GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥147.49B
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 53.0
• Beta (1Y): 1.49
• Revenue Growth: 77.47%
• EPS Growth: -45.82%
• Country: JP
• Employees: 1,730
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Leisure
• EPS (TTM): 3.56
• Shares Outstanding: 183,905,900
• 10 Day Avg. Volume: 2,535,930
• 30 Day Avg. Volume: 2,124,270
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥973.00
• Price Target Upside: 21.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥973.00 ▲(21.93% Upside)

GENDA Inc.'s strong financial performance, characterized by robust revenue growth and profitability, is a key strength. However, high leverage and concerns over cash flow management pose risks. The technical analysis indicates mixed signals with some positive momentum but potential short-term weakness. The high P/E ratio suggests overvaluation, which impacts the overall score.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.79B	111.79B	55.70B	46.09B	38.11B
Gross Profit	25.46B	25.46B	12.96B	10.86B	9.30B
EBITDA	12.66B	14.23B	7.37B	5.45B	5.23B
Net Income	3.30B	3.30B	4.18B	3.49B	2.73B
Balance Sheet
Total Assets	114.37B	114.37B	52.14B	31.03B	26.71B
Cash, Cash Equivalents and Short-Term Investments	25.65B	25.65B	12.38B	7.09B	7.32B
Total Debt	51.28B	51.28B	18.56B	10.87B	11.50B
Total Liabilities	78.68B	78.68B	32.48B	19.80B	18.97B
Stockholders Equity	35.48B	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	8.89B	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	1.02B

GENDA Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 798.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9166, the sentiment is Negative. The current price of 798 is below the 20-day moving average (MA) of 880.35, below the 50-day MA of 888.40, and below the 200-day MA of 1133.67, indicating a bearish trend. The MACD of -28.28 indicates Positive momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of 4.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9166.

GENDA Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9166	65 Neutral	¥147.49B	52.98		―	77.47%	-45.82%
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
NINOF	―	$3.61B	43.31	1.99%	3.00%	―	―
RNDOF	―	$2.71B	25.05	22.21%	1.49%	―	―
7458	80 Outperform	¥179.62B	9.92		3.29%	5.69%	48.81%
6238	78 Outperform	¥30.10B	17.60		3.48%	3.56%	-20.82%
4343	66 Neutral	¥72.20B	107.25		0.13%	6.46%	-208.86%