GMO GlobalSign Holdings K.K. (3788) AI Stock Analysis

• Market Cap: ¥26.13B
• Dividend Yield: 1.64%
• Average Volume (3M): 18.57K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.08
• Revenue Growth: 9.52%
• EPS Growth: 15.61%
• Country: JP
• Employees: 993
• Sector: Technology
• Sector Strength: 67
• Industry: Information Technology Services
• EPS (TTM): 74.23
• Shares Outstanding: 11,693,000
• 10 Day Avg. Volume: 17,280
• 30 Day Avg. Volume: 18,566
• PEG Ratio: 1.96
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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 GlobalSign Holdings presents a strong financial performance, characterized by robust revenue growth and efficient cash flow management, contributing significantly to the overall score. The technical analysis suggests mixed signals with a potential overbought condition, while the valuation indicates a relatively high P/E ratio, which suggests overvaluation. These factors collectively result in a moderately strong overall stock score, reflecting the company's solid fundamentals but tempered by market valuation concerns.

GMO GlobalSign Holdings K.K. Business Overview & Revenue Model

Company Description

GMO GlobalSign Holdings K.K. is a prominent provider of identity and cybersecurity solutions, primarily focusing on digital certificate services. As a part of the GMO Internet Group, the company operates in sectors such as IT security, web hosting, and digital certification. Its core products and services include SSL certificates, identity and access management solutions, and other authentication services that help businesses secure online communications and transactions.

How the Company Makes Money

GMO GlobalSign Holdings K.K. generates revenue through the sale of digital certificates and cybersecurity solutions. The company's key revenue streams include the issuance of SSL/TLS certificates, which are used by businesses to encrypt data and secure websites, as well as identity and access management services that help organizations control and protect access to their networks and data. Additionally, the company earns money from providing managed PKI (Public Key Infrastructure) services, which offer scalable and flexible certificate management solutions for enterprises. Partnerships with technology companies and resellers also contribute to its revenue, as they expand the reach and adoption of GlobalSign's products and services globally.

GMO GlobalSign Holdings K.K. Financial Statement Overview

Summary

GMO GlobalSign Holdings exhibits strong financial health with consistent revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet reflects a stable financial structure with low leverage, suggesting a well-managed company with potential for continued growth.

Income Statement

GMO GlobalSign Holdings has shown a consistent growth trajectory with a revenue growth rate of 9.50% from 2023 to 2024. The gross profit margin stands strong at 60.18%, while the net profit margin is at a healthy 4.46%. EBIT and EBITDA margins are robust at 6.50% and 14.74% respectively, indicating efficient operational management and profitability.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio of 0.32, showcasing a relatively low reliance on debt. The return on equity (ROE) is 9.03%, reflecting decent profitability. The equity ratio is a solid 52.47%, indicating stability and a strong equity base.

Cash Flow

GMO GlobalSign Holdings exhibits strong cash flow management with a significant free cash flow growth rate of 359.95% from 2023 to 2024. The operating cash flow to net income ratio is 3.29, and the free cash flow to net income ratio is 1.44, which are indicative of robust cash flow generation relative to income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
17.50B	15.96B	14.05B	13.33B	13.11B
	Gross Profit
10.94B	9.68B	8.44B	7.95B	8.11B
	EBIT
1.29B	1.14B	1.17B	1.36B	1.44B
	EBITDA
2.59B	2.31B	1.73B	2.10B	2.05B
	Net Income Common Stockholders
739.69M	846.76M	483.62M	1.17B	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.66B	6.68B	4.59B	4.67B	4.43B
	Total Assets
15.69B	14.57B	11.51B	11.06B	9.95B
	Total Debt
2.01B	1.96B	693.48M	524.70M	284.08M
	Net Debt
-4.65B	-4.72B	-3.90B	-4.15B	-4.15B
	Total Liabilities
7.03B	6.62B	4.36B	3.77B	3.52B
	Stockholders Equity
8.64B	7.93B	7.13B	7.00B	6.41B
Cash Flow		Free Cash Flow
267.18M	293.69M	327.16M	614.76M	842.14M
	Operating Cash Flow
2.20B	1.68B	1.56B	1.90B	1.73B
	Investing Cash Flow
-1.80B	-1.14B	-1.19B	-1.16B	-891.27M
	Financing Cash Flow
-645.92M	763.68M	-822.04M	-64.61M	-671.13M

GMO GlobalSign Holdings K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2268.00
• 50DMA: Positive
• 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:3788, the sentiment is Positive. The current price of 2268 is above the 20-day moving average (MA) of 2097.50, above the 50-day MA of 2226.56, and below the 200-day MA of 2532.24, indicating a neutral trend. The MACD of 5.08 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 72.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3788.

GMO GlobalSign Holdings K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3697	77 Outperform	€367.81B	54.60	19.04%	―	20.02%	-5.47%
2326	76 Outperform	¥98.09B	21.85		1.22%	-5.73%	49.33%
3788	72 Outperform	¥26.13B	30.56		1.64%	9.52%	15.61%
3696	68 Neutral	¥24.18B	16.28		2.86%	15.11%	226.56%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%
3676	58 Neutral	¥21.09B	13.39		2.36%	5.83%	―

GMO GlobalSign Holdings K.K. Corporate Events

GMO GlobalSign Reports Increased Sales and Profit Growth Amidst Decline in Operating Profits

GMO GlobalSign Holdings K.K. has reported its financial results for the fiscal year ending December 31, 2024, showing a 9.5% increase in net sales to 19,166 million yen. Despite this growth, the company experienced a decline in operating and ordinary profits, yet saw a significant 15.5% rise in profit attributable to owners of the parent. The financial position reflects an increase in total assets and net assets, indicating a solid equity-to-asset ratio. The company’s positive cash flow from operating activities and reduced cash outflow from financing activities suggest a stronger liquidity position. These results may enhance the company’s market position, providing cautious optimism for stakeholders.