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Japan Communications Inc.
(9424)
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Rating:51Neutral
Price Target:
¥107.00
▼(-26.71% Downside)
Action:Reiterated
Date:08/09/26
The score is most constrained by weak technicals (price below major moving averages with negative MACD). Financial performance is mixed—revenue growth and positive free cash flow are positives, but margin compression and higher leverage increase risk. Valuation appears moderate-to-elevated on P/E with no dividend yield support provided.
Positive Factors
Revenue Growth
Sustained multi-year revenue growth to ~¥12.1B TTM indicates expanding subscriber base and market traction. Durable top-line expansion supports scale economies, recurring subscription cash flow, and provides a foundation for reinvestment in product and distribution over the next 2–6 months.
Negative Factors
Margin Compression
Material decline in gross and net margins reduces earnings resilience and leaves less room to absorb wholesale cost increases or competitive price pressure. Persistently lower margins constrain reinvestment, weaken buffer for shocks, and can pressure cash flow and ROE sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained multi-year revenue growth to ~¥12.1B TTM indicates expanding subscriber base and market traction. Durable top-line expansion supports scale economies, recurring subscription cash flow, and provides a foundation for reinvestment in product and distribution over the next 2–6 months.
Read all positive factors
Japan Communications Inc. (9424) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.61B
Dividend YieldN/A
Average Volume (3M)3.03M
Price to Earnings (P/E)27.4
Beta (1Y)0.83
Revenue Growth21.77%
EPS Growth-25.14%
CountryJP
Employees156
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.08
Shares Outstanding167,728,740
10 Day Avg. Volume2,726,290
30 Day Avg. Volume3,033,013
Financial Highlights & Ratios
PEG Ratio-2.65
Price to Book (P/B)4.61
Price to Sales (P/S)1.83
P/FCF Ratio21.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Japan Communications Inc. Business Overview & Revenue Model
Company Description
Japan Communications Inc. provides mobile communication services and mobile solutions in Japan, the United States, and internationally. It engages in the development and operation of an authentication platform for internet transactions; operation ...
How the Company Makes Money
Japan Communications Inc. primarily makes money by selling mobile telecommunications services as an MVNO (mobile virtual network operator). Under this model, it purchases network capacity (e.g., data and voice connectivity) wholesale from an under...
Japan Communications Inc. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.05B | 11.63B | 9.24B | 7.40B | 6.07B | 4.63B |
| Gross Profit | 4.43B | 4.41B | 3.84B | 3.26B | 2.62B | 1.85B |
| EBITDA | 1.19B | 1.21B | 1.17B | 1.72B | 859.28M | 324.82M |
| Net Income | 681.06M | 763.81M | 849.37M | 1.37B | 690.67M | 294.11M |
Balance Sheet | ||||||
| Total Assets | 11.99B | 12.00B | 7.34B | 4.41B | 3.04B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 6.90B | 7.11B | 4.30B | 2.52B | 1.58B | 928.69M |
| Total Debt | 5.74B | 5.74B | 2.08B | 69.61M | 17.21M | 0.00 |
| Total Liabilities | 7.18B | 7.35B | 3.47B | 1.43B | 1.51B | 1.16B |
| Stockholders Equity | 4.79B | 4.62B | 3.82B | 2.89B | 1.50B | 720.42M |
Cash Flow | ||||||
| Free Cash Flow | 850.60M | 987.37M | 672.92M | 976.37M | 811.41M | -75.45M |
| Operating Cash Flow | 1.10B | 1.32B | 930.18M | 1.07B | 851.34M | 21.97M |
| Investing Cash Flow | -2.11B | -2.16B | -1.10B | -119.95M | -200.85M | -111.71M |
| Financing Cash Flow | 3.64B | 3.64B | 1.96B | -18.32M | -1.16M | -9.60M |
Japan Communications Inc. Technical Analysis
Negative
146.00
Price Trends
112.20
Negative
119.22
Negative
130.91
Negative
Market Momentum
-0.82
Positive
35.24
Neutral
34.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9424, the sentiment is Negative. The current price of 146 is above the 20-day moving average (MA) of 113.30, above the 50-day MA of 112.20, and above the 200-day MA of 130.91, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9424.
Japan Communications Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥17.14B | 14.06 | ― | 3.53% | 2.67% | -25.50% | |
66 Neutral | ¥14.97B | 30.54 | ― | 1.01% | 14.33% | 112.44% | |
65 Neutral | ¥9.00B | 9.18 | ― | 3.85% | -2.97% | -6.79% | |
64 Neutral | ¥16.29B | 12.55 | ― | 4.02% | 5.51% | -2.57% | |
60 Neutral | ¥3.15B | 11.25 | ― | ― | 8.20% | 2.55% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥17.61B | 27.45 | ― | ― | 21.77% | -25.14% |
* General Sector Average
JP:9424
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.