Future Link Network Co.,Ltd. (9241) AI Stock Analysis

• Market Cap: ¥1.50B
• Dividend Yield: N/A
• Average Volume (3M): 20.29K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.25
• Revenue Growth: 1.95%
• EPS Growth: 1083.13%
• Country: JP
• Employees: 123
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -27.23
• Shares Outstanding: 862,223
• 10 Day Avg. Volume: 6,370
• 30 Day Avg. Volume: 20,290
• PEG Ratio: 0.11
• Price to Book (P/B): 12.53
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 38.24
• 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: 58 Neutral
• Price Target: ¥1,929.00 ▲(11.50% Upside)

The score is primarily supported by improving financial performance—especially the shift to positive operating cash flow and improving margins—offset by balance-sheet vulnerability from a low equity ratio. Technically, the stock shows short-term improvement but remains below key longer-term moving averages with a negative MACD. Valuation is a modest headwind with a ~28x P/E and no dividend yield data to offset it.

Positive Factors

Operating cash flow turnaround

A sustained shift to positive operating cash flow materially strengthens the company's ability to self‑fund network maintenance, incremental capex and service rollouts. Over 2–6 months this reduces refinancing risk, enables strategic reinvestment, and supports margin recovery without reliance on new equity.

High gross profit margin

A ~64% gross margin indicates durable unit economics from services and data center offerings, reflecting pricing power and efficient service delivery. This structural margin buffer supports sustained operating leverage as revenue scales, enabling the firm to absorb SG&A and reinvest in network capacity over the medium term.

Revenue growth and profitability recovery

Consistent revenue growth alongside a return to net profitability signals durable operational improvement and better cost control. Combined with improved ROE and reduced leverage, this trend supports continued reinvestment and debt servicing capacity, improving the firm's resilience and strategic optionality over coming quarters.

Negative Factors

Low equity ratio

A sub‑30% equity ratio denotes limited balance‑sheet cushioning versus peers, increasing vulnerability to demand shocks or large capex needs. Over the medium term this constrains borrowing flexibility, raises refinancing risk under stress, and can limit the company's ability to pursue opportunistic investments or absorb losses.

Operating profitability still negative

Persistently negative EBIT, despite improvement, indicates core operations have not yet fully converted high gross margins into sustainable operating profit. Structurally, this suggests remaining cost or scale issues that could limit free cash flow expansion and constrain reinvestment unless operating efficiency continues to improve.

Limited scale (small headcount)

A relatively small workforce for a telco/cloud operator can limit capacity to scale data center, cloud and managed services across enterprise markets. Over the medium term this may impede sales coverage, R&D and large account delivery, making it harder to compete with larger incumbents and win large, complex contracts.

Future Link Network Co.,Ltd. Business Overview & Revenue Model

Company Description

Future Link Network Co.,Ltd. engages in the operation of local information platform in Japan. It offers real information about the city through local information site Maipure; and works with local governments to solve local issues, as well as with private sectors to solve social issues. The company was incorporated in 2000 and is based in Funabashi, Japan.

How the Company Makes Money

Future Link Network Co.,Ltd. generates revenue primarily through its diverse range of IT solutions and network services. The company's key revenue streams include subscription-based services for digital platforms, consulting fees for IT solutions, and sales of proprietary software products. Additionally, Future Link Network may engage in strategic partnerships and collaborations to expand its market reach and enhance its service offerings, contributing to its overall earnings.

Future Link Network Co.,Ltd. Financial Statement Overview

Summary

Improving fundamentals: revenue grew 2.23% and profitability is recovering (EBIT margin improved to -1.07% and net margin turned positive at 1.85%). Cash flow is a key positive with operating cash flow turning positive (131.74M) and stronger free cash flow. Balance sheet is mixed: leverage improved (debt-to-equity down to 0.89) but the equity ratio remains low (27.99%), which raises resilience risk.

Income Statement

Future Link Network Co., Ltd. has shown consistent revenue growth over the years, with a 2.23% increase in the latest period. However, profitability remains a concern as evidenced by negative EBIT margins in recent years, although there has been improvement from -4.91% in 2023 to -1.07% in 2025. The gross profit margin remains strong at approximately 63.9%, indicating efficient cost management. Net profit margin has improved significantly from negative figures in previous years to 1.85% in 2025, showcasing a positive trajectory.

Balance Sheet

The company's debt-to-equity ratio has improved from 1.22 in 2024 to 0.89 in 2025, indicating a reduction in leverage. However, the equity ratio is relatively low at 27.99%, suggesting potential financial vulnerability. Return on equity has improved to 10.26% in 2025, reflecting better profitability and efficiency in using shareholders' equity.

Cash Flow

Operating cash flow has turned positive in 2025, reaching 131.74 million, a significant improvement from negative figures in previous years. Free cash flow has also improved, indicating better cash management and operational efficiency. The free cash flow to net income ratio is strong, suggesting that the company is generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.51B	1.54B	1.52B	1.38B	1.25B	1.35B
Gross Profit	941.53M	987.63M	953.03M	882.23M	767.33M	850.51M
EBITDA	81.18M	96.61M	37.87M	-50.00M	-35.48M	113.18M
Net Income	21.58M	28.56M	2.37M	-66.54M	-71.61M	79.65M
Balance Sheet
Total Assets	1.04B	994.46M	904.46M	746.93M	713.88M	844.94M
Cash, Cash Equivalents and Short-Term Investments	545.75M	489.45M	438.65M	367.95M	408.30M	569.93M
Total Debt	261.55M	247.42M	290.67M	155.24M	158.67M	190.89M
Total Liabilities	727.22M	694.42M	648.59M	503.74M	430.95M	491.83M
Stockholders Equity	284.48M	278.37M	238.39M	226.50M	282.93M	353.11M
Cash Flow
Free Cash Flow	0.00	91.24M	-87.08M	-32.31M	-82.82M	165.37M
Operating Cash Flow	0.00	131.74M	-38.20M	26.81M	-56.48M	175.11M
Investing Cash Flow	0.00	-36.44M	-26.96M	-62.45M	-74.36M	-9.76M
Financing Cash Flow	0.00	-44.50M	135.86M	-4.71M	-30.79M	237.97M

Future Link Network Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1730.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9241, the sentiment is Negative. The current price of 1730 is below the 20-day moving average (MA) of 1735.95, below the 50-day MA of 1794.74, and below the 200-day MA of 2063.97, indicating a bearish trend. The MACD of -15.61 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 6.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9241.

Future Link Network Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.72B	47.27	―	1.00%	5.79%	-30.56%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.50B	9.30	―	―	-4.44%	―
9244	60 Neutral	¥1.45B	13.28	―	―	4.93%	―
9241	58 Neutral	¥1.50B	25.44	―	―	1.95%	1083.13%
4760	56 Neutral	¥1.28B	11.49	―	3.86%	3.93%	-4.20%
2156	55 Neutral	¥1.28B	19.29	―	1.98%	5.87%	―