Mobile Factory (3912) AI Stock Analysis

• Market Cap: ¥10.11B
• Dividend Yield: 5.18%
• Average Volume (3M): 10.15K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.23
• Revenue Growth: 5.17%
• EPS Growth: 1662.63%
• Country: JP
• Employees: 84
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -12.37
• Shares Outstanding: 9,105,495
• 10 Day Avg. Volume: 8,220
• 30 Day Avg. Volume: 10,146
• PEG Ratio: -0.61
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 0.00
• 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): 114.9
• Revenue Forecast (FY): ¥3.65B

• Rating: 76 Outperform
• Price Target: ¥1,296.00 ▲(17.29% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is primarily supported by strong financial health (notably a zero-debt balance sheet) and solid profitability, tempered by volatility in earnings and cash-flow consistency. Technicals are moderately constructive with the price above key moving averages and positive MACD, while valuation is reasonable with a ~3.84% dividend yield and a mid-teens-to-high-teens P/E.

Positive Factors

Zero-debt Balance Sheet

Zero debt materially reduces financial risk and preserves strategic flexibility. With no interest burden the company can fund operations, dividends, or opportunistic investments from internal resources, maintaining resilience through downturns and supporting long-term capital allocation.

High and Stable Margins

Consistently high gross and EBIT margins indicate a structurally profitable business model and pricing power in its niche. Durable margins provide earnings leverage as revenues recover, affording reinvestment for product development and enabling sustainable cash returns despite revenue cyclicality.

Positive Operating Cash Flow

Stable positive operating cash flow demonstrates recurring cash generation from core operations. That cashflow supports dividend coverage, internal investment and working-capital needs, reducing reliance on external financing and enhancing long-term business durability even if free cash flow varies.

Negative Factors

Earnings Volatility

Uneven revenue trends and a sharp net income dip to near break-even in 2023 show meaningful earnings volatility. This reduces predictability of profits, complicates multi-period planning and raises execution risk; cyclic demand could pressure margins and dividend consistency over time.

Weak Cash Conversion / FCF Variability

Weak cash conversion and a reported zero free cash flow in 2025 signal potential working-capital swings or capex timing issues. Variable FCF undermines the firm's ability to sustainably fund dividends, buybacks or growth projects, elevating financial risk despite positive operating cash flow history.

Limited Scale & Liquidity

Small scale (84 employees) and relatively low trading volume constrain operational scale, diversification and bargaining power. Limited scale can hamper R&D, marketing reach and strategic partnerships, while thin market liquidity may raise cost of capital and complicate sizable capital raises or M&A execution.

Mobile Factory Business Overview & Revenue Model

Company Description

Mobile Factory, Inc. engages in the mobile service development business in Japan. It develops social and mobile media applications. The company provides location based games, such as Station Memories! and Eki Dash series; and mobile content services. Mobile Factory, Inc. was founded in 2001 and is based in Tokyo, Japan.

How the Company Makes Money

Mobile Factory, Inc. generates revenue through a diverse set of streams primarily centered around its mobile applications. Key revenue sources include in-app purchases, which allow users to buy digital goods and enhancements within their apps, and advertising partnerships, where third-party advertisements are displayed within applications for a fee. Additionally, the company may earn through subscription models for premium app features and services, offering users enhanced experiences for a recurring fee. Strategic partnerships with other technology firms and content creators also contribute to revenue by leveraging joint promotional efforts and cross-platform integrations.

Mobile Factory Financial Statement Overview

Summary

Strong financial foundation driven by a very conservative, zero-debt balance sheet and generally solid profitability. The main offsets are uneven revenue trends and volatility in net income and cash-flow consistency (including weak cash conversion in 2023–2025 and reported zero free cash flow in 2025).

Income Statement

Profitability is solid with consistently strong operating margins (EBIT margin ~27%–33% over 2020–2025) and healthy gross margin (~48%–51%). Revenue growth is uneven—down in 2020 and 2024, then rebounding strongly in 2025—suggesting some cyclicality/volatility in demand. Net income is generally positive but showed a sharp dip to near break-even in 2023 and a lower net margin in 2025 versus 2024, which moderates confidence in earnings stability.

Balance Sheet

The balance sheet is very conservative with zero debt across the entire period and a 0.0 debt-to-equity reading, which materially reduces financial risk. Equity is substantial relative to assets (equity base ~¥2.65B–¥3.41B vs. assets ~¥3.04B–¥4.22B), supporting resilience. Return on equity is strong in most years (roughly mid-to-high teens to low-20s), though it dipped sharply in 2023 and eased in 2025 versus 2024, indicating profitability can fluctuate even with a strong capital structure.

Cash Flow

Operating cash flow is consistently positive (roughly ¥467M–¥864M), supporting earnings quality and business durability. However, cash conversion is not consistently strong: operating cash flow relative to net income is below 1.0 in 2023–2025, and free cash flow is volatile—strong in 2021–2024 but shown as zero in 2025 (Annual report), which raises questions about reinvestment needs or working-capital/capex swings. This variability reduces overall cash-flow confidence despite generally positive generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.36B	3.43B	3.32B	3.37B	3.14B	2.90B
Gross Profit	1.70B	1.76B	1.63B	1.63B	1.55B	1.45B
EBITDA	1.12B	1.14B	1.06B	1.05B	884.08M	885.90M
Net Income	756.90M	488.46M	699.00M	-941.00K	558.34M	538.65M
Balance Sheet
Total Assets	3.93B	3.98B	4.22B	3.87B	3.52B	3.30B
Cash, Cash Equivalents and Short-Term Investments	2.84B	3.15B	3.11B	2.80B	2.78B	2.67B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	781.16M	895.67M	811.08M	865.56M	481.38M	431.19M
Stockholders Equity	3.15B	3.08B	3.41B	3.00B	3.04B	2.87B
Cash Flow
Free Cash Flow	0.00	0.00	658.57M	759.29M	560.40M	618.19M
Operating Cash Flow	0.00	864.50M	658.00M	761.29M	560.40M	656.05M
Investing Cash Flow	0.00	-1.62B	-29.36M	-565.15M	-48.51M	-10.96M
Financing Cash Flow	0.00	-813.41M	-313.08M	-185.40M	-392.77M	-300.57M

Mobile Factory Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1105.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3912, the sentiment is Positive. The current price of 1105 is below the 20-day moving average (MA) of 1177.80, below the 50-day MA of 1137.23, and above the 200-day MA of 1001.45, indicating a bullish trend. The MACD of 17.31 indicates Positive momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3912.

Mobile Factory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3912	76 Outperform	¥10.11B	16.35	25.60%	5.18%	5.17%	1662.63%
3904	66 Neutral	¥7.06B	11.77	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.53B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3903	46 Neutral	¥16.19B	52.94	―	―	-37.68%	―
4175	44 Neutral	¥10.17B	-17.86	―	―	16.70%	87.76%
3793	42 Neutral	¥11.32B	4.66	―	―	93.85%	-216.24%