Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥3.40B
• Dividend Yield: 1.24%
• Average Volume (3M): 7.80K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.53
• Revenue Growth: 6.77%
• EPS Growth: 40.10%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 51.04
• 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: 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: 69 Neutral
• Price Target: ¥719.00 ▲(9.10% Upside)
• Action: Downgraded Date: 10/15/25
• Date: Action: Downgraded 10/15/25

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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Brass Corp.'s products and effective market penetration, supporting long-term business expansion.

Cash Flow Management

Improved cash flow management enhances financial stability, allowing Brass Corp. to reinvest in growth opportunities and weather economic fluctuations.

Debt Management

A balanced capital structure with improved debt management reduces financial risk and enhances Brass Corp.'s ability to fund future growth initiatives.

Negative Factors

Profitability Margins

Low net profit margins may limit Brass Corp.'s ability to generate sufficient returns, potentially impacting long-term shareholder value and investment capacity.

Operational Efficiency

Despite effective debt management, the need for improved operational efficiency highlights potential challenges in cost control and margin expansion.

Leverage Monitoring

Ongoing leverage monitoring is crucial to prevent excessive debt accumulation, which could strain Brass Corp.'s financial resources and limit growth potential.

Brass Corp. Business Overview & Revenue Model

Company Description

Brass Corporation provides various services in arranging the wedding and reception in Japan. The company also offers and rents bridal gowns and formalwear; and arranges MOCHI-TSUKI, a live performance event at Japanese celebrations. Brass Corporation was founded in 1998 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Brass Corp. generates revenue primarily through the sale of its brass and metal products to various industries, including construction and automotive. The company operates on a direct sales model, where it supplies products to manufacturers and distributors, as well as through partnerships with key players in the industry for bulk orders. Additional revenue streams include custom fabrication services and consulting for product development, which cater to specific client needs. Strategic partnerships with suppliers also enhance cost efficiency and support production capabilities, contributing significantly to the company's overall earnings.

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	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	13.56B	12.73B	13.26B	11.42B	9.34B
Gross Profit	9.17B	8.52B	8.93B	7.04B	5.43B
EBITDA	1.54B	1.19B	1.93B	1.55B	1.05B
Net Income	412.43M	275.05M	722.13M	734.76M	169.61M
Balance Sheet
Total Assets	11.48B	10.89B	11.20B	11.83B	11.68B
Cash, Cash Equivalents and Short-Term Investments	2.27B	1.64B	2.35B	2.59B	2.39B
Total Debt	3.86B	4.50B	4.52B	5.25B	6.04B
Total Liabilities	7.33B	7.10B	7.57B	8.85B	9.19B
Stockholders Equity	4.16B	3.79B	3.63B	2.98B	2.49B
Cash Flow
Free Cash Flow	1.24B	-624.15M	980.64M	779.63M	1.32B
Operating Cash Flow	1.91B	536.88M	1.33B	1.21B	1.46B
Investing Cash Flow	-833.88M	-1.18B	-409.44M	-480.67M	-201.11M
Financing Cash Flow	-436.24M	-68.08M	-1.18B	-528.15M	-851.58M

Brass Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 659.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 659 is above the 20-day moving average (MA) of 608.95, above the 50-day MA of 631.90, and above the 200-day MA of 658.41, indicating a bearish trend. The MACD of -7.84 indicates Negative momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.73 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
4331	69 Neutral	¥10.17B	5.24	―	5.06%	0.36%	81.58%
2424	69 Neutral	¥3.40B	3.11	―	1.24%	6.77%	40.10%
2418	68 Neutral	¥30.58B	5.63	21.87%	2.14%	15.35%	45.10%
2485	64 Neutral	¥11.75B	12.72	―	4.02%	14.46%	18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥32.76B	5.66	―	2.48%	-4.39%	31.40%
3041	49 Neutral	¥2.12B	42.21	―	1.19%	6.83%	1654.82%