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Gungho Online Entertainment (3765) AI Stock Analysis
Gungho Online Entertainment
(TSE/TYO:3765)
GungHo's score of 47 reflects significant operational weakness, with declining revenue, profitability, and cash flow, though a strong balance sheet provides stability. Technical indicators are neutral, while the high P/E ratio indicates overvaluation. The company needs to reverse its business decline to improve its investment profile.
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 827.40M
- Dividend Yield
- 3.83%
- Average Volume (3M)
- 246.87K
- Price to Earnings (P/E)
- 51.4
- Beta (1Y)
- 0.39
- Revenue Growth
- -6.09%
- EPS Growth
- -56.51%
- Country
- Japan
- Employees
- 1,614
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Software - Application
Gungho Online Entertainment Business Overview & Revenue Model
Company Description
GungHo Online Entertainment, Inc. engages in the planning, development, operation and distribution of smartphone applications and online computer games and also engages in the planning, development and sale of console games. The users purchase items...
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 mob...
Gungho Online Entertainment Financial Statement Overview
Summary
Mixed financial health: strong balance sheet with minimal debt (score 92) but deteriorating operations: revenue down 7.3%, margins compressed, net income down 87%, and cash flow collapsed (scores 28 and 20). Overall score reflects operational challenges mitigated by solid equity base.
Income Statement
28NegativeBalance Sheet
92Very PositiveCash Flow
20Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.41B | 93.24B | 103.60B | 125.31B | 105.50B | 104.63B |
| Gross Profit | 41.75B | 42.33B | 53.41B | 56.97B | 58.42B | 61.06B |
| EBITDA | 7.45B | 6.07B | 18.44B | 29.09B | 28.63B | 33.72B |
| Net Income | 2.40B | 1.41B | 11.17B | 16.43B | 19.02B | 22.88B |
Balance Sheet | ||||||
| Total Assets | 165.14B | 169.47B | 175.46B | 168.04B | 152.21B | 135.18B |
| Cash, Cash Equivalents and Short-Term Investments | 130.59B | 136.25B | 104.62B | 140.03B | 127.21B | 116.46B |
| Total Debt | 1.32B | 1.35B | 759.00M | 722.00M | 1.13B | 1.37B |
| Total Liabilities | 19.45B | 18.14B | 21.93B | 18.55B | 19.37B | 16.51B |
| Stockholders Equity | 115.70B | 123.02B | 128.78B | 128.76B | 118.38B | 108.40B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -456.00M | 16.89B | 19.90B | 18.23B | 22.98B |
| Operating Cash Flow | 0 | 149.00M | 17.13B | 20.51B | 18.66B | 23.65B |
| Investing Cash Flow | 0 | -28.68B | -47.59B | -14.61B | -2.79B | -5.25B |
| Financing Cash Flow | 0 | -8.83B | -12.22B | -7.03B | -9.27B | -12.56B |
Gungho Online Entertainment Technical Analysis
Price Trends
Market Momentum
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 2340.00 is below the 20-day moving average (MA) of 2399.25, below the 50-day MA of 2457.32, and below the 200-day MA of 2447.94, indicating a bearish trend. The MACD of -22.63 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.80 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
Overall Rating
JP:212175Outperform
JP:243264Neutral
JP:363261Neutral
JP:390349Neutral- JP:376547Neutral
JP:365645Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2121 | 75Outperform | JPY 238.82B | 11.17 | 12.05% | 3.16% | 30.31% | 33.74% |
| JP:2432 | 64Neutral | JPY 236.41B | 6.32 | 16.91% | 2.58% | -16.65% | 39.13% |
| JP:3632 | 61Neutral | JPY 77.19B | 18.10 | 4.38% | 5.10% | -10.13% | 242.10% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:3903 | 49Neutral | JPY 9.59B | -5.66 | ― | ― | 26.98% | -143.29% |
| JP:3765 | 47Neutral | JPY 122.94B | 51.37 | 2.01% | 3.83% | -6.09% | -56.51% |
| JP:3656 | 45Neutral | JPY 12.64B | 15.26 | ― | ― | 10.54% | ― |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3765 | Gungho Online Entertainment | 2348.00 | -167.11 | -6.64% | |
| JP:2432 | DeNA Co | 2553.50 | -85.32 | -3.23% | |
| JP:3632 | GREE | 431.00 | 51.03 | 13.43% | |
| JP:2121 | Mixi | 3800.00 | 804.74 | 26.87% | |
| JP:3656 | KLab Inc. | 152.00 | -57.00 | -27.27% | |
| JP:3903 | gumi, Inc. | 178.00 | -261.00 | -59.45% |
Gungho Online Entertainment Corporate Events
GungHo Tightens Controls After Former Employee Arrest Over Fund Misappropriation
GungHo Online Entertainment has disclosed that a former employee, previously dismissed for misconduct, was arrested on July 8, 2026 on suspicion of criminal breach of trust related to misappropriation of company funds through fictitious business orde...
GungHo Discloses Financials of Key Affiliate Belleisle Japan
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 Representativ...
GungHo Posts Strong Q1 Profit Gains but Withholds Full-Year Outlook
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 bi...
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.
Date of analysis: Aug 06, 2026