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gumi, Inc. (3903) AI Stock Analysis

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JP:3903

gumi, Inc.

(TSE/TYO:3903)

Select Model
Rating:49Neutral
Price Target:JPY 177.00â–¼(-0.56% Downside)
Action:reiterated
Date:09/12/26

The score is held back primarily by persistently negative operating/free cash flow despite the reported earnings recovery, and by a clearly bearish technical setup (price below all key moving averages with negative MACD). Improving leverage and the return to profitability provide some support, but valuation is difficult to justify with a negative P/E and no dividend data.

Positive Factors
Revenue rebound and gross-margin expansionThe 2026 revenue recovery and wider gross margin indicate improving commercial performance and better monetization of the company’s digital-content portfolio. If sustained through live-service engagement and successful launches, this combination can strengthen operating leverage and support more durable earnings growth.
Negative Factors
Persistent negative cash generationMulti-year negative operating and free cash flow is a durable weakness because it limits internally funded investment and can force reliance on existing liquidity or external financing. The gap between positive earnings and cash generation also raises concern about earnings quality and sustainability.

gumi, Inc. (3903) vs. iShares MSCI Japan ETF (EWJ)

-60%-40%-20%0%20%40%JP:3903-59.45%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 9.59B
Dividend Yield
―
Average Volume (3M)
575.64K
Price to Earnings (P/E)
-5.7
Beta (1Y)
0.90
Revenue Growth
26.98%
EPS Growth
-143.29%
Country
Japan
Employees
337
Sector
General
Sector Strength
55
Industry
Electronic Gaming & Multimedia

gumi, Inc. Business Overview & Revenue Model

Company Description

gumi Inc. provides mobile online games in Japan and internationally. It also engages in block chain, and XR business. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

gumi primarily makes money from the development and operation of online/mobile games (live-service model). In this model, revenue is generated after launch through ongoing player spending within games (e.g., in-app purchases for virtual items, gacha/...

gumi, Inc. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows a material return to profitability and a 2026 revenue rebound with higher gross margin, and the balance sheet looks healthier with lower leverage. However, cash flow is a major weakness—operating cash flow and free cash flow are negative across 2024–2026 (including large negatives in 2026), which undermines earnings quality and raises sustainability risk.

Income Statement

58Neutral

Balance Sheet

74Positive

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2023Apr 2022
Income Statement
Total Revenue9.18B9.18B8.94B16.01B12.07B18.94B
Gross Profit2.88B2.88B2.09B3.43B-1.56B1.90B
EBITDA823.88M823.88M429.95M770.66M-3.57B-1.38B
Net Income1.45B1.45B2.06B445.93M-5.93B-6.27B
Balance Sheet
Total Assets28.82B28.82B23.88B26.55B19.33B18.36B
Cash, Cash Equivalents and Short-Term Investments17.53B17.53B13.66B11.01B7.41B6.90B
Total Debt4.82B4.82B4.03B4.94B4.24B5.42B
Total Liabilities6.69B6.69B6.00B7.89B7.09B8.28B
Stockholders Equity21.37B21.37B16.97B18.51B12.24B9.61B
Cash Flow
Free Cash Flow0-1.44B-687.38M81.42M-4.78B-1.03B
Operating Cash Flow0-1.37B-672.07M161.94M-4.72B-1.00B
Investing Cash Flow0-3.61B-698.55M-2.68B-271.09M-1.07B
Financing Cash Flow02.35B2.60B6.71B-898.94M-248.46M

gumi, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price178.00

Price Trends

50DMA223.98Negative
100DMA235.03Negative
200DMA284.88Negative

Market Momentum

MACD-10.74Negative
RSI29.39Positive
STOCH6.84Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3903, the sentiment is Negative. The current price of 178.00 is below the 20-day moving average (MA) of 190.65, below the 50-day MA of 223.98, and below the 200-day MA of 284.88, indicating a bearish trend. The MACD of -10.74 indicates Negative momentum. The RSI at 29.39 is Positive, neither overbought nor oversold. The STOCH value of 6.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3903.

gumi, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3903 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4393JP:439376OutperformJPY 25.84B17.48――-1.92%69.10%
JP:3911JP:391170OutperformJPY 10.09B8.43――-20.04%-54.97%
JP:3793JP:379366NeutralJPY 13.16B4.24――4.52%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3903JP:390349NeutralJPY 9.59B-5.66――26.98%-143.29%
JP:3656JP:365645NeutralJPY 12.64B15.26――10.54%―
JP:4175JP:417543NeutralJPY 15.84B-20.30――-1.75%-617.20%

* General Sector Average

Performance Comparison

-50%0%50%100%JP:3903JP:3656JP:3793JP:3911JP:4175JP:4393Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3903 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3903gumi, Inc.178.00-261.00-59.45%
JP:3656KLab Inc.152.00-57.00-27.27%
JP:3793Drecom Co., Ltd.453.00-5.00-1.09%
JP:3911Aiming, Inc.216.00-3.00-1.37%
JP:4175coly Inc.2879.00841.0041.27%
JP:4393Bank of Innovation, Inc.6640.00-890.00-11.82%

gumi, Inc. Corporate Events

gumi Inc. Books ¥1.5 Billion Crypto Valuation Loss as Non-Operating Expense

Sep 11, 2026

gumi Inc. has announced that it will record significant non-operating expenses in the first quarter of the fiscal year ending April 2027 due to a decline in the fair value of its crypto asset holdings. Based on recent market fluctuations, the group w...

Gumi Swings to Quarterly Loss Despite Higher Sales, Keeps Dividend at Zero

Sep 11, 2026

Gumi reported consolidated net sales of ¥1.63 billion for the three months ended July 31, 2026, up 20.2% year on year, but swung to an operating loss of ¥186 million and an ordinary loss of ¥2.02 billion. Profit attributable to owners...

gumi fine-tunes intra-group restructuring, impact seen as minor

Aug 26, 2026

gumi Inc. has announced corrections to a previously disclosed intra-group restructuring plan involving gC Labs and gC Games, clarifying the waiver of claims against gC Games and adjusting procedural details and schedules. The company reiterated that...

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.

Date of analysis: Sep 12, 2026