Japan Communications Inc. (9424) AI Stock Analysis

• Market Cap: ¥27.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.83
• Revenue Growth: 27.43%
• EPS Growth: -5.71%
• Country: JP
• Employees: 131
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 1.46
• Shares Outstanding: 166,838,750
• 10 Day Avg. Volume: 2,713,110
• 30 Day Avg. Volume: 1,848,933
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥172.00
• Price Target Upside: 4.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥172.00 ▲(4.88% Upside)

Japan Communications Inc. has strong financial performance with robust revenue growth and efficient cost management. However, technical indicators are mixed, showing no clear trend, and the valuation suggests the stock is relatively expensive. The lack of dividend yield and earnings call data further impacts the overall attractiveness.

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. is financially robust, with strong revenue growth and efficient cost management contributing to solid profitability. The balance sheet reflects healthy capitalization and moderate leverage, while cash flows demonstrate effective cash management despite a recent decline in free cash flow. Continued monitoring of liabilities and operational costs is advised to maintain financial health.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.24B	7.40B	6.07B	4.63B	3.50B
Gross Profit	3.84B	3.26B	2.62B	1.85B	1.27B
EBITDA	1.17B	1.72B	859.28M	324.82M	-257.69M
Net Income	849.37M	1.37B	690.68M	294.11M	-273.59M
Balance Sheet
Total Assets	7.34B	4.41B	3.04B	1.94B	1.86B
Cash, Cash Equivalents and Short-Term Investments	4.30B	2.52B	1.58B	928.69M	1.03B
Total Debt	2.04B	53.83M	17.21M	0.00	9.60M
Total Liabilities	3.47B	1.43B	1.51B	1.16B	1.52B
Stockholders Equity	3.82B	2.89B	1.50B	720.41M	302.35M
Cash Flow
Free Cash Flow	672.92M	855.30M	701.17M	-247.15M	363.98M
Operating Cash Flow	930.18M	1.07B	851.34M	21.97M	419.62M
Investing Cash Flow	-1.10B	-213.28M	-200.85M	-271.76M	-53.91M
Financing Cash Flow	1.96B	75.00M	-1.16M	150.45M	6.42M

Japan Communications Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9424, the sentiment is Positive. The current price of 164 is above the 20-day moving average (MA) of 162.70, above the 50-day MA of 158.92, and above the 200-day MA of 146.59, indicating a bullish trend. The MACD of 3.00 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥19.26B	11.74		3.46%	6.35%	3.10%
3934	79 Outperform	¥12.01B	12.50		1.94%	5.84%	27.86%
4390	76 Outperform	¥35.91B	14.09		1.44%	-1.74%	-11.45%
9424	69 Neutral	¥27.53B	30.07		―	27.43%	-5.71%
9445	69 Neutral	¥8.98B	9.90		3.70%	11.12%	-2.32%
9419	67 Neutral	¥2.99B	17.23		―	-1.07%	6.60%
Sector *	56 Neutral	HK$68.02B	0.89	-5.00%	5.16%	-0.75%	-12.51%