GMO Internet Inc (JP:9449)
:9449
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GMO Internet
(9449)
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Rating:56Neutral
Price Target:
¥3,204.00
▼(-19.80% Downside)
Action:ReiteratedDate:02/18/26
The score is mainly weighed down by weak technicals (downtrend with negative MACD and price below key moving averages) and balance-sheet risk from very high leverage. Offsetting factors include solid operating performance and improved recent cash generation, plus a reasonable P/E and modest dividend yield.
Positive Factors
Revenue Growth & Operating Margin
Consistent revenue expansion and improving operating margins through 2024–2025 indicate durable demand and growing operating leverage. This enhances the company’s ability to fund investments, absorb cost pressure and sustain operational profitability over the medium term.
Negative Factors
Very High Leverage
Debt-to-equity in the 4.0x–6.4x range materially reduces financial flexibility and raises refinancing risk. Elevated leverage increases interest expense sensitivity and limits ability to pursue strategic investments or absorb shocks without resorting to dilution or higher-cost funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Operating Margin
Consistent revenue expansion and improving operating margins through 2024–2025 indicate durable demand and growing operating leverage. This enhances the company’s ability to fund investments, absorb cost pressure and sustain operational profitability over the medium term.
Read all positive factors
GMO Internet (9449) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥295.69B
Dividend Yield1.36%
Average Volume (3M)196.33K
Price to Earnings (P/E)24.9
Beta (1Y)0.78
Revenue Growth4.75%
EPS Growth17.02%
CountryJP
Employees5,495
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)24.81
Shares Outstanding107,349,120
10 Day Avg. Volume228,850
30 Day Avg. Volume196,330
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)3.93
Price to Sales (P/S)1.40
P/FCF Ratio4.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,300.00Price Target Upside7.63% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)228.76
Revenue Forecast (FY)¥310.00B
GMO Internet Business Overview & Revenue Model
Company Description
GMO Internet, Inc. provides various Internet services worldwide. It operates through Internet Infrastructure, Online Advertising and Media, Internet Finance, and Cryptocurrency segments. It offers Internet infrastructure services in the areas of d...
How the Company Makes Money
GMO Internet generates revenue through multiple streams, primarily from its domain registration and web hosting services, which attract thousands of new customers annually. The company also earns significant income from its cloud services and e-co...
GMO Internet Earnings Call Summary
Earnings Call Date:Aug 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Infrastructure and Crypto Assets segments, and an increase in shareholder returns, but faced significant challenges in the Finance segment, especially due to the provision in the Thai Securities business, and declines in the Advertising and Media segment.Positive Updates
Infrastructure Segment Performance
Net sales in the Infrastructure segment achieved a quarterly high with recurring revenues and operating profit exceeding JPY 9 billion for the third consecutive quarter.
Negative Updates
Decrease in Profit
Despite increased revenue, overall profits decreased due to a provision for doubtful accounts by a Thailand-based securities company.
Read all updates
Q2-2024 Updates
Positive
Negative
Infrastructure Segment Performance
Net sales in the Infrastructure segment achieved a quarterly high with recurring revenues and operating profit exceeding JPY 9 billion for the third consecutive quarter.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for GMO Internet Group, executives Masashi Yasuda and Noriko Inagaki provided detailed guidance, highlighting several metrics. The Infrastructure segment reached a quarterly high in net sales with operating profit exceeding JPY 9 billion for the third consecutive quarter, driven by solid recurring revenues. In contrast, the Finance segment recorded losses due to a JPY 4.5 billion provision for doubtful accounts in the Thai Securities business, prompting the termination of margin trading services there. The crypto assets segment showed profitability for the third consecutive quarter, buoyed by increased trading volume and exchange business revenue. The company is maintaining a total shareholder return ratio of 50%, with a Q2 dividend of JPY 6.9 per share, and announced an increase in the share repurchase limit to JPY 5 billion. Additionally, GMO Internet outlined its 55-year plan aiming for JPY 10 trillion in sales and JPY 1 trillion in profit by 2051, with a focus on embracing AI and robotics as key growth drivers.GMO Internet Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 283.48B | 285.63B | 277.41B | 258.64B | 245.70B | 241.45B |
| Gross Profit | 170.39B | 169.73B | 166.14B | 153.13B | 149.89B | 128.82B |
| EBITDA | 66.54B | 73.65B | 62.96B | 58.88B | 72.28B | 53.73B |
| Net Income | 16.37B | 16.10B | 13.37B | 14.19B | 13.21B | 17.53B |
Balance Sheet | ||||||
| Total Assets | 2.10T | 2.27T | 2.15T | 1.76T | 1.54T | 1.42T |
| Cash, Cash Equivalents and Short-Term Investments | 865.53B | 928.81B | 915.91B | 580.27B | 420.18B | 380.85B |
| Total Debt | 539.78B | 602.27B | 560.44B | 478.90B | 395.99B | 299.00B |
| Total Liabilities | 1.90T | 2.06T | 1.96T | 1.58T | 1.39T | 1.28T |
| Stockholders Equity | 86.54B | 101.76B | 86.40B | 82.60B | 72.22B | 73.60B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 90.31B | 58.62B | -812.00M | 21.32B | -56.87B |
| Operating Cash Flow | 0.00 | 97.42B | 84.73B | 14.91B | 25.64B | -23.78B |
| Investing Cash Flow | 0.00 | -9.85B | -71.39B | -16.31B | -2.48B | -51.49B |
| Financing Cash Flow | 0.00 | 41.65B | 60.67B | 64.92B | 62.10B | 89.62B |
GMO Internet Technical Analysis
Negative
3995.00
Price Trends
3300.39
Negative
3545.45
Negative
3597.10
Negative
Market Momentum
-114.52
Negative
41.53
Neutral
37.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9449, the sentiment is Negative. The current price of 3995 is above the 20-day moving average (MA) of 2863.75, above the 50-day MA of 3300.39, and above the 200-day MA of 3597.10, indicating a bearish trend. The MACD of -114.52 indicates Negative momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 37.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9449.
GMO Internet Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥18.45B | 13.52 | ― | 3.53% | 5.03% | -9.55% | |
66 Neutral | ¥10.23T | 16.09 | 13.75% | 2.85% | 3.34% | 20.36% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥441.56B | 19.63 | 15.67% | 1.31% | 12.48% | 18.38% | |
60 Neutral | ¥10.49T | 19.08 | ― | 3.99% | 7.79% | 5.53% | |
56 Neutral | ¥295.69B | 24.87 | 17.97% | 1.36% | 4.75% | 17.02% | |
56 Neutral | ¥13.42T | 9.80 | 11.22% | 3.36% | 2.10% | -9.29% |
* Communication Services Sector Average
JP:9449
GMO Internet
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GMO Internet Corporate Events
GMO Internet Group Revamps Board With New Independent Audit Director
Feb 16, 2026
GMO Internet Group has proposed a slate of nine directors for approval at its March 19, 2026 annual shareholders’ meeting, maintaining three independent external directors so that they account for at least one-third of the board. The move un...
GMO Internet Group to Broaden Corporate Scope with AI, Cybersecurity and Insurance
Feb 16, 2026
GMO Internet Group plans to amend its Articles of Incorporation to formally expand its corporate purpose beyond traditional internet infrastructure into artificial intelligence, robotics, and cybersecurity. The move reflects management’s vie...
GMO Internet Group Plans TSE Listing for Cybersecurity Arm GMO Cybersecurity by Ierae
Feb 12, 2026
GMO Internet Group’s cybersecurity subsidiary, GMO Cybersecurity by Ierae, has begun preparing for a Tokyo Stock Exchange listing to bolster funding capacity, brand recognition, and social credibility, while remaining a consolidated unit of ...
GMO Internet Deepens AI Push With Turing GPU Cloud Alliance and ¥3.2 Billion Investment
Feb 12, 2026
GMO Internet Group’s subsidiary GMO Internet, Inc., which operates the group’s internet infrastructure and GPU cloud services, has signed a memorandum of understanding with autonomous driving startup Turing Inc. to deepen collaboration...
GMO Internet Group to Adopt IFRS for 2025 Financial Reporting
Feb 12, 2026
GMO Internet Group, Inc. has decided to voluntarily adopt International Financial Reporting Standards for its consolidated financial statements starting with the Annual Securities Report for the fiscal year ending December 31, 2025. The move from ...
GMO Internet Profit Soars Despite Revenue Drop After Shift to Holding Company
Feb 12, 2026
GMO Internet Group reported a sharp year-on-year decline in non-consolidated net sales for the fiscal year ended December 31, 2025, falling 55.4% to ¥29.6 billion, while operating profit surged more than sixfold to ¥18.0 billion and net ...
GMO Internet Group Launches New ¥2.74 Billion Buyback After Completing Treasury Share Cancellation
Feb 12, 2026
GMO Internet Group has completed a previously authorized share buyback and will cancel 924,559 treasury shares, representing 0.85% of its outstanding stock, on March 18, 2026, as part of a long-running capital policy. The company’s cumulativ...
GMO Internet Group Raises Annual Dividend, Reaffirming Aggressive Shareholder Return Policy
Feb 12, 2026
GMO Internet Group’s board has approved a Q4 FY2025 dividend of ¥8.10 per share, with a total payout of ¥811 million sourced from retained earnings and an effective date of March 5, 2026. This brings the fiscal 2025 annual dividend...
GMO Internet Group Lifts Profits and Dividend but Withholds 2026 Outlook
Feb 12, 2026
GMO Internet Group reported a 3.0% rise in consolidated net sales to ¥285.6 billion for fiscal 2025, with operating profit up 22.5% and profit attributable to owners of the parent climbing 20.4%. Profitability improved across key metrics, inc...
GMO Internet Group Prepares Tokyo Listing for Crypto Exchange Unit GMO Coin
Feb 4, 2026
GMO Internet Group announced that its consolidated subsidiary GMO Coin, Inc., a cryptoasset exchange and financial instruments business launched in 2016, has begun preparations for a stock listing on the Tokyo Stock Exchange. GMO Coin has grown in...
GMO Internet Group Completes ¥10 Billion Share Buyback as Part of Long-Term Capital Policy
Feb 3, 2026
GMO Internet Group has completed a share repurchase program authorized under Japan’s Companies Act, buying back 1,260,700 common shares on the Tokyo Stock Exchange between January 1 and February 2, 2026, at a total cost of approximately ...
GMO Internet Group Updates Progress on Large-Scale Share Buyback Program
Jan 7, 2026
GMO Internet Group, Inc. has disclosed the latest status of its ongoing share repurchase program, conducted under a Board-approved resolution based on Article 459-1 of the Japanese Companies Act and its articles of incorporation. In December 2025,...
GMO Internet Group Delays Thai Securities Unit License Surrender to Support Debt Recovery
Dec 24, 2025
GMO Internet Group has announced that its consolidated subsidiary GMO Financial Holdings will delay the planned surrender of the securities business license of its Thai unit, GMO-Z com Securities (Thailand), which operates a securities business in...
GMO Internet Group Secures 60% Stake in Prime Strategy Through Tender Offer
Dec 24, 2025
GMO Internet Group has successfully completed its tender offer for shares of Prime Strategy Co., Ltd., acquiring 2,214,899 shares and bringing its ownership stake to 60%, with settlement set for December 26, 2025. The completion of the tender offe...
GMO Internet Group Announces Share Repurchase as Part of Long-term Buyback Plan
Dec 3, 2025
GMO Internet Group, Inc. announced the repurchase of 342,100 of its own shares for approximately JPY 1.37 billion as part of a long-term share buyback plan. This move is part of a broader strategy to enhance shareholder returns, with a total of up...
GMO Internet Group Announces JPY 10 Billion Treasury Share Buyback
Nov 25, 2025
GMO Internet Group, Inc. has announced a plan to acquire up to JPY 10 billion worth of its own treasury shares as part of its revised Total Shareholder Returns Policy. This move aims to enhance capital efficiency and expand corporate value, with t...
GMO Internet Group Announces Tender Offer for Prime Strategy
Nov 25, 2025
GMO Internet Group, Inc. has announced its decision to acquire shares of Prime Strategy Co., Ltd. through a tender offer, aiming to make it a consolidated subsidiary. This move is part of a capital and business alliance agreement, expected to crea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.