Aucnet, Inc. (3964) AI Stock Analysis

• Market Cap: ¥102.81B
• Dividend Yield: 2.24%
• Average Volume (3M): 100.10K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.82
• Revenue Growth: 22.22%
• EPS Growth: 26.29%
• Country: JP
• Employees: 1,060
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 19.12
• Shares Outstanding: 48,026,400
• 10 Day Avg. Volume: 97,160
• 30 Day Avg. Volume: 100,100
• PEG Ratio: 0.99
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 7.07
• 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: 81 Outperform
• Price Target: ¥2,359.00 ▲(15.24% Upside)

The score is driven primarily by strong financial quality (notably a debt-free balance sheet, solid profitability, and positive free cash flow) and supportive technical momentum (price above major moving averages with positive MACD). Valuation is reasonable but not especially cheap, and margin compression plus uneven operating cash flow relative to earnings temper the outlook.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances resilience, providing flexibility for future investments and growth.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Organizational Restructuring

Restructuring and leadership changes aim to streamline operations and enhance strategic focus, potentially improving efficiency and execution.

Negative Factors

Margin Compression

Margin compression can impact profitability, indicating potential cost management issues or competitive pricing pressures.

Impairment Loss

Impairment losses reflect challenges in acquisitions, potentially affecting future earnings and strategic positioning.

Inconsistent Cash Flow

Inconsistent cash flow can limit investment capacity and financial flexibility, affecting long-term growth potential.

Aucnet, Inc. Business Overview & Revenue Model

Company Description

Aucnet Inc. provides information distribution services for auctions. It operates through Automobile Business, Digital Product Business, and Consumer Product Business segments. The Automobile Business segment is involved in the vehicle auctions, shared inventory market, and live-linked auction; and provision of proxy bidding service, used vehicle inspection service, and other services. The Digital Product Business segment auctions used digital equipment, including used smartphones and PCs, as well as offers services pertaining to distribution. The Consumer Product Business segment auctions pre-owned luxury brand items; and provides services pertaining to distribution. Aucnet Inc. also auctions used motorcycles, flowers, and medical related business. In addition, the company engages in the provision of BPO support services, such as clearance, conversion, and resale of excess inventories; and financial businesses. The company was formerly known as FTS Inc. and changed its name to Aucnet Inc. in September 1984. Aucnet Inc. was founded in 1982 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Aucnet, Inc. makes money through several key revenue streams. The primary source of revenue is the commission fees charged on successful auctions facilitated through its online platform. These fees are typically a percentage of the final sale price of the auctioned items. Additionally, Aucnet generates income by providing ancillary services such as inspection and evaluation of auction items to ensure quality and authenticity, which is crucial for maintaining trust among buyers and sellers. The company also engages in strategic partnerships and collaborations with other businesses to expand its auction network and access a broader audience, further enhancing its revenue potential.

Aucnet, Inc. Financial Statement Overview

Summary

Aucnet, Inc. is performing exceptionally well across all financial verticals. The company shows impressive revenue growth and profitability, supported by a solid balance sheet with no leverage concerns. Strong cash flow metrics further reinforce its financial health. Aucnet, Inc. is well-positioned within the specialty retail industry, with a robust financial foundation to support future growth.

Income Statement

Aucnet, Inc. has shown strong revenue growth with a 29.1% increase from 2023 to 2024, alongside consistent improvements in profitability metrics. The company maintains a solid gross profit margin of 39.8% and a net profit margin of 8.0% for 2024, indicating efficient cost management. The EBIT margin stands at 12.5% and EBITDA margin at 14.1%, reflecting robust operational efficiency.

Balance Sheet

Aucnet, Inc. exhibits a strong balance sheet with no debt, resulting in a zero debt-to-equity ratio, which minimizes financial risk. The equity ratio is a healthy 58.8%, suggesting a stable financial structure. Return on equity for 2024 is 17.3%, highlighting effective use of shareholders' capital. The company's substantial cash reserves further enhance its financial stability.

Cash Flow

Aucnet, Inc. has demonstrated a positive free cash flow growth of 4.3% from 2023 to 2024, indicating effective cash generation capabilities. The operating cash flow to net income ratio is 1.08, showing strong cash conversion. The free cash flow to net income ratio is 1.01, underscoring the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.87B	55.91B	43.30B	40.46B	36.71B	24.08B
Gross Profit	25.73B	22.29B	18.08B	17.32B	16.90B	12.77B
EBITDA	9.61B	7.85B	7.68B	7.42B	6.89B	4.26B
Net Income	5.64B	4.49B	4.37B	4.35B	3.63B	1.90B
Balance Sheet
Total Assets	53.54B	44.04B	37.66B	37.35B	36.82B	33.28B
Cash, Cash Equivalents and Short-Term Investments	23.29B	16.98B	19.57B	20.02B	20.62B	16.78B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	28.04B	17.87B	15.35B	14.44B	14.12B	13.64B
Stockholders Equity	25.30B	25.90B	22.16B	22.51B	22.32B	19.32B
Cash Flow
Free Cash Flow	0.00	4.52B	4.33B	3.79B	3.63B	3.53B
Operating Cash Flow	0.00	4.85B	5.12B	4.52B	4.25B	4.12B
Investing Cash Flow	0.00	-3.47B	-428.45M	185.16M	388.93M	549.68M
Financing Cash Flow	0.00	-4.07B	-5.10B	-4.43B	-825.42M	-2.87B

Aucnet, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2047.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3964, the sentiment is Positive. The current price of 2047 is below the 20-day moving average (MA) of 2047.45, above the 50-day MA of 1965.25, and above the 200-day MA of 1672.83, indicating a bullish trend. The MACD of 49.60 indicates Negative momentum. The RSI at 73.07 is Negative, neither overbought nor oversold. The STOCH value of 83.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3964.

Aucnet, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3964	81 Outperform	¥102.81B	18.14	―	2.24%	22.22%	26.29%
2674	74 Outperform	¥28.16B	12.71	―	3.77%	7.88%	-5.92%
3179	66 Neutral	¥21.01B	19.60	―	3.53%	-2.73%	-51.48%
3093	65 Neutral	¥42.17B	14.72	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	56 Neutral	¥17.97B	9.05	―	0.95%	4.14%	―

Aucnet, Inc. Corporate Events

Aucnet to Cancel 1.5 Million Treasury Shares, Tightening Capital Structure

Aucnet Inc. announced that its Board of Directors has resolved to cancel 1.5 million treasury shares, representing 3.03% of its currently issued and outstanding common shares. Following the cancellation, scheduled for December 30, 2025, the total number of issued and outstanding shares will be reduced to 48,026,400, with 2,020,121 shares remaining as treasury stock, a move that is expected to streamline the capital structure and may enhance shareholder value by lowering the share count.

Aucnet, Inc. Announces Organizational Restructuring and Leadership Changes

Aucnet, Inc. has announced significant organizational changes, including the establishment of new headquarters for Corporate Administration and HR, and the renaming of its Circular Commerce Business Division to Circular Commerce Business Headquarters. These changes, effective January 1, 2026, are accompanied by the appointment of new Executive Officers and personnel transfers, which are expected to streamline operations and enhance the company’s strategic focus.

Aucnet, Inc. Reports Impairment Loss and Revises Financial Forecast

Aucnet, Inc. announced the recognition of an impairment loss on goodwill and a loss on valuation of shares of subsidiaries and associates for the third quarter of the fiscal year ending December 31, 2025. These financial adjustments are due to underperformance at JOYLAB, inc., a subsidiary acquired in April 2024, which led to a significant decline in the fair value of its shares. While these losses impact the non-consolidated financial results, they will be eliminated in consolidation, thus having no effect on the consolidated financial results. The company has also revised its forecast for consolidated results and dividends for the fiscal year.

Aucnet Revises 2025 Forecasts and Announces Commemorative Dividend

Aucnet, Inc. has revised its forecast for consolidated results and dividends for the fiscal year ending December 31, 2025, following stronger-than-expected performance in its Lifestyle Products segment. The company has increased its net sales and profit forecasts, attributing the positive outlook to higher sales of used smartphones and luxury items, as well as gains from strategic holdings. Additionally, Aucnet announced a 40th Anniversary Commemorative Dividend, reflecting its commitment to shareholder returns and marking its milestone year.

Aucnet, Inc. Reports Robust Q3 2025 Financial Results and Strategic Dividend Adjustments

Aucnet, Inc. reported a strong financial performance for the third quarter of 2025, with significant increases in net sales and profits compared to the previous year. The company also announced a revision in its dividend forecast and a share split, indicating a strategic move to enhance shareholder value and market positioning.