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

• Market Cap: ¥12.06B
• Dividend Yield: 2.47%
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.90
• 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: ¥2,582.00 ▲(33.09% Upside)

The score is driven primarily by solid financial performance tempered by leverage and negative free cash flow, while technicals are supportive with strong trend/momentum. Valuation also contributes positively due to a moderate P/E and a meaningful dividend yield.

Positive Factors

Revenue Growth

Sustained 24.6% revenue growth signals expanding market share and successful customer acquisition in core broadband and mobile services. Over 2–6 months this supports recurring subscription cash flows, scale economics and reinvestment capacity for network upgrades and product expansion.

Healthy Margins

Robust gross profit and healthy EBIT/EBITDA margins indicate durable pricing power and cost control in service delivery. This margin profile supports operating leverage as revenue grows, enabling sustained reinvestment in infrastructure and protecting profitability against competitive pressure.

Operating Cash Generation

Strong operating cash versus reported net income suggests high quality earnings and reliable cash conversion from core telecom operations. Over months this underpins working capital, funds routine capex, and improves ability to service debt or finance strategic initiatives without immediate external funding.

Negative Factors

High Leverage

Elevated debt-to-equity increases interest burden and reduces financial flexibility, a structural risk for a capital-intensive telecom. Higher leverage limits ability to fund network expansion or absorb demand shocks, and raises refinancing and covenant risks over the medium term.

Negative Free Cash Flow

Persistent negative free cash flow constrains liquidity and may force external financing or cutbacks. Even with strong operating cash, sustained negative FCF implies capex/working capital outlays exceed receipts, which can impede deleveraging and limit strategic investments over a multi-month horizon.

Modest Net Margin

A relatively modest net margin makes earnings vulnerable to rising costs or higher interest expense from leverage. For a services business with competitive pricing, this structural margin constraint reduces excess cash for growth, dividends or debt reduction unless operational efficiency improves.

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 (75) is supported by consistent revenue growth and healthy EBIT/EBITDA margins, but the balance sheet (68) shows elevated leverage risk and cash flow (60) is pressured by negative free cash flow, reducing overall financial quality.

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: Negative
• 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 2057.25, below the 50-day MA of 1952.46, and above the 200-day MA of 1477.61, indicating a bullish trend. The MACD of 80.81 indicates Negative momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 91.50 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	¥226.09B	14.43	―	2.70%	10.23%	8.78%
4832	76 Outperform	¥64.86B	13.22	―	2.65%	3.62%	8.01%
6676	75 Outperform	¥63.04B	8.04	―	2.03%	-13.53%	173.43%
3021	71 Outperform	¥12.06B	15.28	―	2.47%	20.51%	42.33%
6597	67 Neutral	¥9.10B	16.69	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥4.35B	128.17	―	―	17.29%	―