GMO Pepabo, Inc. (3633) AI Stock Analysis

• Market Cap: ¥8.57B
• Dividend Yield: 3.52%
• Average Volume (3M): 16.13K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.77
• Revenue Growth: 1.91%
• EPS Growth: N/A
• Country: JP
• Employees: 338
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Infrastructure
• EPS (TTM): 44.96
• Shares Outstanding: 5,468,700
• 10 Day Avg. Volume: 31,770
• 30 Day Avg. Volume: 16,126
• PEG Ratio: -1.46
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

GMO Pepabo, Inc. is positioned well financially with improving profitability and strong cost control. The technical indicators show positive momentum, and the valuation is attractive with a reasonable P/E ratio and substantial dividend yield. These factors collectively suggest a stable and potentially rewarding investment, though attention to cash flow alignment could enhance future performance.

GMO Pepabo, Inc. Business Overview & Revenue Model

Company Description

GMO Pepabo, Inc. (3633) is a Japanese internet services company specializing in hosting solutions, e-commerce platforms, and online media services. The company is a part of the GMO Internet Group and offers a variety of services including web hosting, domain registration, and e-commerce support, catering to both individuals and businesses. Its core products and services are designed to empower users to establish and maintain an online presence efficiently.

How the Company Makes Money

GMO Pepabo makes money primarily through its subscription-based web hosting services, domain sales, and e-commerce solutions. Customers pay recurring fees for hosting services and domains, creating a steady revenue stream. Additionally, the company earns from e-commerce platform usage fees and transaction fees when users sell products through its platforms. Partnerships with other technology and service providers also contribute to its income by expanding service offerings and enhancing customer experience. These diversified revenue streams ensure a stable income and growth potential.

GMO Pepabo, Inc. Financial Statement Overview

Summary

GMO Pepabo, Inc. demonstrates a solid financial foundation with improving profitability and efficient cost control, as reflected in the income statement. The balance sheet is strong, supported by prudent leverage and a healthy equity base. Cash flow management is effective, although there is potential for enhancing cash flow alignment with profitability. The company is well-positioned for future growth, with minimal financial risk.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.92B	10.90B	10.53B	11.88B	11.01B
	Gross Profit
5.78B	5.93B	6.08B	6.73B	6.48B
	EBIT
829.15M	-340.99M	732.30M	888.71M	639.09M
	EBITDA
1.47B	84.16M	1.12B	1.36B	1.49B
	Net Income Common Stockholders
591.63M	-628.79M	510.09M	715.41M	829.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.92B	4.36B	2.56B	2.37B	2.47B
	Total Assets
11.42B	10.87B	11.44B	8.87B	8.21B
	Total Debt
1.19B	1.48B	1.57B	172.15M	0.00
	Net Debt
-1.63B	-1.28B	-987.73M	-2.20B	-2.47B
	Total Liabilities
9.03B	9.06B	8.75B	5.92B	5.67B
	Stockholders Equity
2.39B	1.81B	2.69B	2.93B	2.54B
Cash Flow		Free Cash Flow
901.23M	1.38B	-708.88M	338.84M	892.51M
	Operating Cash Flow
1.21B	1.78B	-213.40M	669.08M	1.25B
	Investing Cash Flow
-292.18M	-443.92M	-510.15M	-278.35M	-5.65M
	Financing Cash Flow
-361.39M	-702.63M	712.28M	-392.52M	-78.82M

GMO Pepabo, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1619.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1619 is above the 20-day moving average (MA) of 1449.65, above the 50-day MA of 1430.50, and above the 200-day MA of 1407.49, indicating a bullish trend. The MACD of 38.63 indicates Negative momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 94.19 is Negative, 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
4751	76 Outperform	$714.54B	31.44	14.25%	1.22%	6.67%	114.29%
3633	73 Outperform	¥8.57B	12.67		3.52%	1.91%	―
4689	71 Outperform	¥3.66T	24.80		1.34%	6.51%	-0.45%
6098	69 Neutral	$12.16T	30.91	22.31%	0.28%	4.09%	13.88%
2432	65 Neutral	$331.94B	13.83	10.56%	1.86%	8.46%	―
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
4755	46 Neutral	$1.69T	―	-22.97%	―	10.38%	38.09%

GMO Pepabo, Inc. Corporate Events

GMO Pepabo Reports Strong Q1 2025 Financial Results

GMO Pepabo, Inc. reported its consolidated financial results for the first quarter of 2025, showing a notable increase in profits compared to the previous year. The company experienced a 3.7% rise in net sales, with significant growth in operating profit and profit attributable to owners of the parent, reflecting a strong performance in its core business areas. The financial outlook for the full year of 2025 anticipates continued growth in net sales and operating profit, although ordinary profit and profit attributable to owners are expected to decline slightly. The dividend forecast remains unchanged, indicating stability in shareholder returns.