GMO Financial Gate, Inc. (4051) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NOMURA Co., Ltd.

transcosmos, Inc.

SBS Holdings, Inc.

GMO Financial Gate, Inc.

Bengo4.com, Inc.

INTAGE HOLDINGS, Inc.

Funai Soken Holdings, Inc.

Plus Alpha Consulting Co., Ltd.

BELLSYSTEM24 Holdings, Inc.

eGuarantee, Inc.

TKP Corp.

Why is GMO Financial Gate, Inc. ?

Strong Long Term Fundamental Strength with a 46.29% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 37.56% signifying high profitability per unit of total capital (equity and debt)

Flat results in Jun 25

INTEREST(HY) At JPY 9.41 MM has Grown at 45.47%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.93%
DEBTORS TURNOVER RATIO(HY) Lowest at 10.11%

With ROE of 26.40%, it has a attractive valuation with a 8.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.90%, its profits have risen by 51.1% ; the PEG ratio of the company is 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -36.90% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GMO Financial Gate, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GMO Financial Gate, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GMO Financial Gate, Inc.

-36.9%

-0.51

44.05%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.75%

EBIT Growth (5y)

46.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

2.42

Tax Ratio

23.83%

Dividend Payout Ratio

50.82%

Pledged Shares

Institutional Holding

ROCE (avg)

37.56%

ROE (avg)

15.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.73

EV to EBIT

24.20

EV to EBITDA

18.80

EV to Capital Employed

13.38

EV to Sales

2.55

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

55.30%

ROE (Latest)

26.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 996.45 MM

ROCE(HY)

Highest at 25.97%

RAW MATERIAL COST(Y)

Fallen by -9.52% (YoY

NET PROFIT(9M)

Higher at JPY 1,351.42 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 9.41 MM has Grown at 45.47%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.93%

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.11%

NET SALES(Q)

Lowest at JPY 4,145.96 MM

Here's what is working for GMO Financial Gate, Inc.

Operating Cash Flow

Highest at JPY 996.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

At JPY 1,351.42 MM has Grown at 52.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 1,351.42 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -9.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 167.37 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for GMO Financial Gate, Inc.

Interest

At JPY 9.41 MM has Grown at 45.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 4,145.96 MM has Fallen at -10.39%

over average net sales of the previous four periods of JPY 4,626.86 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 3.93% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.11% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 4,145.96 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)