Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥3.70B
• Dividend Yield: 1.22%
• Average Volume (3M): 7.80K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.57
• Revenue Growth: 6.57%
• EPS Growth: 52.89%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.61
• Shares Outstanding: 5,709,300
• 10 Day Avg. Volume: 4,720
• 30 Day Avg. Volume: 7,800
• PEG Ratio: 0.17
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 2.92
• 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: ¥719.00
• Price Target Upside: 9.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥719.00 ▲(9.77% Upside)

Brass Corp.'s strong valuation and solid financial performance are the primary drivers of its stock score. The company is undervalued with a low P/E ratio and offers a decent dividend yield. However, the technical analysis indicates a lack of upward momentum, which tempers the overall score.

Brass Corp. Business Overview & Revenue Model

Company Description

Brass Corp. (2424) is a leading manufacturer and distributor in the brass products sector, specializing in high-quality brass fittings, valves, and custom components for various industries including plumbing, HVAC, and automotive. The company is committed to innovation and sustainability, providing durable and reliable products that meet the evolving needs of its customers. With a strong focus on quality control and customer service, Brass Corp. has established itself as a trusted partner in the brass manufacturing landscape.

How the Company Makes Money

Brass Corp. generates revenue primarily through the sale of its brass products to wholesalers, retailers, and direct consumers in various sectors. The company operates on a B2B model, where it supplies bulk orders of brass fittings and components to construction firms and industrial manufacturers. Key revenue streams include product sales, custom manufacturing services, and long-term supply contracts with major industry players. Additionally, Brass Corp. has formed strategic partnerships with distributors and trade organizations, enhancing its market reach and driving sales. The company also invests in research and development to innovate new products, which can lead to increased market demand and higher profit margins.

Brass Corp. Financial Statement Overview

Summary

Brass Corp. demonstrates a positive financial trajectory with strong revenue growth and improved cash flow management. While profitability margins have room for improvement, the company has effectively managed its debt levels and maintained a stable balance sheet.

Income Statement

Brass Corp. has shown a consistent revenue growth trend with a 4.88% increase in the latest year. The gross profit margin remains strong at 67.58%, indicating effective cost management. However, the net profit margin is relatively low at 3.04%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.93, indicating a more balanced capital structure compared to previous years. Return on equity is at 9.92%, showing a decent return for shareholders. The equity ratio is stable, reflecting a solid asset base. However, the company should continue to monitor its leverage to maintain financial stability.

Cash Flow

Brass Corp. has significantly improved its cash flow position, with a strong operating cash flow and a positive free cash flow growth rate. The free cash flow to net income ratio of 0.65 indicates efficient cash generation relative to net income. The operating cash flow to net income ratio is also healthy, suggesting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.56B	13.56B	12.73B	13.26B	11.42B	9.34B
Gross Profit	9.17B	9.16B	8.52B	8.93B	7.67B	6.11B
EBITDA	1.55B	1.54B	1.24B	1.57B	1.67B	1.04B
Net Income	411.64M	412.00M	275.05M	722.13M	734.76M	169.61M
Balance Sheet
Total Assets	11.41B	11.41B	10.81B	11.14B	11.76B	11.68B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.27B	1.64B	2.35B	2.59B	2.39B
Total Debt	3.86B	3.86B	4.25B	4.21B	5.25B	5.60B
Total Liabilities	7.26B	7.26B	7.03B	7.51B	8.78B	9.19B
Stockholders Equity	4.16B	4.16B	3.79B	3.63B	2.98B	2.49B
Cash Flow
Free Cash Flow	0.00	1.24B	-625.00M	921.16M	749.71M	1.30B
Operating Cash Flow	0.00	1.91B	536.00M	1.33B	1.21B	1.46B
Investing Cash Flow	0.00	-833.00M	-1.18B	-409.44M	-480.67M	-201.11M
Financing Cash Flow	0.00	-436.00M	-68.08M	-1.18B	-528.15M	-851.58M

Brass Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 655.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2424, the sentiment is Negative. The current price of 655 is below the 20-day moving average (MA) of 665.60, below the 50-day MA of 680.22, and above the 200-day MA of 624.88, indicating a neutral trend. The MACD of -7.47 indicates Positive momentum. The RSI at 41.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2424.

Brass Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9160	72 Outperform	¥8.40B	9.30	―	―	11.07%	5.85%
2198	70 Outperform	¥23.33B	19.98	―	3.02%	-1.02%	-32.57%
2424	69 Neutral	¥3.70B	8.47	―	1.22%	6.57%	52.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	57 Neutral	¥2.70B	21.34	―	―	-3.96%	-73.55%
2437	42 Neutral	¥2.95B	―	―	1.71%	-24.31%	56.72%
6181	41 Neutral	¥3.79B	278.94	―	―	6.32%	-3428.60%