Kanamic Network Co., LTD. (3939) AI Stock Analysis

• Market Cap: ¥23.38B
• Dividend Yield: 1.39%
• Average Volume (3M): 112.84K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.63
• Revenue Growth: 9.85%
• EPS Growth: 20.83%
• Country: JP
• Employees: 279
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 6.62
• Shares Outstanding: 48,132,000
• 10 Day Avg. Volume: 181,740
• 30 Day Avg. Volume: 112,836
• PEG Ratio: 0.97
• Price to Book (P/B): 4.83
• Price to Sales (P/S): 4.08
• P/FCF Ratio: 19.52
• 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): 27.4
• Revenue Forecast (FY): ¥6.55B

• Rating: 76 Outperform
• Price Target: ¥609.00 ▲(16.67% Upside)

Kanamic Network Co., LTD. scores well due to its strong financial performance, characterized by consistent revenue growth and solid profitability. Technical analysis supports a positive outlook with bullish momentum indicators. The valuation is reasonable, balancing growth prospects with current earnings. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability and expansion.

Cash Generation

Strong cash generation supports operational needs and strategic investments, enhancing the company's ability to sustain growth and weather economic challenges.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability, providing flexibility for future investments and reducing risk during economic downturns.

Negative Factors

Profit Margin Pressure

Declining profit margins could indicate rising costs or pricing pressures, potentially impacting profitability if not managed effectively.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, affecting long-term growth prospects.

Leverage Reduction Impact

While reducing debt enhances stability, it may constrain growth if the company cannot leverage debt for expansion opportunities effectively.

Kanamic Network Co., LTD. Business Overview & Revenue Model

Company Description

Kanamic Network Co.,LTD provides medical and elderly care information sharing system that promotes community comprehensive care in Japan. It offers medical care and elderly care communications system that provides cloud information sharing system, which offers collaboration among interdisciplinary and inter-organizational professionals in in-home care, nursing, and elderly care with care report, service calendar, and face sheet functions. The company also provides elderly care business management system, which offers a lineup of elderly care software that supports various elderly care services/business classifications, including elderly care facilities, community comprehensive support centers, and in-home care support facilities. In addition, it offers childcare support system that provides community-wide support for raising children comprising information distribution, consultation, and child growth record functions. Further, the company provides communication and application services for the elderly care and medical care fields; systems integration and solutions; website creation and operational services; management and systems consulting services; paid job placement services; and education and training services. Additionally, it is involved in the planning, production, and sale of web contents, videos, and various sales promotion tools; and planning and conducting of lectures, seminars, academic meetings, etc. Kanamic Network Co.,LTD was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kanamic Network generates revenue through multiple streams primarily focused on its telecommunications and network services. The company earns money by charging customers for its data communication services, which include internet access, private networks, and other connectivity solutions. Additionally, revenue is generated from cloud service offerings, where businesses pay for hosting, storage, and computing resources. Kanamic Network also engages in partnerships with other technology firms to enhance its service offerings, which may include revenue-sharing agreements or joint ventures. The company's focus on innovation and quality service helps to retain customers and attract new ones, contributing to its overall financial performance.

Kanamic Network Co., LTD. Financial Statement Overview

Summary

Kanamic Network Co., LTD. presents a strong financial profile with consistent revenue growth, solid profitability, and effective cash flow management. The company's low leverage and high equity ratio provide financial stability, while its ability to generate cash supports ongoing operations and potential investments. However, attention should be paid to maintaining profit margins amidst potential cost pressures.

Income Statement

Kanamic Network Co., LTD. has demonstrated consistent revenue growth over the years, with a recent growth rate of 2.4%. The company maintains strong profitability, evidenced by a gross profit margin of 64.3% and a net profit margin of 20.2%. EBIT and EBITDA margins are also robust at 29.2% and 37.0%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The company's balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.14, reflecting low leverage and financial stability. The return on equity (ROE) stands at 23.9%, indicating effective use of shareholder funds to generate profits. The equity ratio is 71.1%, underscoring a strong capital structure. However, the decrease in total debt over the years suggests a strategic reduction in leverage, which could impact growth if not managed carefully.

Cash Flow

Kanamic Network Co., LTD. exhibits strong cash flow management, with a free cash flow to net income ratio of 1.03, indicating efficient conversion of profits into cash. The operating cash flow to net income ratio is 1.16, highlighting robust cash generation from operations. Despite a slight decline in free cash flow growth, the company maintains a solid cash position, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.37B	5.50B	5.01B	3.75B	2.50B	2.08B
Gross Profit	3.40B	3.54B	3.07B	2.59B	2.10B	1.79B
EBITDA	1.98B	2.04B	1.71B	1.40B	1.16B	977.47M
Net Income	1.02B	1.11B	919.99M	763.10M	685.52M	579.58M
Balance Sheet
Total Assets	6.27B	6.54B	6.18B	5.65B	6.51B	4.40B
Cash, Cash Equivalents and Short-Term Investments	2.99B	3.33B	3.43B	2.87B	4.55B	3.71B
Total Debt	759.91M	657.68M	932.01M	1.28B	3.22B	2.00B
Total Liabilities	1.93B	1.89B	2.34B	2.48B	3.96B	2.44B
Stockholders Equity	4.35B	4.65B	3.83B	3.17B	2.55B	1.96B
Cash Flow
Free Cash Flow	0.00	1.15B	1.15B	789.13M	478.91M	534.29M
Operating Cash Flow	0.00	1.29B	1.51B	1.43B	803.27M	756.75M
Investing Cash Flow	0.00	-743.55M	-343.84M	-842.25M	-457.20M	-216.03M
Financing Cash Flow	0.00	-651.11M	-613.68M	-2.27B	488.97M	1.46B

Kanamic Network Co., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 522.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3939, the sentiment is Negative. The current price of 522 is above the 20-day moving average (MA) of 508.60, below the 50-day MA of 526.24, and above the 200-day MA of 465.03, indicating a neutral trend. The MACD of -8.42 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3939.

Kanamic Network Co., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3649	79 Outperform	¥22.03B	18.50	―	1.75%	-2.05%	-9.92%
3939	76 Outperform	¥23.38B	21.05	―	1.39%	9.85%	20.83%
4320	74 Outperform	¥18.79B	11.30	―	4.99%	8.77%	1078.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	49 Neutral	¥65.87B	-152.73	―	0.39%	6.17%	-8918.66%
3628	40 Underperform	¥6.52B	-2.42	―	―	-4.07%	-88.89%

Kanamic Network Co., LTD. Corporate Events

Kanamic Network Announces Leadership Restructuring for Growth

Kanamic Network Co., Ltd. has announced significant changes in its leadership structure, aiming to enhance its management efficiency and adaptability to external changes. The company will see the retirement of Youko Yamamoto and the promotion of Keiji Yamamoto to Vice President and Representative Director, effective December 18, 2025, as part of its strategy for sustainable growth and increased corporate value.

The most recent analyst rating on (JP:3939) stock is a Hold with a Yen509.00 price target. To see the full list of analyst forecasts on Kanamic Network Co., LTD. stock, see the JP:3939 Stock Forecast page.

Kanamic Network Co., Ltd. Reports Strong Financial Growth in FY 2025

Kanamic Network Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ending September 2025, with net sales rising by 9.9% and profit attributable to owners of the parent increasing by 20.8%. The company anticipates continued growth in the next fiscal year, projecting a 15.4% increase in net sales and a 23.3% rise in profit attributable to owners, indicating strong operational performance and promising future prospects.

The most recent analyst rating on (JP:3939) stock is a Hold with a Yen509.00 price target. To see the full list of analyst forecasts on Kanamic Network Co., LTD. stock, see the JP:3939 Stock Forecast page.