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GMO Internet Inc (JP:9449)
:9449
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GMO Internet (9449) AI Stock Analysis

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JP:9449

GMO Internet

(OTC:9449)

Rating:67Neutral
Price Target:
¥4,215.00
▲(6.57% Upside)
GMO Internet's stock score is driven by strong financial performance with revenue growth and operational efficiency, supported by positive technical indicators. However, high leverage and a high P/E ratio suggest caution due to potential financial risks and overvaluation concerns.

GMO Internet (9449) vs. iShares MSCI Japan ETF (EWJ)

GMO Internet Business Overview & Revenue Model

Company DescriptionGMO 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 MoneyGMO Internet generates revenue through multiple streams within its diverse portfolio. The internet infrastructure business, which includes domain registration, hosting, and cloud services, is a substantial revenue driver, benefiting from the increasing demand for web presence and digital solutions. The online advertising and media segment contributes through digital marketing services and media content. In the internet finance domain, GMO Internet earns from transactional fees and commissions derived from its online brokerage and trading services, including FX and cryptocurrency trading. The cryptocurrency segment also provides income through its exchange services and mining operations. Strategic partnerships and a robust client base further enhance its revenue potential, ensuring steady cash flow across its business divisions.

GMO Internet Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
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.
Q2-2024 Updates
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.
Crypto Assets Turnaround
The crypto assets segment recorded profit for the third consecutive quarter due to increased trading volume and revenue from GMO Coin's exchange business.
Shareholder Returns Increase
The company announced an increase in the maximum amount of share buybacks to JPY 5 billion, exceeding the 50% total return ratio.
Expansion of Security Business
Progress in the security business with emphasis on encryption security, cybersecurity, and brand security, leading to the #1 position in Japan for GMO Sign's e-contract accounts.
Negative Updates
Decrease in Profit
Despite increased revenue, overall profits decreased due to a provision for doubtful accounts by a Thailand-based securities company.
Challenges in Finance Segment
The Finance segment faced a decrease in sales and losses, particularly due to a JPY 4.5 billion provision for doubtful accounts in the Thai Securities business.
Advertising and Media Revenue Decline
The Advertising and Media segment saw a decrease in revenue attributed to weak performance in the advertising agency business, although profit increased due to in-house services.
FX Revenue Decline
The FX product faced a decline in revenue due to decreased volatility and a rapid depreciation of the yen, leading to lower profits.
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
GMO Internet shows strong revenue growth and operational efficiency, but increased leverage and concerns about long-term sustainability due to rising liabilities and mismatch in free cash flow and net income growth.
Income Statement
72
Positive
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
65
Positive
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
58
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue280.09B277.41B258.64B245.70B241.45B210.56B
Gross Profit168.26B166.14B153.13B149.89B128.82B105.68B
EBITDA64.45B62.83B58.88B72.25B53.73B38.97B
Net Income13.38B13.37B14.19B13.21B17.53B10.28B
Balance Sheet
Total Assets2.04T2.15T1.76T1.54T1.42T1.07T
Cash, Cash Equivalents and Short-Term Investments782.47B975.72B905.44B353.69B248.59B281.24B
Total Debt563.44B554.87B473.57B391.16B294.66B208.38B
Total Liabilities1.85T1.96T1.58T1.39T1.28T970.43B
Stockholders Equity82.94B86.40B82.60B72.22B73.60B50.97B
Cash Flow
Free Cash Flow0.0058.62B-7.53B15.24B-32.28B30.79B
Operating Cash Flow0.0084.73B14.91B25.64B-23.78B38.28B
Investing Cash Flow0.00-71.50B-16.36B-2.83B-51.77B-15.99B
Financing Cash Flow0.0060.78B64.97B62.44B89.89B37.52B

GMO Internet Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3955.00
Price Trends
50DMA
3717.95
Positive
100DMA
3558.96
Positive
200DMA
3169.15
Positive
Market Momentum
MACD
59.25
Positive
RSI
60.24
Neutral
STOCH
75.46
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 3955 is above the 20-day moving average (MA) of 3883.30, above the 50-day MA of 3717.95, and above the 200-day MA of 3169.15, indicating a bullish trend. The MACD of 59.25 indicates Positive momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 75.46 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$412.48B25.0519.00%1.32%6.94%7.68%
60
Neutral
$44.01B4.39-12.81%4.08%1.86%-42.71%
$3.41B24.4215.20%1.22%
€1.37B17.2313.98%
73
Outperform
¥26.02B28.60
27.43%-5.71%
71
Outperform
¥3.44B11.08
0.90%6.95%50.07%
69
Neutral
¥10.51B43.48
1.17%1.95%-59.39%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9449
GMO Internet
3,955.00
1,498.28
60.99%
IIJIF
Internet Initiative Japan
18.73
-1.47
-7.28%
DE:OCU
Okinawa Cellular Telephone Company
29.20
4.96
20.46%
JP:3776
Broadband Tower, Inc.
171.00
-46.28
-21.30%
JP:3842
Nextgen,Inc.
1,114.00
396.26
55.21%
JP:9424
Japan Communications Inc.
156.00
-23.00
-12.85%

GMO Internet Corporate Events

GMO Internet Group Announces Strategic Share Repurchase Plan
Aug 5, 2025

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
Jul 29, 2025

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.

GMO Internet Group Announces Progress in Share Buyback Plan
Jul 3, 2025

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
Jun 4, 2025

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
May 29, 2025

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
May 25, 2025

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
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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
May 7, 2025

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.

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.Date of analysis: Aug 01, 2025