GMO Internet (9449) AI Stock Analysis

• Market Cap: $373.06B
• Dividend Yield: 1.57%
• Average Volume (3M): 240.53K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.89
• Revenue Growth: 6.94%
• EPS Growth: -14.06%
• Country: JP
• Employees: 5,495
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 53.08
• Shares Outstanding: 108,273,680
• 10 Day Avg. Volume: 232,950
• 30 Day Avg. Volume: 240,530
• PEG Ratio: 1.00
• Price to Book (P/B): 6.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.63
• 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: $4,199.71
• Price Target Upside: 18.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥3,696.00 ▲(4.41%Upside)

GMO Internet's stock is bolstered by strong financial performance, particularly in revenue growth and cash generation. However, increased leverage and a high P/E ratio raise concerns about valuation and financial stability. Technical indicators show a positive trend, which supports a moderately favorable stock score.

GMO Internet Business Overview & Revenue Model

Company Description

GMO Internet, Inc. (9449) is a leading Japanese technology conglomerate that operates in several sectors including internet infrastructure, online advertising and media, internet finance, and cryptocurrency. The company offers a wide range of products and services such as domain registration, web hosting, internet security solutions, payment gateway services, and digital currency trading platforms. With a strong presence in the technology sector, GMO Internet is committed to driving innovation and providing comprehensive internet-related services to both individual and corporate clients.

How the Company Makes Money

GMO Internet primarily generates revenue through its internet infrastructure segment, which includes domain registration, web hosting, and cloud services. These services are subscription-based, providing a steady stream of recurring revenue. Additionally, the company makes money from its online advertising and media division by offering digital marketing solutions, which include search engine advertising, display advertising, and affiliate marketing. The internet finance sector contributes to the company's earnings through payment processing services and online brokerage services. Furthermore, GMO Internet's cryptocurrency business, which involves the trading and mining of digital currencies, adds another layer to its revenue streams. Strategic partnerships with other technology and financial firms, along with a focus on expanding its global presence, also play a significant role in enhancing the company's profitability.

GMO Internet Financial Statement Overview

Summary

GMO Internet shows strong revenue growth and operational efficiency. However, increased leverage and a declining net profit margin present potential financial risks. The improved cash generation is promising, but concerns about long-term sustainability due to income and cash flow disparity should be monitored.

Income Statement

GMO Internet has shown consistent revenue growth, with a 7.25% increase from 2023 to 2024. The gross profit margin for 2024 is strong at 59.89%, and the EBIT margin stands at 16.81%, indicating effective cost management. However, the net profit margin decreased to 4.82% in 2024 from 5.49% in 2023, suggesting rising expenses or other cost pressures.

Balance Sheet

The company's debt-to-equity ratio increased from 5.73 in 2023 to 6.42 in 2024, indicating higher leverage. However, the return on equity remains strong at 15.48% for 2024, demonstrating effective use of equity to generate profits. The equity ratio decreased slightly to 4.02%, highlighting potential risks in financial stability due to rising liabilities.

Cash Flow

GMO Internet's free cash flow improved significantly from -7,527,000,000 in 2023 to 58,624,000,000 in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 6.34, suggesting efficient cash conversion. However, the free cash flow to net income ratio of 4.39 shows that net income growth is not matching free cash flow growth, which could be a concern for future sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.47B	277.41B	258.64B	245.70B	241.45B	210.56B
Gross Profit	66.76B	166.14B	153.13B	149.89B	128.82B	105.68B
EBITDA	20.39B	61.12B	58.88B	57.41B	50.61B	36.55B
Net Income	9.93B	13.37B	14.19B	39.69B	28.46B	18.67B
Balance Sheet
Total Assets	2.15T	2.15T	1.76T	1.54T	1.42T	1.07T
Cash, Cash Equivalents and Short-Term Investments	975.72B	975.72B	406.71B	353.69B	248.59B	228.36B
Total Debt	554.87B	554.87B	473.57B	391.16B	294.66B	208.38B
Total Liabilities	1.96T	1.96T	1.58T	1.39T	1.28T	970.43B
Stockholders Equity	86.40B	86.40B	82.60B	72.22B	73.60B	50.97B
Cash Flow
Free Cash Flow	-41.90B	58.62B	-7.53B	15.24B	-32.28B	30.79B
Operating Cash Flow	-33.55B	84.73B	14.91B	25.64B	-23.78B	38.28B
Investing Cash Flow	-2.52B	-71.50B	-16.36B	-2.83B	-51.77B	-15.99B
Financing Cash Flow	33.44B	60.78B	64.97B	62.44B	89.89B	37.52B

GMO Internet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3540.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9449, the sentiment is Positive. The current price of 3540 is above the 20-day moving average (MA) of 3531.90, above the 50-day MA of 3505.71, and above the 200-day MA of 2934.76, indicating a bullish trend. The MACD of 17.08 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 34.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9449.

GMO Internet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	76 Outperform	€237.11B	19.35	12.86%	2.54%	8.11%	6.49%
3774	76 Outperform	$508.46B	25.07	14.78%	1.24%	14.76%	0.69%
3776	73 Outperform	¥9.22B	24.16		1.33%	4.70%	35.62%
3842	71 Outperform	¥2.73B	13.26		1.13%	2.78%	21.27%
9449	66 Neutral	$373.06B	28.03	15.57%	1.57%	6.94%	-14.06%
9424	65 Neutral	¥24.72B	29.65		―	24.84%	-38.06%
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%

GMO Internet Corporate Events

GMO Internet Group Announces Progress in Share Buyback Plan

GMO Internet Group, Inc. has announced the repurchase of its own shares as part of a long-term share buyback plan. The company aims to acquire approximately 38.35 million shares, with 88,000 shares already repurchased at a cost of JPY 307,161,100 during June 2025. This move is part of a strategy to enhance shareholder returns and manage capital effectively.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Announces Share Repurchase as Part of Long-Term Buyback Strategy

GMO Internet Group, Inc. announced the repurchase of 166,300 of its common shares at a total cost of JPY 579,636,200 during May 2025, as part of a long-term share buyback plan. This move is part of a broader strategy to acquire up to 4.6 million shares, enhancing shareholder value and adjusting the capital structure following a previous business withdrawal.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Financial Gate Gains Approval for TSE Prime Market Listing

GMO Internet Group announced that its subsidiary, GMO Financial Gate, Inc., has been approved for a listing change to the Tokyo Stock Exchange Prime Market, effective June 5, 2025. This move is seen as a significant step in the company’s growth strategy, aligning with its mission to lead in the cashless payment sector and enhance corporate value, supported by its stakeholders.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Cancels Secondary Offering Amid Market Concerns

GMO Internet Group, Inc. has decided to cancel its planned secondary offering of shares for its subsidiary, GMO Internet, due to unfavorable market conditions and to protect shareholder interests. The company remains committed to meeting the continued listing criteria by the end of 2025, and the cancellation will not impact its financial performance.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Announces Secondary Offering to Meet Listing Criteria

GMO Internet Group, Inc. announced a secondary offering of shares of its subsidiary, GMO Internet, to meet the continued listing criteria of the TSE Prime Market. This move will reduce the company’s ownership in GMO Internet from 98.3% to 64.8%, but the subsidiary will continue to play a central role in the group’s operations. The offering is expected to result in an extraordinary profit in the company’s non-consolidated financial statements, although the impact on consolidated profit or loss will be minimal.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Announces Q1 FY2025 Dividend Payout

GMO Internet Group, Inc. has announced a dividend payout of ¥17.60 per share for the first quarter of FY2025, reflecting a 33.2% payout ratio. This decision aligns with the company’s commitment to returning value to shareholders, aiming to distribute 50% of profits through dividends and treasury stock acquisition, while maintaining flexibility based on business performance and financial conditions.

The most recent analyst rating on (JP:9449) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Reports Mixed Q1 2025 Financial Results

GMO Internet Group reported its first quarter financial results for fiscal year 2025, showing a slight increase in net sales and operating profit, but a decline in ordinary profit and comprehensive income compared to the previous year. The company has not disclosed a forecast for the full year due to the volatility in its business segments, which are influenced by various market conditions. The dividend payout for the first quarter has been set, but future dividends remain undetermined.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Announces Share Repurchase to Enhance Shareholder Value

GMO Internet Group, Inc. has announced the repurchase of its own shares as part of a long-term shareholder returns policy. This move, involving the acquisition of 761,500 shares at a cost of JPY 2.24 billion, is part of a broader plan to repurchase up to 4.6 million shares by February 2026, aiming to enhance shareholder value and adjust capital structure.