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GALA INC (4777) AI Stock Analysis

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JP:4777

GALA INC

(TSE/TYO:4777)

Select Model
Rating:37Underperform
Price Target:JPY 172.00â–¼(-7.03% Downside)
Action:downgraded
Date:11/08/26

The overall score is at the minimum of 37, driven by weak financial performance marked by unprofitability, high leverage, and negative cash flows. Technicals confirm a sustained downtrend with bearish momentum, and the negative P/E ratio offers no valuation support.

Positive Factors
Improving Revenue GrowthThe return to meaningful annual revenue growth indicates improving demand or market traction after a period of stagnation. If maintained, stronger top-line expansion can support operating leverage, provide more resources for investment, and improve the company’s ability to rebuild profitability over the next several quarters.
Negative Factors
Sharp Leverage IncreaseThe sharp rise in leverage has materially weakened financial flexibility and increased dependence on creditors or external funding. A smaller equity base leaves less capacity to absorb further losses, while higher debt can constrain investment and increase financing pressure if earnings recovery takes longer than expected.

GALA INC (4777) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:4777-16.29%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 5.38B
Dividend Yield
―
Average Volume (3M)
29.59K
Price to Earnings (P/E)
-26.4
Beta (1Y)
0.72
Revenue Growth
22.14%
EPS Growth
79.25%
Country
Japan
Employees
72
Sector
Communication Services
Sector Strength
60
Industry
Electronic Gaming & Multimedia

GALA INC Business Overview & Revenue Model

Company Description

Gala Incorporated, operating alongside its various subsidiaries, is primarily focused on the comprehensive planning, development, provision, and management of mobile applications for smartphones and tablet PCs, serving both the Japanese and South Kor...

GALA INC Financial Statement Overview

Summary

Revenue is growing and losses are narrowing, but the company remains unprofitable with a highly leveraged balance sheet (D/E 3.3) and negative cash flows. The overall financial health is weak, justifying a minimum score.

Income Statement

42Neutral

Balance Sheet

18Very Negative

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Mar 2023Mar 2022
Income Statement
Total Revenue2.80B2.59B2.35B2.00B3.21B600.96M
Gross Profit1.81B1.53B1.41B1.28B2.13B472.43M
EBITDA335.58M-81.45M-286.08M-315.31M368.89M-269.06M
Net Income-196.69M-532.30M-907.98M-307.23M320.40M-186.14M
Balance Sheet
Total Assets3.49B3.64B4.37B3.36B3.02B1.05B
Cash, Cash Equivalents and Short-Term Investments699.58M779.24M854.84M1.38B1.87B415.14M
Total Debt1.19B1.46B1.35B336.80M40.80M48.00M
Total Liabilities2.14B2.62B2.56B1.34B788.61M609.22M
Stockholders Equity697.57M445.32M968.20M1.63B1.85B80.84M
Cash Flow
Free Cash Flow-25.98M-173.15M-2.01B-319.13M275.02M-647.09M
Operating Cash Flow-14.17M-86.21M-298.87M-130.85M546.15M-595.89M
Investing Cash Flow-12.23M-89.55M-1.67B-826.46M-271.14M62.31M
Financing Cash Flow11.84M98.05M1.56B15.81M1.28B0

GALA INC Technical Analysis

Technical Analysis SentimentNegative
Last Price185.00

Price Trends

50DMA195.02Negative
100DMA197.75Negative
200DMA201.68Negative

Market Momentum

MACD-2.42Negative
RSI38.60Neutral
STOCH46.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4777, the sentiment is Negative. The current price of 185.00 is below the 20-day moving average (MA) of 189.40, below the 50-day MA of 195.02, and below the 200-day MA of 201.68, indicating a bearish trend. The MACD of -2.42 indicates Negative momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 46.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4777.

GALA INC Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

JP:4777 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3912JP:391270OutperformJPY 6.83B13.0720.16%4.63%1.92%-26.02%
JP:3911JP:391170OutperformJPY 10.93B8.90――-20.04%-54.97%
JP:3793JP:379368NeutralJPY 13.16B4.27――4.52%―
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
JP:3904JP:390456NeutralJPY 6.33B11.68―0.99%20.33%15.26%
JP:3903JP:390343NeutralJPY 7.65B-4.39――26.98%-143.29%
JP:4777JP:477737UnderperformJPY 5.30B-26.35――22.14%79.25%

* Communication Services Sector Average

Performance Comparison

-60%-40%-20%0%20%JP:4777JP:3912JP:3793JP:3903JP:3904JP:3911Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4777 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4777GALA INC185.00-38.00-17.04%
JP:3912Mobile Factory, Inc.1059.00104.0010.89%
JP:3793Drecom Co., Ltd.456.006.001.33%
JP:3903gumi, Inc.138.00-258.00-65.15%
JP:3904KAYAC, Inc.401.00-82.30-17.03%
JP:3911Aiming, Inc.228.001.000.44%

GALA INC Corporate Events

Gala Inc. Swings to Profit as Equity Ratio Strengthens in First Half 2026

Aug 14, 2026

Gala Inc. reported a sharp turnaround for the six months ended June 30, 2026, with net sales rising 18.4% year-on-year to ¥1,354 million and a swing to an operating profit of ¥207 million from a loss in the previous period. Profit attributable to own...

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: Nov 07, 2026