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

• Market Cap: ¥31.08B
• Dividend Yield: 1.87%
• Average Volume (3M): 63.49K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.14
• Revenue Growth: 3.84%
• EPS Growth: -23.87%
• Country: JP
• Employees: 884
• Sector: Communication Services
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): 47.43
• Shares Outstanding: 23,414,000
• 10 Day Avg. Volume: 77,550
• 30 Day Avg. Volume: 63,490
• PEG Ratio: -0.48
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 7.66
• 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: ¥1,810.00
• Price Target Upside: 12.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,810.00 ▲(12.56% Upside)

FreeBit Co., Ltd. shows strong financial performance with impressive revenue and cash flow growth, though it faces challenges with declining profit margins and increased leverage. The technical indicators suggest a strong upward trend, but caution is advised due to overbought conditions. The stock's valuation is reasonable, with a fair P/E ratio and modest dividend yield.

FreeBit Co., Ltd. Business Overview & Revenue Model

Company Description

FreeBit Co., Ltd. (3843) is a technology company based in Japan, specializing in providing cloud-based services and solutions. The company operates primarily in the information technology sector, offering a range of products including infrastructure as a service (IaaS), software as a service (SaaS), and various digital solutions aimed at enhancing business efficiency and connectivity. FreeBit focuses on delivering high-quality web hosting, network services, and domain registration, catering to both individual users and corporate clients.

How the Company Makes Money

FreeBit Co., Ltd. generates revenue through multiple streams, primarily focusing on subscription-based models for its cloud services. Key revenue sources include charges for IaaS and SaaS offerings, where customers pay for the resources and applications they utilize on a monthly or annual basis. Additionally, the company earns income from web hosting services, domain registration fees, and value-added services such as cybersecurity solutions and data analytics. Significant partnerships with other technology firms and telecommunications providers enhance its service offerings and expand its customer base, contributing to stable and recurring revenue. The growing demand for digital transformation and cloud solutions in various industries further supports FreeBit's earnings 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.60B	55.07B	53.04B	46.77B	43.08B	52.01B
Gross Profit	15.55B	15.71B	15.39B	13.33B	12.41B	15.45B
EBITDA	6.39B	5.89B	6.74B	4.48B	3.84B	5.55B
Net Income	3.23B	2.75B	3.57B	1.79B	827.85M	1.59B
Balance Sheet
Total Assets	39.48B	40.56B	38.18B	35.93B	35.05B	34.84B
Cash, Cash Equivalents and Short-Term Investments	19.28B	20.68B	18.72B	18.31B	17.74B	17.62B
Total Debt	13.03B	21.75B	14.14B	15.99B	15.14B	14.32B
Total Liabilities	21.51B	32.02B	22.99B	24.89B	24.01B	22.69B
Stockholders Equity	13.83B	6.50B	11.76B	8.32B	6.93B	8.71B
Cash Flow
Free Cash Flow	1.86B	4.01B	2.81B	2.65B	2.07B	6.18B
Operating Cash Flow	2.02B	4.57B	4.23B	3.32B	2.33B	7.12B
Investing Cash Flow	-674.00M	-687.49M	-1.09B	-644.62M	510.69M	-2.66B
Financing Cash Flow	-3.40B	-1.92B	-2.72B	-2.11B	-2.73B	-2.57B

FreeBit Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1608.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1608 is below the 20-day moving average (MA) of 1631.95, above the 50-day MA of 1487.56, and above the 200-day MA of 1449.84, indicating a neutral trend. The MACD of 43.39 indicates Positive momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 7.75 is Positive, 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
3770	72 Outperform	¥4.14B	30.82		1.23%	-1.29%	-4.45%
3662	71 Outperform	¥21.73B	16.12		1.82%	-3.20%	95.08%
3843	69 Neutral	¥31.08B	11.90		1.87%	3.84%	-23.87%
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
3675	―	¥14.06B	10.05		1.97%	―	―
3688	―	¥52.98B	33.90		2.77%	―	―
3845	58 Neutral	¥4.44B	―		―	-26.88%	26.91%