Japan Communications Inc. (JP:9424)
:9424
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Japan Communications Inc.
(9424)
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Rating:63Neutral
Price Target:
¥120.00
▼(-17.81% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by improved fundamentals versus earlier years (revenue growth and sustained profitability with currently modest leverage). Offsetting this are signs of recent profitability/cash-conversion softening and weak technical momentum (negative MACD and trading below longer-term averages), while valuation remains relatively high given the ~27.9 P/E and no stated dividend yield.
Positive Factors
Revenue growth and multi-year turnaround
Revenue rose from ~¥3.5B in 2021 to ~¥9.2B in 2025 and ~¥11.6B TTM while the company returned to sustained profitability. This demonstrates scalable customer acquisition and recurring plan revenue, improving predictability of cash flows and supporting strategic reinvestment over the next months.
Negative Factors
Margin compression
Falling gross, operating and net margins suggest rising costs or pricing pressure. As an MVNO, profitability is sensitive to wholesale network costs and retail pricing dynamics; sustained margin deterioration would limit reinvestment capacity and heighten earnings sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and multi-year turnaround
Revenue rose from ~¥3.5B in 2021 to ~¥9.2B in 2025 and ~¥11.6B TTM while the company returned to sustained profitability. This demonstrates scalable customer acquisition and recurring plan revenue, improving predictability of cash flows and supporting strategic reinvestment over the next months.
Read all positive factors
Japan Communications Inc. (9424) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥18.68B
Dividend YieldN/A
Average Volume (3M)3.03M
Price to Earnings (P/E)25.5
Beta (1Y)0.92
Revenue Growth25.92%
EPS Growth-10.55%
CountryJP
Employees131
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.59
Shares Outstanding166,838,750
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
As a Mobile Virtual Network Operator (MVNO), Japan Communications Inc. offers mobile telecommunications services across Japan. Beyond this core offering, the company is involved in several other key areas: it develops and markets network security ...
How the Company Makes Money
Japan Communications Inc. makes money primarily through recurring service revenue from mobile communications plans sold under an MVNO model. Key revenue streams typically include: (1) monthly subscription fees for mobile service plans (voice/data)...
Japan Communications Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
66
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.63B | 9.24B | 7.40B | 6.07B | 4.63B |
| Gross Profit | 4.41B | 3.84B | 3.26B | 2.62B | 1.85B |
| EBITDA | 1.21B | 1.17B | 1.72B | 859.28M | 324.82M |
| Net Income | 763.81M | 849.37M | 1.37B | 690.67M | 294.11M |
Balance Sheet | |||||
| Total Assets | 12.00B | 7.34B | 4.41B | 3.04B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 7.11B | 4.30B | 2.52B | 1.58B | 928.69M |
| Total Debt | 5.74B | 2.08B | 69.61M | 17.21M | 0.00 |
| Total Liabilities | 7.35B | 3.47B | 1.43B | 1.51B | 1.16B |
| Stockholders Equity | 4.62B | 3.82B | 2.89B | 1.50B | 720.42M |
Cash Flow | |||||
| Free Cash Flow | 987.37M | 672.92M | 976.37M | 811.41M | -75.45M |
| Operating Cash Flow | 1.32B | 930.18M | 1.07B | 851.34M | 21.97M |
| Investing Cash Flow | -2.16B | -1.10B | -119.95M | -200.85M | -111.71M |
| Financing Cash Flow | 3.64B | 1.96B | -18.32M | -1.16M | -9.60M |
Japan Communications Inc. Technical Analysis
Negative
146.00
Price Trends
122.02
Negative
129.48
Negative
138.26
Negative
Market Momentum
-2.68
Negative
44.39
Neutral
29.17
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 115.15, above the 50-day MA of 122.02, and above the 200-day MA of 138.26, indicating a bearish trend. The MACD of -2.68 indicates Negative momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 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 (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥16.78B | 12.20 | ― | 3.53% | 3.36% | -23.56% | |
68 Neutral | ¥15.02B | 11.55 | ― | 4.02% | 5.51% | -2.57% | |
66 Neutral | ¥16.32B | 50.86 | ― | 1.01% | 14.48% | -12.25% | |
65 Neutral | ¥8.75B | 8.89 | ― | 3.85% | -6.67% | 34.46% | |
63 Neutral | ¥18.68B | 25.46 | ― | ― | 25.92% | -10.55% | |
62 Neutral | ¥3.18B | 11.05 | ― | ― | 8.20% | 2.55% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:9424
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Japan Communications Inc. Corporate Events
Japan Communications Sets “Vision 2030” With Aggressive Growth Targets
May 7, 2026
Japan Communications Inc. has unveiled its “Vision 2030” management policy, charting a long-term growth path built on a proprietary technology platform that underpins both its telecommunications and digital trust businesses. The compan...
Japan Communications’ Largest Shareholder Trims Stake but Keeps Top Position
Apr 8, 2026
Japan Communications Inc. reported that The Master Trust Bank of Japan has reduced its stake but remains its largest shareholder, with voting rights falling from 10.41% at the end of September 2025 to 8.91% as of March 31, 2026. The shift, identif...
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.