J Frontier Co., Ltd. (2934) AI Stock Analysis

• Market Cap: ¥6.94B
• Dividend Yield: N/A
• Average Volume (3M): 40.58K
• Price to Earnings (P/E): 82.6
• Beta (1Y): 1.06
• Revenue Growth: 11.40%
• EPS Growth: N/A
• Country: JP
• Employees: 315
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -6.90
• Shares Outstanding: 5,326,465
• 10 Day Avg. Volume: 58,880
• 30 Day Avg. Volume: 40,583
• PEG Ratio: -0.89
• Price to Book (P/B): 5.74
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 18.06
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥1,503.00 ▲(15.44% Upside)

The overall stock score is primarily impacted by the company's financial performance challenges and bearish technical indicators. The high P/E ratio suggests overvaluation, further contributing to a low score. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Despite recent inconsistencies, the company's diverse revenue streams from software licensing and consulting provide potential for future growth.

Cash Flow Improvement

Improvement in free cash flow growth indicates better cash generation, which can support reinvestment and debt management.

Stable Gross Profit Margin

A stable gross profit margin suggests the company maintains pricing power and cost control, essential for long-term profitability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.

Inconsistent Operating Cash Flow

Inconsistent operating cash flow can hinder the company's ability to fund operations and growth initiatives, impacting financial health.

Volatile Profit Margins

Volatile profit margins indicate challenges in maintaining operational efficiency, which can affect long-term profitability and competitiveness.

J Frontier Co., Ltd. Business Overview & Revenue Model

Company Description

J Frontier Co., Ltd. (2934) is a dynamic enterprise focused on the development and distribution of innovative technology solutions primarily within the telecommunications and IT sectors. The company specializes in providing high-quality hardware and software products, including telecommunications infrastructure, cloud services, and integrated IT solutions, catering to a diverse clientele ranging from small businesses to large enterprises.

How the Company Makes Money

J Frontier Co., Ltd. generates revenue through multiple streams, primarily by selling its proprietary technology products and services. Key revenue streams include direct sales of telecommunications equipment, licensing fees from software solutions, and subscription-based cloud service offerings. Additionally, the company has formed strategic partnerships with major telecom operators and IT firms, which enhance its market reach and provide opportunities for joint ventures and collaborative projects, thus significantly contributing to its overall earnings.

J Frontier Co., Ltd. Financial Statement Overview

Summary

J Frontier Co., Ltd. faces challenges in maintaining consistent revenue growth and profitability, with high leverage posing potential risks. While there are signs of improvement in cash flow, the company needs to focus on stabilizing its financial performance and managing debt levels to enhance long-term sustainability.

Income Statement

The income statement shows a mixed performance. Gross profit margin has been relatively stable, but the net profit margin has fluctuated significantly, with recent improvements. Revenue growth has been inconsistent, with a notable decline in the latest period. EBIT and EBITDA margins have also been volatile, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio, suggesting potential leverage risks. However, the equity ratio has been relatively stable. Return on equity has been negative in recent periods, reflecting profitability challenges. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth, but operating cash flow has been inconsistent. The operating cash flow to net income ratio has been negative, indicating cash flow challenges. However, the free cash flow to net income ratio suggests some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.50B	21.50B	17.71B	16.84B	11.88B	8.49B
Gross Profit	9.32B	9.57B	8.33B	7.12B	5.40B	6.63B
EBITDA	914.54M	914.54M	-1.22B	-1.54B	760.66M	706.10M
Net Income	86.29M	87.57M	-2.09B	-1.90B	400.52M	424.93M
Balance Sheet
Total Assets	9.17B	9.17B	10.71B	7.24B	6.10B	2.59B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.17B	1.81B	1.65B	2.96B	1.64B
Total Debt	4.34B	4.34B	5.17B	2.14B	546.79M	75.21M
Total Liabilities	7.16B	7.16B	9.09B	4.53B	1.94B	1.33B
Stockholders Equity	1.41B	1.41B	1.15B	2.48B	4.14B	1.27B
Cash Flow
Free Cash Flow	0.00	447.19M	-1.54B	-1.94B	-377.40M	823.99M
Operating Cash Flow	0.00	509.01M	-1.44B	-1.83B	-366.94M	830.91M
Investing Cash Flow	0.00	470.79M	-1.79B	-1.13B	-860.09M	-7.99M
Financing Cash Flow	0.00	-623.13M	3.39B	1.45B	2.56B	-93.65M

J Frontier Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1302.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2934, the sentiment is Negative. The current price of 1302 is below the 20-day moving average (MA) of 1393.35, below the 50-day MA of 1623.22, and below the 200-day MA of 1757.24, indicating a bearish trend. The MACD of -111.67 indicates Negative momentum. The RSI at 17.91 is Positive, neither overbought nor oversold. The STOCH value of 24.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2934.

J Frontier Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3649	79 Outperform	¥23.49B	19.73	―	1.77%	-2.05%	-9.92%
3939	76 Outperform	¥25.75B	23.18	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥17.46B	10.50	―	5.00%	8.77%	1078.88%
4483	61 Neutral	¥245.96B	39.98	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥65.75B	-152.46	―	0.39%	6.17%	-8918.66%
2934	42 Neutral	¥6.94B	82.63	―	―	11.40%	―