GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥118.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.44
• 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: 187,756,580
• 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): 49.2
• Revenue Forecast (FY): ¥145.60B

• Rating: 67 Neutral
• Price Target: ¥638.00 ▼(-5.20% Downside)
• Action: Reiterated Date: 12/26/25
• Date: Action: Reiterated 12/26/25

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

Robust revenue growth

GENDA's very strong revenue growth indicates durable demand expansion and successful market execution. Sustained top-line momentum supports reinvestment in operations, product offerings and capacity, improving long-term scale economics and giving management scope to fund growth initiatives without relying solely on valuation-dependent financing.

Stable gross and EBIT margins

Stable gross and EBIT margins show the company can maintain profitability at the operational level despite growth. This suggests effective cost controls and pricing power in core leisure businesses, supporting margin sustainability as revenues scale and protecting operating earnings from moderate cost inflation over the next several quarters.

Healthy equity ratio and strong ROE

A healthy equity base and strong ROE reflect efficient capital deployment and lower dependency on external equity dilution. This combination supports resilience in capital structure, enables strategic investments or M&A, and provides longer-term shareholder value potential provided leverage is managed prudently.

Negative Factors

Negative free cash flow in latest year

Negative free cash flow despite positive operating cash flow signals heavy capex or other cash investments that outstrip operating cash generation. Persisting FCF deficits can strain liquidity, force external financing, limit buybacks/dividends, and raise execution risk if investment projects fail to deliver expected returns.

Substantial leverage / debt-to-equity risk

A meaningful debt load increases interest and refinancing exposure, reducing financial flexibility. In a rising-rate environment or revenue slowdown this leverage amplifies downside risk, can pressure margins via higher interest expense, and may constrain strategic choices like capital allocation or opportunistic M&A.

Declining net profit margin

A falling net margin despite stable gross/EBIT suggests rising non-operating costs or higher SG&A relative to sales. If persistent, this trend erodes shareholder returns and free cash flow, requiring cost control or pricing action to restore end-to-end profitability and sustain long-term investment capacity.

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

Income statement strength (score 85) is driven by robust revenue growth and stable gross/EBIT margins, but the latest-year net margin decline signals profitability pressure. Balance sheet is solid (score 78) with a healthy equity ratio and strong ROE, though leverage is a meaningful risk. Cash flow is the main drag (score 72) due to negative free cash flow in the latest year despite positive operating 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	Jan 2025	Jan 2024	Jan 2023	Jan 2022
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: Negative
• Last Price: 673.00
• 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 673 is above the 20-day moving average (MA) of 647.60, below the 50-day MA of 700.98, and below the 200-day MA of 805.55, indicating a bearish trend. The MACD of -33.90 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 8.47 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
7458	72 Outperform	¥180.30B	12.61	―	3.40%	6.12%	-3.75%
9166	67 Neutral	¥118.10B	41.14	―	―	62.69%	-37.72%
4680	67 Neutral	¥310.56B	18.72	―	1.51%	11.92%	33.70%
6238	64 Neutral	¥34.42B	15.91	―	3.63%	2.20%	2.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4343	52 Neutral	¥51.97B	37.49	―	―	6.00%	-184.09%
7731	48 Neutral	$624.23B	-7.53	1.29%	2.88%	-3.24%	-65.77%