Fibergate, Inc. (9450) AI Stock Analysis

• Market Cap: ¥15.98B
• Dividend Yield: 3.33%
• Average Volume (3M): 90.69K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.64
• Revenue Growth: -8.55%
• EPS Growth: -14.28%
• Country: JP
• Employees: 230
• Sector: Communication Services
• Sector Strength: 91
• Industry: Telecommunications Services
• EPS (TTM): 18.24
• Shares Outstanding: 20,593,600
• 10 Day Avg. Volume: 95,130
• 30 Day Avg. Volume: 90,690
• PEG Ratio: -12.84
• Price to Book (P/B): 3.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥862.00 ▲(10.51%Upside)

Fibergate, Inc. is financially sound with strong revenue growth and profitability. However, the stock is under pressure technically, reflected by the oversold indicators and bearish sentiment. While the valuation is fair and offers a decent dividend yield, the need for better cash flow management and the presence of significant liabilities are notable risks.

Fibergate, Inc. Business Overview & Revenue Model

Company Description

Fibergate, Inc. (9450) is a telecommunications company based in Japan that specializes in providing internet connectivity solutions. The company is known for its fiber-optic broadband services, catering primarily to residential and commercial sectors. Fibergate is committed to delivering high-speed internet access and has established itself as a key player in the Japanese telecommunications market.

How the Company Makes Money

Fibergate, Inc. generates revenue primarily through its subscription-based model, offering fiber-optic broadband services to both residential and business customers. The company charges monthly fees for internet connectivity, which is its main revenue stream. Additionally, Fibergate may enter into partnerships with property developers and real estate companies to provide internet infrastructure in new housing developments, further contributing to its revenue. The company might also earn from offering ancillary services such as network management and maintenance for its clients.

Fibergate, Inc. Financial Statement Overview

Summary

Fibergate, Inc. exhibits strong growth and profitability, particularly in its revenue and EBIT margins. The company's balance sheet is strengthened by a solid equity position, though its liabilities warrant attention. Despite robust operating cash flows, the variability in free cash flow highlights a need for improved cash management strategies. Overall, Fibergate is financially sound with growth potential, but must address cash flow management to ensure long-term stability.

Income Statement

Fibergate, Inc. has demonstrated strong revenue growth from 2020 to the TTM, with a consistent increase in total revenue from ¥7,424.44 million to ¥13,363 million. The company maintains robust gross profit margins, consistently above 40%, and a solid EBIT margin indicating strong operational performance. However, the slight decline in EBITDA margins from 31% in 2023 to 26% in the TTM suggests potential inefficiencies or increased operational costs.

Balance Sheet

Fibergate's balance sheet shows a healthy equity ratio with stockholders' equity making up a significant portion of total assets, demonstrating stability. The debt-to-equity ratio has improved over time, reflecting reduced leverage risk. However, the total liabilities still present a considerable portion of the financial structure, which could indicate potential financial risk if revenue growth slows.

Cash Flow

The cash flow statement reveals volatility in free cash flow, which has fluctuated significantly over the years. Although operating cash flow has been positive and substantial, zero free cash flow in the TTM period indicates challenges in managing capital expenditures and financing activities. This inconsistency could pose risks if not addressed.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
13.36B	12.61B	12.79B	10.62B	8.49B	7.42B
	Gross Profit
5.68B	5.82B	5.74B	4.84B	4.35B	3.87B
	EBIT
2.27B	2.39B	2.32B	1.65B	1.56B	1.23B
	EBITDA
3.49B	3.98B	3.78B	2.87B	2.49B	2.00B
	Net Income Common Stockholders
1.49B	1.57B	1.48B	1.07B	1.02B	722.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.20B	2.12B	2.38B	2.30B	2.20B	1.42B
	Total Assets
12.88B	13.08B	12.76B	13.09B	9.40B	6.98B
	Total Debt
3.86B	4.44B	4.67B	6.65B	4.45B	3.07B
	Net Debt
1.66B	2.32B	2.29B	4.35B	2.26B	1.66B
	Total Liabilities
6.63B	7.24B	8.01B	9.81B	5.72B	4.27B
	Stockholders Equity
6.20B	5.79B	4.71B	3.28B	3.68B	2.71B
Cash Flow		Free Cash Flow
0.00	472.00M	1.85B	42.00M	-534.93M	-331.40M
	Operating Cash Flow
0.00	2.83B	4.30B	2.29B	1.71B	1.73B
	Investing Cash Flow
0.00	-2.38B	-2.19B	-2.63B	-2.26B	-2.07B
	Financing Cash Flow
0.00	-723.00M	-2.03B	436.00M	1.33B	699.64M

Fibergate, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 780.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9450, the sentiment is Negative. The current price of 780 is below the 20-day moving average (MA) of 813.55, below the 50-day MA of 904.60, and below the 200-day MA of 954.39, indicating a bearish trend. The MACD of -45.16 indicates Negative momentum. The RSI at 23.39 is Positive, neither overbought nor oversold. The STOCH value of 34.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9450.

Fibergate, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	79 Outperform	¥18.76B	10.33		3.65%	6.35%	54.17%
9424	76 Outperform	¥27.87B	31.99		―	24.84%	-38.04%
9419	71 Outperform	¥3.02B	10.64		―	-1.07%	6.60%
9445	69 Neutral	¥8.40B	11.45		3.99%	3.93%	1.66%
3776	68 Neutral	¥9.59B	25.13		1.28%	4.70%	35.62%
9450	62 Neutral	¥15.98B	11.84		3.33%	-8.55%	-14.28%
Sector *	61 Neutral	$14.37B	5.86	-4.31%	3.69%	2.75%	-35.55%

Fibergate, Inc. Corporate Events

Fibergate Inc. Seeks Market Classification Change to Standard Market

Fibergate Inc. has decided to apply for a change in market classification to the Standard Market of the Tokyo Stock Exchange, citing its current business scale and market environment as reasons for the move. This change will not affect the company’s management or its commitment to sustainable growth and enhancing corporate value, as it continues to offer integrated services for both home and business use.

Fibergate, Inc. Seeks Listing on Tokyo Stock Exchange Standard Market

Fibergate, Inc. has announced its decision to apply for a listing on the Tokyo Stock Exchange Standard Market, shifting from the Prime Market. This strategic move is aimed at concentrating management resources on business growth to enhance corporate value over the medium to long term, benefiting stakeholders by focusing on sustainable development rather than short-term compliance with Prime Market criteria.

Fibergate Inc. Reports Financial Results and Revises Earnings Forecast

Fibergate Inc. reported a slight increase in net sales for the nine months ending March 31, 2025, but experienced a decline in operating and ordinary profits compared to the previous year. The company revised its earnings forecasts, indicating a challenging financial environment with anticipated decreases in profits for the fiscal year ending June 30, 2025. Despite these challenges, Fibergate plans to increase its annual dividends, reflecting a commitment to shareholder returns.

Fibergate Revises Earnings Forecast, Maintains Dividend Amid Strategic Shift

Fibergate Inc. has revised its full-year earnings forecast for the fiscal year ending June 2025, citing slower-than-expected deliveries and declining profit margins across segments. Despite these challenges, the company will maintain its year-end dividend forecast, reflecting its commitment to shareholder returns. The company is also temporarily suspending its medium-term performance targets as it undergoes strategic transformations.

Fibergate Inc. Completes Strategic Share Buyback

Fibergate Inc. has completed the acquisition of 150,000 of its own common shares, amounting to 136,574,100 yen, through market purchases on the Tokyo Stock Exchange. This strategic move, resolved by the Board of Directors in February 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value.