Free Cash Flow GenerationVery strong free cash flow growth indicates durable cash generation from operations. Over the next 2-6 months this supports reinvestment in data center and cloud capacity, funds debt service or share returns, and gives management flexibility to pursue strategic opportunities without external financing.

Recurring Subscription RevenueA subscription-driven model for cloud and data center services provides predictable, recurring revenue that improves cash flow visibility and customer stickiness. This durable revenue base aids forecasting, supports long-term capacity planning, and enables cross-selling of IoT and blockchain services.

High Return On EquityA 42% ROE signals efficient use of shareholder capital and strong profit generation relative to equity. Sustainably high ROE, if maintained, supports internal funding for growth initiatives and signals management’s ability to produce attractive economic returns versus peers over multi-quarter horizons.

Bears Say

Elevated LeverageA debt-to-equity ratio above 3x materially raises financial risk and constrains flexibility. Over several months higher leverage amplifies interest and refinancing exposure, limits capacity for opportunistic investments or M&A, and makes cash flow volatility more consequential for solvency.

Declining Net Profit MarginA falling net margin from 6.72% to 4.99% indicates rising costs or pricing pressure that erodes retained earnings. Persisting margin decline reduces the company’s ability to self-fund growth, weakens resilience to cyclical downturns, and compresses long-term free cash flow available for strategic uses.

Operating Margin CompressionDeclining EBIT and EBITDA margins point to reduced operational efficiency or higher recurring costs in core telecom and cloud operations. Structurally weaker operating profitability limits reinvestment, pressures competitive positioning in capital-intensive data center operations, and heightens sensitivity to demand shifts.

FreeBit Co., Ltd. News

FreeBit Co. Reports Decline in Quarterly Profits

FreeBit Co., Ltd. (JP:3843) has released an update. FreeBit Co., Ltd. has released its quarterly financial results, showing...

1y ago

3843

3843 FAQ

What was FreeBit Co., Ltd.’s price range in the past 12 months?

FreeBit Co., Ltd. lowest stock price was ¥1229.00 and its highest was ¥1763.00 in the past 12 months.

What is FreeBit Co., Ltd.’s market cap?

FreeBit Co., Ltd.’s market cap is ¥30.26B.

When is FreeBit Co., Ltd.’s upcoming earnings report date?

FreeBit Co., Ltd.’s upcoming earnings report date is Sep 04, 2026 which is in 195 days.

How were FreeBit Co., Ltd.’s earnings last quarter?

FreeBit Co., Ltd. released its earnings results on Dec 12, 2025. The company reported ¥55.38 earnings per share for the quarter, beating the consensus estimate of N/A by ¥55.38.

Is FreeBit Co., Ltd. overvalued?

According to Wall Street analysts FreeBit Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does FreeBit Co., Ltd. pay dividends?

FreeBit Co., Ltd. pays a Annually dividend of ¥30 which represents an annual dividend yield of 1.9%. See more information on FreeBit Co., Ltd. dividends here

What is FreeBit Co., Ltd.’s EPS estimate?

FreeBit Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does FreeBit Co., Ltd. have?

FreeBit Co., Ltd. has 23,414,000 shares outstanding.

What happened to FreeBit Co., Ltd.’s price movement after its last earnings report?

FreeBit Co., Ltd. reported an EPS of ¥55.38 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.874%.

Which hedge fund is a major shareholder of FreeBit Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3843

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

FreeBit Co., Ltd.

FreeBit Co., Ltd. (3843) is a Japanese technology company specializing in internet infrastructure solutions and telecommunications services. The company operates primarily in the IT and telecommunications sectors, offering a variety of services including cloud computing, data center operations, and managed services. FreeBit is also involved in the development and provision of blockchain technology and IoT solutions, targeting both individual consumers and businesses to enhance their digital capabilities.