GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥173.14B
• Dividend Yield: N/A
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 61.7
• Beta (1Y): 1.30
• Revenue Growth: 77.47%
• EPS Growth: -45.82%
• Country: JP
• Employees: 1,730
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Leisure
• EPS (TTM): 3.56
• Shares Outstanding: 183,025,910
• 10 Day Avg. Volume: 2,663,120
• 30 Day Avg. Volume: 2,702,996
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥993.00
• Price Target Upside: 4.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥960.00 ▲(1.48%Upside)

GENDA Inc.'s strong financial performance is offset by high leverage and negative free cash flow concerns. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio and no dividend yield.

GENDA Inc. Business Overview & Revenue Model

Company Description

GENDA Inc. (9166) is a Japan-based company that operates primarily in the entertainment and amusement sectors. The company specializes in the management and operation of amusement facilities, offering a wide range of entertainment services including arcade games, crane games, and other interactive entertainment experiences. GENDA Inc. is committed to delivering innovative and engaging leisure activities to its customers, leveraging its expertise in the amusement industry to provide high-quality entertainment options.

How the Company Makes Money

GENDA Inc. generates revenue primarily through the operation of its amusement facilities. The company earns money by charging customers for playing arcade games, utilizing crane games, and participating in various other interactive entertainment activities available at their venues. Additionally, GENDA Inc. may earn revenue from partnerships with game developers and manufacturers, which can include revenue-sharing agreements for the placement and use of gaming machines. The company's earnings are further supported by its strategic location choices for its amusement centers, high foot traffic areas, and effective marketing strategies to attract and retain customers.

GENDA Inc. Financial Statement Overview

Summary

GENDA Inc. exhibits strong revenue growth and profitability, supported by stable operational performance. The company maintains a healthy equity position, though its high leverage could pose risks in adverse economic conditions. Cash flow management needs attention, especially concerning capital expenditures, to ensure sustainable financial health.

Income Statement

GENDA Inc. has shown robust growth in its revenue, with a significant increase from previous years, indicating strong market demand. The gross profit margin and EBIT margin have been stable, reflecting efficient cost management. However, the net profit margin has seen a decline in the latest year due to increased expenses, which could indicate potential pressure on profitability.

Balance Sheet

The balance sheet shows a healthy equity ratio, suggesting that the company is not overly reliant on debt for its operations. However, the debt-to-equity ratio indicates a substantial amount of leverage, which could pose a risk if interest rates rise or if there is a downturn in revenue. The return on equity remains strong, showcasing effective use of shareholder funds.

Cash Flow

The operating cash flow is consistently positive, which is a positive sign of operational efficiency. However, the negative free cash flow in the latest year raises concerns regarding the company's capital expenditures and investment strategy. The operating cash flow to net income ratio suggests that the company is generating sufficient cash from its operations relative to its net income.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

GENDA Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 946.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9166, the sentiment is Neutral. The current price of 946 is above the 20-day moving average (MA) of 876.80, above the 50-day MA of 891.70, and below the 200-day MA of 1194.32, indicating a neutral trend. The MACD of 15.10 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9166.

GENDA Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6238	78 Outperform	¥29.55B	17.56		3.61%	3.59%	-34.72%
4680	73 Outperform	$442.89B	26.76	22.21%	1.07%	11.92%	33.70%
7458	72 Outperform	¥175.69B	9.31		3.57%	4.28%	47.52%
Sector *	67 Neutral	¥265.88B	13.58	6.45%	2.57%	5.21%	-11.92%
4343	66 Neutral	¥70.91B	107.25		0.14%	6.46%	-208.86%
9166	63 Neutral	¥173.14B	61.75		―	77.47%	-45.82%
7731	59 Neutral	$462.47B	82.83	0.91%	3.38%	-0.27%	-81.19%