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

• Market Cap: ¥9.68B
• Dividend Yield: N/A
• Average Volume (3M): 40.58K
• Price to Earnings (P/E): 120.9
• Beta (1Y): 1.17
• 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 ▼(-4.27% Downside)

J Frontier Co., Ltd. faces significant challenges, with the most impactful being its high P/E ratio indicating potential overvaluation and bearish technical indicators suggesting negative market sentiment. Financial performance is also a concern due to inconsistent revenue growth and high leverage. The absence of a dividend yield further detracts from the stock's appeal.

Positive Factors

Revenue Growth

The company has demonstrated a revenue growth rate of 11.4%, indicating a positive trend in market expansion and product adoption, which can support long-term business sustainability.

Cash Flow Improvement

Improved free cash flow growth suggests better cash generation ability, which can enhance financial flexibility and support strategic investments over time.

Stable Gross Profit Margin

A stable gross profit margin indicates consistent cost management and pricing power, contributing to the company's ability to maintain profitability over the long term.

Negative Factors

High Leverage

High leverage can pose risks to financial stability, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment, impacting the company's ability to sustain competitive advantages and market position.

Negative Operating Cash Flow

Negative operating cash flow relative to net income indicates potential liquidity issues, which could affect the company's ability to meet short-term obligations and fund operations.

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

Company Description

J Frontier Co., Ltd. (2934) operates primarily in the technology sector, focusing on innovative solutions in the fields of software development and IT services. The company specializes in providing advanced software applications, cloud computing services, and digital transformation consultancy to a diverse range of industries, including finance, healthcare, and retail. With a commitment to leveraging cutting-edge technology, J Frontier aims to enhance operational efficiency and drive growth for its clients through customized solutions.

How the Company Makes Money

J Frontier Co., Ltd. generates revenue through multiple streams, primarily from software licensing, subscription services, and project-based consulting fees. The company licenses its proprietary software solutions to businesses, offering both one-time purchase options and ongoing subscription models that provide recurring income. Additionally, J Frontier engages in consulting projects, where it collaborates with clients to implement digital transformation strategies, charging fees based on project scope and duration. Strategic partnerships with technology providers and industry leaders further enhance its market reach, allowing the company to offer integrated solutions that attract new clients and drive revenue growth.

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	21.69B	21.50B	17.71B	16.84B	11.88B	8.49B
Gross Profit	9.55B	9.57B	8.33B	7.12B	5.40B	6.63B
EBITDA	-281.87M	914.54M	-1.22B	-1.54B	760.66M	706.10M
Net Income	-1.55B	87.57M	-2.09B	-1.90B	400.52M	424.93M
Balance Sheet
Total Assets	9.05B	9.17B	10.71B	7.24B	6.10B	2.59B
Cash, Cash Equivalents and Short-Term Investments	1.75B	2.17B	1.81B	1.65B	2.96B	1.64B
Total Debt	4.63B	4.34B	5.17B	2.14B	546.79M	75.21M
Total Liabilities	7.02B	7.16B	9.09B	4.53B	1.94B	1.33B
Stockholders Equity	1.26B	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: 1570.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1570 is below the 20-day moving average (MA) of 1763.80, below the 50-day MA of 1772.08, and below the 200-day MA of 1812.78, indicating a bearish trend. The MACD of -37.37 indicates Positive momentum. The RSI at 24.42 is Positive, neither overbought nor oversold. The STOCH value of 20.52 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	¥24.33B	20.44	―	1.68%	-2.05%	-9.92%
4320	74 Outperform	¥17.60B	16.72	―	4.97%	8.77%	1106.00%
3939	67 Neutral	¥25.94B	23.35	―	1.32%	9.85%	20.83%
4483	63 Neutral	¥281.29B	45.72	―	0.37%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥17.43B	-23.82	―	1.33%	6.17%	-8918.66%
2934	42 Neutral	¥9.68B	120.89	―	―	11.40%	―