GMO Research & AI,Inc. (3695) AI Stock Analysis

• Market Cap: ¥12.01B
• Dividend Yield: 4.06%
• Average Volume (3M): 3.71K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.47
• Revenue Growth: -1.79%
• EPS Growth: -40.43%
• Country: JP
• Employees: 135
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Infrastructure
• EPS (TTM): 112.10
• Shares Outstanding: 4,446,357
• 10 Day Avg. Volume: 2,310
• 30 Day Avg. Volume: 3,710
• PEG Ratio: 1.07
• Price to Book (P/B): 2.20
• 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 Research & AI, Inc. demonstrates solid financial health with strong balance sheet metrics and consistent operational efficiency. However, recent declines in revenue and net income are concerning. The stock's technical indicators show bearish momentum, and although the valuation is moderate, it does not suggest an undervalued opportunity. The attractive dividend yield is a positive aspect for income-focused investors.

GMO Research & AI,Inc. Business Overview & Revenue Model

Company Description

GMO Research & AI, Inc. (3695) is a company specializing in the integration of artificial intelligence technologies with research and data analysis services. Operating within the technology and information sectors, the company provides solutions that leverage AI to optimize research methodologies, enhance data-driven decision-making, and deliver comprehensive insights to its clients. Its core offerings include AI-powered data analytics, market research services, and customized AI solutions tailored to meet the needs of various industries.

How the Company Makes Money

GMO Research & AI, Inc. generates revenue through a combination of service fees and subscription models. The company offers its AI-driven research and analytics services to businesses and organizations across different sectors, charging fees based on the scope and complexity of each project. Additionally, it provides subscription-based access to its proprietary data analytics platforms and tools, allowing clients to utilize its AI capabilities on an ongoing basis. The company also engages in strategic partnerships with other technology firms and research institutions, further expanding its market reach and creating additional revenue streams through collaborative projects and shared resources.

GMO Research & AI,Inc. Financial Statement Overview

Summary

GMO Research & AI, Inc. demonstrates solid financial health with strong balance sheet metrics and consistent operational efficiency. Nonetheless, recent declines in revenue and net income signal potential challenges ahead. While the company manages its debt well, improving cash flow generation and sustaining revenue growth are crucial for future success.

Income Statement

The company's revenue has shown volatility, with a decline from 2023 to 2024. Although gross profit margins have remained stable around 50%, the net profit margin has decreased from 2023 to 2024, indicating potential challenges in cost management. Stability in EBIT and EBITDA margins suggests operational efficiency but the recent decline in net income is a concern.

Balance Sheet

The company exhibits strong financial stability with a low debt-to-equity ratio, suggesting prudent leverage management. The equity ratio is healthy, indicating a strong capital base. However, the return on equity has weakened from 2023 to 2024, reflecting reduced profitability from shareholders' equity.

Cash Flow

The cash flow position is relatively stable, with positive free cash flow and a reasonable operating cash flow to net income ratio. However, the decline in free cash flow from 2023 to 2024 raises concerns about future cash generation capabilities. The company maintains a strong liquidity position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.03B	5.12B	5.20B	4.09B	3.39B
	Gross Profit
2.55B	2.54B	2.46B	1.98B	1.59B
	EBIT
235.12M	440.56M	419.72M	352.64M	263.72M
	EBITDA
354.23M	518.18M	544.66M	454.54M	311.69M
	Net Income Common Stockholders
183.15M	307.31M	356.38M	274.06M	175.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.33B	767.04M	664.93M	663.18M
	Total Assets
3.00B	2.99B	3.07B	2.80B	2.23B
	Total Debt
5.50M	12.22M	16.80M	19.29M	12.33M
	Net Debt
-684.00M	-872.57M	-750.24M	-645.64M	-650.85M
	Total Liabilities
883.41M	946.14M	1.16B	1.12B	748.50M
	Stockholders Equity
2.10B	2.05B	1.91B	1.68B	1.48B
Cash Flow		Free Cash Flow
236.00M	354.53M	39.82M	406.93M	268.05M
	Operating Cash Flow
237.50M	475.49M	131.65M	482.16M	363.00M
	Investing Cash Flow
-221.00M	-131.49M	-111.34M	-50.65M	-95.03M
	Financing Cash Flow
-195.90M	-187.50M	-145.31M	-96.53M	-82.56M

GMO Research & AI,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2829.00
• 50DMA: Negative
• 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:3695, the sentiment is Negative. The current price of 2829 is below the 20-day moving average (MA) of 2839.30, below the 50-day MA of 2847.38, and above the 200-day MA of 2590.62, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3695.

GMO Research & AI,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4812	75 Outperform	¥446.38B	29.55		1.62%	7.49%	1.09%
3844	75 Outperform	¥57.38B	18.35	18.20%	2.57%	8.29%	9.19%
4384	67 Neutral	¥69.99B	32.29	12.77%	0.14%	25.03%	19.92%
9629	66 Neutral	¥34.93B	21.28		4.76%	8.11%	7.91%
3695	60 Neutral	¥12.01B	24.34		4.06%	-1.79%	-40.43%
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%