Fonfun Corporation (2323) AI Stock Analysis

• Market Cap: ¥3.21B
• Dividend Yield: N/A
• Average Volume (3M): 13.99K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.79
• Revenue Growth: 81.31%
• EPS Growth: 139.58%
• Country: JP
• Employees: 28
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 13.24
• Shares Outstanding: 7,098,040
• 10 Day Avg. Volume: 16,600
• 30 Day Avg. Volume: 13,993
• PEG Ratio: 0.04
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 144.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥495.00
• Price Target Upside: 10.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥521.00 ▲(16.82%Upside)

Fonfun Corporation's strong financial performance and positive technical indicators are the primary drivers of the stock score. The company's significant revenue growth and efficient cash flow management contribute positively. While the valuation component indicates a moderate P/E ratio and the absence of a dividend yield, the overall financial health remains solid. The lack of earnings call data and corporate events limits additional context for the assessment.

Fonfun Corporation Business Overview & Revenue Model

Company Description

Fonfun Corporation (2323) is a Japanese company primarily engaged in the telecommunications and IT services sector. The company offers a range of services including mobile content distribution, IT solutions, and software development. With a focus on innovation, Fonfun Corporation delivers products and services that enhance digital communication and provide entertainment solutions to a wide audience.

How the Company Makes Money

Fonfun Corporation generates revenue through various streams, including subscription fees for mobile content services, which are delivered through partnerships with mobile carriers. The company also earns from its IT solutions and software development services offered to businesses, providing customized technology solutions. Additionally, Fonfun Corporation benefits from sales of digital content and advertising revenue associated with its mobile platforms. Strategic partnerships with telecom companies and digital content providers play a significant role in its earnings, enabling wider distribution and customer reach.

Fonfun Corporation Financial Statement Overview

Summary

Fonfun Corporation demonstrates a strong financial performance with significant revenue growth of 81.26% and healthy profitability margins. The balance sheet shows a prudent use of debt with a debt-to-equity ratio of 1.02 and strong ROE of 17.69%. Cash flow management is efficient with a good cash conversion ratio and positive free cash flow growth. However, slightly high leverage is noted.

Income Statement

Fonfun Corporation's revenue has shown strong growth, increasing from 699,744,000 to 1,268,700,000, a significant growth rate of 81.26%. The gross profit margin is healthy at 38.6%, and the net profit margin also shows strong performance at 13.35%. The EBIT and EBITDA margins are robust, indicating effective cost management and operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 1.02, indicating a balanced approach to leveraging. Return on equity (ROE) is strong at 17.69%, suggesting effective use of shareholder funds to generate profits. The equity ratio stands at 44.56%, reflecting a good capital structure, though slightly high leverage could pose risks if not managed carefully.

Cash Flow

Fonfun Corporation exhibits robust cash flow management with a steady increase in operating cash flow. The operating cash flow to net income ratio is 1.13, indicating strong cash conversion. Free cash flow is positive and has grown significantly, reflecting a strong ability to generate cash from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	625.40M	1.27B	699.74M	638.70M	592.31M	545.41M
Gross Profit	372.31M	489.66M	407.59M	394.30M	408.47M	385.70M
EBITDA	171.84M	159.88M	91.89M	58.63M	27.05M	95.02M
Net Income	47.80M	169.35M	68.15M	40.04M	41.41M	3.94M
Balance Sheet
Total Assets	734.44M	2.15B	1.01B	1.03B	904.32M	884.23M
Cash, Cash Equivalents and Short-Term Investments	577.76M	711.06M	677.93M	605.61M	531.25M	493.94M
Total Debt	298.54M	976.14M	249.28M	342.10M	240.95M	276.29M
Total Liabilities	359.33M	1.19B	386.79M	438.68M	333.90M	355.05M
Stockholders Equity	375.11M	957.32M	621.73M	593.18M	570.41M	529.19M
Cash Flow
Free Cash Flow	91.58M	190.53M	173.76M	105.47M	86.89M	-11.84M
Operating Cash Flow	91.58M	190.53M	175.98M	108.33M	90.36M	-431.00K
Investing Cash Flow	0.00	-1.22B	288.05M	-164.93M	86.31M	-202.75M
Financing Cash Flow	0.00	875.50M	-89.27M	26.83M	-35.53M	221.61M

Fonfun Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 446.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2323, the sentiment is Positive. The current price of 446 is above the 20-day moving average (MA) of 439.90, above the 50-day MA of 432.64, and above the 200-day MA of 424.57, indicating a bullish trend. The MACD of 7.14 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2323.

Fonfun Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2323	76 Outperform	¥3.21B	18.96		―	81.31%	139.58%
4421	74 Outperform	¥2.84B	11.39		2.59%	5.84%	7.76%
Sector *	63 Neutral	$34.16B	5.78	-11.85%	1.82%	5.31%	-18.32%
3970	62 Neutral	¥2.69B	39.81		3.99%	11.03%	-73.33%
5618	55 Neutral	¥4.05B	―		―	―	―
3753	55 Neutral	¥2.97B	―		―	-4.53%	-237.38%
4427	47 Neutral	¥4.09B	―		―	2.84%	40.04%