GLOME Holdings,Inc. (8938) AI Stock Analysis

• Market Cap: ¥2.75B
• Dividend Yield: 0.46%
• Average Volume (3M): 8.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• 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: 46 Neutral
• Price Target: ¥298.00 ▼(-17.22% Downside)
• Action: Reiterated Date: 12/27/25
• Date: Action: Reiterated 12/27/25

The score is driven mainly by weak financial performance—especially negative operating/free cash flow and inconsistent operating profitability—combined with a bearish technical trend (price below major moving averages and negative MACD). A strong, low-leverage balance sheet and high dividend yield provide partial support but are not enough to offset the cash flow and momentum concerns.

Positive Factors

Low leverage / strong balance sheet

A very high equity ratio and near-zero debt provide durable financial stability, lowering bankruptcy and refinancing risk. This balance sheet strength gives management optionality to fund capex, weather downturns, or pursue strategic M&A without relying on volatile cash flows or external leverage.

Improving gross profit margin

A materially higher gross margin suggests improved cost control or pricing power in core services, which can sustainably boost operating leverage. If maintained, higher gross margin helps absorb SG&A variability and supports path to consistent operating profitability despite top-line volatility.

Recent revenue growth trend

Reported ~11.5% revenue growth indicates market traction or recovery versus prior troughs. Durable revenue growth, if structural, enables scale benefits, strengthens client relationships and recurring income potential, improving the company’s ability to convert future top-line into margin expansion.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow is a structural red flag: it limits reinvestment, strains dividend sustainability, and forces reliance on the balance sheet or external financing. Over months this constrains growth initiatives and increases vulnerability to shocks.

Negative operating profitability

Negative EBIT shows core operations still fail to generate operating profit, meaning reported margin gains haven't reached the bottom line. This undermines long-term free cash flow conversion and indicates operational issues that must be resolved to achieve sustainable profitability.

Volatile historical revenue trend

A history of large revenue swings reduces predictability of earnings and planning horizon. Persistent volatility makes it harder to allocate capital efficiently, maintain stable margins, and retain clients or talent; it raises execution risk for any multi‑quarter turnaround plan.

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.

How the Company Makes Money

GLOME Holdings generates revenue primarily through its investments in various sectors, with key revenue streams coming from equity stakes in technology firms, rental income from real estate properties, and returns on investments in renewable energy projects. The company may also engage in joint ventures and partnerships with other firms to expand its market reach and enhance profitability. Additionally, GLOME Holdings may earn advisory fees for providing strategic guidance to its portfolio companies, further contributing to its earnings.

GLOME Holdings,Inc. Financial Statement Overview

Summary

Overall financial health is pressured by weak cash generation and inconsistent profitability. Cash flow is the key concern (negative operating cash flow and free cash flow metrics), while the income statement shows volatile revenue and negative EBIT despite some margin improvement. The balance sheet is a clear strength with very low leverage and a high equity ratio, but ROE remains modest.

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: Positive
• RSI: Positive
• STOCH: Positive

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 333.65, below the 50-day MA of 374.56, and below the 200-day MA of 557.89, indicating a bearish trend. The MACD of -22.57 indicates Positive momentum. The RSI at 29.64 is Positive, neither overbought nor oversold. The STOCH value of 16.72 is Positive, 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
3241	76 Outperform	¥6.81B	10.26	―	3.23%	18.41%	54.19%
5533	74 Outperform	¥7.26B	10.46	―	3.61%	9.43%	6.79%
8891	74 Outperform	¥8.04B	5.70	―	2.98%	-0.96%	-7.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3495	60 Neutral	¥6.94B	12.15	―	2.25%	14.92%	39.05%
8938	46 Neutral	¥2.75B	-7.36	―	0.46%	7.33%	-282.83%
8894	39 Underperform	¥7.06B	-0.32	―	―	521.07%	-3637.52%