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Aucnet, Inc. (JP:3964)
:3964
Japanese Market

Aucnet, Inc. (3964) AI Stock Analysis

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JP

Aucnet, Inc.

(3964)

Rating:69Neutral
Price Target:
Aucnet, Inc.'s strong financial performance and attractive valuation are significant strengths, positioning it well in the specialty retail industry. However, technical indicators suggest a bearish trend, which could pose short-term challenges. The company's robust financial health and attractive valuation provide a solid foundation for potential recovery and long-term growth.

Aucnet, Inc. (3964) vs. iShares MSCI Japan ETF (EWJ)

Aucnet, Inc. Business Overview & Revenue Model

Company DescriptionAucnet, Inc. (3964) is a Japanese company that operates primarily in the online auction industry. It provides auction services for a wide range of sectors including automobiles, motorcycles, digital equipment, and luxury brand items. The company leverages its proprietary online platform to facilitate real-time auctions, allowing both domestic and international buyers and sellers to participate seamlessly. Aucnet is known for its innovative approach to auctioning and its commitment to transparency and efficiency in the auction process.
How the Company Makes MoneyAucnet, 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
85
Very Positive
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
90
Very Positive
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
80
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
55.91B43.30B40.46B36.71B24.08B
Gross Profit
22.29B17.96B17.32B16.90B12.77B
EBIT
7.01B6.66B6.60B5.85B3.71B
EBITDA
7.85B7.68B7.42B6.89B4.26B
Net Income Common Stockholders
4.49B4.37B4.35B3.63B1.90B
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.98B19.57B20.02B20.62B16.78B
Total Assets
44.04B37.66B37.35B36.82B33.28B
Total Debt
0.000.000.000.000.00
Net Debt
-16.98B-19.57B-20.02B-20.62B-16.78B
Total Liabilities
17.87B15.35B14.44B14.12B13.64B
Stockholders Equity
25.90B22.16B22.51B22.32B19.32B
Cash FlowFree Cash Flow
4.52B4.33B3.79B3.63B3.53B
Operating Cash Flow
4.85B5.12B4.52B4.25B4.12B
Investing Cash Flow
-3.47B-428.45M185.16M388.93M549.68M
Financing Cash Flow
-4.07B-5.10B-4.43B-825.42M-2.87B

Aucnet, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1513.00
Price Trends
50DMA
1282.60
Positive
100DMA
1262.94
Positive
200DMA
1235.55
Positive
Market Momentum
MACD
66.69
Negative
RSI
69.31
Neutral
STOCH
61.70
Neutral
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 1513 is above the 20-day moving average (MA) of 1404.90, above the 50-day MA of 1282.60, and above the 200-day MA of 1235.55, indicating a bullish trend. The MACD of 66.69 indicates Negative momentum. The RSI at 69.31 is Neutral, neither overbought nor oversold. The STOCH value of 61.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3964.

Aucnet, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$217.62B12.989.81%3.29%5.43%155.37%
76
Outperform
$763.68B33.6014.25%1.33%6.67%114.29%
69
Neutral
¥74.52B13.95
2.52%29.11%8.08%
68
Neutral
¥1.37T30.2548.74%2.18%8.18%36.67%
66
Neutral
¥298.81B12.4510.56%2.44%19.94%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
50
Neutral
$1.77T-22.97%10.38%38.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3964
Aucnet, Inc.
1,509.00
342.96
29.41%
JP:2432
DeNA Co
2,690.00
1,193.72
79.78%
JP:4755
Rakuten
809.20
-26.40
-3.16%
JP:4751
CyberAgent
1,527.50
587.58
62.51%
JP:2121
Mixi
3,295.00
532.11
19.26%
JP:3092
ZOZO
1,575.00
365.99
30.27%

Aucnet, Inc. Corporate Events

Aucnet Completes Treasury Share Disposal with Minimal Financial Impact
Apr 16, 2025

Aucnet, Inc. has completed the payment procedures for the disposal of treasury shares to its employee shareholding association, following a resolution passed in February 2025. Due to partial forfeiture, the number of shares and the total disposal amount were adjusted. The impact on the company’s financial results for the fiscal year ending December 31, 2025, is expected to be minimal.

Aucnet, Inc. Announces Organizational Changes and Personnel Transfers
Mar 25, 2025

Aucnet, Inc. announced organizational changes and personnel transfers to enhance business system development and strengthen its operational framework. The creation of a new Product Development Headquarters under the DX Division aims to improve collaboration across business divisions, with key personnel appointments effective April 1, 2025.

Aucnet, Inc. Appoints New Executive Officer
Mar 11, 2025

Aucnet, Inc. has announced the appointment of Hironori Takayama as an Executive Officer, effective April 1, 2025. This strategic appointment, decided at the Board of Directors’ meeting on March 11, 2025, signifies a potential shift in the company’s digital transformation efforts, as Takayama will be taking on the role of Vice Division Manager in the DX Division.

Aucnet, Inc. Announces Treasury Share Disposal for Employee Ownership
Feb 21, 2025

Aucnet, Inc. has announced the disposal of treasury shares to its employees through an Employee Shareholding Association, setting a disposal price of ¥2,670 per share. This move is part of a strategy to align employee interests with company growth, while also providing incentives, without adversely affecting current shareholders. The initiative reflects Aucnet’s commitment to fostering employee ownership and engagement in its operations.

Aucnet Inc. Completes Share Repurchase to Boost Shareholder Returns
Feb 18, 2025

Aucnet Inc. has repurchased 1,430,000 of its own common shares at a cost of ¥3,533,530,000 using the ToSTNeT-3 system of the Tokyo Stock Exchange. This move is aimed at enhancing shareholder returns and capital efficiency, although the company’s policy on the disposal of the repurchased shares remains undetermined.

Aucnet Announces Share Buyback Strategy
Feb 17, 2025

Aucnet, Inc. has announced a strategic decision to repurchase up to 1,430,000 of its own common shares, accounting for 5.89% of its issued shares, at a cost not exceeding ¥3,533,530,000. This buyback, set to be conducted through the Tokyo Stock Exchange’s off-auction trading system, highlights the company’s focus on optimizing its capital structure and potentially increasing shareholder value.

AUCNET INC. Announces Board of Directors Changes
Feb 14, 2025

AUCNET INC. has announced proposed changes to its Board of Directors, with several reappointments and a new appointment to be confirmed at the upcoming Annual General Shareholders Meeting. These changes reflect AUCNET’s ongoing strategic adjustments to strengthen its governance and oversight structure, which may impact the company’s operational dynamics and stakeholder engagement.

Aucnet, Inc. Announces Employee Incentive Scheme Through Treasury Share Disposal
Feb 14, 2025

Aucnet, Inc. announced a new employee incentive scheme involving the disposal of treasury shares to its Employee Shareholding Association. This initiative is aimed at enhancing employee benefits and encouraging asset building while incentivizing employees to contribute to the company’s long-term corporate value. By disposing of up to 109,012.5 shares, the scheme seeks to facilitate a closer alignment between employee and shareholder interests, although it will result in a slight dilution of shares.

Aucnet, Inc. Announces Share Split and Dividend Increase
Feb 14, 2025

Aucnet, Inc. has announced a two-for-one share split to enhance the liquidity of its shares and broaden its investor base. The company has also increased its dividends of surplus for the fiscal year ended December 31, 2024, and continues to offer a shareholder benefit program, reflecting a commitment to improving capital efficiency and corporate value.

Aucnet Announces Share Repurchase Plan to Boost Capital Efficiency
Feb 14, 2025

Aucnet, Inc. announced a decision by its Board of Directors to repurchase up to 1,430,000 of its common shares, representing 5.89% of the company’s total issued shares, excluding treasury shares. The repurchase, which may cost up to ¥4.5 billion, is intended to enhance shareholder returns, boost capital efficiency, and allow for flexible capital policies in response to market changes. The repurchase will be conducted through the ToSTNeT-3 system on the Tokyo Stock Exchange between February 18 and 20, 2025, with the final decision on all related matters left to the company’s Representative Director and President. This move could potentially affect the company’s market positioning by reducing the number of shares in circulation and increasing shareholder value, though the exact impact will depend on market conditions.

Aucnet, Inc. Enhances Dividend Policy Amid Sustained Growth
Feb 14, 2025

Aucnet, Inc. has announced a change in its dividend policy, increasing the target consolidated dividend payout ratio from 30% to over 40%. This decision is part of its medium-term plan, ‘Blue Print 2027,’ which aims to enhance capital efficiency and corporate value. With a strong business performance leading to increased net sales and profit over the past four years, Aucnet is also boosting its dividends as a reflection of its stable growth. The company’s year-end dividend for the fiscal year ended December 31, 2024, has been raised to ¥48 per share, up from the previous forecast of ¥29. This adjustment showcases Aucnet’s commitment to rewarding shareholders while maintaining sufficient reserves for future business developments.

Aucnet Inc. Reports Strong 2024 Results; Projects 2025 Profit Decline
Feb 14, 2025

Aucnet Inc. reported a significant increase in consolidated financial results for the fiscal year ending December 31, 2024, with net sales rising by 29.1% compared to the previous year. Despite this growth, the company forecasts a decline in profits for 2025 due to anticipated changes in market dynamics and a share split set to take effect on April 1, 2025, which could impact earnings per share.

AUCNET INC. Unveils Ambitious ‘Blue Print 2027’ Management Plan
Feb 14, 2025

AUCNET INC. has announced the formulation of its ‘Blue Print 2027’ medium-term management plan, following the success of its previous strategic initiatives. The new plan sets ambitious targets, including achieving ¥1 trillion in gross circulation value (GCV) and enhancing financial metrics such as EBITDA and ROE by 2027, reflecting the company’s commitment to significant business growth and shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.