Gungho Online Entertainment AI Stock Analysis
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Gungho Online Entertainment (3765) AI Stock Analysis
Gungho Online Entertainment
(TSE/TYO:3765)
The score is supported primarily by a very strong, low-debt balance sheet that provides resilience, but it is held back by the sharp 2025 deterioration in earnings and free cash flow. Technicals are neutral-to-soft (negative MACD and price below key moving averages), and valuation is a headwind due to a high P/E, only partly offset by the dividend yield.
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 774.51M
- Dividend Yield
- 3.69%
- Average Volume (3M)
- 249.78K
- Price to Earnings (P/E)
- 53.3
- Beta (1Y)
- 0.32
- 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 Online Entertainment primarily generates revenue by operating digital games, especially mobile titles, under a free-to-play model where the core monetization comes from in-game purchases (e.g., paid virtual currency, items, character enhanceme...
Gungho Online Entertainment Financial Statement Overview
Summary
Financial strength is mixed: an exceptionally strong, low-leverage balance sheet (very low debt-to-equity and large, stable equity base) provides meaningful downside protection, but operating performance has weakened sharply. Revenue declined in 2024 and 2025, net income fell materially to 1.4B in 2025, and cash flow deteriorated with near-breakeven operating cash flow and negative free cash flow in 2025—raising execution and cycle-risk concerns.
Income Statement
58NeutralBalance Sheet
92Very PositiveCash Flow
55Neutral| 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 Positive. The current price of 2436.00 is above the 20-day moving average (MA) of 2422.25, below the 50-day MA of 2455.92, and below the 200-day MA of 2443.12, indicating a neutral trend. The MACD of 2.31 indicates Negative momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 66.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3765.
Gungho Online Entertainment Peers Comparison
Overall Rating
JP:243275.2Outperform
JP:212175Outperform
JP:363265Neutral- JP:376562Neutral
JP:390343Neutral
JP:365641Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2432 | 75Outperform | JPY 246.83B | 7.66 | 14.27% | 2.60% | -20.38% | -15.04% |
| JP:2121 | 75Outperform | JPY 252.02B | 11.77 | 12.05% | 3.02% | 30.31% | 33.74% |
| JP:3632 | 65Neutral | JPY 87.22B | 21.84 | 4.38% | 4.65% | -11.41% | -23.06% |
| JP:3765 | 62Neutral | JPY 129.07B | 53.29 | 2.01% | 3.69% | -6.09% | -56.51% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:3903 | 43Neutral | JPY 8.09B | -4.64 | ― | ― | 26.98% | -143.29% |
| JP:3656 | 41Neutral | JPY 11.97B | 14.26 | ― | ― | 10.54% | ― |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3765 | Gungho Online Entertainment | 2436.00 | 13.47 | 0.56% | |
| JP:2432 | DeNA Co | 2537.50 | -46.28 | -1.79% | |
| JP:3632 | GREE | 473.00 | 85.49 | 22.06% | |
| JP:2121 | Mixi | 3970.00 | 989.16 | 33.18% | |
| JP:3656 | KLab Inc. | 147.00 | -93.00 | -38.75% | |
| JP:3903 | gumi, Inc. | 148.00 | -282.00 | -65.58% |
Gungho Online Entertainment Corporate Events
GungHo Shareholder Demands Lawsuit Over Internal Controls
GungHo Online Entertainment, Inc. is a Tokyo Stock Exchange Prime Market-listed company.The company received a shareholder demand seeking legal action against Kazuki Morishita, its former representative director and president, over alleged failures t...
GungHo Online Entertainment Faces Shareholder-Requested Extraordinary Meeting on Treasury Share Buyback
GungHo Online Entertainment, Inc. disclosed that it received a formal request from shareholders on October 15, 2026 to convene an extraordinary general meeting under Article 297, Paragraph 1 of the Companies Act. The requesting shareholders, includin...
GungHo Forms Capital and Business Alliance With Sony Music as Sony Becomes Major Shareholder
GungHo Online Entertainment has agreed a capital and business alliance with Sony Music Entertainment (Japan), built around Sony’s acquisition of the entire 22.93% stake in GungHo held by SON Financial via an off-market secondary share transfer. Sony...
GungHo Online Entertainment Delivers Profit Rebound but Withholds Interim Dividend
GungHo Online Entertainment, Inc., a Tokyo-listed developer of online and mobile game content, operates in a highly volatile digital entertainment market where hit titles drive revenue. Its business model centers on novel, rapidly evolving content, p...
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: Nov 07, 2026