Mynet, Inc. (3928) AI Stock Analysis

• Market Cap: ¥2.61B
• Dividend Yield: N/A
• Average Volume (3M): 24.17K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.96
• Revenue Growth: -10.80%
• EPS Growth: -64.63%
• Country: JP
• Employees: 260
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 3.48
• Shares Outstanding: 8,710,334
• 10 Day Avg. Volume: 20,020
• 30 Day Avg. Volume: 24,170
• PEG Ratio: -1.37
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 2.98
• 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: 61 Neutral
• Price Target: ¥313.00 ▲(11.39% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by improving financial performance with notably strong 2025 cash flow, supported by a positive technical uptrend. These positives are tempered by 2025 revenue contraction and a still-levered balance sheet, while valuation looks reasonable but not strongly enhanced by income return (no dividend yield provided).

Positive Factors

Strong 2025 cash generation

Material operating and free cash flow in 2025 demonstrates strong cash conversion and earnings quality. Durable FCF enhances the company's ability to fund content, pay down debt, and withstand gaming-cycle volatility, reducing reliance on external financing for strategic actions.

Profitability recovery and higher gross margin

The shift from 2022 losses to consistent profitability through 2025, coupled with a ~44.9% gross margin, indicates the core product economics are resilient. Sustained gross margins create structural room to cover fixed costs and support reinvestment in IP or product development over the medium term.

Balance-sheet repair underway

Improving leverage and rebuilt equity reflect balance-sheet repair, which increases financial flexibility. A downward trend in leverage reduces refinancing and solvency risks, enabling more reliable capital allocation, potential M&A, or targeted investment without excessive strain on cash flow.

Negative Factors

2025 revenue contraction

A roughly -7.8% revenue decline in 2025 shows persistent top-line weakness. Without returning to consistent revenue growth, margin and free-cash-flow improvements may be harder to sustain, limiting scalability and making long-term profitability dependent on regaining demand or market share.

Elevated leverage remains

Debt-to-equity near 1.41x keeps leverage materially above conservative levels given current earnings power. Elevated debt raises interest and refinancing risk in a cyclical gaming sector, constraining capital spending and strategic flexibility during industry slowdowns.

Historic cash-flow volatility

Prior swings into negative cash flow and inconsistent year-to-year performance undermine predictability. This volatility increases forecasting risk for capex, content investment, and debt reduction, meaning a single strong cash year may not translate into sustained financial strength.

Mynet, Inc. Business Overview & Revenue Model

Company Description

Mynet Inc. provides game services in Japan. It develops various games; and provides sports DX, marketing, and AI/data services. The company was incorporated in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

Mynet, Inc. generates revenue through multiple streams, primarily from in-app purchases within its mobile games and applications, which allow users to enhance their gaming experience and access exclusive content. Additionally, the company earns money through advertising revenues, partnering with brands to display ads within its platforms. Mynet also explores strategic partnerships and collaborations with other tech firms and advertisers to expand its reach and monetization capabilities. Furthermore, subscription services for premium content or features contribute to its overall income, creating a diverse revenue model that capitalizes on the growing demand for mobile entertainment.

Mynet, Inc. Financial Statement Overview

Summary

Profitability has recovered from 2022 losses to positive earnings in 2023–2025 and 2025 cash generation was strong (operating and free cash flow well above net income). Offsetting this, revenue declined in 2025 and leverage remains elevated (debt-to-equity ~1.41x), keeping financial risk and durability concerns in view.

Income Statement

Profitability has improved meaningfully from the 2022 loss year to positive earnings in 2023–2025, with margins stabilizing in the low-single-digits (2025 net margin ~3.1%). Gross margin also strengthened in 2025 (~44.9%), supporting the recovery. The key weakness is growth: revenue has been choppy and declined in 2025 (about -7.8% year over year), and profitability remains well below 2020 levels, indicating the turnaround is not yet paired with consistent top-line momentum.

Balance Sheet

Leverage is elevated, with debt running above equity across recent years (2025 debt-to-equity ~1.41x), which limits flexibility in a cyclical/volatile gaming environment. On the positive side, leverage has improved from the 2022 peak (~2.10x) and equity has rebuilt versus 2022, suggesting some balance-sheet repair. Overall, the balance sheet still screens as moderately risky due to the relatively high debt load versus the company’s current earnings power.

Cash Flow

Cash generation strengthened materially in 2025, with operating cash flow (~¥803M) and free cash flow (~¥803M) both well above net income (free cash flow to net income = 1.0x), indicating good earnings quality and solid cash conversion. This is a sharp improvement versus 2024, when free cash flow lagged profits. The main weakness is volatility: cash flow swung negative in 2022 and has been inconsistent year-to-year, which raises forecasting risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.11B	7.48B	8.85B	8.72B	10.54B	10.57B
Gross Profit	3.44B	3.35B	3.55B	3.33B	3.70B	4.29B
EBITDA	248.35M	414.18M	490.00M	219.49M	-1.15B	693.98M
Net Income	125.91M	228.13M	245.63M	143.00M	-1.63B	229.27M
Balance Sheet
Total Assets	4.69B	4.69B	4.84B	3.74B	4.36B	5.81B
Cash, Cash Equivalents and Short-Term Investments	2.45B	2.37B	2.39B	1.53B	1.98B	3.50B
Total Debt	2.13B	2.15B	2.39B	1.47B	2.09B	1.90B
Total Liabilities	2.99B	3.17B	3.32B	2.49B	3.36B	3.00B
Stockholders Equity	1.57B	1.52B	1.39B	1.15B	995.86M	2.82B
Cash Flow
Free Cash Flow	0.00	803.36M	126.40M	195.47M	-277.14M	499.40M
Operating Cash Flow	0.00	803.36M	329.00M	249.00M	-148.63M	527.96M
Investing Cash Flow	0.00	-326.94M	-190.06M	-247.97M	-1.36B	-14.97M
Financing Cash Flow	0.00	-492.88M	720.00M	-415.00M	-26.28M	210.10M

Mynet, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.00
• 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:3928, the sentiment is Positive. The current price of 281 is below the 20-day moving average (MA) of 291.15, below the 50-day MA of 288.68, and above the 200-day MA of 258.46, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3928.

Mynet, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3904	66 Neutral	¥7.57B	11.02	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.95B	9.15	―	―	11.15%	―
3928	61 Neutral	¥2.61B	11.18	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3903	46 Neutral	¥17.96B	5.89	―	―	-37.68%	―
3667	42 Neutral	¥2.49B	-1.35	―	―	-22.21%	32.20%
3793	42 Neutral	¥11.88B	-6.01	―	―	93.85%	-216.24%