G-NEXT, Inc. (4179) AI Stock Analysis

• Market Cap: ¥1.63B
• Dividend Yield: N/A
• Average Volume (3M): 28.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 23.48%
• EPS Growth: -5.66%
• Country: JP
• Employees: 48
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -11.22
• Shares Outstanding: 5,430,916
• 10 Day Avg. Volume: 35,290
• 30 Day Avg. Volume: 28,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 35 Underperform
• Price Target: ―

G-NEXT, Inc.'s overall stock score is significantly hampered by its poor financial performance, highlighted by persistent losses and liquidity issues. The bearish technical indicators and unappealing valuation further contribute to a low score. The company needs to address these fundamental challenges to improve its market position.

G-NEXT, Inc. Business Overview & Revenue Model

Company Description

G-NEXT Inc. develops cloud-based SaaS platform for customer support in corporate issues. Its products include CRMotion to offer customer services; and BizCRM, BizVoice, BizKnowledge Mining, BizKnowledge QADoc, and BizMail to provide customer contact services. The company was founded in 2001 and is based in Tokyo, Japan.

How the Company Makes Money

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G-NEXT, Inc. Financial Statement Overview

Summary

G-NEXT, Inc. faces significant financial challenges with declining revenue, persistent losses, negative cash flows, high leverage, and a low equity position. Improvements in gross margins are overshadowed by profitability and liquidity issues.

Income Statement

G-NEXT, Inc. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -5.63%. The gross profit margin stands at 32.94%, indicating some efficiency in handling production costs. However, the significant negative net profit margin of -24.54% and negative EBIT and EBITDA margins highlight ongoing profitability challenges. While there was an improvement from the prior year's net income, the company remains unprofitable.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to the substantial liabilities compared to equity, posing a risk to financial stability. The equity ratio is low at 0.95%, indicating limited shareholder equity relative to total assets. The return on equity is negative, consistent with net losses, which reflects challenges in generating returns for shareholders.

Cash Flow

G-NEXT, Inc. faces cash flow difficulties with negative operating and free cash flows. The free cash flow has shown slight improvement from the previous year but remains negative, indicating challenges in covering operating costs and capital expenditures. The operating cash flow to net income ratio is unavailable due to negative figures, highlighting liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	648.37M	691.65M	610.78M	647.18M	495.15M	872.86M
Gross Profit	270.36M	204.29M	201.43M	295.24M	192.12M	584.74M
EBITDA	-165.64M	-214.22M	-145.30M	-279.59M	-393.35M	193.22M
Net Income	-173.15M	-218.57M	-149.86M	-296.35M	-421.74M	181.93M
Balance Sheet
Total Assets	525.89M	529.33M	424.45M	558.20M	808.91M	1.23B
Cash, Cash Equivalents and Short-Term Investments	354.13M	418.30M	322.32M	415.34M	520.21M	982.42M
Total Debt	184.00M	135.17M	174.85M	211.45M	247.88M	279.35M
Total Liabilities	479.91M	360.62M	420.41M	404.70M	367.40M	485.07M
Stockholders Equity	45.99M	168.71M	4.04M	153.50M	441.32M	746.89M
Cash Flow
Free Cash Flow	7.25M	-233.99M	-59.63M	-66.21M	-485.08M	143.96M
Operating Cash Flow	7.25M	-233.99M	-57.99M	-54.30M	-460.58M	151.26M
Investing Cash Flow	0.00	0.00	1.17M	-19.22M	-55.57M	-1.68M
Financing Cash Flow	0.00	329.97M	-36.20M	-31.35M	64.92M	701.36M

G-NEXT, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 300.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4179, the sentiment is Negative. The current price of 300 is below the 20-day moving average (MA) of 313.05, below the 50-day MA of 333.60, and below the 200-day MA of 343.89, indicating a bearish trend. The MACD of -11.52 indicates Positive momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4179.

G-NEXT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4768	75 Outperform	¥1.18T	19.48	16.09%	3.85%	20.18%	23.93%
4776	72 Outperform	¥158.74B	30.21	―	0.87%	22.97%	107.52%
9719	70 Neutral	¥1.43T	28.98	16.96%	1.56%	33.00%	21.00%
4443	59 Neutral	¥241.90B	568.09	2.66%	―	27.52%	-55.62%
3681	44 Neutral	¥4.09B	-2.22	1163.56%	―	-10.00%	70.32%
4179	35 Underperform	¥1.63B	―	―	―	23.48%	-5.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

G-NEXT, Inc. Corporate Events

G-Next Collaborates to Launch Blockchain-Based Credit Management Service

G-Next Co., Ltd. has entered into a business collaboration with ONFET and OIO to launch the ‘Discoveriez Credit Database,’ a blockchain-based customer information and credit management service. This initiative aims to address the growing issue of customer harassment in Japan by providing a transparent and secure platform for managing customer data, thereby enhancing trust and operational efficiency. The collaboration leverages ONFET’s blockchain infrastructure, TSURU, to offer a flexible and enterprise-optimized solution, with plans to expand the service across Japan and the APAC region.