DB:G03

Stock Analysis Report

GungHo Online Entertainment

Executive Summary

GungHo Online Entertainment, Inc. plans, develops, operates, and distributes online computer games, smartphone applications, and console games.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has GungHo Online Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G03's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

G03

1.0%

DE Entertainment

-0.9%

DE Market


1 Year Return

-35.2%

G03

38.9%

DE Entertainment

12.8%

DE Market

Return vs Industry: G03 underperformed the German Entertainment industry which returned 38.9% over the past year.

Return vs Market: G03 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

G03IndustryMarket
7 Day-5.6%1.0%-0.9%
30 Day-13.1%-2.1%-0.4%
90 Day-20.3%8.6%2.3%
1 Year-34.3%-35.2%40.7%38.9%16.3%12.8%
3 Year-25.7%-28.5%44.5%37.5%15.8%5.7%
5 Year-45.7%-49.1%114.9%97.8%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is GungHo Online Entertainment undervalued compared to its fair value and its price relative to the market?

2.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G03 (€15.3) is trading below our estimate of fair value (€15.64)

Significantly Below Fair Value: G03 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: G03 is good value based on its PE Ratio (7.3x) compared to the Entertainment industry average (44.6x).

PE vs Market: G03 is good value based on its PE Ratio (7.3x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: G03's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: G03 is overvalued based on its PB Ratio (1.5x) compared to the DE Entertainment industry average (1.4x).


Next Steps

Future Growth

How is GungHo Online Entertainment forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G03's earnings are forecast to decline over the next 3 years (-22.3% per year).

Earnings vs Market: G03's earnings are forecast to decline over the next 3 years (-22.3% per year).

High Growth Earnings: G03's earnings are forecast to decline over the next 3 years.

Revenue vs Market: G03's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: G03's revenue is forecast to decline over the next 3 years (-7.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: G03's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has GungHo Online Entertainment performed over the past 5 years?

-27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G03 has high quality earnings.

Growing Profit Margin: G03's current net profit margins (17.9%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: G03's earnings have declined by -27.4% per year over the past 5 years.

Accelerating Growth: G03's earnings growth over the past year (9.4%) exceeds its 5-year average (-27.4% per year).

Earnings vs Industry: G03 earnings growth over the past year (9.4%) underperformed the Entertainment industry 14.9%.


Return on Equity

High ROE: G03's Return on Equity (21.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GungHo Online Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: G03's short term assets (¥94.8B) exceed its short term liabilities (¥13.3B).

Long Term Liabilities: G03's short term assets (¥94.8B) exceed its long term liabilities (¥916.0M).


Debt to Equity History and Analysis

Debt Level: G03's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: G03's debt to equity ratio has reduced from 1.1% to 0.3% over the past 5 years.

Debt Coverage: G03's debt is well covered by operating cash flow (8661.5%).

Interest Coverage: G03 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: G03 has a low level of unsold assets or inventory.

Debt Coverage by Assets: G03's debt is covered by short term assets (assets are 347.4x debt).


Next Steps

Dividend

What is GungHo Online Entertainment's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: G03's dividend (1.59%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: G03's dividend (1.59%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, G03 has been paying a dividend for less than 10 years.

Growing Dividend: G03's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.6%), G03's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average management tenure


CEO

Kazuki Morishita (46yo)

JP¥233,000,000

Compensation

Mr. Kazuki Morishita has been President of GungHo Online Entertainment America, Inc. at SoftBank Group Corp. since January 2004. Mr. Morishita serves as Chief Executive Officer of GungHo Online Entertainme ...


CEO Compensation Analysis

Compensation vs Market: Kazuki's total compensation ($USD2.09M) is above average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Kazuki's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kazuki Morishita
Chief Executive Officer0yrsJP¥233.00m1.45% ¥15.7m
Kazuya Sakai
Chief Financial Officer14.9yrsno data0.14% ¥1.6m
Koji Yoshida
CCO, General Manager of Management Division and Director7.9yrsno data0.0014% ¥15.6k
Masato Ochi
General Manager of System & CS Division and Director9.9yrsno data0.0072% ¥77.9k
Akihiko Ichikawa
Corporate Officer0yrsno datano data
Hideyuki Yokoyama
Corporate Officer0yrsno datano data
Yoshinori Kitamura
General Manager of GV Business Division and Director13.9yrsno data0.057% ¥622.7k

11.8yrs

Average Tenure

51yo

Average Age

Experienced Management: G03's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kazuki Morishita
Chief Executive Officer0yrsJP¥233.00m1.45% ¥15.7m
Kazuya Sakai
Chief Financial Officer14.9yrsno data0.14% ¥1.6m
Koji Yoshida
CCO, General Manager of Management Division and Director7.9yrsno data0.0014% ¥15.6k
Masato Ochi
General Manager of System & CS Division and Director9.9yrsno data0.0072% ¥77.9k
Yoshinori Kitamura
General Manager of GV Business Division and Director13.9yrsno data0.057% ¥622.7k
Hidetsugu Onishi
Part-Time Director0yrsno data0.0010% ¥11.4k
Taizo Son
Chairman3.8yrsno data36.57% ¥396.7m
Norikazu Oba
Part -Time Director0yrsno datano data
Yoichiro Ando
Full-Time Auditor 16.8yrsno data0.0072% ¥77.9k
Keiji Miyakawa
Independent Director1.9yrsno data0.00072% ¥7.8k

11.9yrs

Average Tenure

53yo

Average Age

Experienced Board: G03's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GungHo Online Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GungHo Online Entertainment, Inc.
  • Ticker: G03
  • Exchange: DB
  • Founded: 1998
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥131.626b
  • Listing Market Cap: JP¥1.085b
  • Shares outstanding: 69.68m
  • Website: https://www.gungho.co.jp

Number of Employees


Location

  • GungHo Online Entertainment, Inc.
  • Pacific Century Place Marunouchi
  • 1-11-1 Marunouchi
  • Tokyo
  • 100-6221
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3765TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYMar 2005
GUNG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2005
G03DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2005

Biography

GungHo Online Entertainment, Inc. plans, develops, operates, and distributes online computer games, smartphone applications, and console games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was founded in 1998 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:17
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.