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

• Market Cap: ¥8.88B
• Dividend Yield: 5.69%
• Average Volume (3M): 6.69K
• Price to Earnings (P/E): 51.2
• Beta (1Y): 0.48
• Revenue Growth: 14.59%
• EPS Growth: -71.29%
• Country: JP
• Employees: 135
• Sector: Technology
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): 12.64
• Shares Outstanding: 4,446,357
• 10 Day Avg. Volume: 6,500
• 30 Day Avg. Volume: 6,690
• PEG Ratio: -0.55
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.38
• 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

• Rating: 56 Neutral
• Price Target: ¥2,079.00 ▲(4.95% Upside)

The overall stock score reflects a combination of solid financial health but with concerns about declining revenue and net income. The technical indicators show bearish momentum, and the valuation suggests the stock may be overvalued despite a high dividend yield. These factors collectively indicate a cautious outlook.

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

Company Description

GMO Research & AI, Inc. (3695) is a leading technology company specializing in market research and artificial intelligence solutions. The company operates primarily in the data analytics and consumer insights sectors, leveraging advanced AI algorithms to provide businesses with actionable insights derived from large data sets. Its core products include AI-driven survey platforms, data analytics tools, and consulting services aimed at enhancing decision-making processes for clients across various industries.

How the Company Makes Money

GMO Research & AI generates revenue through multiple streams, primarily by offering subscription-based access to its AI-driven research platforms and analytics tools. Additionally, the company earns money by providing customized market research services and consulting solutions tailored to the specific needs of clients. Key revenue streams include licensing fees from its proprietary software, charges for survey deployments, and project-based consulting fees. The company also benefits from partnerships with academic institutions and other technology firms, which enhance its service offerings and expand its market reach.

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. However, recent declines in revenue and net income signal potential challenges ahead. The company manages its debt well, but 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.73B	5.03B	5.12B	5.20B	4.09B	3.39B
Gross Profit	3.12B	2.55B	2.54B	2.46B	1.98B	1.59B
EBITDA	277.62M	354.23M	518.18M	544.66M	454.54M	311.69M
Net Income	99.54M	183.15M	307.31M	356.38M	274.06M	175.67M
Balance Sheet
Total Assets	3.84B	3.00B	2.99B	3.07B	2.80B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.19B	1.33B	1.17B	1.26B	913.00M
Total Debt	4.56M	5.50M	12.22M	16.80M	19.29M	12.33M
Total Liabilities	1.58B	883.41M	946.14M	1.16B	1.12B	748.50M
Stockholders Equity	2.24B	2.10B	2.05B	1.91B	1.68B	1.48B
Cash Flow
Free Cash Flow	0.00	236.00M	354.53M	39.82M	406.93M	268.05M
Operating Cash Flow	0.00	237.50M	475.49M	131.65M	482.16M	363.00M
Investing Cash Flow	0.00	-221.00M	-131.49M	-111.34M	-50.65M	-95.03M
Financing Cash Flow	0.00	-195.90M	-187.50M	-145.31M	-96.53M	-82.56M

GMO Research & AI,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1981.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1981 is below the 20-day moving average (MA) of 2063.85, below the 50-day MA of 2193.36, and below the 200-day MA of 2509.53, indicating a bearish trend. The MACD of -62.60 indicates Negative momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.36 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
3633	70 Outperform	¥10.90B	16.30	―	2.57%	3.28%	13.20%
5582	67 Neutral	¥11.57B	38.67	―	―	24.90%	-26.71%
3694	66 Neutral	¥31.36B	26.09	―	―	4.86%	7.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	60 Neutral	¥11.45B	77.06	―	―	6.29%	-180.52%
3695	56 Neutral	¥8.88B	51.16	―	5.69%	14.59%	-71.29%
3680	54 Neutral	¥4.39B	―	―	1.09%	-22.88%	-441.25%