Gungho Online Entertainment Inc (JP:3765)
:3765
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Gungho Online Entertainment
(3765)
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Rating:61Neutral
Price Target:
¥2,271.00
▼(-12.18% Downside)
Action:Reiterated
Date:02/18/26
The score is primarily supported by an exceptionally strong, low-debt balance sheet, but it is pulled down by the sharp 2025 deterioration in earnings and free cash flow. Technical indicators also lean soft (price below key moving averages and low RSI), and valuation is a headwind due to the very high P/E despite only a modest dividend yield.
Positive Factors
Strong Balance Sheet
Extremely low leverage and large, stable equity provide durable financial flexibility and downside protection. With minimal interest burden the company can fund live-ops, marketing, and new development across title cycles, absorb revenue shocks, and pursue opportunistic investments without immediate liquidity strain.
Negative Factors
Sharp 2025 Earnings and Cash Flow Decline
A steep earnings and FCF deterioration in 2025 signals execution or product-cycle failure rather than transient noise. For a hit-driven live-service business, such a swing raises the risk that user monetization and retention weakened materially, reducing ability to fund content and increasing the likelihood of longer recovery periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Extremely low leverage and large, stable equity provide durable financial flexibility and downside protection. With minimal interest burden the company can fund live-ops, marketing, and new development across title cycles, absorb revenue shocks, and pursue opportunistic investments without immediate liquidity strain.
Read all positive factors
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥117.63B
Dividend Yield2.38%
Average Volume (3M)141.23K
Price to Earnings (P/E)77.6
Beta (1Y)0.34
Revenue Growth-5.49%
EPS Growth-82.16%
CountryJP
Employees1,583
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)104.64
Shares Outstanding69,161,415
10 Day Avg. Volume125,650
30 Day Avg. Volume141,233
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)1.12
Price to Sales (P/S)1.47
P/FCF Ratio-301.26
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)58.3
Revenue Forecast (FY)¥100.70B
Gungho Online Entertainment Business Overview & Revenue Model
Company Description
Based in Tokyo, Japan, GungHo Online Entertainment, Inc. specializes in the full lifecycle of digital game development, encompassing planning, creation, operational management, and distribution for online computer games, mobile applications, and c...
How the Company Makes Money
Gungho primarily makes money by operating and publishing digital games, where revenue is generated mainly through ongoing monetization of live-service titles. Key revenue streams typically include: (1) in-game purchases (microtransactions) within ...
Gungho Online Entertainment Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.53B | 93.24B | 103.60B | 125.31B | 105.50B | 104.63B |
| Gross Profit | 48.85B | 42.33B | 53.41B | 56.97B | 58.42B | 61.06B |
| EBITDA | 11.27B | 6.07B | 18.44B | 29.09B | 28.63B | 33.72B |
| Net Income | 5.81B | 1.41B | 11.17B | 16.43B | 19.02B | 22.88B |
Balance Sheet | ||||||
| Total Assets | 168.58B | 169.47B | 175.46B | 168.04B | 152.21B | 135.18B |
| Cash, Cash Equivalents and Short-Term Investments | 136.83B | 136.25B | 104.62B | 140.03B | 127.21B | 116.46B |
| Total Debt | 1.18B | 1.35B | 759.00M | 722.00M | 1.13B | 1.37B |
| Total Liabilities | 20.22B | 18.14B | 21.93B | 18.55B | 19.37B | 16.51B |
| Stockholders Equity | 122.46B | 123.02B | 128.78B | 128.76B | 118.38B | 108.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -456.00M | 16.89B | 19.90B | 18.23B | 22.98B |
| Operating Cash Flow | 0.00 | 149.00M | 17.13B | 20.51B | 18.66B | 23.65B |
| Investing Cash Flow | 0.00 | -28.68B | -47.59B | -14.61B | -2.79B | -5.25B |
| Financing Cash Flow | 0.00 | -8.83B | -12.22B | -7.03B | -9.27B | -12.56B |
Gungho Online Entertainment Technical Analysis
Negative
2586.00
Price Trends
2381.40
Negative
2467.93
Negative
2495.93
Negative
Market Momentum
-58.30
Negative
37.28
Neutral
8.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3765, the sentiment is Negative. The current price of 2586 is above the 20-day moving average (MA) of 2220.85, above the 50-day MA of 2381.40, and above the 200-day MA of 2495.93, indicating a bearish trend. The MACD of -58.30 indicates Negative momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3765.
Gungho Online Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥162.65B | 9.96 | 10.05% | 4.61% | 10.67% | 2.02% | |
69 Neutral | ¥260.03B | 14.31 | 17.98% | 2.52% | -9.94% | -21.11% | |
61 Neutral | ¥117.63B | 77.65 | 3.38% | 2.38% | -5.49% | -82.16% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥68.42B | 29.81 | 1.59% | 2.09% | -8.43% | -5.44% | |
54 Neutral | ¥12.56B | 7.98 | ― | ― | 2.70% | -30.63% | |
42 Neutral | ¥18.79B | -4.30 | ― | ― | -17.15% | -70.83% |
* Communication Services Sector Average
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Gungho Online Entertainment Corporate Events
GungHo Discloses Financials of Key Affiliate Belleisle Japan
May 19, 2026
GungHo Online Entertainment has disclosed the financial results of its other affiliated company, Belleisle Japan Inc., an unlisted asset management firm based in Tokyo with capital stock of ¥80 million. Belleisle is wholly owned by Representa...
GungHo Posts Strong Q1 Profit Gains but Withholds Full-Year Outlook
May 8, 2026
GungHo Online Entertainment reported consolidated net sales of ¥26.6 billion for the first quarter of 2026, an 11.9% year-on-year increase, with operating profit rising 30.5% to ¥3.7 billion and ordinary profit jumping 41.9% to ¥4.6...
GungHo Online Entertainment Completes Nearly ¥5 Billion Share Buyback
May 1, 2026
GungHo Online Entertainment has completed a board-approved share repurchase program, buying back 1,981,500 common shares on the Tokyo Stock Exchange for a total of about ¥5.0 billion. The latest tranche, conducted between April 1 and April 30...
GungHo Online Entertainment Updates Progress on ¥5 Billion Share Buyback
Apr 1, 2026
GungHo Online Entertainment reported progress on its ongoing share buyback program authorized by its board in February 2026. The company acquired 745,500 common shares on the Tokyo Stock Exchange between March 1 and March 31, 2026, at a total cost...
GungHo Clarifies Influence of Major Affiliated Shareholders and Affirms Independence
Mar 30, 2026
GungHo Online Entertainment has disclosed the status of its controlling shareholders, identifying Belleisle Japan Inc. and SON Financial LLC as other affiliated companies, with Belleisle indirectly holding 22.44% of its voting rights. Belleisle is...
GungHo Online Entertainment Hikes Year-End Dividend and Sets 4% DOE Target
Mar 30, 2026
GungHo Online Entertainment’s board has approved a year-end dividend of 90 yen per share from retained earnings for the fiscal year ended December 31, 2025, up from 60 yen a year earlier, with total dividends rising to 4.89 billion yen and p...
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.