FAN Communications. Inc. (2461) AI Stock Analysis

• Market Cap: ¥33.86B
• Dividend Yield: 5.08%
• Average Volume (3M): 72.94K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.27
• Revenue Growth: 3.22%
• EPS Growth: 13.97%
• Country: JP
• Employees: 409
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 4.76
• Shares Outstanding: 66,265,430
• 10 Day Avg. Volume: 80,840
• 30 Day Avg. Volume: 72,940
• PEG Ratio: 1.24
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 3.82
• P/FCF Ratio: 24.22
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥560.00 ▲(5.46% Upside)

The score is primarily supported by strong margins and a debt-free balance sheet, which reduce financial risk. Offsetting this, severe and persistent revenue contraction raises uncertainty about future earnings durability; technical signals are neutral and valuation is mixed (strong yield but a higher P/E).

Positive Factors

Strong Margins

High margins indicate efficient operations and pricing power, supporting profitability even amid revenue challenges.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing for strategic investments without leverage concerns.

Organizational Restructuring

The restructuring aims to optimize management resources and enhance capabilities, potentially improving operational efficiency and growth prospects.

Negative Factors

Revenue Contraction

Persistent revenue decline raises concerns about market competitiveness and long-term earnings sustainability.

Cash Flow Volatility

Volatile cash flow can hinder strategic planning and investment, affecting the company's ability to capitalize on growth opportunities.

Declining Performance

Continued performance declines in key segments may weaken market position and stakeholder confidence, impacting future growth.

FAN Communications. Inc. Business Overview & Revenue Model

Company Description

FAN Communications, Inc. develops Internet advertising related businesses in Japan. The company offers cost per action ad network business that comprises of smartphone app installed advertising and affiliate advertising, which optimizes ad distribution on the human side. It also operates A8.net, an affiliate service provider for PCs, smartphones, and tablets. In addition, the company offers cost per click services, comprising of smartphone ad network nend, and, for web and app media; cost per install advertising services; and agency work services for advertising placement in media operated by other companies, such as listing ads and banner ads for portal sites, and search engine optimization work. Further, it provides docomo Account Cash Get Mall, in which cash accumulates in accounts when items are purchased; Colleee, a service to earn points by shopping; WorkAny, a part-time-business/side-business matching platform; A8M&A, an end-to-end website mergers and acquisitions marketplace to facilitate execution of deals; monoka, in which cash accumulates in bank accounts when items are purchased; ViiBee, a review video app; and GERA, a podcast app. FAN Communications, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

FAN Communications, Inc. generates revenue primarily through its affiliate marketing platform, where it earns commissions by facilitating transactions between advertisers and affiliates. The company receives a percentage of sales or a fixed fee for each successful referral or sale generated through its network of affiliates. Additionally, FAN Communications may also charge advertisers for access to its platform and tools, and offer premium services or tools for enhanced marketing capabilities. Partnerships with key advertisers and a large network of active affiliates are significant factors contributing to its earnings, ensuring a steady stream of transactions and commissions.

FAN Communications. Inc. Financial Statement Overview

Summary

FAN Communications, Inc. exhibits financial stability with zero debt and a high equity ratio. The company maintains strong profitability margins and effective cash flow management despite facing declining revenues. There is room for improvement in operational efficiency to enhance future performance.

Income Statement

The company's revenue has shown a decreasing trend over the past four years, indicating challenges in maintaining growth. Gross profit margins remain strong at above 80%, demonstrating efficient cost management. However, the decline in EBIT and EBITDA margins suggests potential inefficiencies or increased operating costs. The net profit margin is stable, indicating consistent profitability despite revenue decline.

Balance Sheet

The company maintains a robust balance sheet with zero debt, resulting in a highly favorable debt-to-equity ratio. Stockholders' equity represents a significant portion of total assets, highlighting strong capitalization. The equity ratio is high, indicating financial stability and low risk of insolvency.

Cash Flow

Operating cash flow has decreased over recent years, aligning with declining revenues. However, the company has managed positive free cash flow consistently, reflecting prudent capital expenditure management. The cash flow to net income ratios are healthy, suggesting effective cash management despite revenue challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.20B	6.96B	7.40B	7.74B	26.70B	29.38B
Gross Profit	6.33B	5.89B	5.93B	6.10B	6.25B	7.00B
EBITDA	2.17B	1.78B	2.19B	2.55B	2.52B	3.13B
Net Income	1.28B	1.42B	1.23B	1.54B	1.64B	1.99B
Balance Sheet
Total Assets	22.95B	23.36B	23.38B	23.86B	24.65B	26.32B
Cash, Cash Equivalents and Short-Term Investments	14.59B	17.32B	17.90B	17.28B	19.56B	20.63B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.50B	5.30B	5.49B	5.90B	4.95B	5.80B
Stockholders Equity	17.45B	18.06B	17.89B	17.95B	19.71B	20.52B
Cash Flow
Free Cash Flow	0.00	1.10B	1.34B	2.35B	1.09B	2.43B
Operating Cash Flow	0.00	1.26B	1.51B	2.48B	1.23B	2.65B
Investing Cash Flow	0.00	-324.00M	21.01M	-1.54B	940.39M	730.87M
Financing Cash Flow	0.00	-1.26B	-1.32B	-3.30B	-2.39B	-2.44B

FAN Communications. Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 531.00
• 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:2461, the sentiment is Positive. The current price of 531 is above the 20-day moving average (MA) of 509.14, above the 50-day MA of 509.31, and above the 200-day MA of 460.16, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2461.

FAN Communications. Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2491	79 Outperform	¥21.65B	4.82	―	7.85%	-3.20%	34.08%
6535	75 Outperform	¥29.60B	12.96	―	5.35%	58.08%	29.89%
2461	69 Neutral	¥33.86B	23.63	―	5.08%	3.22%	13.97%
7095	66 Neutral	¥22.90B	8.60	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4499	50 Neutral	¥30.66B	-31.98	―	―	4.53%	-464.41%

FAN Communications. Inc. Corporate Events

FAN Communications to Implement Major Organizational Restructuring and Executive Realignment in 2026

FAN Communications, Inc. has approved a major organizational restructuring effective January 1, 2026, shifting from a division-based structure to a function-specific organization to support its medium- to long-term growth strategy, enhance specialist capabilities, and optimize management resources. The company will abolish the A8 Department and reorganize its operations into newly created 1st Sales, 2nd Sales, Development, and Media Development departments, while redistributing the functions of the former A8 and N-INE divisions into new platform, sales, development, product management, and media development units. Alongside these structural changes, FAN Communications is realigning executive officer responsibilities and implementing a broad set of personnel appointments, including new departmental heads and general managers, to better align leadership roles with the revamped organization and drive more efficient sales, development, and platform operations.

FAN Communications Reports Decline in November 2025 Performance

FAN Communications, Inc. reported its monthly business performance for November 2025, highlighting a decline in both revenue and transaction volume compared to the previous year. The CPA Solution Business and Strategic Business segments both experienced decreases in performance, indicating potential challenges in maintaining growth momentum. This downturn may impact the company’s market positioning and stakeholder confidence.

FAN Communications Reports Decline in October 2025 Performance

FAN Communications, Inc. reported its monthly business performance for October 2025, highlighting a decline in revenue and transaction volume compared to the previous year. The CPA Solution Business and Strategic Business segments both experienced decreases in performance, reflecting broader market challenges and potential impacts on the company’s financial health and strategic positioning.

FAN Communications Reports Strong Financial Growth in 2025

FAN Communications, Inc. reported a 5% increase in net sales for the nine months ending September 30, 2025, with a significant rise in operating and ordinary profits by over 40% year-on-year. Despite a slight decrease in total assets and equity-to-asset ratio, the company maintains a strong financial position, forecasting continued growth in net sales and profits for the fiscal year ending December 31, 2025.