GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥140.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 51.2
• Beta (1Y): 1.39
• Revenue Growth: 62.69%
• EPS Growth: -37.72%
• Country: JP
• Employees: 1,730
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 15.43
• Shares Outstanding: 186,156,740
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥804.00 ▲(19.47% Upside)

The score is led by strong financial performance, particularly revenue growth and stable operating margins, partly offset by leverage risk and negative latest-year free cash flow. Technicals are mixed with improving short-term trend but weaker longer-term trend and a negative MACD. Valuation is the biggest headwind due to the high P/E and lack of dividend yield data.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market demand and effective business strategies, supporting long-term expansion and competitiveness.

Stable Margins

Stable margins suggest effective cost control and pricing strategies, contributing to sustained profitability and financial health.

Healthy Equity Ratio

A strong equity ratio provides financial stability and flexibility, reducing risk from interest rate changes and economic downturns.

Negative Factors

Leverage Risk

High leverage can increase financial risk, especially if interest rates rise or revenue declines, potentially impacting long-term sustainability.

Negative Free Cash Flow

Negative free cash flow suggests potential issues with capital allocation and may limit the company's ability to invest in growth opportunities.

Net Margin Decline

Declining net margins indicate rising costs or pricing pressures, which could affect future profitability if not managed effectively.

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: Positive
• Last Price: 673.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 673 is below the 20-day moving average (MA) of 697.95, below the 50-day MA of 694.50, and below the 200-day MA of 874.95, indicating a neutral trend. The MACD of 12.66 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 99.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥177.34B	12.09	―	3.40%	6.12%	-3.75%
9166	67 Neutral	¥140.73B	51.21	―	―	62.69%	-37.72%
4680	67 Neutral	¥335.86B	20.48	―	1.51%	11.92%	33.70%
6238	64 Neutral	¥29.41B	15.23	―	3.63%	2.20%	2.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7731	56 Neutral	¥558.75B	71.89	1.29%	2.88%	-3.24%	-65.77%
4343	52 Neutral	¥58.97B	42.51	―	―	6.00%	-184.09%