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KLab Inc.
(3656)
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Rating:42Neutral
Price Target:
¥165.00
▼(-56.35% Downside)
Action:Reiterated
Date:07/07/26
The score is driven primarily by weak financial performance—multi-year revenue decline, compressed margins, large losses, and persistent cash burn—partly mitigated by low leverage and a still-supportive equity base. Technicals add only modest support (short-term bounce but broader downtrend), while valuation metrics provide limited comfort given the negative P/E and lack of dividend yield.
Positive Factors
Low leverage
Very low leverage reduces immediate financial pressure and limits interest-related strain on the business. This gives KLab more flexibility to manage continued losses, support game operations, and pursue product investment without relying as heavily on additional borrowing.
Negative Factors
Prolonged revenue decline
A multi-year revenue downcycle indicates that KLab has not consistently replaced lost player spending or offset weakening titles with sufficient new demand. Continued top-line contraction can reduce operating scale, limit reinvestment, and make a durable recovery in earnings more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
Very low leverage reduces immediate financial pressure and limits interest-related strain on the business. This gives KLab more flexibility to manage continued losses, support game operations, and pursue product investment without relying as heavily on additional borrowing.
Read all positive factors
KLab Inc. (3656) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.30B
Dividend Yield0.49%
Average Volume (3M)2.86M
Price to Earnings (P/E)17.3
Beta (1Y)0.80
Revenue Growth10.54%
EPS GrowthN/A
CountryJP
Employees322
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-75.87
Shares Outstanding83,792,600
10 Day Avg. Volume1,658,110
30 Day Avg. Volume2,857,770
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)2.08
Price to Sales (P/S)3.13
P/FCF Ratio-10.82
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)154.64
Revenue Forecast (FY)¥31.27B
KLab Inc. Business Overview & Revenue Model
Company Description
KLab Inc. provides mobile online games in Japan and internationally. It engages in the planning, development, operation, and sale of mobile online games, as well as anime investments. The company operates GPU AI cloud business; AI entertainment bu...
How the Company Makes Money
KLab primarily makes money by developing and operating mobile games that are typically distributed as free-to-play applications and monetized through in-app purchases (e.g., sale of virtual items, character/loot draws, stamina/boost items, and oth...
KLab Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
58
Neutral
Cash Flow
21
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.93B | 6.86B | 8.31B | 10.72B | 16.88B | 23.90B |
| Gross Profit | 743.81M | 830.54M | 1.13B | 1.75B | 3.02B | 2.72B |
| EBITDA | -1.41B | -1.24B | -1.15B | -801.92M | -223.09M | -357.18M |
| Net Income | -4.21B | -4.18B | -2.78B | -1.82B | -541.92M | -3.47B |
Balance Sheet | ||||||
| Total Assets | 12.89B | 13.27B | 16.11B | 17.96B | 20.97B | 18.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.83B | 5.21B | 1.61B | 2.21B | 6.02B | 4.75B |
| Total Debt | 92.69M | 332.28M | 2.22B | 3.18B | 3.51B | 1.00B |
| Total Liabilities | 2.41B | 2.97B | 5.74B | 6.25B | 7.82B | 6.00B |
| Stockholders Equity | 10.48B | 10.30B | 10.37B | 11.71B | 13.15B | 12.81B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.98B | -138.22M | -1.53B | 0.00 | 0.00 |
| Operating Cash Flow | 0.00 | -1.80B | -138.22M | -1.53B | -186.97M | -1.28B |
| Investing Cash Flow | 0.00 | 2.48B | -1.05B | -2.33B | -1.36B | -1.93B |
| Financing Cash Flow | 0.00 | 2.92B | 555.11M | -66.94M | 3.54B | -1.04B |
KLab Inc. Technical Analysis
Negative
378.00
Price Trends
206.78
Negative
232.02
Negative
280.64
Negative
Market Momentum
-8.69
Positive
37.47
Neutral
10.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3656, the sentiment is Negative. The current price of 378 is above the 20-day moving average (MA) of 192.80, above the 50-day MA of 206.78, and above the 200-day MA of 280.64, indicating a bearish trend. The MACD of -8.69 indicates Positive momentum. The RSI at 37.47 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3656.
KLab Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥223.42B | 10.67 | 12.03% | 3.40% | 19.88% | 34.50% | |
72 Outperform | ¥42.71B | 6.53 | ― | 3.53% | 31.30% | 923.93% | |
64 Neutral | ¥237.29B | 6.46 | 16.91% | 2.53% | -16.65% | 39.13% | |
61 Neutral | ¥74.15B | 17.26 | 4.38% | 5.35% | -10.13% | 242.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥14.55B | 9.35 | ― | 0.71% | 2.70% | -28.19% | |
42 Neutral | ¥15.30B | 17.27 | ― | 0.49% | 10.54% | ― |
* Communication Services Sector Average
JP:3656
KLab Inc.
179.00
-16.00
-8.21%
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gumi, Inc.
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13.75%
KLab Inc. Corporate Events
KLab Announces Passing and Retirement of Outside Director Hiroshi Murakami
Sep 3, 2026
KLab Inc. announced the passing of outside director and Audit and Supervisory Committee member Hiroshi Murakami on August 30, 2026, and confirmed his retirement from the board effective the same day. The company expressed its condolences and appre...
KLab Releases FY2026 Q2 Presentation, Emphasizes Uncertainty in Outlook
Aug 10, 2026
KLab Inc. has released its presentation materials for the second quarter of fiscal year 2026, covering financial results for the period ended December 31 and outlining key topics and appendices for stakeholders. The document is positioned as an in...
KLab Narrows Losses and Lifts Revenue as It Targets Turnaround in FY2026
Aug 6, 2026
KLab Inc. reported a sharp year-on-year increase in first-half FY2026 revenue to ¥4.97 billion, up 57.2%, while narrowing its loss, with operating income turning positive at ¥39 million and profit attributable to owners of the parent imp...
KLab Records Forex Gains but Suffers Bitcoin Valuation Losses in First-Half 2026
Aug 6, 2026
KLab Inc., a digital entertainment and mobile gaming company listed on the TSE Prime Market, reported notable non-operating items in its second-quarter results for the fiscal year ending December 2026. The company’s financial performance con...
KLab details June Bitcoin buys and AI-driven “Dual Gold Treasury” holdings
Jul 1, 2026
KLab Inc. reported its June 2026 purchases and holdings under its “Dual Gold Treasury Strategy,” adding 19.8 Bitcoin for about ¥199.8 million and maintaining gold exposure via a physically backed domestic gold ETF. As of June 30, ...
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.