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

• Market Cap: ¥20.87B
• Dividend Yield: 1.48%
• Average Volume (3M): 92.21K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.51
• Revenue Growth: 17.20%
• EPS Growth: 20.25%
• Country: JP
• Employees: 279
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 5.96
• Shares Outstanding: 48,132,000
• 10 Day Avg. Volume: 89,580
• 30 Day Avg. Volume: 92,206
• PEG Ratio: 6.11
• Price to Book (P/B): 5.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥444.00
• Price Target Upside: 1.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥485.00 ▲(10.98%Upside)

Kanamic Network Co., LTD. receives an overall stock score of 72, primarily driven by strong financial performance with robust revenue growth and effective cost management. Technical analysis supports a neutral to slightly bullish outlook, while valuation metrics suggest fair valuation. Cash flow stability and absence of earnings call data slightly temper the overall score.

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

Company Description

Kanamic Network Co., LTD. is a Japanese company that operates primarily in the healthcare and welfare sectors. The company specializes in providing cloud-based software solutions aimed at enhancing the efficiency and effectiveness of healthcare and welfare services. Its core products include systems for managing information related to home care, care for the elderly, and child welfare, as well as platforms facilitating communication and information sharing among healthcare professionals and caregivers.

How the Company Makes Money

Kanamic Network Co., LTD. generates revenue through a subscription-based model for its cloud-based software solutions. Healthcare and welfare service providers, including hospitals, nursing care facilities, and local governments, subscribe to its platforms to improve operational efficiencies and service delivery. Revenue is primarily derived from subscription fees for the use of its platforms and additional fees for premium features or services. The company's earnings are bolstered by partnerships with local governments and healthcare institutions, which contribute to a stable customer base and recurring revenue streams.

Kanamic Network Co., LTD. Financial Statement Overview

Summary

Kanamic Network Co., LTD. demonstrates robust financial performance with strong revenue growth, healthy profit margins, and a solid balance sheet. However, there is room for improvement in cash flow stability.

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

Kanamic Network Co., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 437.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 437 is above the 20-day moving average (MA) of 429.40, above the 50-day MA of 420.54, and below the 200-day MA of 460.40, indicating a neutral trend. The MACD of 3.70 indicates Positive momentum. The RSI at 59.08 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
6095	81 Outperform	¥16.82B	9.71		0.59%	-12.13%	291.07%
3649	79 Outperform	¥19.11B	17.37		2.14%	12.51%	9.68%
4320	73 Outperform	¥11.62B	23.59		2.58%	9.21%	-20.04%
3939	72 Outperform	¥20.87B	21.15		1.48%	17.20%	20.25%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
3628	50 Neutral	¥7.56B	―		―	16.49%	-483.70%
3902	43 Neutral	¥20.16B	4,465.71		1.26%	-7.98%	-181.00%

Kanamic Network Co., LTD. Corporate Events

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.