GLOE Inc. (9565) AI Stock Analysis

• Market Cap: ¥2.50B
• Dividend Yield: N/A
• Average Volume (3M): 5.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 3.23%
• EPS Growth: 29.64%
• Country: JP
• Employees: 75
• Sector: Communication Services
• Sector Strength: 98
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -13.42
• Shares Outstanding: 2,772,933
• 10 Day Avg. Volume: 5,670
• 30 Day Avg. Volume: 5,520
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥941.00
• Price Target Upside: 4.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ¥941.00 ▲(4.21% Upside)

GLOE Inc.'s overall stock score reflects a challenging financial and market environment. The company's mixed financial performance, characterized by improved cash flow but weak profitability, is a significant factor. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. Additionally, valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Cash Flow Improvement

Improved cash flow generation enhances financial stability, providing the company with more flexibility for investments and debt management.

Manageable Leverage

A manageable leverage level suggests that the company is not overly reliant on debt, reducing financial risk and interest burden.

Solid Equity Base

A strong equity base provides a buffer against financial distress and supports long-term growth initiatives.

Negative Factors

Stagnant Revenue Growth

Stagnant revenue growth indicates challenges in expanding market share and could hinder future profitability improvements.

Low Operating Margins

Low operating margins suggest inefficiencies and may limit the company's ability to withstand competitive pressures and economic downturns.

Weak Profitability

Weak profitability limits the company's ability to reinvest in growth and may affect its competitive position in the long term.

GLOE Inc. Business Overview & Revenue Model

Company Description

GLOE Inc., a gaming lifestyle company, provides games and esports planning and production, consulting, promotion, facility management, etc. services in Japan and internationally. It offers tournament management; game consulting, strategy planning/branding, game product promotion, communication strategy, event management/live streaming, and social issues solving services; and casting and influencer marketing services. The company also provides creator support for game commentators, streamers, and professional players to play games; and operates character IP hub that creates touch points with users and the community. It offers its services in various platforms including PCs, mobiles, and consoles. The company was formerly known as Wellplayed Rizest Inc. and changed its name to GLOE Inc. in February 2024. GLOE Inc. was incorporated in 2015 and is headquartered in Tokyo, Japan. GLOE Inc. is a subsidiary of KAYAC Inc.

How the Company Makes Money

GLOE Inc. generates revenue primarily through the sale of its lighting products and solutions. The company leverages a diverse revenue model that includes direct sales to consumers, partnerships with major retailers, and contracts with commercial clients for large-scale lighting installations. Additionally, GLOE Inc. benefits from ongoing service agreements and maintenance contracts, which provide a steady stream of income. Strategic partnerships with technology companies enhance its product offerings, allowing GLOE Inc. to integrate smart technology into its lighting systems, thereby increasing its market appeal and profitability.

GLOE Inc. Financial Statement Overview

Summary

GLOE Inc. presents a mixed financial picture. While the company has improved its cash position and maintains a reasonable level of leverage, its profitability metrics are weak, with net losses impacting the bottom line. The stagnant revenue growth and low operating margins highlight challenges in operational efficiency. Despite these issues, the company's improved cash flow generation provides a positive outlook for future financial stability.

Income Statement

GLOE Inc. shows a mixed performance in its income statement. The gross profit margin for the latest year is approximately 26.8%, indicating a reasonable level of profitability. However, the net profit margin is negative at -0.85%, reflecting net losses. Revenue growth has been stagnant, with a slight decline from the previous year. The EBIT and EBITDA margins are low at 0.74% and 2.4%, respectively, suggesting limited operating efficiency.

Balance Sheet

The balance sheet of GLOE Inc. reveals moderate financial stability. The debt-to-equity ratio stands at 0.56, indicating a manageable level of leverage. The return on equity is negative due to net losses, but the equity ratio is 45.5%, showing a solid equity base. The company has improved its cash position significantly over the years, which is a positive sign.

Cash Flow

GLOE Inc.'s cash flow statement indicates a strong recovery in free cash flow, with a significant positive shift from the previous year's negative free cash flow. The operating cash flow to net income ratio is robust, reflecting effective cash generation relative to earnings. However, the free cash flow to net income ratio is not applicable due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.32B	2.26B	2.26B	2.05B	1.67B	831.01M
Gross Profit	614.53M	605.07M	517.81M	654.58M	509.02M	193.42M
EBITDA	64.25M	54.26M	45.84M	273.92M	166.91M	3.55M
Net Income	-325.00K	-19.21M	-5.69M	144.70M	82.36M	-8.04M
Balance Sheet
Total Assets	1.11B	1.03B	1.11B	1.05B	820.81M	373.00M
Cash, Cash Equivalents and Short-Term Investments	417.36M	359.30M	268.51M	212.36M	57.11M	186.68M
Total Debt	249.83M	261.61M	308.70M	377.90M	440.59M	215.00M
Total Liabilities	605.51M	525.68M	617.66M	777.05M	691.39M	325.94M
Stockholders Equity	468.24M	468.88M	485.70M	274.12M	129.42M	47.07M
Cash Flow
Free Cash Flow	0.00	128.22M	-80.68M	212.57M	-42.05M	29.66M
Operating Cash Flow	0.00	142.10M	-65.27M	234.79M	-9.02M	32.28M
Investing Cash Flow	0.00	-6.60M	-14.92M	-16.86M	-254.18M	-2.63M
Financing Cash Flow	0.00	-44.71M	136.34M	-62.69M	96.21M	67.50M

GLOE Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 903.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9565, the sentiment is Negative. The current price of 903 is below the 20-day moving average (MA) of 944.55, below the 50-day MA of 956.44, and below the 200-day MA of 1026.36, indicating a bearish trend. The MACD of -6.83 indicates Positive momentum. The RSI at 28.42 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9565.

GLOE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3907	74 Outperform	¥2.74B	10.05		―	1.02%	3129.12%
3928	64 Neutral	¥2.22B	16.95		―	-5.92%	-56.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3911	54 Neutral	¥12.52B	8.80		―	4.13%	―
9565	50 Neutral	¥2.50B	―		―	3.23%	29.64%
3667	46 Neutral	¥3.79B	―		―	-12.26%	44.44%
3672	41 Neutral	¥2.95B	―		―	-23.41%	5.92%