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

• Market Cap: ¥12.66B
• Dividend Yield: 2.47%
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.92
• 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: ¥2,754.00 ▲(41.96% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

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 high revenue growth indicates expanding customer adoption and scale in core broadband and mobile services. Over 2-6 months this growth supports recurring subscription revenue, improves operating leverage potential, and underpins reinvestment in network capacity and product expansion.

Strong Margins

Healthy gross and EBIT/EBITDA margins show the business can convert revenue into operating profits, reflecting effective cost control and pricing power in its service offerings. Margin durability supports cash generation, funds strategic investments, and cushions against competitive pricing pressure.

Operating Cash Generation

Robust operating cash flow versus reported earnings signals high earnings quality and the core business's ability to generate cash from subscriptions and services. This durability aids near-term liquidity, funds maintenance capex, and provides a foundation to address financing needs despite other cash strains.

Negative Factors

High Leverage

Material leverage raises long-term financial risk by increasing interest burden and refinancing exposure. High debt limits strategic flexibility, constrains ability to invest opportunistically, and makes the firm more vulnerable to rising rates or revenue shocks over the coming months.

Negative Free Cash Flow

Persistent negative free cash flow reduces internal funding for growth, deleveraging, or dividends, forcing reliance on external financing. Over 2-6 months this pressure can weaken balance sheet resilience, increase financing costs, and limit the firm's ability to execute strategic investments.

Modest Net Profit Margin

Relatively modest net margins imply limited retained earnings and a smaller buffer against cost inflation or competitive pricing. Without margin improvement, sustainable returns to shareholders and capacity to absorb cost shocks or fund growth from profits will remain constrained over the medium term.

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: Neutral
• STOCH: Neutral

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 2228.20, below the 50-day MA of 2070.90, and above the 200-day MA of 1527.64, indicating a bullish trend. The MACD of 124.04 indicates Negative momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, 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	¥225.89B	8.54	―	2.70%	10.23%	8.78%
4832	76 Outperform	¥63.86B	13.11	―	2.65%	3.62%	8.01%
6676	75 Outperform	¥56.41B	6.56	―	2.03%	-13.53%	173.43%
3021	71 Outperform	¥12.66B	8.19	―	2.47%	20.51%	42.33%
6597	67 Neutral	¥7.44B	13.29	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥3.84B	-92.18	―	―	17.29%	―