G-FACTORY Co., Ltd. (3474) AI Stock Analysis

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G-FACTORY Co., Ltd.

(TSE/TYO:3474)

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Rating:40Underperform

Price Target:JPY 560.00▼(-3.61% Downside)

Action:downgraded

Date:11/06/26

The overall score is heavily pressured by persistent net losses and negative cash flows, which undermine an otherwise stable revenue base. Technical indicators confirm weak momentum, and the negative P/E ratio highlights a lack of earnings-based value. The company's reduced debt is a positive, but it is outweighed by declining equity and operational inefficiencies.

Positive Factors

Revenue GrowthThe substantial multi-year increase in revenue shows that G-FACTORY has expanded its business activity and customer-related volume over time. Continued top-line growth provides a stronger base for future operating improvement, although profitability must improve for that scale to create lasting shareholder value.

Negative Factors

Persistent Net LossesSeveral consecutive years of net losses and negative operating profit show that revenue growth has not translated into sustainable profitability. This weakens internal funding capacity, limits balance-sheet productivity, and makes future performance more dependent on achieving durable cost control and operating leverage.

G-FACTORY Co., Ltd. (3474) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.45B
Dividend Yield: ―
Average Volume (3M): 2,750
Price to Earnings (P/E): -26.2
Beta (1Y): 0.25
Revenue Growth: 1.54%
EPS Growth: 75.44%
Country: Japan
Employees: 317
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

G-FACTORY Co., Ltd. Business Overview & Revenue Model

Company Description

G-Factory Co.,Ltd. offers management assistance for restaurant businesses, and additionally operates its own dining establishments. The company's services are aimed at businesses establishing various service-oriented retail locations, especially with...

How the Company Makes Money

The company primarily makes money by charging fees for food-service business support services tied to restaurant store openings and expansion. Key revenue streams typically include (1) service/consulting fees for planning and executing store developm...

G-FACTORY Co., Ltd. Financial Statement Overview

Summary

Revenue growth is steady but profitability is weak, with net losses in three consecutive years and declining EBITDA margins. The balance sheet shows reduced debt but a shrinking equity base, and cash flows have turned negative recently, indicating financial strain.

Income Statement

35Negative

Balance Sheet

45Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.39B	6.47B	6.35B	5.60B	4.74B	3.64B
Gross Profit	3.05B	3.06B	3.06B	2.63B	2.21B	1.60B
EBITDA	-48.07M	142.40M	252.00M	188.62M	624.33M	618.40M
Net Income	-586.91M	-251.68M	-332.89M	-194.00M	271.49M	292.94M
Balance Sheet
Total Assets	4.16B	3.97B	4.37B	4.56B	4.88B	4.67B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.23B	1.45B	1.50B	2.22B	2.24B
Total Debt	860.81M	780.74M	937.71M	1.12B	1.29B	1.52B
Total Liabilities	2.81B	2.79B	2.90B	2.83B	2.98B	3.13B
Stockholders Equity	1.33B	1.17B	1.45B	1.71B	1.89B	1.53B
Cash Flow
Free Cash Flow	0	-134.26M	70.30M	-398.00M	17.87M	282.79M
Operating Cash Flow	0	-7.32M	248.34M	96.64M	533.45M	543.51M
Investing Cash Flow	0	-73.57M	-160.98M	-504.00M	-468.13M	-35.02M
Financing Cash Flow	0	-151.44M	-180.93M	-234.00M	-256.35M	-98.12M

G-FACTORY Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price581.00

Price Trends

50DMA593.66Negative

100DMA578.56Positive

200DMA565.66Positive

Market Momentum

MACD-2.79Positive

RSI36.38Neutral

STOCH32.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3474, the sentiment is Negative. The current price of 581.00 is below the 20-day moving average (MA) of 587.15, below the 50-day MA of 593.66, and above the 200-day MA of 565.66, indicating a neutral trend. The MACD of -2.79 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3474.

G-FACTORY Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3474 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3252	70Outperform	JPY 62.51B	6.14	―	4.26%	87.05%	146.41%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:2991	59Neutral	JPY 11.89B	4.86	―	2.31%	14.54%	-0.80%
JP:5527	56Neutral	JPY 10.81B	9.70	―	2.87%	5.13%	-18.74%
JP:5532	51Neutral	JPY 22.10B	26.71	―	―	11.09%	27.53%
JP:2980	51Neutral	JPY 35.82B	10.78	―	0.90%	56.17%	170.46%
JP:3474	40Underperform	JPY 3.81B	-26.18	―	―	1.54%	75.44%

* Real Estate Sector Average

Performance Comparison

JP:3474 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3474	G-FACTORY Co., Ltd.	581.00	-57.14	-8.95%
JP:2980	SRE Holdings Corp.	1989.00	-981.33	-33.04%
JP:2991	LANDNET, Inc.	481.00	-189.61	-28.27%
JP:3252	JINUSHI Co.,Ltd.	2936.00	159.97	5.76%
JP:5527	property technologies, Inc.	878.00	122.31	16.19%
JP:5532	REALGATE INC.	3350.00	605.00	22.04%

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: Nov 05, 2026

G-FACTORY Co., Ltd. AI Stock Analysis