fonfun Corp. (2323) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Living Technologies, Inc.

SecuAvail, Inc.

Skiyaki, Inc.

fonfun Corp.

IID, Inc.

Howtelevision, Inc.

Porters Corp.

Space Market, Inc.

HCS Holdings Co., Ltd.

LIGHTWORKS Corp.

Johnan Academic Preparatory Institute, Inc.

Why is fonfun Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 93.37%

The company declared outstanding results in Mar'25 after flat results in Dec'24

NET PROFIT(HY) Higher at JPY 275.56 MM
ROCE(HY) Highest at 22.58%
INVENTORY TURNOVER RATIO(HY) Highest at 781.6%

With ROE of 30.30%, it has a expensive valuation with a 3.45 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 111.14%, its profits have risen by 199.3% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 111.14% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to fonfun Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is fonfun Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

fonfun Corp.

105.75%

1.34

83.92%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.39%

EBIT Growth (5y)

93.37%

EBIT to Interest (avg)

11.56

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.70

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

12.18%

Pledged Shares

Institutional Holding

ROCE (avg)

17.08%

ROE (avg)

12.25%

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

3.45

EV to EBIT

23.81

EV to EBITDA

14.19

EV to Capital Employed

2.92

EV to Sales

2.81

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

12.25%

ROE (Latest)

30.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

28What is working for the Company

NET PROFIT(HY)

Higher at JPY 275.56 MM

ROCE(HY)

Highest at 22.58%

INVENTORY TURNOVER RATIO(HY)

Highest at 781.6%

CASH AND EQV(HY)

Highest at JPY 1,393.61 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.77%

NET SALES(Q)

Highest at JPY 429.87 MM

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 26.32% (YoY

INTEREST(Q)

Highest at JPY 3.95 MM

Here's what is working for fonfun Corp.

Net Profit

At JPY 275.56 MM has Grown at 205.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 429.87 MM has Grown at 35.53%

over average net sales of the previous four periods of JPY 317.17 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Higher at JPY 275.56 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 781.6% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 429.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 1,393.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.77%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for fonfun Corp.

Interest

Highest at JPY 3.95 MM

in the last five periods and Increased by 6.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 26.32% (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