DB:1G9

Stock Analysis Report

Executive Summary

gumi Inc. provides online games for mobiles in Japan and internationally.

Snowflake

Fundamentals

Mediocre balance sheet with poor track record.

Share Price & News

How has gumi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1G9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.2%

1G9

-2.0%

DE Entertainment

-0.4%

DE Market


1 Year Return

17.0%

1G9

34.8%

DE Entertainment

10.4%

DE Market

Return vs Industry: 1G9 underperformed the German Entertainment industry which returned 34.8% over the past year.

Return vs Market: 1G9 exceeded the German Market which returned 10.4% over the past year.


Shareholder returns

1G9IndustryMarket
7 Day-9.2%-2.0%-0.4%
30 Day-3.5%-0.7%3.0%
90 Day4.9%2.4%11.1%
1 Year17.0%17.0%36.6%34.8%13.8%10.4%
3 Year-14.2%-14.2%59.2%51.0%24.8%13.8%
5 Yearn/a39.2%32.6%34.1%15.7%

Price Volatility Vs. Market

How volatile is gumi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is gumi undervalued compared to its fair value and its price relative to the market?

1.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1G9's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1G9's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1G9 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 1G9 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1G9's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1G9 is overvalued based on its PB Ratio (1.6x) compared to the DE Entertainment industry average (1.5x).


Next Steps

Future Growth

How is gumi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.7%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as gumi has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of 1G9’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • gumi competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Media industry.

Past Performance

How has gumi performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1G9 has high quality earnings.

Growing Profit Margin: 1G9 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1G9 is unprofitable, but has reduced losses over the past 5 years at a rate of 19.2% per year.

Accelerating Growth: Unable to compare 1G9's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1G9 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.6%).


Return on Equity

High ROE: 1G9 has a negative Return on Equity (-14.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is gumi's financial position?


Financial Position Analysis

Short Term Liabilities: 1G9's short term assets (¥11.7B) exceeds its short term liabilities (¥5.5B)

Long Term Liabilities: 1G9's short term assets (¥11.7B) exceeds its long term liabilities (952.0M)


Debt to Equity History and Analysis

Debt Level: 1G9's debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: 1G9's debt to equity ratio has increased from 24.4% to 35.8% over the past 5 years.


Balance Sheet

Inventory Level: 1G9 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1G9's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 1G9 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1G9 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is gumi's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1G9's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1G9's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1G9's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1G9's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1G9's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of gumi's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average board tenure


CEO

Hironao Kunimitsu (45yo)

12.4yrs

Tenure

0

Mr. Hironao Kunimitsu founded gumi Inc., in June 2007 and has been its President since June 2007. Mr. Kunimitsu serves as Chief Executive Officer at Tokyo VR Startups. He joined Atmovie Inc. as a Company D ...


Board Age and Tenure

8.0yrs

Average Tenure

49yo

Average Age

Experienced Board: 1G9's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Hironao Kunimitsu (45yo)

    President and Representative Director

    • Tenure: 12.4yrs
  • Hiroyuki Kawamoto (40yo)

    Vice President and Representative Director

    • Tenure: 8yrs
  • Jun Imaizumi

    Executive Officer

    • Tenure: 0yrs
  • Tomoyuki Sasaki

    Executive Officer

    • Tenure: 0yrs
  • Soichiro Tomiyoshi

    Executive Officer

    • Tenure: 0yrs
  • Masaru Oonoki

    Executive Officer

    • Tenure: 0yrs

Board Members

  • Shintaro Takahashi (54yo)

    External Director

    • Tenure: 0yrs
  • Hironao Kunimitsu (45yo)

    President and Representative Director

    • Tenure: 12.4yrs
  • Hiroyuki Kawamoto (40yo)

    Vice President and Representative Director

    • Tenure: 8yrs
  • Yuichi Umeda (67yo)

    External Standing Corporate Auditor

    • Tenure: 8.1yrs
  • Joji Ikegawa (44yo)

    External Auditor

    • Tenure: 9.3yrs
  • Gaku Suzuki (49yo)

    External Auditor

    • Tenure: 8yrs
  • Takeshi Sankawa (52yo)

    Director

    • Tenure: 6.9yrs
  • Makoto Motoyoshi

    Director

    • Tenure: 0yrs
  • Atsushi Tanaka (45yo)

    External Director

    • Tenure: 4.3yrs
  • Kosuke Kato (55yo)

    External Director

    • Tenure: 0yrs

Company Information

gumi Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: gumi Inc.
  • Ticker: 1G9
  • Exchange: DB
  • Founded: 2007
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥20.125b
  • Listing Market Cap: JP¥167.337m
  • Shares outstanding: 30.13m
  • Website: https://www.gu3.co.jp

Number of Employees


Location

  • gumi Inc.
  • Sumitomo Fudosan Nishi-Shinjuku Building No. 5
  • 3rd floor
  • Tokyo
  • 160-0023
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3903TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 2014
1G9DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014

Biography

gumi Inc. provides online games for mobiles in Japan and internationally. It also engages in block chain business; and XR business comprising VR, AR, MR, etc. The company was founded in 2007 and is headqua ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 22:06
End of Day Share Price2019/11/20 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.