Pacific Net Co., Ltd. (3021) AI Stock Analysis

• Market Cap: ¥11.15B
• Dividend Yield: 2.47%
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.88
• Revenue Growth: 20.51%
• EPS Growth: 42.33%
• Country: JP
• Employees: 234
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): N/A
• Shares Outstanding: 5,392,500
• 10 Day Avg. Volume: 32,980
• 30 Day Avg. Volume: 16,926
• PEG Ratio: 0.57
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -6.24
• 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: 71 Outperform
• Price Target: ¥2,234.00 ▲(15.15% Upside)

The score is driven primarily by mixed financial performance—good profitability and revenue growth but elevated leverage and negative free cash flow. Technicals are supportive with strong trend and positive MACD, while valuation is helped by a moderate P/E and a ~2.37% dividend yield.

Positive Factors

Consistent revenue growth

Sustained double-digit revenue growth indicates durable demand for core broadband and mobile services, supporting scale advantages. Over 2–6 months this trend underpins recurring subscription cash flows, gives room for reinvestment in network capex, and supports expansion into value-added services.

Healthy operating margins

Strong gross and EBIT/EBITDA margins reflect effective cost control and pricing power in core connectivity services. Margin durability provides a structural buffer versus competition, enabling sustained profitability even with modest top-line fluctuations and supporting long-term reinvestment and shareholder returns.

Solid operating cash generation

Operating cash generation outpacing accounting earnings shows the business converts revenue into cash, a durable strength for funding network maintenance and growth capex. This improves financing flexibility and reduces reliance on external funding if cash conversion is sustained over coming quarters.

Negative Factors

Elevated financial leverage

High debt-to-equity raises structural financial risk by increasing interest burden and reducing flexibility to fund capex or absorb shocks. Over the medium term this can constrain strategic investments, pressure margins if rates rise, and increase refinancing needs across business cycles.

Negative free cash flow

Persistent negative free cash flow despite strong operating cash suggests heavy capex or cash outflows that outstrip what operations generate. Structurally this may force external financing, limit dividend or buyback flexibility, and slow deleveraging or growth initiatives if not corrected.

Modest net profit margin

A relatively modest net margin limits retained earnings and the company's capacity to build reserves or accelerate deleveraging. Over months this exposes profitability to cost inflation or competitive pricing pressure and reduces the pace at which operational improvements translate into higher shareholder returns.

Pacific Net Co., Ltd. Business Overview & Revenue Model

Company Description

Pacific Net Co., Ltd. (3021) is a technology-driven company specializing in telecommunications and internet services. The company operates primarily in the Asia-Pacific region, focusing on providing high-quality broadband solutions, mobile communication services, and related digital products. Pacific Net aims to enhance connectivity and digital experiences for both individual consumers and businesses through its innovative service offerings and advanced network infrastructure.

How the Company Makes Money

Pacific Net Co., Ltd generates revenue through multiple streams, primarily by offering broadband and mobile communication services. Its core revenue model includes subscription fees from individual and corporate customers for internet services, as well as revenue from mobile data plans and voice services. Additionally, the company may earn income from value-added services such as cloud storage, digital content delivery, and enterprise solutions. Strategic partnerships with technology providers and content creators further enhance its service offerings, enabling the company to tap into new market segments and diversify its income sources. Furthermore, Pacific Net may explore opportunities in advertising and sponsorships within its digital platforms, contributing additional revenue.

Pacific Net Co., Ltd. Financial Statement Overview

Summary

Income statement strength (revenue growth and healthy EBIT/EBITDA margins) is offset by balance-sheet leverage risk (high debt-to-equity) and cash-flow weakness (negative free cash flow), which reduces overall financial flexibility.

Income Statement

Pacific Net Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 3.87% in the latest period. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin is relatively modest, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are healthy, reflecting solid earnings before interest and taxes.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, which indicates significant leverage and potential risk if not managed properly. However, the return on equity is commendable, demonstrating effective use of shareholders' funds. The equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

Pacific Net Co., Ltd. faces challenges with negative free cash flow, indicating potential liquidity issues. The operating cash flow is strong relative to net income, showing good cash generation from operations. However, the negative free cash flow to net income ratio highlights the need for better cash management strategies.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	8.10B	6.92B	6.40B	5.51B	5.22B
Gross Profit	3.23B	2.92B	2.66B	2.21B	2.42B
EBITDA	3.64B	2.91B	2.42B	2.08B	2.08B
Net Income	529.68M	432.12M	336.30M	209.81M	496.59M
Balance Sheet
Total Assets	12.36B	10.49B	8.01B	6.84B	5.79B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.38B	1.17B	915.90M	1.81B
Total Debt	7.67B	6.45B	4.24B	3.33B	2.32B
Total Liabilities	8.99B	7.43B	5.27B	4.30B	3.37B
Stockholders Equity	3.38B	3.06B	2.74B	2.54B	2.43B
Cash Flow
Free Cash Flow	-1.05B	-1.80B	-501.63M	-1.67B	958.29M
Operating Cash Flow	3.57B	2.52B	2.74B	1.36B	2.38B
Investing Cash Flow	-4.73B	-4.41B	-3.26B	-3.14B	-1.47B
Financing Cash Flow	991.49M	2.10B	783.48M	883.10M	1.69M

Pacific Net Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1940.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3021, the sentiment is Positive. The current price of 1940 is below the 20-day moving average (MA) of 2036.20, above the 50-day MA of 1923.60, and above the 200-day MA of 1467.21, indicating a bullish trend. The MACD of 52.43 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 96.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3021.

Pacific Net Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6670	80 Outperform	¥222.26B	14.19	―	2.70%	10.23%	8.78%
4832	76 Outperform	¥66.37B	13.53	―	2.65%	3.62%	8.01%
6676	75 Outperform	¥65.45B	8.35	―	2.03%	-13.53%	173.43%
3021	71 Outperform	¥11.15B	14.14	―	2.47%	20.51%	42.33%
6597	67 Neutral	¥8.00B	14.68	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥4.20B	126.46	―	―	17.29%	―