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

• Market Cap: ¥22.00B
• Dividend Yield: 1.62%
• Average Volume (3M): 132.52K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.53
• Revenue Growth: 13.39%
• EPS Growth: 12.00%
• Country: JP
• Employees: 279
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 5.87
• Shares Outstanding: 48,132,000
• 10 Day Avg. Volume: 92,680
• 30 Day Avg. Volume: 132,523
• PEG Ratio: 1.34
• Price to Book (P/B): 6.61
• Price to Sales (P/S): 5.06
• P/FCF Ratio: 21.98
• 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: ¥503.00
• Price Target Upside: 8.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥503.00 ▲(8.41% Upside)

Kanamic Network Co., LTD. has a solid financial foundation with strong revenue growth and profitability. However, technical indicators suggest weak momentum, and cash flow stability needs improvement. The valuation is fair, with a moderate P/E ratio and a reasonable dividend yield.

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

Company Description

Kanamic Network Co., LTD. (3939) is a technology company based in Japan, specializing in providing innovative solutions in the fields of telecommunications and network services. The company offers a range of products and services including data communication, cloud services, and network infrastructure solutions, catering to both businesses and individual consumers. Kanamic Network is committed to enhancing connectivity and delivering high-quality service through its advanced technology and customer-centric approach.

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. demonstrates strong financial performance with robust revenue growth and profitability. The balance sheet is healthy with low leverage, although cash flow stability could be improved.

Income Statement

Kanamic Network Co., LTD. demonstrates robust performance in its income statement, with a notable revenue growth rate from the previous year, indicating strong business expansion. The TTM Gross Profit Margin is healthy at 61.7%, and the Net Profit Margin is solid at 18.5%, reflecting effective cost management and profitability. The EBIT and EBITDA margins are also strong, showcasing efficient operational management.

Balance Sheet

The company's balance sheet reveals a strong equity position with an Equity Ratio of 64.5%, indicating sound financial health and low leverage. The Debt-to-Equity Ratio is moderate at 0.23, suggesting manageable debt levels. However, the Return on Equity (ROE) of 25.0% highlights efficient use of equity to generate profits, but there might be room for improvement.

Cash Flow

Cash flow analysis shows some areas for improvement. While previous periods exhibited positive free cash flow, the current TTM data lacks cash flow details, potentially signaling volatility. The Operating Cash Flow to Net Income Ratio from the last annual report is reasonable, but the absence of TTM data limits a full assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.37B	5.01B	3.75B	2.50B	2.08B	1.88B
Gross Profit	3.40B	3.07B	2.59B	2.10B	1.79B	1.61B
EBITDA	1.98B	1.71B	1.40B	1.16B	977.47M	789.36M
Net Income	1.02B	919.99M	763.10M	685.52M	579.58M	472.70M
Balance Sheet
Total Assets	6.27B	6.18B	5.65B	6.51B	4.40B	2.30B
Cash, Cash Equivalents and Short-Term Investments	2.99B	3.43B	2.87B	4.55B	3.71B	1.71B
Total Debt	744.98M	932.01M	1.28B	3.22B	2.00B	0.00
Total Liabilities	1.93B	2.34B	2.48B	3.96B	2.44B	397.15M
Stockholders Equity	4.35B	3.83B	3.17B	2.55B	1.96B	1.91B
Cash Flow
Free Cash Flow	0.00	1.15B	789.13M	478.91M	534.29M	532.39M
Operating Cash Flow	0.00	1.51B	1.43B	803.27M	756.75M	634.83M
Investing Cash Flow	0.00	-343.84M	-842.25M	-457.20M	-216.03M	-103.63M
Financing Cash Flow	0.00	-613.68M	-2.27B	488.97M	1.46B	-48.13M

Kanamic Network Co., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 464.00
• 50DMA: Negative
• 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:3939, the sentiment is Negative. The current price of 464 is below the 20-day moving average (MA) of 471.14, below the 50-day MA of 472.60, and above the 200-day MA of 439.63, indicating a neutral trend. The MACD of -2.86 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 46.82 is Neutral, 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	¥20.67B	18.03	―	2.00%	-6.29%	-22.25%
4320	73 Outperform	¥15.01B	14.26	―	2.48%	7.79%	38592.95%
6095	72 Outperform	¥15.32B	10.15	―	0.65%	-17.86%	133.08%
3939	65 Neutral	¥22.00B	21.63	―	1.62%	13.39%	12.00%
3628	52 Neutral	¥7.57B	―	―	―	-2.60%	-103.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥17.67B	4,465.71	―	1.19%	-0.58%	-260.22%

Kanamic Network Co., LTD. Corporate Events

Kanamic Network Reports Strong Q3 Financial Results with Strategic Expansion

Kanamic Network Co., Ltd. reported a 10% increase in net sales and a 14% rise in profit attributable to owners of the parent for the third quarter of the fiscal year ending September 30, 2025. The company also announced the inclusion of THE WORLD MANAGEMENT PTE LTD in its consolidation scope, indicating strategic expansion efforts. The financial results reflect a robust performance with improved capital adequacy ratio, suggesting strengthened financial stability and growth prospects.

Kanamic Network Reports Strong Q2 Performance and Strategic Growth

Kanamic Network Co., LTD. reported strong financial performance in Q2 of FY2025, with both sales and profits surpassing last year’s figures. The recent merger with the TWM group significantly contributed to the profit increase, despite the substantial impact of M&A costs. Additionally, Kanamic’s exclusive selection by the Ministry of Health, Labor and Welfare for system support in home care services highlights its industry positioning and potential positive implications for stakeholders.

Kanamic Network Reports Strong Q2 Growth and Strategic Expansion

Kanamic Network Co., Ltd. reported an 8.8% increase in net sales for the second quarter of the fiscal year ending September 30, 2025, with significant growth in EBITDA and operating profit. The company has also announced a forecasted increase in annual cash dividends, reflecting a positive outlook for the fiscal year. The inclusion of THE WORLD MANAGEMENT PTE LTD in the scope of consolidation marks a strategic expansion, potentially enhancing Kanamic’s market position.