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: 74 Outperform
• Price Target: ¥164.00 ▲(17.14% Upside)

Japan Communications Inc. has a strong financial foundation with robust revenue growth and profitability. The technical indicators suggest a neutral market sentiment, while the valuation is moderate. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for the company's services, supporting long-term business expansion and market penetration.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and sustaining operations without excessive debt.

Profitability

A strong net profit margin reflects efficient cost management and operational effectiveness, contributing to sustainable profitability.

Negative Factors

Debt Levels

Rising debt levels could strain financial resources, potentially impacting the company's ability to invest in growth and manage economic downturns.

Operating Efficiency

Decreasing operating margins may indicate challenges in maintaining cost efficiency, which could pressure future profitability if not addressed.

Operational Efficiency

Operational efficiency is crucial for sustaining long-term performance; inefficiencies could erode margins and competitive positioning.

Japan Communications Inc. Business Overview & Revenue Model

Company Description

Japan Communications Inc. (9424) is a telecommunications company based in Japan, primarily engaged in providing mobile communication services and solutions. The company operates in the mobile virtual network operator (MVNO) sector, offering a range of services including mobile data plans, voice services, and various value-added services. Japan Communications focuses on delivering innovative and cost-effective communication solutions to both individual consumers and businesses, leveraging its partnerships with major network operators to enhance its service offerings.

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. The company is well-positioned within the telecommunications industry, with potential for continued growth and stability.

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	10.61B	9.24B	7.40B	6.07B	4.63B	3.50B
Gross Profit	4.21B	3.84B	3.26B	2.62B	1.85B	1.27B
EBITDA	1.45B	1.17B	1.72B	859.28M	324.82M	-257.69M
Net Income	1.05B	849.37M	1.37B	690.68M	294.11M	-273.59M
Balance Sheet
Total Assets	7.89B	7.34B	4.41B	3.04B	1.94B	1.86B
Cash, Cash Equivalents and Short-Term Investments	3.22B	4.30B	2.52B	1.58B	928.69M	1.03B
Total Debt	1.89B	2.04B	53.83M	17.21M	0.00	9.60M
Total Liabilities	3.52B	3.47B	1.43B	1.51B	1.16B	1.52B
Stockholders Equity	4.26B	3.82B	2.89B	1.50B	720.41M	302.35M
Cash Flow
Free Cash Flow	927.44M	672.92M	855.30M	701.17M	-247.15M	363.98M
Operating Cash Flow	1.25B	930.18M	1.07B	851.34M	21.97M	419.62M
Investing Cash Flow	-2.02B	-1.10B	-213.28M	-200.85M	-271.76M	-53.91M
Financing Cash Flow	1.82B	1.96B	75.00M	-1.16M	150.45M	6.42M

Japan Communications Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 140 is below the 20-day moving average (MA) of 140.95, below the 50-day MA of 144.02, and below the 200-day MA of 152.01, indicating a bearish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 64.60 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	¥41.74B	12.97	―	1.30%	-7.46%	11.57%
3834	79 Outperform	¥19.57B	11.93	―	3.58%	5.03%	-9.55%
9424	74 Outperform	¥24.02B	22.84	―	―	30.15%	31.28%
3934	73 Outperform	¥10.39B	10.99	―	2.12%	13.64%	44.55%
9445	69 Neutral	¥9.50B	10.33	―	3.85%	1.75%	24.87%
9419	63 Neutral	¥2.91B	16.73	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%