverage their data assets. Significant partnerships with tech giants and industry leaders enhance their service offerings and expand their market reach, further bolstering their earnings potential.

geechs inc. Financial Statement Overview

Summary

Geechs Inc. shows a strong recovery with improved revenue and profitability metrics. The balance sheet is robust with a solid equity base and manageable debt levels. Cash flow generation has improved, though prior volatility suggests the need for cautious cash management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.71B	25.16B	23.74B	16.00B	5.39B	3.43B
Gross Profit	3.69B	3.57B	4.14B	3.00B	2.78B	2.04B
EBITDA	179.07M	106.71M	-1.21B	528.07M	1.17B	791.02M
Net Income	105.89M	49.80M	-1.47B	244.22M	705.19M	457.75M
Balance Sheet
Total Assets	7.61B	7.37B	7.17B	8.45B	5.87B	6.49B
Cash, Cash Equivalents and Short-Term Investments	3.82B	3.61B	3.75B	3.76B	3.36B	3.15B
Total Debt	2.13B	2.14B	1.65B	1.85B	31.51M	29.82M
Total Liabilities	4.73B	4.50B	4.10B	4.01B	1.40B	2.66B
Stockholders Equity	2.85B	2.84B	2.88B	4.37B	4.47B	3.83B
Cash Flow
Free Cash Flow	0.00	44.25M	-8.63M	680.05M	346.10M	651.44M
Operating Cash Flow	0.00	46.81M	-3.83M	688.04M	369.21M	661.72M
Investing Cash Flow	0.00	-418.94M	317.15M	-1.56B	-68.65M	-48.91M
Financing Cash Flow	0.00	226.95M	-330.21M	1.27B	-91.34M	-22.59M

geechs inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 643.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7060, the sentiment is Negative. The current price of 643 is above the 20-day moving average (MA) of 599.60, above the 50-day MA of 611.38, and above the 200-day MA of 516.12, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7060.

geechs inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4386	78 Outperform	¥5.18B	10.45	―	3.00%	26.64%	30.76%
3839	76 Outperform	¥5.01B	23.33	―	1.64%	7.03%	1.01%
7060	66 Neutral	¥6.21B	27.11	―	3.32%	7.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2493	53 Neutral	¥4.18B	52.59	―	0.53%	17.13%	-41.14%
4260	41 Neutral	¥3.32B	175.47	―	―	-3.52%	-65.26%
2375	40 Underperform	¥4.58B	16.25	―	0.90%	-12.25%	―

geechs inc. Corporate Events

GEECHS Inc. Reports Strong Financial Growth in H1 2025

GEECHS Inc. reported a significant improvement in its financial performance for the six months ending September 30, 2025, with notable increases in net sales and profits compared to the previous year. The company’s strategic initiatives have resulted in a 5.8% rise in net sales and over 100% growth in operating and ordinary profits, indicating a robust operational performance and positive outlook for stakeholders.