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

• Market Cap: ¥6.78B
• Dividend Yield: 3.72%
• Average Volume (3M): 16.81K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.97
• Revenue Growth: 18.14%
• EPS Growth: 22.77%
• Country: JP
• Employees: 234
• Sector: Technology
• Sector Strength: 95
• Industry: Computer Hardware
• EPS (TTM): 40.23
• Shares Outstanding: 5,392,500
• 10 Day Avg. Volume: 11,590
• 30 Day Avg. Volume: 16,810
• PEG Ratio: 0.95
• Price to Book (P/B): 2.11
• 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: ¥1,380.00
• Price Target Upside: 6.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,420.00 ▲(10.08%Upside)

The company demonstrates strong financial performance with robust revenue growth and profitability, though its leveraged position poses some risk. The technical analysis indicates stable trends, and the stock's valuation is appealing due to its reasonable P/E ratio and high dividend yield. These factors contribute to a solid overall stock score.

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

Company Description

Pacific Net Co., Ltd. (3021) is a technology company based in Japan. The company operates primarily within the IT services and telecommunications sectors, offering a range of services such as network solutions, IT infrastructure management, and consulting services. Pacific Net Co., Ltd. is dedicated to providing innovative technology solutions to its clients, helping them enhance their operational efficiency and technological capabilities.

How the Company Makes Money

Pacific Net Co., Ltd. generates revenue through a diversified business model focused on IT services and telecommunications solutions. The company's key revenue streams include fees from consulting services, subscription and maintenance fees for IT infrastructure management, and sales of network equipment and technology solutions. Significant partnerships with technology providers and telecommunications companies enhance its service offerings and market reach, contributing to steady revenue growth. Additionally, the company may generate income through strategic consulting projects and custom IT solutions for various industries.

Pacific Net Co., Ltd. Financial Statement Overview

Summary

The company's financial performance is strong with consistent revenue growth and healthy profit margins. However, the balance sheet reveals a leveraged position with a high debt-to-equity ratio, posing potential risks. Cash flow management needs improvement due to negative free cash flow from high capital expenditures.

Income Statement

The company has shown consistent revenue growth, with a significant increase from 2020 to 2024. Gross and net profit margins are healthy, with gross profit margin improving steadily over the years, and a current TTM net profit margin of approximately 6.25%. EBIT and EBITDA margins are strong, indicating efficient operations. Overall, the income statement reflects robust growth and profitability trends.

Balance Sheet

The balance sheet shows a stable financial position with increasing stockholders' equity year-over-year. The debt-to-equity ratio is relatively high at 2.11, indicating a leveraged position, but the equity ratio remains reasonable at around 29.18%. Return on equity is positive, suggesting efficient use of equity to generate profits, though the leverage poses a potential risk if not managed carefully.

Cash Flow

Operating cash flow has been strong, but capital expenditures have led to negative free cash flow in recent years. The free cash flow to net income ratio has been inconsistent, reflecting challenges in converting income into free cash. Despite this, the operating cash flow to net income ratio indicates solid cash generation from operations. The cash flow statement highlights the need for improved cash management to support ongoing investments.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.92B	6.40B	5.51B	5.22B	4.57B
Gross Profit	2.92B	2.66B	2.21B	2.42B	2.10B
EBITDA	2.91B	2.42B	2.08B	2.08B	1.41B
Net Income	432.12M	336.30M	209.81M	496.59M	289.44M
Balance Sheet
Total Assets	10.49B	8.01B	6.84B	5.79B	4.90B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.17B	915.90M	1.81B	893.99M
Total Debt	6.45B	4.24B	3.33B	2.32B	2.18B
Total Liabilities	7.43B	5.27B	4.30B	3.37B	2.86B
Stockholders Equity	3.06B	2.74B	2.54B	2.43B	2.04B
Cash Flow
Free Cash Flow	-1.80B	-501.63M	-1.67B	958.29M	-801.30M
Operating Cash Flow	2.52B	2.74B	1.36B	2.38B	1.29B
Investing Cash Flow	-4.41B	-3.26B	-3.14B	-1.47B	-2.11B
Financing Cash Flow	2.10B	783.48M	883.10M	1.69M	1.04B

Pacific Net Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1290 is below the 20-day moving average (MA) of 1290.80, above the 50-day MA of 1270.21, and above the 200-day MA of 1245.38, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 96.95 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
6734	80 Outperform	¥3.55B	11.13		2.81%	26.52%	-8.57%
3021	76 Outperform	¥6.78B	12.80		3.72%	18.14%	22.77%
6599	71 Outperform	¥3.32B	10.58		1.82%	-6.10%	-26.21%
6597	66 Neutral	¥8.15B	20.55		1.54%	-2.04%	8.15%
6862	65 Neutral	¥6.51B	16.62		1.65%	29.04%	-74.63%
Sector *	58 Neutral	€1.78B	9.15	1.99%	3.16%	0.55%	-90.93%
6836	42 Neutral	¥7.07B	583.76		―	14.80%	70.15%