BENEFIT JAPAN Co.,LTD. (3934) AI Stock Analysis

• Market Cap: ¥12.80B
• Dividend Yield: 2.1%
• Average Volume (3M): 4.49K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.49
• Revenue Growth: 13.64%
• EPS Growth: 44.55%
• Country: JP
• Employees: 320
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 47.89
• Shares Outstanding: 6,012,948
• 10 Day Avg. Volume: 2,600
• 30 Day Avg. Volume: 4,493
• PEG Ratio: 0.59
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 5.76
• 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: 73 Outperform
• Price Target: ¥2,374.00 ▲(24.75% Upside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

BENEFIT JAPAN Co.,LTD. scores well due to its strong financial performance and reasonable valuation. However, the technical analysis indicates a lack of short-term momentum, which slightly tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash generation

Free cash flow rose ~30% and operating cash flow to net income is 1.46, showing durable cash conversion. Strong cash generation supports capital expenditures, dividend capacity and deleveraging, providing financial flexibility for investments and resilience over the next several months.

Balance sheet strength

Low leverage (D/E 0.25) and a high equity ratio indicate limited solvency risk and room to absorb shocks. A 10.5% ROE signals reasonable capital efficiency. This financial posture supports medium-term strategic optionality without heavy reliance on new debt funding.

High gross margins and profitability

A 57.7% gross margin implies strong pricing power or low direct costs, while improving net margin shows operational leverage. Together with stable revenue growth history, these margin dynamics support sustainable profitability and cash flow generation over a 2–6 month horizon.

Negative Factors

Modest net margin conversion

Despite high gross margins, net margin is only 6.5%, indicating significant operating or SG&A absorption. This modest conversion leaves earnings and retained cash vulnerable to cost inflation or competitive pricing pressure, constraining long-term EPS and reinvestment flexibility.

Dependence on partner channels

Primary reliance on partner networks for distribution reduces direct customer control and may compress margins via commissions. Partner concentration or changes in partner terms create structural execution risk that can limit scalable revenue capture and margin improvement over the medium term.

Limited disclosure on revenue model

The absence of granular, public detail on revenue streams, pricing and partner economics increases uncertainty around recurring versus transactional income and client concentration. This transparency gap makes assessing durability and scalability of future revenues more difficult for investors.

BENEFIT JAPAN Co.,LTD. Business Overview & Revenue Model

Company Description

BENEFIT JAPAN Co., Ltd. engages in the telecommunication business in Japan. It offers virtual mobile network operator, optical internet option service and contents, mobile Internet, and support services. The company also engages in sales agent and reseller, and house vendor businesses; and provision of cold and hot mineral water. BENEFIT JAPAN Co., Ltd. was founded in 1996 and is headquartered in Osaka, Japan.

How the Company Makes Money

BENEFIT JAPAN generates revenue through multiple channels, primarily by offering subscription-based services and consulting fees for its employee benefit programs. The company partners with various corporations to provide tailored health and wellness solutions, receiving fees for each subscription or service utilized by employees. Additionally, they may generate income from insurance products and wellness seminars, further diversifying their revenue streams. Strategic partnerships with healthcare providers and technology firms also enhance their service offerings, contributing to increased customer acquisition and retention, thereby positively impacting their earnings.

BENEFIT JAPAN Co.,LTD. Financial Statement Overview

Summary

BENEFIT JAPAN Co.,LTD. demonstrates strong financial performance with robust profitability, stable revenue growth, and solid operational efficiency. The company maintains a healthy balance sheet with low leverage and effective cash flow management, positioning it well for future growth.

Income Statement

BENEFIT JAPAN Co.,LTD. demonstrates strong profitability with a consistently high gross profit margin (57.7% in 2025) and improving net profit margin (6.5% in 2025). Revenue growth has been stable, averaging around 5% annually over the past five years. EBIT and EBITDA margins have also remained robust, indicating solid operational efficiency.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.25 in 2025, suggesting manageable leverage. The return on equity (ROE) is solid at 10.5%, and the equity ratio is strong at 66.9%, indicating financial stability and low risk of insolvency.

Cash Flow

BENEFIT JAPAN Co.,LTD. has shown impressive cash flow management with a significant increase in free cash flow from the previous year by 30%. The operating cash flow to net income ratio is 1.46, showing strong cash generation relative to earnings. Free cash flow to net income ratio is 1.42, which supports sustainability in funding operations and investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.59B	12.75B	13.07B	12.56B	11.57B	9.95B
Gross Profit	7.83B	7.35B	7.36B	6.84B	6.45B	5.62B
EBITDA	1.58B	1.40B	1.26B	1.06B	1.63B	1.42B
Net Income	941.20M	830.89M	734.90M	560.63M	1.05B	912.45M
Balance Sheet
Total Assets	12.15B	11.86B	11.20B	10.18B	10.06B	8.71B
Cash, Cash Equivalents and Short-Term Investments	3.92B	4.23B	3.13B	2.62B	2.82B	1.42B
Total Debt	1.91B	1.98B	1.76B	2.05B	2.15B	2.01B
Total Liabilities	4.22B	3.92B	3.96B	3.51B	3.91B	3.60B
Stockholders Equity	7.94B	7.94B	7.25B	6.67B	6.16B	5.11B
Cash Flow
Free Cash Flow	0.00	1.18B	907.84M	33.62M	1.33B	488.57M
Operating Cash Flow	0.00	1.21B	964.32M	315.56M	1.41B	546.91M
Investing Cash Flow	0.00	-102.41M	10.99M	-361.40M	-94.15M	-88.92M
Financing Cash Flow	0.00	-9.58M	-465.46M	-156.67M	93.74M	-207.58M

BENEFIT JAPAN Co.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1903.00
• 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:3934, the sentiment is Positive. The current price of 1903 is below the 20-day moving average (MA) of 2113.75, below the 50-day MA of 1951.82, and above the 200-day MA of 1834.36, indicating a bullish trend. The MACD of 65.59 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3934.

BENEFIT JAPAN Co.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	80 Outperform	¥19.38B	12.60	―	3.53%	5.03%	-9.55%
3934	73 Outperform	¥12.80B	13.17	―	2.10%	13.64%	44.55%
9424	66 Neutral	¥23.19B	23.10	―	―	30.15%	31.28%
3776	63 Neutral	¥14.14B	47.06	―	1.01%	17.19%	-43.91%
9419	62 Neutral	¥3.51B	27.33	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9421	45 Neutral	¥3.49B	57.83	―	―	4.84%	-54.50%