Gunosy Inc. provides information curation services in Japan. The company offers Internet services related to games and hints-and-tips, and marketing solutions for smart devices, as well as investment business and consulting services. It is also involved in research and content production; and media, advertising, and entertainment businesses. The company was incorporated in 2012 and is headquartered in Tokyo, Japan.

Japan

Gunosy Inc.

Technology

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

6047.T reported revenue of JPY 6 325mn in the last 12 months, down 5% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 70% from FY24 to JPY -2.87. Market expects EPS to reach JPY 7.50 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 10ppts over six months and grown 2ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -4.8% in the last 12 months, up from -8.8% in FY24. 

Historically, 6047.T has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -1.1%, a growth from -3.5% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -0.6% in the last 12 months, an increase from -1.9% in FY24. The market analysts predict that RoA will be 0.3% in FY25, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to -0.6%, below the peers. The consensus estimate for FY25 for RoCE is 0.4%, again behind the peers. 

Gunosy Inc. reported a return on equity (RoE) of -0.6% in the last 12 months, up from -2.2% in FY24. The market consensus projects an RoE of 0.3% in FY25, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.3 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

6047.T has average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is relatively stable and remains extremely favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is very high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and negligible return on capital.

In highly turbulent market conditions, 6047.T is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 6047.T is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITD. 

Gunosy Inc.

¥ 623

3

Gunosy Inc.

¥ 623

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 623

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