Japan Communications Inc. (9424) AI Stock Analysis

• Market Cap: ¥24.19B
• Dividend Yield: N/A
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.82
• Revenue Growth: 27.43%
• EPS Growth: -5.71%
• Country: JP
• Employees: 131
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): 1.45
• Shares Outstanding: 166,838,750
• 10 Day Avg. Volume: 2,832,830
• 30 Day Avg. Volume: 2,531,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥173.00
• Price Target Upside: 19.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥179.00 ▲(23.45% Upside)

Japan Communications Inc. demonstrates strong financial performance, which is the most significant factor in its overall score. Technical analysis indicates mixed momentum, and the valuation suggests the stock is fairly priced. The lack of earnings call data and corporate events does not impact the score.

Japan Communications Inc. Business Overview & Revenue Model

Company Description

Japan Communications Inc. (9424), also known as JCI, is a telecommunications company based in Japan. It operates in the mobile and data communication sectors, providing services such as mobile virtual network operator (MVNO) offerings and integrated communication solutions. The company focuses on delivering innovative communication services and value-added solutions to both individual and corporate clients.

How the Company Makes Money

Japan Communications Inc. generates revenue primarily through its MVNO business model, where it leases network capacity from larger mobile network operators to offer its own branded mobile services to customers. This allows JCI to provide competitive mobile plans without having to maintain its own wireless infrastructure. Additionally, the company offers data communication services and solutions tailored for corporate clients, further diversifying its revenue streams. JCI's earnings are also supported by strategic partnerships with technology companies and other service providers, enhancing its service offerings and market reach.

Japan Communications Inc. Financial Statement Overview

Summary

Japan Communications Inc. shows strong financial performance with robust revenue growth and efficient cost management, resulting in solid profitability. The balance sheet is well-capitalized with moderate leverage, and cash flows are effectively managed despite a recent decline in free cash flow.

Income Statement

Japan Communications Inc. demonstrates strong revenue growth, with a 24.8% increase in 2025, building on consistent growth in previous years. The gross profit margin stands at 41.6%, reflecting efficient cost management. The net profit margin of 9.2% and a consistent increase in EBIT and EBITDA margins indicate improved operational efficiency. However, a decline in EBIT and EBITDA in 2025 compared to 2024 suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 0.53, indicating moderate leverage and financial stability. A strong ROE of 22.2% in 2025 showcases excellent returns on shareholder investments. The equity ratio of 52% reflects a well-capitalized balance sheet. The company maintains high cash reserves, supporting liquidity, but the increase in total liabilities over the years should be monitored.

Cash Flow

Free cash flow remains positive, though it decreased by 21.3% in 2025 compared to 2024, indicating potential challenges in cash generation. The operating cash flow to net income ratio is robust at 1.1, showcasing effective cash management. Free cash flow to net income remains healthy at 0.79, supporting dividends and reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.90B	9.24B	7.40B	6.07B	4.63B	3.50B
Gross Profit	4.06B	3.84B	3.26B	2.62B	1.85B	1.27B
EBITDA	1.25B	1.17B	1.72B	859.28M	324.82M	-257.69M
Net Income	905.11M	849.37M	1.37B	690.68M	294.11M	-273.59M
Balance Sheet
Total Assets	7.81B	7.34B	4.41B	3.04B	1.94B	1.86B
Cash, Cash Equivalents and Short-Term Investments	4.26B	4.30B	2.52B	1.58B	928.69M	1.03B
Total Debt	2.04B	2.04B	53.83M	17.21M	0.00	9.60M
Total Liabilities	3.70B	3.47B	1.43B	1.51B	1.16B	1.52B
Stockholders Equity	3.99B	3.82B	2.89B	1.50B	720.41M	302.35M
Cash Flow
Free Cash Flow	848.69M	672.92M	855.30M	701.17M	-247.15M	363.98M
Operating Cash Flow	1.11B	930.18M	1.07B	851.34M	21.97M	419.62M
Investing Cash Flow	-1.30B	-1.10B	-213.28M	-200.85M	-271.76M	-53.91M
Financing Cash Flow	1.96B	1.96B	75.00M	-1.16M	150.45M	6.42M

Japan Communications Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 145 is below the 20-day moving average (MA) of 161.35, below the 50-day MA of 159.18, and below the 200-day MA of 148.04, indicating a bearish trend. The MACD of -4.15 indicates Positive momentum. The RSI at 29.68 is Positive, neither overbought nor oversold. The STOCH value of 4.66 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	79 Outperform	¥19.40B	11.82		3.46%	6.35%	3.10%
3934	76 Outperform	¥11.83B	12.32		1.88%	5.84%	27.86%
4390	76 Outperform	¥40.26B	15.79		1.29%	-1.74%	-11.45%
9424	73 Outperform	¥24.19B	26.77		―	27.43%	-5.71%
9445	69 Neutral	¥9.32B	10.27		3.58%	8.17%	25.32%
9419	67 Neutral	¥3.07B	17.23		―	-2.94%	-52.22%
Sector *	60 Neutral	$46.60B	4.15	-11.40%	4.15%	1.85%	-42.71%