GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥136.56B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 51.6
• Beta (1Y): 1.41
• Revenue Growth: 68.78%
• EPS Growth: -45.75%
• Country: JP
• Employees: 1,730
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -1.73
• Shares Outstanding: 186,055,540
• 10 Day Avg. Volume: 1,293,910
• 30 Day Avg. Volume: 2,669,896
• PEG Ratio: -1.07
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 2.03
• P/FCF Ratio: -94.15
• 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: 64 Neutral
• Price Target: ¥792.00 ▲(10.46% Upside)

GENDA Inc.'s overall stock score is primarily influenced by its strong financial performance, despite some concerns over leverage and cash flow management. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation, which impacts the stock's attractiveness.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, which can drive long-term expansion and market leadership.

Operational Efficiency

Consistently positive operating cash flow reflects efficient operations, ensuring the company can sustain its activities and invest in growth opportunities.

Market Position

Being a leading player in the leisure industry provides competitive advantages, allowing for better customer reach and brand recognition, supporting long-term success.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting the company's ability to invest in growth and manage downturns.

Net Profit Margin Decline

A declining net profit margin suggests rising costs, which could pressure profitability and limit the company's ability to reinvest in its operations.

Negative Free Cash Flow

Negative free cash flow indicates potential challenges in funding operations and investments without relying on external financing, which may constrain growth.

GENDA Inc. Business Overview & Revenue Model

Company Description

GENDA Inc., through its subsidiaries, operates amusement arcades primarily under the GiGO brand in Japan. It also engages in the amusement machine leasing, online crane games operation, sales promotions, and character licensing businesses. The company was founded in 2018 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GENDA Inc. generates revenue through multiple streams, primarily from the operation of its game centers, where customers pay to access various gaming machines and attractions. The company earns money through direct sales of gaming credits and tokens, as well as from the sale of food and beverages within its facilities. Additionally, GENDA engages in partnerships with game developers and manufacturers, allowing them to showcase new games and receive a share of the revenue generated from those games. The company may also benefit from advertising and sponsorship deals within its venues, further diversifying its income sources.

GENDA Inc. Financial Statement Overview

Summary

GENDA Inc. demonstrates strong revenue growth and stable profitability margins, though the decline in net profit margin and high leverage pose potential risks. Cash flow management needs improvement due to negative free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	136.23B	111.79B	55.70B	46.09B	38.11B
Gross Profit	32.42B	25.46B	12.96B	10.86B	9.30B
EBITDA	15.35B	14.23B	7.37B	6.19B	5.23B
Net Income	2.21B	3.30B	4.18B	3.49B	2.73B
Balance Sheet
Total Assets	180.05B	114.37B	52.14B	31.03B	26.71B
Cash, Cash Equivalents and Short-Term Investments	26.57B	25.65B	12.38B	7.09B	7.32B
Total Debt	85.26B	51.28B	18.56B	10.87B	11.50B
Total Liabilities	120.97B	78.68B	32.48B	19.80B	18.97B
Stockholders Equity	58.97B	35.48B	19.43B	11.23B	7.71B
Cash Flow
Free Cash Flow	0.00	-2.41B	2.47B	2.46B	1.76B
Operating Cash Flow	0.00	7.89B	7.60B	6.45B	4.69B
Investing Cash Flow	0.00	-20.13B	-10.33B	-5.53B	-3.42B
Financing Cash Flow	0.00	25.65B	7.96B	-1.16B	996.00M

GENDA Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 717.00
• 50DMA: Negative
• 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 717 is above the 20-day moving average (MA) of 679.15, below the 50-day MA of 782.68, and below the 200-day MA of 975.84, indicating a neutral trend. The MACD of -15.64 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 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
7458	72 Outperform	¥164.67B	9.10	―	3.58%	6.12%	-3.75%
9166	64 Neutral	¥136.56B	51.58	―	―	68.78%	-45.75%
6238	64 Neutral	¥28.35B	16.58	―	3.59%	2.20%	2.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4680	61 Neutral	¥283.52B	17.09	―	1.65%	11.92%	33.70%
7731	54 Neutral	$564.37B	46.87	1.29%	2.78%	-3.24%	-65.77%
4343	52 Neutral	¥54.81B	-128.38	―	―	6.00%	-184.09%