GMO Pepabo, Inc. (3633) AI Stock Analysis

• Market Cap: ¥11.01B
• Dividend Yield: 2.54%
• Average Volume (3M): 25.29K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.70
• Revenue Growth: 3.28%
• EPS Growth: 13.20%
• Country: JP
• Employees: 338
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 30.84
• Shares Outstanding: 5,468,700
• 10 Day Avg. Volume: 16,420
• 30 Day Avg. Volume: 25,286
• PEG Ratio: -0.07
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 8.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥2,295.00 ▲(11.08% Upside)

GMO Pepabo, Inc. receives a solid overall stock score of 70, driven primarily by its strong financial performance and positive technical indicators. The company's robust balance sheet and improving profitability are significant strengths. While the valuation is fair, the dividend yield adds to the stock's attractiveness. Technical indicators suggest bullish momentum, though caution is advised due to the RSI nearing overbought levels.

GMO Pepabo, Inc. Business Overview & Revenue Model

Company Description

GMO Pepabo, Inc. provides consumer-targeted Internet services in Japan. It operates through four segments: Hosting, Ecommerce Support, Customer to Customer (C2C), and Community. The Hosting segment offers consumer domain registration and web hosting services. The Ecommerce Support segment provides ecommerce platform solutions. The C2C segment offers marketplace for handmade products. The Community segment facilitates communication among Internet users through blogging. The company was formerly known as Paperboy&Co., Inc. and changed its name to GMO Pepabo, Inc. in March 2014. The company was founded in 2003 and is headquartered in Tokyo, Japan. GMO Pepabo, Inc operates as a subsidiary of GMO Internet, Inc

How the Company Makes Money

GMO Pepabo generates revenue primarily through its diverse range of internet-related services. Key revenue streams include subscription fees from web hosting and domain registration services, which cater to both individual users and businesses. The company also earns income from e-commerce solutions, offering platforms that allow users to create online stores. Additionally, GMO Pepabo benefits from partnerships with various technology providers and has a strong presence in the Japanese market, which enhances its customer base and drives consistent revenue growth. Special promotions, value-added services, and customer retention strategies further contribute to its earnings.

GMO Pepabo, Inc. Financial Statement Overview

Summary

GMO Pepabo, Inc. demonstrates a solid financial foundation with improving profitability and efficient cost control. The income statement highlights a recovery in profitability with strong gross and net profit margins. The balance sheet shows prudent leverage and a strong equity position, while cash flow management is effective, although there is room for improvement in aligning operating cash flow with net income.

Income Statement

GMO Pepabo, Inc. shows a stable revenue base with slight growth fluctuations. The Gross Profit Margin is strong at approximately 52.9% for 2024, indicating good cost management. The Net Profit Margin improved significantly in 2024 to around 5.4% from a negative margin in 2023, highlighting a recovery in profitability. EBIT and EBITDA margins are also showing upward trends, reflecting improved operational efficiency.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of about 20.9% for 2024. The Debt-to-Equity Ratio is low at approximately 0.5, indicating prudent financial leverage and a solid capital structure. ROE has improved to about 24.7% in 2024, suggesting effective use of shareholder equity to generate profits.

Cash Flow

Operating cash flow remains positive, though it has decreased from 2023 levels. Free Cash Flow is robust, ensuring liquidity and financial flexibility. The Free Cash Flow to Net Income Ratio indicates strong cash conversion, though there is room for improvement in aligning operating cash flow more closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.10B	10.92B	10.90B	10.53B	11.88B	11.01B
Gross Profit	6.00B	5.78B	5.93B	6.08B	6.73B	6.48B
EBITDA	1.53B	1.47B	84.16M	1.12B	1.36B	1.18B
Net Income	663.90M	591.63M	-628.79M	510.09M	715.41M	829.92M
Balance Sheet
Total Assets	10.98B	11.42B	10.87B	11.44B	8.87B	8.21B
Cash, Cash Equivalents and Short-Term Investments	5.04B	4.92B	4.36B	3.61B	3.62B	3.62B
Total Debt	600.00M	1.19B	1.48B	1.57B	172.15M	0.00
Total Liabilities	8.61B	9.03B	9.06B	8.75B	5.92B	5.67B
Stockholders Equity	2.37B	2.39B	1.81B	2.69B	2.93B	2.54B
Cash Flow
Free Cash Flow	0.00	901.23M	1.38B	-708.88M	338.84M	892.51M
Operating Cash Flow	0.00	1.21B	1.78B	-213.40M	669.08M	1.25B
Investing Cash Flow	0.00	-292.00M	-325.63M	-510.15M	-278.35M	-5.65M
Financing Cash Flow	0.00	-361.39M	-702.63M	712.28M	-392.52M	-78.82M

GMO Pepabo, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2066.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3633, the sentiment is Positive. The current price of 2066 is above the 20-day moving average (MA) of 2063.95, above the 50-day MA of 1869.14, and above the 200-day MA of 1576.54, indicating a bullish trend. The MACD of 59.18 indicates Positive momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3633.

GMO Pepabo, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	78 Outperform	¥24.96B	19.09	―	4.45%	17.22%	10.53%
3623	78 Outperform	¥7.31B	18.84	―	1.06%	7.69%	-6.56%
4374	76 Outperform	¥11.17B	25.60	―	0.47%	21.21%	82.61%
3633	70 Outperform	¥11.01B	16.47	―	2.54%	3.28%	13.20%
3694	66 Neutral	¥31.58B	26.55	―	―	4.86%	7.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	61 Neutral	¥128.93B	50.17	―	0.12%	45.51%	292.77%

GMO Pepabo, Inc. Corporate Events

GMO Pepabo Reports Strong H1 2025 Financial Results and Positive Full-Year Outlook

GMO Pepabo, Inc. reported its consolidated financial results for the first half of 2025, showing a 3.2% increase in net sales to 5,539 million yen and a significant rise in operating profit by 20.3% compared to the same period last year. The company also announced a forecast for the full fiscal year ending December 31, 2025, with expectations of a 2.4% increase in net sales and a 7.2% rise in operating profit, indicating a positive outlook despite anticipated declines in ordinary profit and profit attributable to owners of the parent.