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: 39 Underperform
• Price Target: ¥301.00 ▼(-2.27% Downside)

The overall stock score is low due to significant financial challenges, including declining revenues, high leverage, and liquidity issues. Technical indicators suggest a bearish trend, and valuation metrics are poor with a negative P/E ratio and no dividend yield.

GFA Co., Ltd. Business Overview & Revenue Model

Company Description

GFA Co., Ltd. (8783) is a Japanese company primarily engaged in the development and operation of mobile games and online entertainment services. The company operates in the gaming sector, focusing on creating engaging and innovative gaming experiences across various platforms, including smartphones and PCs. GFA Co., Ltd. is known for its strong portfolio of mobile games that appeal to a wide audience, leveraging cutting-edge technology and creative designs to attract players.

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. High leverage poses financial risk, and cash flow metrics indicate serious liquidity issues.

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	612.42M	34.16M
EBITDA	-1.48B	-2.03B	-1.88B	-1.87B	-632.13M	-1.38B
Net Income	-1.67B	-2.14B	-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: 308.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 308 is below the 20-day moving average (MA) of 314.05, below the 50-day MA of 351.60, and below the 200-day MA of 386.55, indicating a bearish trend. The MACD of -8.49 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.54 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	―	1.89%	-40.77%	-91.81%
3454	69 Neutral	¥16.86B	10.71	―	5.53%	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	―	2.56%	11.20%	-93.41%
8518	46 Neutral	€5.04B	65.75	1.20%	―	7.47%	―
2134	46 Neutral	¥23.00B	-11.91	―	―	59.21%	3.41%
8783	39 Underperform	¥10.42B	-1.73	―	―	-17.04%	46.36%