FAN Communications Inc

FAN Communications Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥15,954,344,000, representing 70% of total assets. The company has no long-term debt, resulting in a debt-to-equity ratio of 0.0, and a current ratio of 3.85, indicating robust short-term liquidity.

Profitability metrics show a return on equity (ROE) of 1.8% and a return on assets (ROA) of 1.38%. These figures are below the industry median for ROE and ROA, suggesting that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and client concentration risk.

Outlook for the current fiscal year indicates a modest growth trajectory, with revenue expected to remain stable. Historical revenue data shows a consistent but slow growth rate, with no significant acceleration in the near term.

Risk assessment reveals low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued additional shares recently, and there is no indication of near-term dilution pressure. However, the absence of long-term debt does not eliminate the need for ongoing monitoring of capital structure decisions.

Recent events include the filing of the latest financial report, which disclosed stable operating cash flow of ¥649,112,000 and capital expenditures of ¥66,678,000. No significant regulatory or operational changes were reported in the latest filings.

The company maintains zero long-term debt, resulting in a debt-to-equity ratio of 0.0, well above the 75th percentile.

Operating income grew 21.1% year-over-year in FY2026, demonstrating strong operational leverage despite revenue stagnation.

Cash conversion of 2.06 is above the cohort median of 0.97, suggesting efficient working capital management.

Return on equity of 1.8% falls below the 2.4% median for the Advertising & Marketing cohort.

Capex intensity of -3.9% is below the cohort median of -1.3%, potentially indicating underinvestment in growth.

Revenue ¥1.73B, −6,6% YoY; Operating income −55,7% YoY.

• ▍Revenue ¥1.73B, −6,6% YoY
• ▍Operating income −55,7% YoY
• ▍Net income −72,2% YoY
• ▍Net margin 6.2%

Revenue ¥1.68B, −6,8% YoY; Operating income −21,6% YoY.

• ▍Revenue ¥1.68B, −6,8% YoY
• ▍Operating income −21,6% YoY
• ▍Net income −29,5% YoY
• ▍Net margin 17.8%

Revenue ¥1.78B, +1,1% YoY; Operating income +26,1% YoY.

• ▍Revenue ¥1.78B, +1,1% YoY
• ▍Operating income +26,1% YoY
• ▍Net income +90,3% YoY
• ▍Net margin 17.7%

Revenue ¥1.79B, +5,1% YoY; Operating income +28,3% YoY.

• ▍Revenue ¥1.79B, +5,1% YoY
• ▍Operating income +28,3% YoY
• ▍Net income −3,3% YoY
• ▍Net margin 17.0%

Revenue ¥1.86B; Operating income ¥603.6M.

• ▍Revenue ¥1.86B
• ▍Operating income ¥603.6M
• ▍Net margin 21.0%

Revenue ¥1.80B; Operating income ¥516.0M.

• ▍Revenue ¥1.80B
• ▍Operating income ¥516.0M
• ▍Net margin 23.6%

Revenue ¥1.76B; Operating income ¥358.6M.

• ▍Revenue ¥1.76B
• ▍Operating income ¥358.6M
• ▍Net margin 9.4%

Revenue ¥1.70B; Operating income ¥366.7M.

• ▍Revenue ¥1.70B
• ▍Operating income ¥366.7M
• ▍Net margin 18.5%

Revenue ¥7.10B, +1,9% YoY; Operating income +21,1% YoY.

• ▍Revenue ¥7.10B, +1,9% YoY
• ▍Operating income +21,1% YoY
• ▍Net income −7,9% YoY
• ▍Free cash flow −306,1% YoY
• ▍Net margin 18.4%

Revenue ¥6.96B, −5,9% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥6.96B, −5,9% YoY
• ▍Operating income −14,1% YoY
• ▍Net income +15,1% YoY
• ▍Free cash flow +336,9% YoY
• ▍Net margin 20.4%

Revenue ¥7.40B, −4,4% YoY; Operating income −18,0% YoY.

• ▍Revenue ¥7.40B, −4,4% YoY
• ▍Operating income −18,0% YoY
• ▍Net income −19,7% YoY
• ▍Free cash flow −137,1% YoY
• ▍Net margin 16.7%

Revenue ¥7.74B, −71,0% YoY; Operating income +4,7% YoY.

• ▍Revenue ¥7.74B, −71,0% YoY
• ▍Operating income +4,7% YoY
• ▍Net income −6,2% YoY
• ▍Free cash flow −32,1% YoY
• ▍Net margin 19.8%