GMO Internet (9449) AI Stock Analysis

• Market Cap: $413.00B
• Dividend Yield: 1.5%
• Average Volume (3M): 196.33K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.93
• Revenue Growth: 4.75%
• EPS Growth: 17.02%
• Country: JP
• Employees: 5,495
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 28.76
• Shares Outstanding: 108,273,680
• 10 Day Avg. Volume: 228,850
• 30 Day Avg. Volume: 196,330
• PEG Ratio: -4.22
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 4.90
• Enterprise Value/Market Cap: 0.08
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.19
• Enterprise Value/Ebitda: 0.48
• 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: 66 Neutral
• Price Target: ¥4,339.00 ▲(10.41% Upside)

GMO Internet's stock score is driven by strong financial performance and bullish technical indicators. However, increased leverage and potential overvaluation are concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and profitability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling investments in growth opportunities and reducing reliance on external financing.

Operational Efficiency

High margins reflect effective cost management and operational efficiency, contributing to sustained profitability and competitive advantage.

Negative Factors

Rising Leverage

Increased leverage can heighten financial risk, potentially limiting the company's ability to invest in growth and affecting financial stability.

Net Profit Margin Decline

A declining net profit margin suggests rising expenses or cost pressures, which could impact future profitability and financial health.

Equity Ratio Decline

A lower equity ratio indicates increased liabilities relative to equity, which could pose risks to financial stability and limit growth potential.

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 domain, hosting, cloud, security, payments, e-commerce support, connection, Website creation support, marketing support, community, contents, app, and IoT. The company also provides online advertising and media services, such as media services, search, ad tech services, mobile marketing, O2O, and coupon/point services; and Internet financial services, including Internet securities, and FX and other trading services. In addition, it engages in cryptocurrency trading and mining business; and mobile, online, and other games. The company was incorporated in 1976 and is headquartered in Tokyo, Japan.

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-commerce solutions, which cater to businesses looking to enhance their online operations. Additionally, revenue is derived from its online advertising services and financial technology offerings, including cryptocurrency exchanges. Strategic partnerships with other tech firms and collaborations in the digital finance space also contribute to its earnings, while the company's focus on innovation and expansion into new markets supports its overall financial growth.

GMO Internet Financial Statement Overview

Summary

GMO Internet shows solid revenue growth and operational efficiency, but increased leverage and concerns about long-term cash flow sustainability present financial risks.

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	283.48B	277.41B	258.64B	245.70B	241.45B	210.56B
Gross Profit	169.17B	166.14B	153.13B	149.89B	128.82B	105.68B
EBITDA	68.81B	62.83B	55.74B	72.25B	50.61B	38.97B
Net Income	16.37B	13.37B	14.19B	13.21B	17.53B	10.28B
Balance Sheet
Total Assets	2.10T	2.15T	1.76T	1.54T	1.42T	1.07T
Cash, Cash Equivalents and Short-Term Investments	865.53B	975.72B	905.44B	353.69B	248.59B	281.24B
Total Debt	539.78B	554.87B	473.57B	391.16B	294.66B	208.38B
Total Liabilities	1.90T	1.96T	1.58T	1.39T	1.28T	970.43B
Stockholders Equity	86.54B	86.40B	82.60B	72.22B	73.60B	50.97B
Cash Flow
Free Cash Flow	0.00	58.62B	-7.53B	15.24B	-32.28B	30.79B
Operating Cash Flow	0.00	84.73B	14.91B	25.64B	-23.78B	38.28B
Investing Cash Flow	0.00	-71.50B	-16.36B	-2.83B	-51.77B	-15.99B
Financing Cash Flow	0.00	60.78B	64.97B	62.44B	89.89B	37.52B

GMO Internet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3930.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3930 is above the 20-day moving average (MA) of 3579.55, above the 50-day MA of 3560.69, and above the 200-day MA of 3456.98, indicating a bullish trend. The MACD of 114.62 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 86.30 is Negative, 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
3774	76 Outperform	$489.14B	23.55	15.67%	1.27%	12.48%	18.38%
9436	76 Outperform	€241.55B	25.29	13.42%	2.41%	5.10%	12.48%
3842	70 Outperform	¥3.21B	11.58	―	0.76%	11.10%	16.84%
3776	66 Neutral	¥11.06B	26.24	―	1.12%	17.19%	-43.91%
9449	66 Neutral	$413.00B	24.31	17.97%	1.50%	4.75%	17.02%
9424	63 Neutral	¥24.02B	22.84	―	―	30.15%	31.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

GMO Internet Corporate Events

GMO Internet Group Sells Shares to Meet Listing Criteria and Enhance Value

GMO Internet Group, Inc. has partially sold shares of its subsidiary, GMO Internet, to comply with listing criteria on the TSE Prime Market, expecting to record an extraordinary profit of approximately ¥7.2 billion. This move is aimed at improving the tradable share ratio, enhancing liquidity, and sustaining corporate value, with minimal impact on consolidated profit or loss, while continuing efforts to strengthen investor relations and meet compliance deadlines.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Corrects Dividend Income Classification

GMO Internet Group, Inc. has issued a correction regarding the classification of dividend income from its consolidated subsidiary. The correction changes the classification of the dividend income from non-operating income to net sales in its non-consolidated financial results for the fiscal year ending December 31, 2025, without impacting the consolidated business performance.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Transfers Forex Subsidiary to Focus on Growth

GMO Internet Group, Inc. announced that its subsidiary, GMO Financial Holdings, Inc., has decided to transfer all shares of GMO-Z.com Forex HK Limited to Remi Holding Group Limited. This move aligns with GMO-FH’s strategy to strengthen its earnings base and focus on areas with growth potential, thereby enhancing its operational strengths and supporting sustainable growth.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group to Receive Subsidiary Dividend

GMO Internet Group, Inc. announced it will receive a dividend of JPY 5,740 million from its subsidiary, GMO AD Holdings, Inc. This dividend will be recorded as non-operating income in the company’s financial results for the fiscal year ending December 31, 2025, without affecting its consolidated business performance.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Completes Share Repurchase Program

GMO Internet Group, Inc. has completed a share repurchase program, acquiring 78,000 of its common shares at a total cost of JPY 305,127,100. This move is part of a long-term strategy to enhance shareholder returns, as outlined in a previous policy revision, and aims to repurchase up to 4.40% of outstanding shares by February 2026.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 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 Plan

GMO Internet Group, Inc. has announced the repurchase of its own shares as part of a long-term share buyback plan aimed at enhancing shareholder returns. The company repurchased 190,100 shares at a total cost of JPY 740,837,800 in August 2025, with plans to continue acquiring up to 4.6 million shares by February 2026, reflecting a strategic move to optimize capital structure and potentially increase shareholder value.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 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 Listing of GMO TECH Holdings

GMO Internet Group, Inc. announced the approval of the listing of GMO TECH Holdings, Inc. on the Tokyo Stock Exchange Growth Market through a joint stock transfer. This strategic move involves the integration of its subsidiaries, GMO TECH Co., Ltd. and Design One Japan Corporation, into a new holding company, which will enhance operational synergies and market presence. The listing is part of GMO’s broader strategy to maximize group synergies and enhance corporate value, although the impact on consolidated business performance is expected to be minimal.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Commerce to Debut on Tokyo Stock Exchange’s Growth Market

GMO Internet Group announced the approval of GMO Commerce’s listing on the Tokyo Stock Exchange’s Growth Market, scheduled for September 25, 2025. This move aims to enhance GMO Commerce’s role as a leading marketing platform provider by leveraging AI technology and expanding its customer base, ultimately contributing to the growth and corporate value of both GMO Commerce and GMO Internet Group.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen4215.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

GMO Internet Group Revamps Shareholder Incentive Program with Bitcoin Offering

GMO Internet Group, Inc. has announced a change to its shareholder incentive program, effective from June 30, 2025. The new program replaces the previous cashback incentive with a Bitcoin grant, reflecting the company’s adaptation to the recent elimination of stock trading fees by GMO CLICK Securities. This shift highlights GMO’s commitment to offering fair returns to shareholders through innovative financial solutions.

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 Boosts Dividend Payout to Enhance Shareholder Value

GMO Internet Group, Inc. has announced a significant increase in its quarterly dividend payout to ¥16.8 per share, reflecting a 33.1% payout ratio. This move underscores the company’s commitment to shareholder value, aiming to return 50% of profits to shareholders while maintaining financial flexibility for future growth.

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 Strong Q2 2025 Financial Results Amid Market Uncertainty

GMO Internet Group reported its consolidated financial results for the second quarter of fiscal year 2025, showing a 4.4% increase in net sales and a significant 38.7% rise in profit attributable to owners of the parent compared to the previous year. Despite these positive results, the company has not disclosed a forecast for the full year due to the volatile nature of its business sectors, and it plans to announce dividend forecasts when available.

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 Strategic Share Repurchase Plan

GMO Internet Group, Inc. has announced the repurchase of its own shares as part of a long-term share buyback plan. This move is part of a strategy to enhance shareholder returns and involves acquiring up to 4.6 million shares, representing 4.40% of outstanding shares, with a total acquisition cost of up to JPY 10 billion. As of July 31, 2025, the company has repurchased 2,929,900 shares at a cost of JPY 8.95 billion. This strategic move is expected to strengthen the company’s market position and provide value to 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 Group Sells Subsidiary Shares to Enhance Market Compliance and Corporate Value

GMO Internet Group, Inc. has partially sold shares of its subsidiary, GMO Internet, Inc., to comply with the continued listing criteria on the TSE Prime Market. This move is expected to improve the tradable share ratio, enhance liquidity, and contribute to the sustainable corporate value of GMO Internet. The sale will result in an extraordinary profit of approximately ¥7.6 billion in the company’s non-consolidated financial statements for the fiscal year ending December 2025. The company plans to continue strengthening investor relations and improving the tradable share ratio to meet compliance by December 2026.

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.