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Kanamic Network Co., LTD. (3939) AI Stock Analysis
Kanamic Network Co., LTD.
(TSE/TYO:3939)
Kanamic Network earns a solid score driven primarily by its strong financial fundamentals — excellent profitability margins, a nearly debt-free balance sheet, and consistent free cash flow generation. These strengths are partially offset by a mixed technical picture, where the stock trades below its longer-term moving averages despite short-term positive momentum, and a fair but unexciting valuation at 18.6x earnings with modest dividend yield. The moderation in revenue growth to just 2.4% is a key factor preventing a higher score, as the company transitions from a high-growth phase to a more mature, stable-earnings profile. The defensive beta of 0.71 adds appeal for risk-averse investors in the healthcare IT space.
Kanamic Network Co., LTD. (3939) vs. iShares MSCI Japan ETF (EWJ)
- 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
Kanamic Network demonstrates strong financial fundamentals: impressive gross margins of 64.3%, net margins of 20.2%, and a dramatically deleveraged balance sheet with a debt-to-equity ratio of just 0.14. Free cash flow of ¥1.15 billion and an OCF-to-net-income ratio of 1.16 confirm high earnings quality. Revenue growth has moderated to 2.4% YoY, which tempers the score slightly, but overall profitability and financial stability are excellent.
Income Statement
78PositiveBalance Sheet
85Very PositiveCash Flow
82Very Positive| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.11B | 5.50B | 5.01B | 3.75B | 2.50B | 2.08B |
| Gross Profit | 3.95B | 3.54B | 3.07B | 2.59B | 2.10B | 1.79B |
| EBITDA | 2.40B | 2.04B | 1.71B | 1.40B | 1.16B | 977.47M |
| Net Income | 1.33B | 1.11B | 919.99M | 763.10M | 685.52M | 579.58M |
Balance Sheet | ||||||
| Total Assets | 7.43B | 6.54B | 6.18B | 5.65B | 6.51B | 4.40B |
| Cash, Cash Equivalents and Short-Term Investments | 4.10B | 3.33B | 3.43B | 2.87B | 4.55B | 3.71B |
| Total Debt | 458.22M | 657.68M | 932.01M | 1.28B | 3.22B | 2.00B |
| Total Liabilities | 2.06B | 1.89B | 2.34B | 2.48B | 3.96B | 2.44B |
| Stockholders Equity | 5.37B | 4.65B | 3.83B | 3.17B | 2.55B | 1.96B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 1.15B | 1.15B | 789.13M | 478.91M | 534.29M |
| Operating Cash Flow | 1.29B | 1.29B | 1.51B | 1.43B | 803.27M | 756.75M |
| Investing Cash Flow | -743.55M | -743.55M | -343.84M | -842.25M | -457.20M | -216.03M |
| Financing Cash Flow | -651.11M | -651.11M | -613.68M | -2.27B | 488.97M | 1.46B |
Kanamic Network Co., LTD. Technical Analysis
Price Trends
Market Momentum
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 484.00 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
JP:448372Outperform- JP:393967Neutral
JP:448063Neutral
JP:934161Neutral
JP:443850Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4483 | 72Outperform | JPY 241.50B | 34.84 | ― | 0.49% | 18.89% | 11.66% |
| JP:3939 | 67Neutral | JPY 23.28B | 17.51 | ― | 1.83% | 13.74% | 30.76% |
| JP:4480 | 63Neutral | JPY 75.89B | 39.69 | 12.35% | ― | 24.03% | 34.50% |
| JP:9341 | 61Neutral | JPY 10.44B | 16.26 | ― | 5.13% | 36.94% | -31.50% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| JP:4438 | 50Neutral | JPY 2.36B | -4.42 | ― | ― | 14.84% | 30.67% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3939 | Kanamic Network Co., LTD. | 491.00 | 15.89 | 3.34% | |
| JP:4480 | Medley, Inc. | 2386.00 | 254.00 | 11.91% | |
| JP:4438 | Welby Inc. | 276.00 | -13.00 | -4.50% | |
| JP:4483 | JMDC Inc. | 3690.00 | -1176.33 | -24.17% | |
| JP:9341 | GENOVA Inc. | 585.00 | 38.65 | 7.08% |
Kanamic Network Co., LTD. Corporate Events
Kanamic Network Posts Strong Q2 as AI and Overseas Project Drive Growth
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
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...
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