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GREE
(3632)
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Rating:66Neutral
Price Target:
¥449.00
▲(6.15% Upside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by weakening multi-year operating performance (declining revenue and compressed margins) and inconsistent cash generation, despite a solid, low-leverage balance sheet. Technicals are supportive with price above key moving averages and positive momentum indicators. Valuation is mixed: the high dividend yield helps, but the elevated P/E limits upside if fundamentals do not stabilize.
Positive Factors
Balance Sheet Strength
GREE's low leverage and large equity base provide durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk during game revenue cycles, supports strategic investment or dividends, and cushions the business against industry volatility over months.
Negative Factors
Top-line Decline
Multi-year revenue contraction signals weakened product momentum and market share challenges. For a games publisher, shrinking top line reduces scale benefits, erodes bargaining power with platforms, and makes sustainable growth dependent on successful new launches, increasing structural execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
GREE's low leverage and large equity base provide durable financial flexibility. A conservative balance sheet reduces refinancing and solvency risk during game revenue cycles, supports strategic investment or dividends, and cushions the business against industry volatility over months.
Read all positive factors
GREE (3632) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥74.69B
Dividend Yield5.2%
Average Volume (3M)556.04K
Price to Earnings (P/E)17.8
Beta (1Y)0.21
Revenue Growth-10.13%
EPS Growth242.23%
CountryJP
Employees1,489
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)23.81
Shares Outstanding179,749,700
10 Day Avg. Volume777,270
30 Day Avg. Volume556,043
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.68
Price to Sales (P/S)1.26
P/FCF Ratio33.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.55
Revenue Forecast (FY)¥52.40B
GREE Business Overview & Revenue Model
Company Description
GREE, Inc. is a technology company engaged in the global and domestic online media sector. Its core activities include the development and operation of a diverse portfolio of mobile social games, as well as titles for platforms such as the Nintend...
How the Company Makes Money
GREE makes money mainly by operating and monetizing mobile/online games and related digital entertainment services. Its core revenue stream typically comes from in-game spending (microtransactions) by players (e.g., purchases of virtual items, cha...
GREE Earnings Call Summary
Earnings Call Date:Nov 05, 2024
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong growth in the Metaverse and VTuber businesses counterbalanced by significant challenges in the Investment and Game and Anime businesses, as well as foreign exchange losses.Positive Updates
Strong Start for Heaven Burns Red
The Chinese version of Heaven Burns Red had a strong start, contributing positively to the Game and Anime business.
Negative Updates
Operating Loss in Investment Business
The Investment business posted an operating loss of JPY 0.81 billion, primarily due to valuation losses and low dividend distributions.
Read all updates
Q1-2025 Updates
Positive
Negative
Strong Start for Heaven Burns Red
The Chinese version of Heaven Burns Red had a strong start, contributing positively to the Game and Anime business.
Read all positive updates
Company Guidance
During the earnings call for GREE, Inc.'s Q1 2025 results, several key financial metrics were highlighted. The company reported net sales of JPY 12.9 billion, an operating loss of JPY 0.1 billion, and a negative EBITDA of JPY 0.1 billion. In the Investment business, GREE faced an operating loss of JPY 0.8 billion largely due to valuation losses, while the Game and Anime, Metaverse, and DX businesses exceeded expectations. The company also incurred foreign exchange losses of approximately JPY 1.4 billion, impacting ordinary and net profits. Despite these challenges, the Metaverse and DX businesses are targeted for stable growth with a CAGR of 120% to 140%, while the Game and Anime business is positioned for long-term investment. Looking forward, GREE anticipates Q-on-Q growth in sales and profit for the Game and Anime business in the second quarter, supported by anniversary events for key titles.GREE Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
49
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 51.32B | 57.11B | 61.31B | 75.44B | 74.91B |
| Gross Profit | 24.44B | 29.21B | 34.24B | 46.61B | 44.85B |
| EBITDA | 4.43B | 4.14B | 7.68B | 13.15B | 15.27B |
| Net Income | 4.09B | 1.19B | 4.63B | 9.28B | 10.12B |
Balance Sheet | |||||
| Total Assets | 125.55B | 132.90B | 128.79B | 124.81B | 116.73B |
| Cash, Cash Equivalents and Short-Term Investments | 102.13B | 104.61B | 99.39B | 93.87B | 88.84B |
| Total Debt | 16.70B | 25.70B | 16.71B | 15.73B | 8.10B |
| Total Liabilities | 28.74B | 39.25B | 33.26B | 32.26B | 25.80B |
| Stockholders Equity | 95.59B | 93.53B | 95.43B | 92.50B | 90.88B |
Cash Flow | |||||
| Free Cash Flow | 1.95B | 668.00M | 3.36B | 4.16B | 11.87B |
| Operating Cash Flow | 1.97B | 674.00M | 3.50B | 4.59B | 13.22B |
| Investing Cash Flow | -1.54B | 312.00M | -23.00M | -439.00M | -5.30B |
| Financing Cash Flow | -10.88B | 6.02B | -999.00M | 3.26B | -37.52B |
GREE Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥233.58B | 6.30 | 7.42% | 2.69% | -16.65% | 39.13% | |
66 Neutral | ¥74.69B | 17.77 | 2.38% | 5.42% | -10.13% | 242.23% | |
65 Neutral | ¥224.05B | 11.09 | 9.75% | 4.24% | 19.88% | 34.50% | |
63 Neutral | ¥127.39B | 53.64 | 1.24% | 3.69% | -6.09% | -56.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥15.15B | 9.91 | ― | ― | 2.70% | -28.19% | |
45 Neutral | ¥16.05B | 19.38 | ― | ― | 10.54% | ― |
* Communication Services Sector Average
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GREE Corporate Events
GREE Lifts Dividend and Introduces Interim Payouts as Profits Beat Forecasts
Aug 7, 2026
GREE Holdings will raise its year-end dividend for the fiscal year ended June 30, 2026, to ¥22 per share, up from a previously forecast ¥21.5 and well above the prior year’s ¥14.5, after net profit exceeded expectations and bo...
GREE Profit Surges on FX Gains Despite Game Slump and Holding-Company Drag
Aug 7, 2026
GREE Holdings reported a decline in consolidated net sales and operating profit for the fiscal year ended June 30, 2026, as weakness in its game business, particularly the operation of existing titles, weighed on revenue. Despite this, consolidate...
GREE Lifts Profit and Dividend Despite Lower Sales in Fiscal 2026
Aug 7, 2026
GREE Holdings reported fiscal 2026 consolidated net sales of ¥51.3 billion, down 10.1% year on year, as operating profit fell 17.2% to ¥4.0 billion but ordinary profit surged 31.3% and profit attributable to shareholders jumped more than...
GREE to Transfer JP2 Fund Management Unit and LP Stake to MIXI to Boost Financial Efficiency
Jun 22, 2026
GREE Holdings is restructuring its investment operations by transferring the management and operation business of GREE LP Fund JP 2, a Japan-focused investment partnership, from its consolidated subsidiary GREE Ventures to a newly formed unit, GRE...
GREE Restructures VTuber and IP Operations Under New Intermediate Holdings
May 29, 2026
GREE Holdings has created two new intermediate holding companies, GREE Live Entertainment and GREE Creative Entertainment, to oversee its VTuber and IP business segments respectively, as part of a deeper shift to a pure holding company structure. ...
GREE to Waive ¥3.3 Billion in Loans to Subsidiary GREE X, Books One-Off Loss but No Hit to Group Earnings
May 29, 2026
GREE Holdings will waive ¥3.3 billion in loan claims against its wholly owned subsidiary GREE X, which has negative net assets stemming from a past business integration but maintains stable operations. The move is intended to strengthen GREE ...
GREE Raises DOE Target and Sets Higher Dividend Forecast for FY2026
May 13, 2026
GREE Holdings, Inc. has revised its dividend policy to increase shareholder returns, raising its target dividend on equity (DOE) from around 3% to around 4% while maintaining a consolidated dividend payout ratio of at least 30%, capped at 70%. The...
GREE Posts Higher Profit but Suspends Earnings Forecast Amid Market Volatility
May 13, 2026
GREE reported consolidated net sales of ¥38.44 billion for the nine months ended March 31, 2026, down 10.9% year on year, with operating profit falling 34.7% to ¥2.42 billion but ordinary profit rising 11.1% and profit attributable to sh...
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.