GENDA Inc. (9166) AI Stock Analysis

• Market Cap: ¥113.40B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.28
• Revenue Growth: 62.69%
• EPS Growth: -37.72%
• Country: JP
• Employees: 1,730
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 187,756,580
• 10 Day Avg. Volume: 1,293,910
• 30 Day Avg. Volume: 2,669,896
• PEG Ratio: -3.56
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -9.18
• 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: 53 Neutral
• Price Target: ¥670.00 ▼(-0.45% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily held back by balance-sheet and cash-flow risk (rising debt and sustained negative free cash flow) despite strong revenue growth. Technicals add caution with a weak medium/long-term trend and negative MACD, while valuation is roughly neutral with a moderate P/E and no dividend data.

Positive Factors

Accelerating revenue growth

Sustained high top-line expansion across multiple years signals robust demand and successful scaling of the business model. Durable revenue momentum increases optionality to invest in distribution, product improvement, and margin recovery while supporting longer-term market share gains.

Improving operating cash flow

Rising operating cash flow shows core operations generating more cash, indicating improving cash conversion from revenue. This strengthens the company's ability to fund growth internally over time or reduce reliance on external financing if negative free cash flow is addressed.

Expanded scale and capital base

Marked growth in asset base and equity reflects successful capital raising and scaling investments, enabling broader operational footprint. A larger asset and equity base can support new initiatives, increase competitive barriers, and provide flexibility for structural expansion over the medium term.

Negative Factors

Sharp increase in debt

Rapidly rising leverage materially increases financial risk and reduces flexibility. Higher debt amplifies sensitivity to profit volatility and interest-rate swings, constrains strategic choices, and raises refinancing and covenant risk over the coming months if earnings or cash flows falter.

Sustained negative free cash flow

Persistent negative free cash flow despite rising operating cash suggests reinvestment or working-capital demands outpacing internal funding. Structural negative FCF increases reliance on external financing, limiting capacity to deleverage or fund returns and raising execution risk.

Margin compression and weaker profitability

Material margin deterioration and declining operating profit despite revenue growth indicate rising costs or integration drag. Sustained lower margins reduce earnings quality and cash available for debt service, making profitability recovery essential for long-term financial health.

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.

GENDA Inc. Financial Statement Overview

Summary

Strong and accelerating revenue growth is a clear positive, but it is offset by material margin compression, sharply rising leverage, and a shift to sustained negative free cash flow (2025–2026) alongside increasing debt—raising funding and execution risk.

Income Statement

Revenue growth is strong and accelerating (2024: ~21%, 2025: ~101%, 2026: ~25%), signaling solid demand and scaling. Profitability, however, is trending weaker: net income rose modestly (2024: ¥4.18B to 2026: ¥3.66B) while margins compressed materially (net margin fell from ~7.5% in 2024 to ~3.0% in 2025; 2026 margin not provided). Operating profit also softened in 2026 versus 2025 (EBIT down despite higher revenue), implying higher costs or integration/expansion drag.

Balance Sheet

The balance sheet expanded rapidly (assets: ¥52.1B in 2024 to ¥222.2B in 2026), but leverage rose sharply: total debt increased from ¥18.6B (2024) to ¥106.2B (2026). While equity also increased (¥19.4B to ¥65.1B), the pace of debt growth is a clear risk factor and reduces financial flexibility. Earlier periods showed healthy returns on equity (2023–2025 provided), but the step-up in leverage into 2026 increases sensitivity to earnings volatility and funding conditions.

Cash Flow

Operating cash flow improved (¥7.60B in 2024 to ¥13.47B in 2026), but free cash flow turned and stayed negative (2025: -¥2.41B; 2026: -¥12.96B) after being positive in 2022–2024. This suggests heavy reinvestment/capex or working-capital demands that are outpacing internally generated cash. With free cash flow negative while debt is rising, the business appears more reliant on external financing to fund growth.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	136.23B	170.79B	111.79B	55.70B	46.09B	38.11B
Gross Profit	32.42B	39.27B	25.46B	12.96B	10.86B	9.30B
EBITDA	15.35B	21.10B	14.23B	7.37B	6.19B	5.23B
Net Income	2.21B	3.66B	3.30B	4.18B	3.49B	2.73B
Balance Sheet
Total Assets	180.05B	222.21B	114.37B	52.81B	31.45B	27.10B
Cash, Cash Equivalents and Short-Term Investments	26.57B	32.47B	25.65B	12.38B	7.09B	7.32B
Total Debt	85.26B	106.22B	51.28B	18.56B	11.09B	11.54B
Total Liabilities	120.97B	157.03B	78.67B	33.15B	20.21B	19.36B
Stockholders Equity	58.98B	65.06B	35.48B	19.43B	11.23B	7.71B
Cash Flow
Free Cash Flow	0.00	-12.96B	-3.41B	2.88B	2.75B	2.05B
Operating Cash Flow	0.00	13.47B	7.89B	7.60B	6.45B	4.69B
Investing Cash Flow	0.00	-71.64B	-19.73B	-10.33B	-5.52B	-3.42B
Financing Cash Flow	0.00	64.96B	25.24B	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 627.05, below the 50-day MA of 684.72, and below the 200-day MA of 780.19, indicating a bearish trend. The MACD of -11.64 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 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	¥173.08B	12.35	―	3.40%	6.12%	-3.75%
4680	67 Neutral	¥247.55B	29.55	―	1.51%	11.92%	33.70%
7832	62 Neutral	¥2.71T	18.69	15.67%	1.94%	9.86%	-1.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4661	59 Neutral	¥4.47T	23.18	12.54%	0.48%	10.59%	13.93%
9166	53 Neutral	¥113.40B	32.53	―	―	62.69%	-37.72%
4343	52 Neutral	¥47.52B	49.41	―	―	6.00%	-184.09%