Br.Holdings Corporation (1726) AI Stock Analysis

• Market Cap: ¥15.95B
• Dividend Yield: 4.48%
• Average Volume (3M): 68.80K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥390.00 ▲(11.75% 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

Diversified business model

A multi‑sector investment mandate (tech, real estate, renewable energy) reduces concentration risk and allows reallocation of capital to higher growth or defensive sectors. Over a 2–6 month horizon this diversification supports steadier earnings and provides multiple durable growth levers.

Strategic partnerships

Established partnerships with leading tech firms and developers improve deal access, accelerate scaling of portfolio companies, and lower execution risk. These alliances are structural advantages that support recurring revenue, better project pipelines, and improved return prospects over several quarters.

Strong equity base and ROE

A consistently improving equity base and robust ROE indicate effective capital allocation and the ability to absorb shocks. This durable balance sheet strength underpins capacity to fund investments, pursue strategic acquisitions, and sustain operations without immediate reliance on volatile external financing.

Negative Factors

Rising leverage

An increasing debt‑to‑equity ratio raises interest and refinancing risk and reduces financial flexibility. If leverage continues rising, it can constrain capital allocation, increase vulnerability to rate moves, and limit ability to pursue opportunistic investments over the medium term.

Negative free cash flow

Sustained negative free cash flow driven by heavy capex undermines internal funding for debt reduction, dividends, or new investments. Volatile operating cash flows increase reliance on external financing, which magnifies risk if credit conditions tighten over a 2–6 month horizon.

Margin and EPS pressure

A declining net profit margin combined with significant EPS contraction signals persistent profitability pressure, possibly from rising costs or weaker pricing power. This reduces retained earnings and long‑term reinvestment capacity, challenging sustainable earnings growth absent efficiency improvements.

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: Neutral
• Last Price: 349.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 349 is below the 20-day moving average (MA) of 356.30, above the 50-day MA of 344.70, and above the 200-day MA of 332.64, indicating a neutral trend. The MACD of 1.81 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 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
1770	76 Outperform	¥16.05B	12.33	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥21.66B	8.53	―	2.97%	22.32%	5024.88%
1716	71 Outperform	¥15.66B	9.44	―	2.87%	-1.39%	-4.43%
1914	67 Neutral	¥14.21B	11.01	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.95B	13.91	―	4.48%	-6.37%	-16.88%
1776	54 Neutral	¥14.69B	55.18	―	2.54%	5.89%	-30.27%

Br.Holdings Corporation Corporate Events

Leadership Change at Br.Holdings Corporation Following President’s Passing

Br.Holdings Corporation has announced the passing of its President and Representative Director, Mr. Kimiyasu Fujita, who had a long and distinguished career in the industry. The company has appointed Mr. Takashi Yamane as the new President and Representative Director, effective December 15, 2025. This leadership change is expected to impact the company’s strategic direction and operations, as Mr. Yamane brings extensive experience from his previous roles in sales and management within the company and its affiliates.

The most recent analyst rating on (JP:1726) stock is a Hold with a Yen355.00 price target. To see the full list of analyst forecasts on Br.Holdings Corporation stock, see the JP:1726 Stock Forecast page.

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.

The most recent analyst rating on (JP:1726) stock is a Hold with a Yen355.00 price target. To see the full list of analyst forecasts on Br.Holdings Corporation stock, see the JP:1726 Stock Forecast page.