FreeBit Co., Ltd. (3843) AI Stock Analysis

• Market Cap: ¥29.79B
• Dividend Yield: 1.94%
• Average Volume (3M): 52.91K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.06
• Revenue Growth: 8.93%
• EPS Growth: -18.23%
• Country: JP
• Employees: 884
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 48.78
• Shares Outstanding: 23,414,000
• 10 Day Avg. Volume: 42,860
• 30 Day Avg. Volume: 52,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,718.00
• Price Target Upside: 10.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,718.00 ▲(10.91% Upside)

FreeBit Co., Ltd. has a solid valuation and strong cash flow generation, which are significant strengths. However, technical indicators suggest bearish momentum, and financial performance is challenged by declining profit margins and increased leverage.

FreeBit Co., Ltd. Business Overview & Revenue Model

Company Description

FreeBit Co., Ltd. operates as an Internet business support company. The company provides network infrastructure services and information-communication services to corporations and consumers. It also offers multiple dwelling houses with network infrastructure services, home Internet of Things solutions, and real estate-related services; and Internet-based advertising services and affiliate advertising services. In addition, the company provides dispensing pharmacies and nursing care facilities with IT solutions, as well as medication notebook application and dispensing pharmacy reservation services; and language education solutions, such as language training, books and e-learning system, etc. to corporations, consumers, and educational institutions. The company was formerly known as FreeBit.com Co., Ltd. and changed its name to FreeBit Co., Ltd. in December 2002. FreeBit Co., Ltd. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

FreeBit Co., Ltd. generates revenue through multiple streams, primarily focusing on subscription-based models for its cloud services. Key revenue sources include charges for IaaS and SaaS offerings, where customers pay for the resources and applications they utilize on a monthly or annual basis. Additionally, the company earns income from web hosting services, domain registration fees, and value-added services such as cybersecurity solutions and data analytics. Significant partnerships with other technology firms and telecommunications providers enhance its service offerings and expand its customer base, contributing to stable and recurring revenue. The growing demand for digital transformation and cloud solutions in various industries further supports FreeBit's earnings potential.

FreeBit Co., Ltd. Financial Statement Overview

Summary

FreeBit Co., Ltd. exhibits strong revenue growth and cash flow generation, but faces challenges with declining profit margins and increased leverage. The company should focus on improving operational efficiency and managing debt levels to maintain financial stability.

Income Statement

FreeBit Co., Ltd. has shown consistent revenue growth, with a 2.76% increase in the latest year. The gross profit margin remains stable around 28.5%, indicating efficient cost management. However, the net profit margin has decreased to 4.99% from 6.72% the previous year, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 3.35, indicating higher leverage and potential financial risk. Return on equity is strong at 42.28%, showcasing effective use of equity to generate profits. However, the equity ratio has decreased, suggesting a reliance on debt financing.

Cash Flow

FreeBit Co., Ltd. has demonstrated impressive free cash flow growth of 115.41%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.29, showing a solid conversion of income to cash. The free cash flow to net income ratio is high at 0.88, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.60B	55.07B	53.04B	46.77B	43.08B	52.01B
Gross Profit	15.55B	15.71B	15.39B	13.33B	12.41B	15.45B
EBITDA	6.39B	5.89B	6.74B	4.48B	3.84B	5.55B
Net Income	3.23B	2.75B	3.57B	1.79B	827.85M	1.59B
Balance Sheet
Total Assets	39.48B	40.56B	38.18B	35.93B	35.05B	34.84B
Cash, Cash Equivalents and Short-Term Investments	19.28B	20.68B	18.72B	18.31B	17.74B	17.62B
Total Debt	13.03B	21.75B	14.14B	15.99B	15.14B	14.32B
Total Liabilities	21.51B	32.02B	22.99B	24.89B	24.01B	22.69B
Stockholders Equity	13.83B	6.50B	11.76B	8.32B	6.93B	8.71B
Cash Flow
Free Cash Flow	1.86B	4.01B	2.81B	2.65B	2.07B	6.18B
Operating Cash Flow	2.02B	4.57B	4.23B	3.32B	2.33B	7.12B
Investing Cash Flow	-674.00M	-687.49M	-1.09B	-644.62M	510.69M	-2.66B
Financing Cash Flow	-3.40B	-1.92B	-2.72B	-2.11B	-2.73B	-2.57B

FreeBit Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1549.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3843, the sentiment is Neutral. The current price of 1549 is below the 20-day moving average (MA) of 1621.40, below the 50-day MA of 1617.96, and above the 200-day MA of 1488.33, indicating a neutral trend. The MACD of -13.21 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 17.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3843.

FreeBit Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3770	72 Outperform	¥4.11B	24.88	―	1.20%	-0.86%	-29.61%
3843	68 Neutral	¥29.79B	10.76	―	1.94%	8.93%	-18.23%
3662	63 Neutral	¥19.33B	19.45	―	2.03%	―	8.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	58 Neutral	¥4.94B	―	―	―	-26.88%	26.91%