FaithNetwork Co.,Ltd (3489) AI Stock Analysis

FaithNetwork Co.,Ltd

(TSE/TYO:3489)

Select Model

Rating:78Outperform

Price Target:JPY 822.00▲(16.10% Upside)

Action:reiterated

Date:08/21/26

The overall score of 78 is driven predominantly by FaithNetwork's highly attractive valuation, strong dividend yield, and exceptional revenue growth. The stock also benefits from a robust upward price trend across all key moving averages. The primary risk constraining the score is the company's persistent cash flow volatility stemming from its capital-intensive operations, though this is heavily offset by stellar net income expansion and an impressive 29% ROE.

Positive Factors

Revenue and Net Income GrowthThe substantial expansion in revenue and net income indicates that FaithNetwork has increased its operating scale and earnings capacity over time. If this trajectory continues, the larger business base can support reinvestment, strengthen competitive positioning, and provide a more durable foundation for future profitability.

Negative Factors

Meaningful and Rising DebtThe rising debt balance increases sensitivity to weaker operating conditions and makes refinancing and interest obligations more important to the investment case. For a real-estate-linked business, meaningful leverage can constrain capital allocation and reduce flexibility when earnings or asset conditions deteriorate.

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

Financial performance reflects a mix of exceptional top-line growth and strong profitability, offset by poor cash flow generation. While the company boasts an impressive 29% return on equity and expanding profit margins, persistent negative cash flows driven by capital-intensive real estate operations pose internal liquidity challenges.

Income Statement

88Very Positive

Balance Sheet

75Positive

Cash Flow

42Neutral

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 Price708.00

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 708.00 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:3489	78Outperform	JPY 21.52B	5.68	―	5.89%	12.23%	24.08%
JP:3484	77Outperform	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%
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	59Neutral	JPY 35.69B	11.89	―	0.82%	43.47%	151.64%
JP:3457	55Neutral	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	-51.59	-6.68%
JP:2980	SRE Holdings Corp.	2193.00	-567.65	-20.56%
JP:3276	Japan Property Management Center Co.Ltd.	2242.00	1061.07	89.85%
JP:3457	&Do Holdings Co.Ltd.	762.00	-262.99	-25.66%
JP:3484	Tenpo Innovation CO.,LTD.	1235.00	190.33	18.22%
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