GLOME Holdings,Inc. (8938) AI Stock Analysis

• Market Cap: ¥2.81B
• Dividend Yield: 0.46%
• Average Volume (3M): 8.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 7.33%
• EPS Growth: -282.83%
• Country: JP
• Employees: 72
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -3.65
• Shares Outstanding: 9,051,000
• 10 Day Avg. Volume: 11,970
• 30 Day Avg. Volume: 8,783
• PEG Ratio: -0.63
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 2.92
• P/FCF Ratio: -14.60
• 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: 45 Neutral
• Price Target: ¥303.00 ▼(-15.83% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held down primarily by weak cash flow and inconsistent profitability despite a very strong, low-leverage balance sheet. Technicals add pressure as the stock trades below major moving averages, and valuation is difficult to support due to a negative P/E and no dividend yield data.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a 90.6% equity ratio provide durable financial resilience. This reduces interest burden, preserves borrowing capacity, and gives management flexibility to fund projects, withstand downturns, or pursue strategic investments without jeopardizing solvency.

Improving Gross Margin

A 46% gross margin improvement points to stronger pricing power or better cost controls in core operations. Sustained higher gross margins create a structural buffer against revenue variability and provide scope to invest in sales or product improvements while supporting long-term profitability.

Top-line Growth Capacity

Reported ~11.5% revenue growth indicates the company can expand sales despite volatility. Durable top-line growth supports scale benefits, helps absorb fixed costs, and is a prerequisite for sustained margin recovery and reinvestment into the business over the next several quarters.

Negative Factors

Weak Cash Generation

Persistent negative operating and free cash flow undermines internal funding for capex, working capital, and strategic initiatives. Over months this forces reliance on external financing or asset sales, constrains reinvestment, and increases execution risk for any growth or margin improvement plans.

Volatile Operating Performance

Large swings in revenue and inconsistent net income point to operational or demand instability. Such volatility complicates long-range planning, weakens economies of scale, and raises the likelihood that short-term progress in margins or growth will reverse, impairing predictable value creation.

Low Return on Equity

A sub-1% ROE despite a very strong equity base signals poor capital efficiency and weak profit conversion. Over the medium term this limits shareholder returns and suggests management must improve asset utilization or restructure operations to justify the capital employed.

GLOME Holdings,Inc. Business Overview & Revenue Model

Company Description

GLOME Holdings,Inc., together with its subsidiaries, engages in the medical-related and real estate businesses in Japan and internationally. It operates medical institutions; hospitals, including nursing care hospitals and facilities; elderly care and health care facilities; and clinics. The company also provides information related to health care, medical care, and welfare, as well as gold loans. In addition, it is involved in personnel and affairs center training; economic management; operational guidance; and informed career introduction activities. Further, the company provides support in medicine and medical equipment purchases, inventory management, food business, information technology, real estate facility management, establishing personnel system, and formulation of regulations. Additionally, it advises and provides guidance for business undertakings such as medical corporations, as well as leases commercial facilities. The company was formerly known as LC Holdings, Inc. and changed its name to GLOME Holdings,Inc. in October 2019. GLOME Holdings,Inc. was incorporated in 1987 and is headquartered in Tokyo, Japan.

GLOME Holdings,Inc. Financial Statement Overview

Summary

Balance sheet strength (equity ratio 90.6% and very low leverage) supports stability, but weak operating performance and cash generation dominate: volatile revenue, negative EBIT, and negative operating/free cash flow with a negative FCF-to-net income relationship.

Income Statement

The company shows a volatile revenue trend with a significant drop from 2020 to 2025. Gross profit margin improved to 46% in 2025, but negative EBIT and fluctuating net income indicate operational challenges. The net profit margin improved to 3.3% in 2025, but overall profitability remains inconsistent.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 90.6% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.007, reflecting minimal leverage. However, the return on equity is modest at 0.87%, suggesting limited efficiency in generating profits from equity.

Cash Flow

The cash flow situation is concerning with negative free cash flow growth and operating cash flow. The free cash flow to net income ratio is negative, highlighting cash generation issues. The operating cash flow to net income ratio is also negative, indicating cash flow challenges despite net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.83B	2.04B	1.24B	1.80B	2.47B	3.90B
Gross Profit	795.00M	972.00M	864.00M	1.17B	1.56B	1.31B
EBITDA	136.00M	29.00M	-111.00M	171.00M	457.00M	484.00M
Net Income	-445.00M	70.00M	-198.00M	348.00M	208.00M	-255.00M
Balance Sheet
Total Assets	8.02B	8.64B	8.36B	8.43B	8.90B	8.30B
Cash, Cash Equivalents and Short-Term Investments	2.25B	2.19B	2.77B	2.96B	1.85B	2.10B
Total Debt	51.00M	55.00M	743.00M	711.00M	310.00M	586.00M
Total Liabilities	630.00M	807.00M	594.00M	427.00M	1.25B	962.00M
Stockholders Equity	7.39B	7.83B	7.77B	8.01B	7.66B	7.35B
Cash Flow
Free Cash Flow	0.00	-409.00M	-217.00M	729.00M	188.00M	2.67B
Operating Cash Flow	0.00	-260.00M	-187.00M	755.00M	196.00M	2.69B
Investing Cash Flow	0.00	-366.00M	38.00M	769.00M	-172.00M	695.00M
Financing Cash Flow	0.00	43.00M	-45.00M	-364.00M	-276.00M	-2.23B

GLOME Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 360.00
• 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:8938, the sentiment is Negative. The current price of 360 is above the 20-day moving average (MA) of 320.90, above the 50-day MA of 347.24, and below the 200-day MA of 528.67, indicating a bearish trend. The MACD of 2.47 indicates Negative momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8938.

GLOME Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8996	67 Neutral	¥4.02B	5.42	―	0.50%	12.29%	139.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9423	63 Neutral	¥2.67B	14.58	―	2.43%	11.80%	-41.76%
8944	60 Neutral	¥4.78B	-4.30	―	2.51%	86.49%	83.40%
2991	59 Neutral	¥13.53B	6.93	―	1.47%	20.82%	9.86%
4487	57 Neutral	¥3.58B	16.48	―	―	27.19%	―
8938	45 Neutral	¥2.81B	-26.88	―	0.46%	7.33%	-282.83%