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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Howtelevision, Inc.

HCS Holdings Co., Ltd.

LIGHTWORKS Corp.

fonfun Corp.

Porters Corp.

Johnan Academic Preparatory Institute, Inc.

Space Market, Inc.

SecuAvail, Inc.

IID, Inc.

Living Technologies, Inc.

Skiyaki, Inc.

Why is fonfun Corp. ?

Poor Management Efficiency with a low ROE of 12.25%

The company has been able to generate a Return on Equity (avg) of 12.25% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 11.56

Poor long term growth as Net Sales has grown by an annual rate of 25.03% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 11.56
The company has been able to generate a Return on Equity (avg) of 12.25% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.03% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 1,870.36
OPERATING PROFIT MARGIN(Q) Lowest at 13.03 %
RAW MATERIAL COST(Y) Grown by 10.94% (YoY)

With ROE of 38.00%, it has a attractive valuation with a 5.10 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 -43.18%, its profits have risen by 272.8% ; the PEG ratio of the company is 0.2

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, Low Return

Absolute

Risk Adjusted

Volatility

fonfun Corp.

-41.81%

-0.29

105.03%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.03%

EBIT Growth (5y)

44.56%

EBIT to Interest (avg)

12.58

Debt to EBITDA (avg)

0.46

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.73

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.48%

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

5.10

EV to EBIT

25.01

EV to EBITDA

15.67

EV to Capital Employed

4.35

EV to Sales

3.54

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

17.38%

ROE (Latest)

38.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Bullish

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

19What is working for the Company

ROCE(HY)

Highest at 35.83%

NET SALES(Q)

Highest at JPY 709.42 MM

NET PROFIT(9M)

Higher at JPY 353.53 MM

CASH AND EQV(HY)

Highest at JPY 1,473.27 MM

EPS(Q)

Highest at JPY 7.96

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,870.36

OPERATING PROFIT MARGIN(Q)

Lowest at 13.03 %

RAW MATERIAL COST(Y)

Grown by 10.94% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

INTEREST(Q)

Highest at JPY 4.94 MM

OPERATING PROFIT(Q)

Lowest at JPY 92.43 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 40.38 MM

Here's what is working for fonfun Corp.

Net Sales

At JPY 709.42 MM has Grown at 56.53%

over average net sales of the previous four periods of JPY 453.23 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 709.42 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

EPS

Highest at JPY 7.96

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,473.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 353.53 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Depreciation

Highest at JPY 44.5 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for fonfun Corp.

Pre-Tax Profit

At JPY 40.38 MM has Fallen at -53%

over average net sales of the previous four periods of JPY 85.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 4.94 MM has Grown at 36.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,870.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 13.03 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at JPY 4.94 MM

in the last five periods and Increased by 36.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 92.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 40.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 10.94% (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