GFA Co., Ltd. (8783) AI Stock Analysis

• Market Cap: ¥10.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -17.04%
• EPS Growth: 46.36%
• Country: JP
• Employees: 88
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 18.20
• Shares Outstanding: 34,188,720
• 10 Day Avg. Volume: 637,200
• 30 Day Avg. Volume: 1,606,993
• PEG Ratio: 0.05
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -2.59
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ¥263.00 ▲(1.15% Upside)

The overall stock score is primarily influenced by the company's poor financial performance and valuation metrics. The technical analysis also indicates bearish momentum, contributing to the low score. The lack of earnings call data and corporate events did not impact the score calculation.

Positive Factors

Equity Ratio Improvement

An improving equity ratio suggests a strengthening balance sheet, which can enhance financial stability and provide a buffer against future financial challenges.

Freemium Model Success

The freemium model allows for broad user acquisition and monetization through in-game purchases, which can drive revenue growth and enhance user engagement over time.

Strategic Collaborations

Collaborations with technology providers can enhance game development processes, leading to improved product offerings and competitive advantage in the gaming industry.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share or product appeal, which can impact long-term growth and profitability.

Negative Cash Flows

Persistent negative cash flows can strain liquidity and limit the company's ability to invest in growth opportunities or weather economic downturns.

High Leverage Risk

High leverage increases financial risk, potentially leading to higher interest costs and reduced financial flexibility, impacting long-term sustainability.

GFA Co., Ltd. Business Overview & Revenue Model

Company Description

GFA Co., Ltd. provides various financial services in Japan. It offers financial advisory services, including financial arrangement; mergers and acquisitions (M&A) services in the areas of acquisitions, sales, mergers, joint ventures, strategic capital, business alliances, etc. for domestic and overseas companies; and invests in owning and developing of real estate properties. The company also raises working capital for various needs, as well as for real estate purchases; and provides consulting services. In addition, it engages in real estate rental; real estate buying, selling, and brokerage; real estate secured loans; real estate resale business; welfare support business; and META CAMELOT, a metaverse type nightclub. The company was formerly known as Ground Financial Advisory Co., Ltd. and changed its name to GFA Co., Ltd. in July 2012. GFA Co., Ltd. was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GFA Co., Ltd. generates revenue primarily through in-game purchases and advertising within its mobile games. The company utilizes a freemium model, where users can download and play games for free but are encouraged to make purchases for additional features, in-game currency, or exclusive content. Additionally, GFA Co., Ltd. earns money through partnerships with other gaming companies and content creators, enabling cross-promotional opportunities that enhance user engagement and monetization. The company also benefits from strategic collaborations with technology providers to improve its game development processes, further contributing to its revenue streams.

GFA Co., Ltd. Financial Statement Overview

Summary

The company is facing significant financial challenges, with declining revenues and persistent losses affecting profitability. The balance sheet shows high leverage, posing financial risk, although there is a slight improvement in equity. Cash flow metrics indicate serious liquidity issues, with negative free cash flow and operating cash flow.

Income Statement

The company has experienced declining revenues over the past year, with a notable drop in total revenue from 2024 to 2025. Both gross and net profit margins are negative, indicating poor profitability. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies.

Balance Sheet

While the equity ratio is improving due to increased stockholders' equity, the company's debt-to-equity ratio remains high, indicating leverage risk. The return on equity is negative due to consistent losses, but there is some improvement in the equity position, suggesting potential stabilization.

Cash Flow

The company continues to struggle with negative operating and free cash flows, indicating cash flow issues. The operating cash flow to net income ratio shows cash flow challenges in relation to net losses, and free cash flow is negative, reflecting ongoing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.86B	3.31B	4.17B	2.35B	1.20B	2.65B
Gross Profit	2.32B	1.69B	1.93B	957.83M	612.41M	34.16M
EBITDA	-1.48B	-3.32B	-2.02B	-2.03B	-1.09B	-1.38B
Net Income	-1.67B	-4.41B	-2.46B	-2.25B	-1.16B	-1.69B
Balance Sheet
Total Assets	9.59B	8.43B	4.51B	5.68B	1.48B	1.46B
Cash, Cash Equivalents and Short-Term Investments	357.75M	379.95M	554.35M	1.14B	424.46M	529.24M
Total Debt	3.41B	2.56B	3.49B	3.22B	831.36M	1.09B
Total Liabilities	5.65B	3.36B	4.33B	4.37B	1.03B	1.39B
Stockholders Equity	3.90B	5.03B	171.79M	1.31B	449.34M	63.32M
Cash Flow
Free Cash Flow	0.00	-2.56B	-1.59B	-3.40B	-1.19B	-117.72M
Operating Cash Flow	0.00	-2.56B	-1.47B	-3.31B	-965.21M	-167.47M
Investing Cash Flow	0.00	-3.43B	-625.09M	-895.79M	-235.96M	-205.92M
Financing Cash Flow	0.00	5.94B	1.51B	4.83B	1.19B	178.25M

GFA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 260.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8783, the sentiment is Negative. The current price of 260 is below the 20-day moving average (MA) of 292.35, below the 50-day MA of 310.96, and below the 200-day MA of 365.02, indicating a bearish trend. The MACD of -11.82 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8783.

GFA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3772	69 Neutral	¥21.08B	13.50	―	1.87%	-40.77%	-91.81%
3454	69 Neutral	¥16.72B	10.62	―	3.03%	36.31%	52.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.49B	239.29	―	2.53%	1.35%	-91.61%
8518	46 Neutral	€5.04B	65.75	4.15%	―	-6.60%	―
2134	41 Neutral	¥23.00B	-11.91	―	―	-21.88%	17.12%
8783	40 Underperform	¥10.42B	-1.73	―	―	-17.04%	46.36%