FaithNetwork Co.,Ltd (3489) AI Stock Analysis

FaithNetwork Co.,Ltd

(TSE/TYO:3489)

Select Model

Rating:70Outperform

Price Target:JPY 793.00▲(9.99% Upside)

Action:upgraded

Date:08/21/26

The score is driven primarily by mixed financial quality: strong profitability trends are tempered by leverage and especially inconsistent cash flow that reverted negative in 2026. Valuation is a major positive (low P/E and high dividend yield). Technicals are supportive of an uptrend but look overextended, adding near-term pullback risk.

Positive Factors

Revenue and earnings growthFaithNetwork has materially expanded both sales and earnings over the period, indicating stronger business scale and profit generation. If this growth continues, it can support reinvestment, improve operating resilience, and strengthen the company’s ability to build shareholder value over the next several quarters.

Negative Factors

Rising leverageThe higher absolute debt burden increases FaithNetwork’s sensitivity to weaker operating conditions and refinancing needs. Because the company is linked to real estate, elevated leverage may also constrain capital allocation and reduce financial flexibility when expansion or downturn pressures require additional funding.

FaithNetwork Co.,Ltd (3489) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 21.37B
Dividend Yield: 5.89%
Average Volume (3M): 58.78K
Price to Earnings (P/E): 5.7
Beta (1Y): 0.50
Revenue Growth: 12.23%
EPS Growth: 24.08%
Country: Japan
Employees: 239
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

FaithNetwork Co.,Ltd Business Overview & Revenue Model

Company Description

FaithNetwork Co.,Ltd is a Japanese enterprise primarily involved in property investment and construction. The company develops apartment complexes, selling them under its GranDuo and Grand Funding brands. Founded in 2001, its corporate headquarters a...

FaithNetwork Co.,Ltd Financial Statement Overview

Summary

Income statement strength (revenue growth from 18.8B in 2021 to 32.9B in 2026 and net income expansion to 3.6B) and improving margins through 2025 are offset by meaningful leverage (debt up to 18.1B in 2026) and highly volatile cash generation, with operating cash flow and free cash flow turning negative again in 2026.

Income Statement

78Positive

Balance Sheet

62Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	34.70B	32.92B	29.92B	22.28B	20.97B	17.02B
Gross Profit	9.11B	8.68B	7.28B	4.34B	4.35B	3.28B
EBITDA	6.02B	5.72B	4.69B	2.22B	2.52B	1.75B
Net Income	3.76B	3.59B	2.77B	943.29M	1.59B	1.03B
Balance Sheet
Total Assets	38.01B	34.59B	30.04B	26.61B	20.60B	16.83B
Cash, Cash Equivalents and Short-Term Investments	6.66B	9.14B	8.84B	5.59B	5.74B	5.54B
Total Debt	24.26B	18.14B	15.97B	15.86B	9.90B	9.17B
Total Liabilities	26.82B	22.20B	20.27B	19.18B	13.72B	11.33B
Stockholders Equity	11.19B	12.39B	9.77B	7.43B	6.88B	5.50B
Cash Flow
Free Cash Flow	0	-990.81M	3.94B	-4.03B	-1.56B	-1.93B
Operating Cash Flow	0	-746.05M	4.41B	-4.00B	-1.46B	-1.90B
Investing Cash Flow	0	-56.35M	-471.33M	-633.42M	-143.45M	452.01M
Financing Cash Flow	0	1.10B	-397.69M	5.55B	452.23M	3.00B

FaithNetwork Co.,Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price721.00

Price Trends

50DMA786.74Negative

100DMA776.05Negative

200DMA784.36Negative

Market Momentum

MACD-13.36Positive

RSI35.74Neutral

STOCH12.85Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3489, the sentiment is Negative. The current price of 721.00 is below the 20-day moving average (MA) of 739.75, below the 50-day MA of 786.74, and below the 200-day MA of 784.36, indicating a bearish trend. The MACD of -13.36 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 12.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3489.

FaithNetwork Co.,Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3489 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3484	76Outperform	JPY 21.83B	16.75	―	2.75%	15.49%	0.39%
JP:3276	75Outperform	JPY 36.70B	16.51	―	2.81%	0.43%	-2.62%
JP:3489	70Outperform	JPY 21.52B	5.68	―	5.89%	12.23%	24.08%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:3486	64Neutral	JPY 30.31B	8.28	―	4.26%	-24.53%	-35.78%
JP:2980	49Neutral	JPY 35.69B	11.89	―	0.82%	43.47%	151.64%
JP:3457	44Neutral	JPY 15.21B	10.48	―	6.04%	-23.35%	-38.29%

* Real Estate Sector Average

Performance Comparison

JP:3489 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3489	FaithNetwork Co.,Ltd	721.00	-68.75	-8.71%
JP:2980	SRE Holdings Corp.	2193.00	-610.38	-21.77%
JP:3276	Japan Property Management Center Co.Ltd.	2242.00	1048.69	87.88%
JP:3457	&Do Holdings Co.Ltd.	762.00	-268.72	-26.07%
JP:3484	Tenpo Innovation CO.,LTD.	1235.00	182.56	17.35%
JP:3486	GLOBAL LINK MANAGEMENT INC.	1889.00	-641.96	-25.36%

FaithNetwork Co.,Ltd Corporate Events

FaithNetwork swings back to profit as sales surge, plans higher dividend

Aug 14, 2026

FaithNetwork Co., Ltd. reported a sharp rebound in performance for the three months ended June 30, 2026, with net sales rising 60.2% year on year to ¥4,735 million and a return to profitability. Operating profit reached ¥252 million and pro...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 21, 2026

FaithNetwork Co.,Ltd AI Stock Analysis