FaithNetwork Co.,Ltd (3489) AI Stock Analysis

• Market Cap: ¥24.18B
• Dividend Yield: 3.87%
• Average Volume (3M): 109.50K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.79
• Revenue Growth: 11.79%
• EPS Growth: 128.54%
• Country: JP
• Employees: 234
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 15.91
• Shares Outstanding: 29,880,000
• 10 Day Avg. Volume: 75,030
• 30 Day Avg. Volume: 109,503
• PEG Ratio: -3.03
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 4.73
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥908.00 ▲(12.38% Upside)

FaithNetwork Co.,Ltd's overall stock score is driven by strong financial performance and attractive valuation metrics. However, technical indicators suggest potential bearish momentum, which tempers the overall score. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Profitability

Improved profitability through higher net profit margins suggests effective cost management and operational efficiency, strengthening financial stability.

Cash Flow Management

Positive cash flow turnaround enhances financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Negative Factors

Debt Levels

Moderate leverage suggests potential risk in financial stability, as higher debt levels can strain cash flow and limit strategic flexibility.

Cash Flow Volatility

Volatile cash flows may pose challenges in maintaining consistent liquidity, affecting the company's ability to fund operations and growth consistently.

Equity Ratio

A relatively low equity ratio indicates reliance on debt, which could impact financial resilience and increase vulnerability to economic downturns.

FaithNetwork Co.,Ltd Business Overview & Revenue Model

Company Description

FaithNetwork Co., Ltd (3489) is a technology-driven company specializing in providing integrated digital solutions for the faith-based community. Operating primarily in the religious technology sector, the company offers a range of products and services including church management software, online donation platforms, and community engagement tools aimed at enhancing communication and resource management for religious organizations. By leveraging innovative technology, FaithNetwork aims to empower churches and faith groups to connect with their congregations more effectively.

How the Company Makes Money

FaithNetwork generates revenue through multiple streams, primarily by offering subscription-based services for its church management software and donation platforms. These subscriptions provide churches with access to various tools and features that facilitate administrative tasks, fundraising, and communication with members. Additionally, the company earns money through transaction fees associated with online donations processed through its platform. Strategic partnerships with religious organizations and technology providers further enhance its market reach, while ongoing support and consulting services contribute to long-term client relationships and recurring revenue.

FaithNetwork Co.,Ltd Financial Statement Overview

Summary

FaithNetwork Co.,Ltd exhibits strong financial health with impressive revenue and profit growth, efficient operations, and improved cash flow management. The balance sheet shows moderate leverage, but effective equity utilization enhances returns. Continued focus on cash flow stability and liability management is essential.

Income Statement

FaithNetwork Co.,Ltd has demonstrated strong revenue growth, with a notable increase of 34.2% from 2024 to 2025. The gross profit margin improved to 24.3% in 2025, indicating efficient cost management. The net profit margin increased significantly to 9.3%, reflecting enhanced profitability. Both EBIT and EBITDA margins have shown positive trends, reaching 15.0% and 15.6% respectively, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 1.63, indicating moderate leverage. Return on equity improved to 28.4%, showcasing effective use of equity to generate profits. The equity ratio is 32.5%, suggesting a balanced capital structure, though there is room for improvement in reducing liabilities.

Cash Flow

FaithNetwork Co.,Ltd has shown a significant turnaround in free cash flow, moving from negative to positive in 2025. The operating cash flow to net income ratio is 1.59, indicating strong cash generation relative to earnings. However, historical volatility in cash flows suggests potential risks in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.92B	29.92B	22.28B	20.97B	17.02B	18.77B
Gross Profit	7.76B	7.28B	4.34B	4.35B	3.28B	2.59B
EBITDA	5.06B	4.69B	2.22B	2.52B	1.75B	1.11B
Net Income	3.03B	2.77B	943.29M	1.59B	1.03B	585.08M
Balance Sheet
Total Assets	31.19B	30.04B	26.61B	20.60B	16.83B	12.63B
Cash, Cash Equivalents and Short-Term Investments	5.93B	8.84B	5.59B	5.74B	5.54B	3.99B
Total Debt	19.55B	15.97B	15.86B	9.90B	9.17B	5.95B
Total Liabilities	22.51B	20.27B	19.18B	13.72B	11.33B	7.98B
Stockholders Equity	8.68B	9.77B	7.43B	6.88B	5.50B	4.65B
Cash Flow
Free Cash Flow	-3.29B	3.94B	-4.03B	-1.56B	-1.93B	3.36B
Operating Cash Flow	-3.29B	4.41B	-4.00B	-1.46B	-1.90B	3.44B
Investing Cash Flow	893.00K	-471.33M	-633.42M	-143.45M	452.01M	-614.74M
Financing Cash Flow	2.04B	-397.69M	5.55B	452.23M	3.00B	-1.21B

FaithNetwork Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 808.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3489, the sentiment is Negative. The current price of 808 is below the 20-day moving average (MA) of 824.80, below the 50-day MA of 844.83, and above the 200-day MA of 733.14, indicating a neutral trend. The MACD of -8.52 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3489.

FaithNetwork Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8869	76 Outperform	¥23.54B	5.04	―	3.72%	36.88%	83.47%
3276	73 Outperform	¥21.15B	11.07	―	4.41%	1.52%	16.04%
7187	72 Outperform	¥26.94B	11.70	―	3.13%	29.97%	19.33%
3489	70 Outperform	¥24.18B	7.92	―	3.87%	11.79%	128.54%
8928	70 Outperform	¥22.98B	6.17	―	2.62%	1.06%	-7.12%
8881	67 Neutral	€28.13B	10.52	5.90%	3.77%	3.04%	44.65%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%