Mainichi Comnet Co., Ltd. (8908) AI Stock Analysis

• Market Cap: ¥16.40B
• Dividend Yield: 4%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.30
• Revenue Growth: 19.97%
• EPS Growth: 69.40%
• Country: JP
• Employees: 261
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 6.69
• Shares Outstanding: 18,000,000
• 10 Day Avg. Volume: 9,840
• 30 Day Avg. Volume: 7,893
• PEG Ratio: 1.07
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 9.26
• 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: 80 Outperform
• Price Target: ¥1,049.00 ▲(26.69% Upside)

Mainichi Comnet Co., Ltd. is well-positioned in the real estate services industry with strong financial performance and attractive valuation metrics. The stock's technical indicators suggest positive momentum, although caution is advised due to potential overbought conditions. The absence of recent earnings call data and corporate events does not detract from the company's solid financial foundation and growth potential.

Positive Factors

Consistent Revenue Growth

Consistent double-digit revenue growth (16.36% in the latest year) indicates persistent demand for its ICT, data and cloud services. This sustained top-line expansion supports reinvestment in product development, scales unit economics, and strengthens medium-term business resilience.

Strong Cash Generation

Marked improvement in free cash flow and a healthy operating cash flow to net income ratio show the company reliably converts earnings into cash. Durable cash generation reduces reliance on external financing, funds capex/dividends, and enables strategic investments over the next several quarters.

Improving Profitability Margins

Rising gross and net margins alongside healthy EBIT/EBITDA margins reflect disciplined cost control and a profitable service mix. Sustained margin improvement enhances cash conversion, buffers pricing pressure, and supports long-term earnings quality and competitive positioning.

Negative Factors

Material Leverage

A debt-to-equity near 1.0 and indications of moderate debt reliance reduce financial flexibility. Material leverage raises interest expense sensitivity and could constrain strategic investments or dividend support if revenues or cash flows weaken, increasing downside risk over months.

Limited Investor Communication

Absence of earnings call data and formal guidance limits forward visibility for investors and stakeholders. Persistent lack of regular communication can obscure management priorities and execution, making it harder to assess near-term strategy and increases uncertainty over the medium term.

Modest Scale of Operations

A workforce of 261 suggests modest organizational scale versus larger ICT and telecom competitors. Limited headcount can constrain capacity to pursue very large enterprise contracts, broaden service offerings rapidly, or accelerate R&D, potentially slowing market share gains over time.

Mainichi Comnet Co., Ltd. Business Overview & Revenue Model

Company Description

Mainichi Comnet Co., Ltd. engages in the real estate business in Japan. The company is involved in the planning, design supervision, and development of real estate; property management of student condominiums and university dormitories; real estate brokerage and consulting business related to real estate use; and production of advertising materials for real estate tenant recruitment, as well as advertising agency business. It also plans and arranges training camps and trips; plans and manages various sports competitions and international exchange programs; and offers job hunting support, employment seminars, and driving school placement services. The company was incorporated in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mainichi Comnet generates revenue through multiple streams, including subscription fees for its internet and data services, sales of telecommunications equipment, and cloud service offerings. The company also earns income from partnerships with various businesses, providing customized communication solutions and digital content distribution. Additionally, Mainichi Comnet may benefit from advertising revenue through its digital platforms, enhancing its overall profitability. The company's focus on expanding its service offerings and technological advancements plays a crucial role in sustaining its revenue growth.

Mainichi Comnet Co., Ltd. Financial Statement Overview

Summary

Mainichi Comnet Co., Ltd. exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is stable, though there is a moderate level of debt. Cash flow generation is robust, supporting the company's operational and strategic initiatives.

Income Statement

Mainichi Comnet Co., Ltd. has demonstrated strong revenue growth with a 16.36% increase in the latest year, indicating robust demand in its services. The gross profit margin and net profit margin have shown consistent improvement, reflecting effective cost management and operational efficiency. The EBIT and EBITDA margins are healthy, showcasing profitability and operational strength.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of approximately 1.00, indicating a balanced approach to leveraging. The return on equity is strong, suggesting effective use of shareholder funds to generate profits. However, the equity ratio indicates moderate reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, with a notable growth rate. The operating cash flow to net income ratio is healthy, indicating that the company is generating sufficient cash from its operations to cover its net income. The free cash flow to net income ratio is also strong, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.61B	22.26B	20.77B	21.25B	18.89B	17.01B
Gross Profit	6.95B	6.79B	6.35B	6.00B	5.33B	4.96B
EBITDA	3.55B	3.33B	3.03B	2.88B	2.45B	2.21B
Net Income	1.70B	1.60B	1.48B	1.38B	1.11B	952.51M
Balance Sheet
Total Assets	30.11B	30.89B	28.82B	27.24B	26.53B	25.25B
Cash, Cash Equivalents and Short-Term Investments	7.76B	8.30B	6.80B	5.86B	5.93B	5.16B
Total Debt	12.64B	13.13B	12.51B	11.91B	12.05B	12.11B
Total Liabilities	16.98B	17.55B	16.56B	16.00B	15.89B	15.23B
Stockholders Equity	12.90B	13.11B	12.03B	11.03B	10.45B	9.85B
Cash Flow
Free Cash Flow	0.00	1.44B	823.58M	846.05M	1.34B	1.20B
Operating Cash Flow	0.00	2.44B	1.44B	1.27B	1.63B	1.58B
Investing Cash Flow	0.00	-1.01B	-609.98M	-378.88M	-273.13M	-411.09M
Financing Cash Flow	0.00	70.00M	104.88M	-942.63M	-562.92M	-2.02B

Mainichi Comnet Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 828.00
• 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:8908, the sentiment is Positive. The current price of 828 is below the 20-day moving average (MA) of 867.35, below the 50-day MA of 841.00, and above the 200-day MA of 788.95, indicating a bullish trend. The MACD of 19.82 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8908.

Mainichi Comnet Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8908	80 Outperform	¥16.40B	9.06	―	4.00%	19.97%	69.40%
2982	74 Outperform	¥21.69B	7.56	―	2.76%	45.01%	89.71%
2970	70 Neutral	¥14.33B	9.90	―	―	57.57%	57.09%
2991	67 Neutral	¥14.95B	6.11	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3300	61 Neutral	¥17.08B	10.06	―	4.52%	-3.46%	-42.76%
8999	60 Neutral	¥18.50B	24.85	―	5.27%	-1.41%	194.28%