F@N Communications, Inc. (2461) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ANYCOLOR, Inc.

Vector, Inc.

CREEK & RIVER Co., Ltd.

Hakuhodo DY Holdings, Inc.

Septeni Holdings Co., Ltd.

CMC Corp.

Adways, Inc.

F@N Communications, Inc.

Dentsu Group, Inc.

ValueCommerce Co., Ltd.

Digital Holdings, Inc.

Why is F@N Communications, Inc. ?

High Management Efficiency with a high ROE of 8.81%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -26.54% and Operating profit at -12.85% over the last 5 years

Negative results in Dec 25

PRE-TAX PROFIT(Q) Lowest at JPY 438.06 MM
RAW MATERIAL COST(Y) Grown by 5.54% (YoY)
CASH AND EQV(HY) Lowest at JPY 29,441.87 MM

With ROE of 7.24%, it has a very attractive valuation with a 1.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.22%, its profits have fallen by -14.7%

Underperformed the market in the last 1 year

The stock has generated a return of 12.22% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to F@N Communications, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is F@N Communications, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

F@N Communications, Inc.

-100.0%

0.50

18.38%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-26.54%

EBIT Growth (5y)

-12.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

0.41

Tax Ratio

32.67%

Dividend Payout Ratio

88.68%

Pledged Shares

Institutional Holding

1.62%

ROCE (avg)

376.27%

ROE (avg)

8.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.65

EV to EBIT

7.25

EV to EBITDA

6.50

EV to Capital Employed

6.06

EV to Sales

1.87

PEG Ratio

Dividend Yield

ROCE (Latest)

83.67%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-9What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at JPY 438.06 MM

RAW MATERIAL COST(Y)

Grown by 5.54% (YoY

CASH AND EQV(HY)

Lowest at JPY 29,441.87 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

NET SALES(Q)

Lowest at JPY 1,675.19 MM

NET PROFIT(Q)

Lowest at JPY 298.53 MM

EPS(Q)

Lowest at JPY 4.5

Here's what is working for F@N Communications, Inc.

Depreciation

Highest at JPY 90.68 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 90.68 MM has Grown at 58%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for F@N Communications, Inc.

Pre-Tax Profit

Lowest at JPY 438.06 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 1,675.19 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 1,675.19 MM has Fallen at -7.19%

over average net sales of the previous four periods of JPY 1,804.94 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

Lowest at JPY 298.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 4.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 29,441.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales