Japan Communications Inc. (9424) AI Stock Analysis

• Market Cap: ¥24.02B
• Dividend Yield: N/A
• Average Volume (3M): 3.03M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.90
• Revenue Growth: 30.15%
• EPS Growth: 31.28%
• Country: JP
• Employees: 131
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.22
• Shares Outstanding: 166,838,750
• 10 Day Avg. Volume: 2,726,290
• 30 Day Avg. Volume: 3,033,013
• PEG Ratio: -0.73
• Price to Book (P/B): 6.16
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 34.95
• 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: 63 Neutral
• Price Target: ¥144.00 ▲(5.11% Upside)

Japan Communications Inc. has a solid financial foundation with strong revenue growth and cash flow generation. However, the technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is moderate, providing a balanced view of the stock's potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective service offerings, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Debt Management

Prudent debt management ensures financial stability, reducing risk and supporting sustainable growth over the long term.

Negative Factors

EPS Decline

Declining EPS suggests challenges in maintaining profitability, which could impact investor confidence and future earnings potential.

Profit Margin Decline

A declining profit margin may signal rising costs or pricing pressures, potentially affecting long-term profitability and competitive positioning.

Equity Financing Reliance

Reliance on equity financing could dilute existing shareholders and limit financial flexibility, impacting long-term strategic initiatives.

Japan Communications Inc. Business Overview & Revenue Model

Company Description

Japan Communications Inc., a mobile virtual network operator (MVNO), provides mobile services in Japan. It develops and sells network security solutions; operates FinTech platform; and researches and develops technologies for MVNO and MVNE. The company was founded in 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Communications generates revenue primarily through subscription fees from its mobile communication services, including both voice and data plans. The company operates a business model centered around being a mobile virtual network operator (MVNO), which allows it to offer competitive pricing without the heavy infrastructure costs associated with traditional network operators. Key revenue streams include monthly service fees from customers, sales of SIM cards, and ancillary services such as international calling and data packages. Additionally, strategic partnerships with established telecom operators enable Japan Communications to access broader network coverage and improve service offerings, further enhancing its revenue potential.

Japan Communications Inc. Financial Statement Overview

Summary

Japan Communications Inc. exhibits strong financial health with consistent revenue growth and profitability. The balance sheet reflects a prudent approach to debt management, while cash flow metrics indicate robust cash generation.

Income Statement

Japan Communications Inc. has demonstrated strong revenue growth with a 7.11% increase in TTM, supported by a healthy gross profit margin of 41.60%. The net profit margin of 9.20% indicates solid profitability, although it has decreased from previous years. The EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.53, indicating a balanced approach to leveraging. The return on equity is robust at 24.90%, showcasing effective use of shareholder funds. However, the equity ratio of 51.06% suggests a moderate reliance on equity financing.

Cash Flow

Free cash flow growth is strong at 31.45%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.56 suggests efficient conversion of income into cash. The free cash flow to net income ratio of 0.69 reflects a healthy cash position relative to earnings.

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: 137.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 137 is below the 20-day moving average (MA) of 143.75, below the 50-day MA of 145.94, and below the 200-day MA of 152.19, indicating a bearish trend. The MACD of -2.32 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4390	80 Outperform	¥38.51B	15.05	―	1.39%	-7.46%	11.57%
3834	79 Outperform	¥19.57B	11.93	―	3.49%	5.03%	-9.55%
3934	73 Outperform	¥10.45B	11.06	―	2.05%	13.64%	44.55%
9445	69 Neutral	¥9.62B	10.46	―	3.85%	1.75%	24.87%
9419	63 Neutral	¥2.91B	16.73	―	―	-3.76%	-67.98%
9424	63 Neutral	¥24.02B	22.84	―	―	30.15%	31.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%