Br.Holdings Corporation (1726) AI Stock Analysis

• Market Cap: ¥14.68B
• Dividend Yield: 4.62%
• Average Volume (3M): 47.24K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.42
• Revenue Growth: 1.27%
• EPS Growth: -5.19%
• Country: JP
• Employees: 617
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 10.08
• Shares Outstanding: 45,795,000
• 10 Day Avg. Volume: 69,660
• 30 Day Avg. Volume: 47,243
• PEG Ratio: -0.47
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.73
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥345.00 ▲(6.15%Upside)

The overall score is driven by a solid valuation with a low P/E ratio and high dividend yield, despite mixed financial performance and bearish technical indicators. The stock's low beta suggests limited volatility, but cash flow challenges and rising debt levels necessitate caution.

Br.Holdings Corporation Business Overview & Revenue Model

Company Description

Br.Holdings Corporation (1726) is a diversified conglomerate operating across multiple sectors, including construction, real estate, and infrastructure development. The company is renowned for its integrated approach to project management and execution, providing a wide range of services such as engineering, procurement, construction, and real estate management. Its core products and services cater to both public and private sector clients, ensuring high-quality delivery in urban development and infrastructure projects.

How the Company Makes Money

Br.Holdings Corporation generates revenue through a multi-faceted business model involving several key revenue streams. The primary source of income is derived from its construction and infrastructure projects, where the company undertakes large-scale contracts for government and private sector clients. Revenue is also generated from real estate development and management services, including the sale and leasing of residential and commercial properties. The company's strategic partnerships with government bodies and private investors play a critical role in securing contracts and funding for its projects, ensuring a steady flow of income. Additionally, Br.Holdings benefits from recurring revenue through property management services and infrastructure maintenance contracts.

Br.Holdings Corporation Financial Statement Overview

Summary

Br.Holdings Corporation exhibits a mixed financial performance. Revenue growth and gross profit margins are strong, but challenges exist in net profitability and cash flow sustainability. The balance sheet is solid with increasing equity, though rising debt levels could impact future flexibility.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.56B	40.77B	40.26B	36.02B	35.90B	38.80B
Gross Profit	4.81B	4.97B	4.97B	4.29B	4.85B	5.58B
EBITDA	2.10B	2.47B	2.43B	2.00B	2.64B	3.38B
Net Income	1.20B	1.27B	1.35B	1.02B	1.53B	1.95B
Balance Sheet
Total Assets	46.53B	41.93B	42.35B	40.35B	33.96B	32.65B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.71B	1.84B	1.84B	1.56B	2.73B
Total Debt	22.01B	19.04B	17.07B	15.96B	9.25B	9.35B
Total Liabilities	31.91B	26.86B	27.90B	26.51B	20.67B	20.50B
Stockholders Equity	14.62B	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: Neutral
• Last Price: 325.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1726, the sentiment is Neutral. The current price of 325 is below the 20-day moving average (MA) of 325.75, below the 50-day MA of 328.46, and below the 200-day MA of 333.30, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1726.

Br.Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1716	80 Outperform	¥14.63B	8.71		3.11%	-2.16%	-8.63%
1770	78 Outperform	¥13.48B	7.55		4.75%	1.16%	12.22%
1960	76 Outperform	¥13.12B	7.52		4.67%	33.76%	―
1914	70 Neutral	¥13.91B	8.84		3.66%	32.17%	298.59%
Sector *	67 Neutral	€3.76B	22.70	10.70%	3.88%	1.50%	-23.04%
1726	62 Neutral	¥14.68B	11.50		4.62%	1.27%	-5.19%
1776	60 Neutral	¥13.98B	84.24		2.61%	-2.45%	-71.57%

Br.Holdings Corporation Corporate Events

Br.Holdings Corporation Introduces Employee Stock Incentive Plan

Br.Holdings Corporation announced the implementation of a Restricted Stock Incentive Plan for its Employee Shareholding Association, aiming to enhance employee benefits and align their interests with shareholders. This initiative involves the disposal of 168,000 shares of treasury stock to employees, fostering asset building and encouraging employees to be more cognizant of the company’s performance and stock value.

Br.Holdings Corporation Announces Disposal of Treasury Stock for Director Compensation

Br.Holdings Corporation has announced a resolution to dispose of 203,000 shares of its treasury stock as restricted stock compensation to incentivize its directors and directors of subsidiaries. This move aims to align the interests of its directors with those of shareholders, ensuring long-term value enhancement for the company. The disposal is part of a broader compensation plan approved in 2018, which allows for monetary compensation claims to be converted into restricted stock, with specific transfer restrictions and conditions for lifting these restrictions.

Br. Holdings Corporation Reports Fiscal Year 2025 Financial Results

Br. Holdings Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 1.3% to ¥40,770 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with respective decreases of 5.3%, 7.6%, and 6.3%. Despite these declines, the company increased its annual dividend per share to ¥15.00, reflecting a commitment to shareholder returns. The forecast for the fiscal year ending March 31, 2026, anticipates modest growth in net sales and profits, indicating a cautious optimism for the upcoming year.

Br. Holdings Corporation Reports Fiscal Year 2025 Financial Results

Br. Holdings Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 1.3% to ¥40,770 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners, with respective decreases of 5.3%, 7.6%, and 6.3%. Despite these declines, the company increased its annual dividend per share from ¥14.00 to ¥15.00, reflecting a commitment to shareholder returns. The financial forecast for the fiscal year ending March 31, 2026, anticipates modest growth in net sales and profits.