Br.Holdings Corporation (1726) AI Stock Analysis

• Market Cap: ¥15.67B
• Dividend Yield: 4.48%
• Average Volume (3M): 68.80K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.40
• Revenue Growth: -6.37%
• EPS Growth: -16.88%
• Country: JP
• Employees: 617
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.76
• Shares Outstanding: 45,795,000
• 10 Day Avg. Volume: 62,530
• 30 Day Avg. Volume: 68,796
• PEG Ratio: -2.29
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -10.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥355.00 ▲(2.31% Upside)

Br.Holdings Corporation's stock score is driven by a mixed financial performance with strong revenue growth but challenges in profitability and cash flow. The technical analysis indicates bearish momentum, while the valuation is attractive with a reasonable P/E ratio and high dividend yield. Strategic improvements are necessary for long-term growth.

Positive Factors

Revenue Growth

Steady revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion potential.

Gross Profit Margin

A healthy gross profit margin suggests effective cost control and pricing strategies, contributing to sustainable profitability.

Equity Base

A strong equity base provides financial stability and flexibility, supporting future growth and investment opportunities.

Negative Factors

Net Profitability Challenges

Declining net profitability can hinder reinvestment in growth initiatives and affect long-term financial health if not addressed.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit strategic flexibility, impacting long-term stability.

Cash Flow Volatility

Volatile cash flow can affect liquidity and operational stability, posing risks to ongoing business operations and investments.

Br.Holdings Corporation Business Overview & Revenue Model

Company Description

Br. Holdings Corporation, through its subsidiaries, engages in the construction business in Japan. The company operates through four segments: Construction Business; Product Sales Business; Information Systems Business; and Real Estate Leasing Business. It primarily constructs prestressed concrete (PC) bridges and other structures; sells PC; and manufactures and sells railroad sleepers, construction materials, and secondary concrete products. The company also involved in repair and reinforcement; architecture; temporary staffing; and information processing and software developing businesses. In addition, it leases office space and manages rental properties. Br. Holdings Corporation was incorporated in 2002 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Br.Holdings Corporation generates revenue through several key streams, including investment income from its diverse portfolio of businesses, rental income from real estate holdings, and sales from technology products and services. The company's revenue model is primarily based on capital appreciation and cash flow generation from its investments. Significant partnerships with leading technology firms and real estate developers enhance its market presence and profitability. Additionally, Br.Holdings leverages strategic alliances in the renewable energy sector, which contribute to its earnings through government incentives and growing demand for sustainable solutions.

Br.Holdings Corporation Financial Statement Overview

Summary

Br.Holdings Corporation shows strong revenue growth and healthy gross profit margins. However, challenges in net profitability and cash flow sustainability, along with rising debt levels, indicate potential risks. Strategic improvements in operational efficiencies and cash management are needed.

Income Statement

Br.Holdings Corporation has demonstrated a steady revenue growth with a notable increase from 2023 to 2025. Gross profit margin is healthy, indicating efficient cost management. However, net profit margin has slightly declined over the years, reflecting increasing costs or lower pricing power. The EBIT and EBITDA margins show resilience, though a slight dip in EBIT margin indicates some operational challenges.

Balance Sheet

The company maintains a strong equity base with a consistent improvement in stockholders' equity over the years. The debt-to-equity ratio has increased, signaling higher leverage, which could pose a risk if not managed carefully. Return on equity remains robust, indicating effective utilization of shareholders' funds. The equity ratio shows a stable financial position, though the rising debt level needs monitoring.

Cash Flow

Br.Holdings Corporation's cash flow situation presents challenges, with negative free cash flow in recent years, largely due to high capital expenditures. Operating cash flow has been volatile, impacting the ability to generate consistent cash from operations. The free cash flow to net income ratio is concerning, indicating potential liquidity issues if trends continue without strategic adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.92B	40.77B	40.26B	36.02B	35.90B	38.80B
Gross Profit	5.01B	4.97B	4.97B	4.29B	4.85B	5.58B
EBITDA	2.46B	2.47B	2.49B	2.00B	2.64B	3.38B
Net Income	1.27B	1.27B	1.35B	1.02B	1.53B	1.95B
Balance Sheet
Total Assets	41.77B	41.93B	42.35B	40.35B	33.96B	32.65B
Cash, Cash Equivalents and Short-Term Investments	2.68B	1.71B	1.84B	1.84B	1.56B	2.73B
Total Debt	18.57B	19.04B	17.07B	15.96B	9.25B	9.35B
Total Liabilities	26.90B	26.86B	27.90B	26.51B	20.67B	20.50B
Stockholders Equity	14.88B	15.07B	14.45B	13.84B	13.29B	12.15B
Cash Flow
Free Cash Flow	0.00	-1.37B	-145.00M	-5.90B	-537.00M	-3.71B
Operating Cash Flow	0.00	48.00M	233.00M	-5.70B	20.00M	-3.22B
Investing Cash Flow	0.00	-1.45B	-424.00M	-75.00M	-520.00M	-194.00M
Financing Cash Flow	0.00	1.26B	187.00M	6.17B	-639.00M	3.67B

Br.Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 347.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1726, the sentiment is Positive. The current price of 347 is above the 20-day moving average (MA) of 335.85, above the 50-day MA of 333.52, and above the 200-day MA of 328.96, indicating a bullish trend. The MACD of 3.76 indicates Negative momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 91.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1726.

Br.Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1770	76 Outperform	¥16.09B	12.37	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥20.09B	7.92	―	2.97%	22.32%	5024.88%
1716	71 Outperform	¥15.89B	9.58	―	2.87%	-1.39%	-4.43%
1914	67 Neutral	¥13.87B	10.75	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.67B	13.67	―	4.48%	-6.37%	-16.88%
1776	54 Neutral	¥14.70B	55.22	―	2.54%	5.89%	-30.27%

Br.Holdings Corporation Corporate Events

Br. Holdings Corporation Reports Decline in Six-Month Financial Performance

Br. Holdings Corporation reported a decline in its financial performance for the six months ended September 30, 2025, with net sales and profits showing significant decreases compared to the previous year. Despite the downturn, the company maintains a stable equity-to-asset ratio and has announced an increase in dividends, indicating a commitment to returning value to shareholders.

Br.Holdings Finalizes Treasury Stock Disposal for Employee Incentive

Br.Holdings Corporation has completed the payment procedures for the disposal of treasury stock as part of a Restricted Stock Incentive Plan for its Employee Shareholding Association. The number of shares and total disposal value were adjusted due to changes in the number of participating members, impacting the company’s financial positioning and stakeholder interests.