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GMO Internet
(9449)
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Rating:58Neutral
Price Target:
¥4,100.00
▲(1.28% Upside)
Action:Reiterated
Date:10/15/26
The score is primarily driven by solid operating performance and improved recent cash generation, tempered materially by balance-sheet leverage risk. Technicals are neutral-to-mixed with negative MACD and price below the 50-day average, while valuation (P/E ~22.9 and ~1.7% yield) is reasonable but not compelling.
Positive Factors
Recurring and diversified revenue model
The mix of recurring subscriptions and usage-based fees gives GMO Internet multiple ways to monetize customers over time. Domains, hosting and access can support renewal-driven revenue, while payments and advertising add transaction-linked growth and reduce reliance on one activity.
Negative Factors
Heavy balance-sheet leverage
Persistently high leverage leaves GMO Internet more exposed to changes in funding conditions and interest costs. It can restrict capital allocation flexibility, increase the consequences of operating setbacks, and make future growth investment more dependent on maintaining access to financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring and diversified revenue model
The mix of recurring subscriptions and usage-based fees gives GMO Internet multiple ways to monetize customers over time. Domains, hosting and access can support renewal-driven revenue, while payments and advertising add transaction-linked growth and reduce reliance on one activity.
Read all positive factors
GMO Internet (9449) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥410.89B
Dividend Yield1.71%
Average Volume (3M)266.89K
Price to Earnings (P/E)23.7
Beta (1Y)0.61
Revenue Growth6.44%
EPS Growth8.66%
CountryJP
Employees6,484
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)171.60
Shares Outstanding107,349,120
10 Day Avg. Volume322,500
30 Day Avg. Volume266,893
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)3.93
Price to Sales (P/S)1.40
P/FCF Ratio4.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,920.00Price Target Upside21.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)220.53
Revenue Forecast (FY)¥314.34B
GMO Internet Business Overview & Revenue Model
Company Description
Operating globally, GMO Internet, Inc. offers an extensive portfolio of internet services. Its business activities are structured across four main divisions: Internet Infrastructure, Online Advertising and Media, Internet Finance, and Cryptocurren...
How the Company Makes Money
GMO Internet generates revenue primarily through recurring and usage-based fees from a portfolio of internet infrastructure and transaction services. Key revenue streams include: (1) Domain and DNS-related services: income from domain name registr...
GMO Internet Earnings Call Summary
Earnings Call Date:Aug 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 13, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Infrastructure and Crypto Assets segments, and an increase in shareholder returns, but faced significant challenges in the Finance segment, especially due to the provision in the Thai Securities business, and declines in the Advertising and Media segment.Positive Updates
Infrastructure Segment Performance
Net sales in the Infrastructure segment achieved a quarterly high with recurring revenues and operating profit exceeding JPY 9 billion for the third consecutive quarter.
Negative Updates
Decrease in Profit
Despite increased revenue, overall profits decreased due to a provision for doubtful accounts by a Thailand-based securities company.
Read all updates
Q2-2024 Updates
Positive
Negative
Infrastructure Segment Performance
Net sales in the Infrastructure segment achieved a quarterly high with recurring revenues and operating profit exceeding JPY 9 billion for the third consecutive quarter.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for GMO Internet Group, executives Masashi Yasuda and Noriko Inagaki provided detailed guidance, highlighting several metrics. The Infrastructure segment reached a quarterly high in net sales with operating profit exceeding JPY 9 billion for the third consecutive quarter, driven by solid recurring revenues. In contrast, the Finance segment recorded losses due to a JPY 4.5 billion provision for doubtful accounts in the Thai Securities business, prompting the termination of margin trading services there. The crypto assets segment showed profitability for the third consecutive quarter, buoyed by increased trading volume and exchange business revenue. The company is maintaining a total shareholder return ratio of 50%, with a Q2 dividend of JPY 6.9 per share, and announced an increase in the share repurchase limit to JPY 5 billion. Additionally, GMO Internet outlined its 55-year plan aiming for JPY 10 trillion in sales and JPY 1 trillion in profit by 2051, with a focus on embracing AI and robotics as key growth drivers.GMO Internet Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 301.73B | 285.63B | 277.41B | 258.64B | 245.70B | 241.45B |
| Gross Profit | 178.66B | 169.73B | 166.14B | 153.13B | 149.89B | 128.82B |
| EBITDA | 80.83B | 73.65B | 62.96B | 58.88B | 72.28B | 53.73B |
| Net Income | 17.07B | 16.10B | 13.37B | 14.19B | 13.21B | 17.53B |
Balance Sheet | ||||||
| Total Assets | 2.14T | 2.27T | 2.15T | 1.76T | 1.54T | 1.42T |
| Cash, Cash Equivalents and Short-Term Investments | 1.53T | 928.81B | 915.91B | 580.27B | 420.18B | 380.85B |
| Total Debt | 596.62B | 602.27B | 560.44B | 478.90B | 395.99B | 299.00B |
| Total Liabilities | 1.83T | 2.06T | 1.96T | 1.58T | 1.39T | 1.28T |
| Stockholders Equity | 155.96B | 101.76B | 86.40B | 82.60B | 72.22B | 73.60B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 90.31B | 58.62B | -812.00M | 21.32B | -56.87B |
| Operating Cash Flow | 0.00 | 97.42B | 84.73B | 14.91B | 25.64B | -23.78B |
| Investing Cash Flow | 0.00 | -9.85B | -71.39B | -16.31B | -2.48B | -51.49B |
| Financing Cash Flow | 0.00 | 41.65B | 60.67B | 64.92B | 62.10B | 89.62B |
GMO Internet Technical Analysis
Neutral
4048.00
Price Trends
3996.05
Negative
3790.06
Positive
3528.64
Positive
Market Momentum
3.88
Positive
43.83
Neutral
26.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9449, the sentiment is Neutral. The current price of 4048 is above the 20-day moving average (MA) of 3968.04, above the 50-day MA of 3996.05, and above the 200-day MA of 3528.64, indicating a neutral trend. The MACD of 3.88 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9449.
GMO Internet Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥16.08B | 13.15 | ― | 4.35% | 2.67% | -25.50% | |
71 Outperform | ¥637.21B | 25.39 | 16.03% | 1.17% | 13.85% | 21.44% | |
69 Neutral | ¥10.87T | 14.79 | 14.91% | 2.82% | 4.05% | 18.81% | |
68 Neutral | ¥15.10T | 13.71 | 10.99% | 3.04% | 7.56% | 8.41% | |
68 Neutral | ¥11.81T | 21.58 | ― | 3.53% | 7.91% | 8.35% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | ¥410.89B | 23.65 | 14.57% | 1.71% | 6.44% | 8.66% |
* Communication Services Sector Average
JP:9449
GMO Internet
3,867.00
450.29
13.18%
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GMO Internet Corporate Events
GMO Internet Group Advances Large-Scale Share Buyback Program
Oct 5, 2026
GMO Internet Group has continued its long-term share buyback and cancellation program, repurchasing 764,000 common shares for approximately JPY 3.03 billion on the Tokyo Stock Exchange between September 1 and September 30, 2026. This activity form...
GMO Internet Group Exits Thai Digital Asset Business via Share Transfer
Sep 24, 2026
GMO Internet Group’s consolidated subsidiary GMO Internet, Inc. has decided to transfer all shares in GMO-Z.com Cryptonomics (Thailand) Co., Ltd., completing its previously announced withdrawal from the digital asset business in Thailand. Th...
GMO Internet Group Restructures Marketing Units Under GMO Internet to Boost Synergies
Sep 24, 2026
GMO Internet Group has approved the transfer of all shares it holds in GMO Commerce Co., Ltd. to its core subsidiary GMO Internet, Inc., turning GMO Commerce into a grandchild subsidiary and restructuring the group’s advertising and marketin...
GMO Internet Group Details Progress of Large-Scale Share Buyback Program
Sep 3, 2026
GMO Internet Group, Inc. has reported the latest status of its ongoing share repurchase program, conducted under Article 459-1 of the Japanese Companies Act and its articles of incorporation, following a Board resolution passed on June 19, 2026. T...
GMO Internet Group Raises Q2 Dividend, Reaffirms Shareholder Return Policy
Aug 14, 2026
GMO Internet Group has approved a second-quarter dividend of ¥17.80 per share, with a record date of June 30, 2026 and an effective payment date of September 16, 2026, lifting the total payout to ¥1,736 million and exceeding the prior ye...
GMO Internet Group Delivers Strong Interim Earnings but Withholds Full-Year Forecasts
Aug 14, 2026
GMO Internet Group reported strong interim results for the six months to June 30, 2026, with revenue rising 11.2% year-on-year to ¥158.7 billion and business profit climbing 17.0% to ¥35.0 billion. Profit attributable to owners of the pa...
GMO Internet Steps Up Share Buybacks Under Long-Term Capital Plan
Aug 5, 2026
GMO Internet Group has accelerated its shareholder return strategy through a new phase of treasury stock repurchases authorized under Japan’s Companies Act. In July 2026, the company bought back 2,134,600 common shares on the Tokyo Stock Exc...
GMO Internet Extends Anti-Takeover Policy With New Stock Rights Shelf Registration
Jul 21, 2026
GMO Internet Group, Inc., a Tokyo-based digital services and internet infrastructure provider listed on the TSE Prime Market, operates a wide array of online businesses that underpin Japan’s internet economy. The group’s focus on hosti...
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.