FAN Communications. Inc. (2461) AI Stock Analysis

• Market Cap: ¥27.89B
• Dividend Yield: 4.51%
• Average Volume (3M): 68.40K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.27
• Revenue Growth: -5.88%
• EPS Growth: 15.11%
• Country: JP
• Employees: 409
• Sector: Communication Services
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): 5.88
• Shares Outstanding: 66,248,430
• 10 Day Avg. Volume: 62,430
• 30 Day Avg. Volume: 68,403
• PEG Ratio: 1.55
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 63 Neutral
• Price Target: ―

FAN Communications, Inc. presents a mixed financial picture. Strong financial stability and profitability margins are offset by declining revenues and bearish technical indicators. The stock's valuation is fair, with a compelling dividend yield. However, the downward price trend and lack of earnings call insights suggest a cautious outlook.

FAN Communications. Inc. Business Overview & Revenue Model

Company Description

FAN Communications, Inc. (2461) is a leading company in the digital marketing sector, specializing in affiliate marketing services. It provides a platform that connects advertisers with affiliates to promote products and services online. The company's core products include its affiliate marketing services, which help businesses increase their online presence and sales through strategic partnerships with affiliates who promote their offerings on various digital channels.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.96B	7.40B	7.74B	26.70B	29.38B
	Gross Profit
5.89B	5.93B	6.10B	6.25B	7.00B
	EBIT
1.60B	2.07B	2.41B	2.32B	2.85B
	EBITDA
1.78B	2.19B	2.55B	2.52B	3.13B
	Net Income Common Stockholders
1.42B	1.23B	1.54B	1.64B	1.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.32B	17.90B	17.28B	19.56B	20.63B
	Total Assets
23.36B	23.38B	23.86B	24.65B	26.32B
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-16.92B	-17.30B	-16.98B	-19.36B	-19.53B
	Total Liabilities
5.30B	5.49B	5.90B	4.95B	5.80B
	Stockholders Equity
18.06B	17.89B	17.95B	19.71B	20.52B
Cash Flow		Free Cash Flow
1.10B	1.34B	2.35B	1.09B	2.43B
	Operating Cash Flow
1.26B	1.51B	2.48B	1.23B	2.65B
	Investing Cash Flow
-324.00M	21.01M	-1.54B	940.39M	730.87M
	Financing Cash Flow
-1.26B	-1.32B	-3.30B	-2.39B	-2.44B

FAN Communications. Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 429.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 429 is above the 20-day moving average (MA) of 425.60, above the 50-day MA of 418.42, and above the 200-day MA of 402.32, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 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
3923	76 Outperform	¥417.79B	52.19		0.20%	27.33%	91.27%
3697	74 Outperform	€465.24B	69.03	19.04%	―	20.02%	-5.47%
6027	67 Neutral	¥69.25B	65.63		―	24.27%	24.16%
2461	63 Neutral	¥27.89B	21.56		4.51%	-5.88%	15.11%
Sector *	61 Neutral	$14.68B	5.92	-3.83%	7.51%	2.79%	-33.07%
6094	43 Neutral	¥8.83B	212.95		―	32.30%	―

FAN Communications. Inc. Corporate Events

HIKARI TSUSHIN Gains Influence in FAN Communications

FAN Communications, Inc. has announced that HIKARI TSUSHIN, INC. has become an ‘Other Affiliated Company’ due to an increase in the percentage of voting rights held indirectly by HIKARI TSUSHIN, INC. This change reflects HIKARI TSUSHIN, INC.’s growing influence within FAN Communications, potentially impacting the company’s strategic decisions and financial reporting.

FAN Communications Announces Commemorative Dividend for A8.net’s 25th Anniversary

FAN Communications, Inc. announced a commemorative interim dividend of ¥8.00 per share to celebrate the 25th anniversary of its affiliate advertising service, A8.net. This gesture reflects the company’s gratitude towards its shareholders and stakeholders, highlighting its stable financial position and commitment to rewarding investors. The company has not revised its forecast for the year-end ordinary dividend, indicating confidence in its ongoing financial performance.