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

• Market Cap: ¥24.94B
• Dividend Yield: 1.39%
• Average Volume (3M): 112.84K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.59
• Revenue Growth: 9.85%
• EPS Growth: 20.83%
• Country: JP
• Employees: 279
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 6.44
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥619.00 ▲(18.58% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

Overall score is driven primarily by strong financial performance (high margins, low leverage, and strong cash conversion). Technicals are supportive via an uptrend versus moving averages, but negative MACD tempers momentum. Valuation is moderate-to-expensive with a modest dividend yield, limiting upside from a valuation standpoint.

Positive Factors

High Profitability

Very high and sustained operating and net margins reflect structural pricing power and efficient cost structure in its software/platform business. These margins create durable cash generation capacity, funding R&D, customer support and strategic initiatives without relying on external financing.

Conservative Balance Sheet

Low leverage and a strong equity ratio provide financial flexibility and resilience through industry cycles, reducing default risk and enabling opportunistic investment or M&A. High ROE shows shareholder capital is being used effectively to generate returns over time.

Strong Cash Conversion

Consistent conversion of profits into operating and free cash flow indicates reliable cash generation from core operations. This supports ongoing platform maintenance, customer onboarding and potential capital returns while sustaining long-term investment in product development.

Negative Factors

Modest Revenue Growth

Top-line expansion is modest, which may limit scale benefits and future margin expansion despite high current profitability. Slower revenue growth in its core markets could make it harder to justify incremental investments and may require geographic or product diversification to sustain medium-term growth.

Mild Margin Pressure

A noted slight decline in gross margin suggests input cost or pricing pressures could be emerging. Over time, sustained margin erosion would erode the company’s strong profitability cushion and reduce available cash for strategic initiatives, making margin stability a key monitorable risk.

Sector Concentration Risk

Heavy focus on healthcare and nursing-care markets concentrates revenue exposure to sector-specific regulatory changes, reimbursement cycles and slower IT adoption rates. Structural dependence on one vertical can constrain growth and amplify exposure to adverse policy or budgetary shifts.

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

Strong overall fundamentals supported by high profitability (gross margin 64.3%, net margin 20.2%) and solid operating efficiency (EBIT margin 29.2%, EBITDA margin 37.0%). Balance sheet is conservative with low leverage (debt-to-equity 0.14) and strong equity ratio (71.1%), while cash conversion is robust (FCF/net income 1.03; OCF/net income 1.16). Main risk noted is mild margin pressure (slight gross margin decline) and modest recent revenue growth (2.4%).

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

Kanamic Network Co., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 522.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 522 is above the 20-day moving average (MA) of 516.35, above the 50-day MA of 520.98, and above the 200-day MA of 474.51, indicating a bullish trend. The MACD of 4.76 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3939	75 Outperform	¥24.94B	21.13	―	1.39%	9.85%	20.83%
9341	70 Outperform	¥10.72B	27.68	―	5.30%	0.09%	-48.79%
3902	63 Neutral	¥65.55B	227.08	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥255.19B	37.48	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥64.10B	63.86	8.79%	―	31.95%	-40.95%
4438	45 Neutral	¥2.31B	-4.28	―	―	16.19%	-4.42%

Kanamic Network Co., LTD. Corporate Events

Kanamic Network Delivers Strong Q1 Growth and Affirms Bullish FY2026 Outlook

Kanamic Network reported strong consolidated results for the first quarter of the fiscal year ending September 30, 2026, with net sales rising 12.9% year on year to ¥1,478 million and profit attributable to owners of parent climbing 29.5% to ¥305 million, underscoring solid profitability gains as EBITDA and operating profit increased more than 20%. The balance sheet remained robust with a high capital adequacy ratio of 74.0%, and the company kept its full-year forecast unchanged, targeting 15.4% growth in net sales to ¥6,350 million and a 23.2% rise in full-year profit to ¥1,370 million, along with a planned increase in the annual dividend to ¥9.00 per share, signaling management confidence and continued shareholder returns.

The most recent analyst rating on (JP:3939) stock is a Buy with a Yen609.00 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 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.