TipRanks
Go Ultimate55% OFF

Kanamic Network Co., LTD. (3939) AI Stock Analysis

JP:3939

Kanamic Network Co., LTD.

(TSE/TYO:3939)

Select Model
Rating:73Outperform
Price Target:JPY 563.00â–²(14.66% Upside)
Action:reiterated
Date:08/06/26

The score is driven primarily by strong financial performance (high margins, strong cash generation, and low leverage). Technicals are mixed with improving short-term trend but weaker longer-term positioning, while valuation is reasonable but not notably cheap and the dividend is modest.

Positive Factors
High Profitability MarginsSustained high margins indicate strong pricing power and efficient operations in its SaaS model. Elevated EBITDA and net margins provide durable internal funding for R&D and customer support, enabling reinvestment without relying on external financing and supporting long-term profitability.
Negative Factors
Modest Revenue GrowthA low recent growth rate suggests limited top-line expansion in its core markets. For a subscription-driven SaaS business, modest revenue growth can constrain scale economies and future earnings momentum unless offset by higher retention, upsell, geographic expansion, or new product wins.

Kanamic Network Co., LTD. (3939) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:3939+3.34%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 23.30B
Dividend Yield
1.83%
Average Volume (3M)
168.88K
Price to Earnings (P/E)
17.5
Beta (1Y)
0.85
Revenue Growth
13.74%
EPS Growth
30.76%
Country
Japan
Employees
310
Sector
Healthcare
Sector Strength
51
Industry
Medical - Healthcare Information Services

Kanamic Network Co., LTD. Business Overview & Revenue Model

Company Description

Kanamic Network Co.,LTD, established in Tokyo, Japan, in 2000, delivers innovative digital solutions aimed at enhancing comprehensive community care across Japan. Its primary offering is a cloud-based information-sharing system that facilitates seaml...

How the Company Makes Money

Kanamic Network generates revenue mainly by providing subscription-based (SaaS) cloud services to healthcare and nursing-care related organizations, charging recurring usage fees for access to its platforms and related functions (e.g., systems that s...

Kanamic Network Co., LTD. Financial Statement Overview

Summary

Strong overall fundamentals supported by high profitability (net margin 20.2%, EBITDA margin 37.0%), solid cash conversion (FCF to net income 1.03; operating cash flow to net income 1.16), and a conservative balance sheet (debt-to-equity 0.14; equity ratio 71.1%). A modest revenue growth rate (2.4%) and slight gross margin pressure temper the score.

Income Statement

85Very Positive

Balance Sheet

78Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue6.11B5.50B5.01B3.75B2.50B2.08B
Gross Profit3.95B3.54B3.07B2.59B2.10B1.79B
EBITDA2.40B2.04B1.71B1.40B1.16B977.47M
Net Income1.33B1.11B919.99M763.10M685.52M579.58M
Balance Sheet
Total Assets7.43B6.54B6.18B5.65B6.51B4.40B
Cash, Cash Equivalents and Short-Term Investments4.10B3.33B3.43B2.87B4.55B3.71B
Total Debt458.22M657.68M932.01M1.28B3.22B2.00B
Total Liabilities2.06B1.89B2.34B2.48B3.96B2.44B
Stockholders Equity5.37B4.65B3.83B3.17B2.55B1.96B
Cash Flow
Free Cash Flow1.15B1.15B1.15B789.13M478.91M534.29M
Operating Cash Flow1.29B1.29B1.51B1.43B803.27M756.75M
Investing Cash Flow-743.55M-743.55M-343.84M-842.25M-457.20M-216.03M
Financing Cash Flow-651.11M-651.11M-613.68M-2.27B488.97M1.46B

Kanamic Network Co., LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price491.00

Price Trends

50DMA496.09Negative
100DMA490.75Positive
200DMA501.66Negative

Market Momentum

MACD-1.11Positive
RSI48.37Neutral
STOCH32.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3939, the sentiment is Negative. The current price of 491.00 is below the 20-day moving average (MA) of 493.80, below the 50-day MA of 496.09, and below the 200-day MA of 501.66, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 32.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3939.

Kanamic Network Co., LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:3939 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3939JP:393973OutperformJPY 23.28B17.51―1.83%13.74%30.76%
JP:4483JP:448372OutperformJPY 241.50B34.84―0.49%18.89%11.66%
JP:4480JP:448063NeutralJPY 75.89B39.6912.35%―24.03%34.50%
JP:9341JP:934161NeutralJPY 10.44B16.26―5.13%36.94%-31.50%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
JP:4438JP:443850NeutralJPY 2.36B-4.42――14.84%30.67%

* Healthcare Sector Average

Performance Comparison

-50%0%50%JP:3939JP:4480JP:4438JP:4483JP:9341Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3939 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3939Kanamic Network Co., LTD.491.0018.833.99%
JP:4480Medley, Inc.2386.00280.0013.30%
JP:4438Welby Inc.276.00-13.00-4.50%
JP:4483JMDC Inc.3690.00-1186.28-24.33%
JP:9341GENOVA Inc.585.0033.906.15%

Kanamic Network Co., LTD. Corporate Events

Kanamic Network Posts Strong Q2 as AI and Overseas Project Drive Growth

May 13, 2026

Kanamic Network Co., Ltd. reported a strong second quarter for the fiscal year ending September 2026, with both sales and operating profit rising significantly from the previous year. Management noted that sales and profits are progressing smoothly,...

Kanamic Network Delivers Double-Digit Profit Growth and Confirms Strong FY2026 Outlook

May 13, 2026

Kanamic Network Co., Ltd. reported strong consolidated results for the second quarter of the fiscal year ending September 30, 2026, with net sales rising 17.8% year on year to ¥3,134 million and profit attributable to owners of parent up 29.3% t...

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 06, 2026