FreeBit Co., Ltd. (3843) AI Stock Analysis

• Market Cap: ¥26.58B
• Dividend Yield: 2.17%
• Average Volume (3M): 85.38K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.10
• Revenue Growth: 2.00%
• EPS Growth: 6.57%
• Country: JP
• Employees: 884
• Sector: Communication Services
• Sector Strength: 81
• Industry: Internet Content & Information
• EPS (TTM): 47.43
• Shares Outstanding: 23,414,000
• 10 Day Avg. Volume: 91,510
• 30 Day Avg. Volume: 85,380
• PEG Ratio: -0.03
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.12
• 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

• Rating: 80 Outperform
• Price Target: ¥1,705.00 ▲(23.37%Upside)

FreeBit Co., Ltd. demonstrates strong financial performance and sound valuation, with a healthy balance of growth and cost management. Technically, the stock shows stable trends, neither overbought nor oversold. The lack of significant earnings call data or recent corporate events limits additional insights, but the stock's current valuation and financial metrics make it an attractive proposition.

FreeBit Co., Ltd. Business Overview & Revenue Model

Company Description

FreeBit Co., Ltd. (3843) is a Japanese company that operates in the telecommunications and technology sectors. The company provides internet services, cloud solutions, and digital marketing services. It is known for its innovative approach to internet connectivity and infrastructure management, catering primarily to businesses and internet service providers. FreeBit is involved in offering mobile virtual network operator (MVNO) services and has developed various platforms to enhance digital communication and data management.

How the Company Makes Money

FreeBit Co., Ltd. generates revenue primarily through its internet service offerings and cloud solutions. The company's key revenue streams include fees from providing internet connectivity and infrastructure services to businesses and individual customers. Additionally, FreeBit earns from its MVNO services, where it leases wireless capacity from major network operators and resells it to end-users under its own brand. The company also benefits from its digital marketing solutions, which help clients enhance their online presence and engagement. Strategic partnerships with major telecommunication entities and continuous technological innovation play significant roles in strengthening FreeBit's market position and revenue potential.

FreeBit Co., Ltd. Financial Statement Overview

Summary

FreeBit Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, effective cost management, and robust cash flow generation. The company maintains a balanced leverage profile, though it shows some dependency on debt financing. Continued attention to equity growth and maintaining cash flow momentum will be beneficial.

Income Statement

FreeBit Co., Ltd. showed robust revenue growth of 13.4% in the latest fiscal year, supported by a solid gross profit margin of 29.0% and a net profit margin of 6.7%. The company’s EBIT and EBITDA margins of 11.1% and 12.7%, respectively, indicate efficient operational management and cost control improvements over prior periods.

Balance Sheet

The balance sheet is characterized by a moderate debt-to-equity ratio of 1.20, reflecting a balanced approach to leverage. The return on equity is strong at 30.3%, demonstrating effective use of shareholders' capital. However, the equity ratio of 30.8% suggests a reliance on debt financing.

Cash Flow

FreeBit Co., Ltd. achieved a steady increase in free cash flow, showing a 5.8% growth rate. The operating cash flow to net income ratio of 1.19 indicates strong cash generation from operations relative to profits, while the free cash flow to net income ratio of 0.79 suggests good cash conversion efficiency.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	52.59B	53.04B	46.77B	43.08B	52.01B	55.30B
Gross Profit	15.39B	15.39B	13.33B	12.41B	15.45B	16.82B
EBITDA	6.41B	6.74B	4.48B	3.84B	5.55B	4.37B
Net Income	3.35B	3.57B	1.79B	827.85M	1.59B	-619.35M
Balance Sheet
Total Assets	36.52B	38.18B	35.93B	35.05B	34.84B	42.47B
Cash, Cash Equivalents and Short-Term Investments	16.66B	18.72B	18.31B	17.74B	17.62B	15.72B
Total Debt	11.00B	14.14B	15.99B	15.14B	14.32B	18.90B
Total Liabilities	19.65B	22.99B	24.89B	24.01B	22.69B	31.62B
Stockholders Equity	13.04B	11.76B	8.32B	6.93B	8.71B	8.08B
Cash Flow
Free Cash Flow	1.86B	2.81B	2.65B	2.07B	6.18B	433.55M
Operating Cash Flow	2.02B	4.23B	3.32B	2.33B	7.12B	1.48B
Investing Cash Flow	-674.00M	-1.09B	-644.62M	510.69M	-2.66B	-1.87B
Financing Cash Flow	-3.40B	-2.72B	-2.11B	-2.73B	-2.57B	625.90M

FreeBit Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1382.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3843, the sentiment is Neutral. The current price of 1382 is below the 20-day moving average (MA) of 1396.70, below the 50-day MA of 1470.76, and below the 200-day MA of 1389.55, indicating a bearish trend. The MACD of -33.48 indicates Negative momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3843.

FreeBit Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3843	80 Outperform	¥26.58B	10.19		2.17%	2.00%	6.57%
3770	72 Outperform	¥3.68B	27.13		1.34%	-2.62%	―
3662	71 Outperform	¥22.63B	16.90		0.32%	-5.81%	1585.94%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
3845	51 Neutral	¥2.48B	―		―	-22.04%	-8.72%