FaithNetwork Co.,Ltd (3489) AI Stock Analysis

• Market Cap: ¥28.63B
• Dividend Yield: 4.2%
• Average Volume (3M): 109.50K
• Price to Earnings (P/E): 7.4
• 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): 33.68
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,055.00 ▲(30.73% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Recurring subscription model

A subscription-driven revenue mix with transaction fees and services creates predictable, recurring cash flows and high customer lifetime value. Strategic payment and tech partnerships increase stickiness and cross-sell opportunities, supporting durable revenue visibility and margin expansion over months.

Revenue and margin expansion

Sustained double-digit revenue growth alongside improving gross and operating margins indicates scalable unit economics and better cost control. This combination supports reinvestment, competitive pricing flexibility, and durable profitability, strengthening long-term operational resilience.

Improved cash generation

A shift from negative to positive free cash flow and strong operating-cash-to-income conversion signals higher earnings quality and reduced dependence on external financing. Reliable cash generation supports debt reduction, product investment, or shareholder returns, improving financial flexibility over time.

Negative Factors

Moderate leverage

A debt-to-equity of 1.63 and modest equity ratio mean leverage is material relative to equity cushions. This raises refinancing and interest-service risk, reducing strategic optionality for M&A or heavy R&D spending, and makes the firm more sensitive to margin pressure or slower revenue growth.

Cash flow volatility history

Past swings in cash generation suggest revenue seasonality, irregular client payments, or one-off items that could recur, complicating forecasting and capital allocation. Durable planning requires consistent, repeatable cash conversion; volatility raises execution risk for growth and deleveraging plans.

Narrow market concentration

A tight focus on faith-based organizations concentrates revenue exposure to a niche addressable market and donor/attendance trends. Long-term growth depends on deeper penetration or product expansion beyond the vertical; limited TAM could cap scaling and make revenues sensitive to sector-specific shifts.

FaithNetwork Co.,Ltd Business Overview & Revenue Model

Company Description

FaithNetwork Co.,Ltd engages in the real estate investment and construction activities in Japan. It offers apartment buildings under the GranDuo and Grand Funding brands. FaithNetwork Co.,Ltd was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

FaithNetwork generates revenue through a subscription-based model for its software services, charging churches and religious organizations monthly or annual fees for access to its church management systems and related applications. Additional revenue streams include transaction fees from online donations processed through its platforms, customization services for clients requiring tailored solutions, and training and support packages. Strategic partnerships with payment processors and other technology firms enhance its service offerings and contribute to revenue generation, while ongoing market growth in digital solutions for faith communities supports the company's financial performance.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 807.00
• 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:3489, the sentiment is Positive. The current price of 807 is below the 20-day moving average (MA) of 880.70, below the 50-day MA of 846.56, and below the 200-day MA of 807.47, indicating a bullish trend. The MACD of 28.57 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 88.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3489.

FaithNetwork Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3484	75 Outperform	¥23.86B	16.42	―	2.47%	15.04%	68.39%
3276	73 Outperform	¥22.51B	12.82	―	4.36%	1.52%	16.04%
3489	70 Outperform	¥28.63B	7.38	―	4.20%	11.79%	128.54%
3457	70 Neutral	¥22.59B	17.50	―	4.31%	-6.89%	7.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥47.45B	19.15	―	0.45%	-8.33%	-36.89%
3486	61 Neutral	¥38.83B	8.40	―	6.11%	81.19%	250.41%

FaithNetwork Co.,Ltd Corporate Events

FaithNetwork Posts Surge in Nine-Month Profits and Lifts Full-Year Outlook

FaithNetwork Co. reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 30.5% year on year to ¥17.1 billion and operating profit surging 199.5% to ¥2.4 billion. Ordinary profit climbed 315.6% to ¥2.1 billion, while profit attributable to owners of parent jumped 395.1% to ¥1.36 billion, translating into basic earnings of ¥45.79 per share after reflecting a three-for-one stock split.

Total assets expanded to ¥37.2 billion from ¥30.0 billion at the prior fiscal year-end, although the equity ratio eased to 27.3% from 32.5%, indicating higher leverage to support growth. For the full year to March 31, 2026, the company is forecasting further gains, with net sales expected to rise 17.0% to ¥35.0 billion and profit attributable to owners of parent projected to increase 22.8% to ¥3.4 billion, and it plans to resume shareholder returns with a forecast annual dividend of ¥40 per share.

The most recent analyst rating on (JP:3489) stock is a Hold with a Yen899.00 price target. To see the full list of analyst forecasts on FaithNetwork Co.,Ltd stock, see the JP:3489 Stock Forecast page.