First Brothers Co., Ltd. (3454) AI Stock Analysis

• Market Cap: ¥14.86B
• Dividend Yield: 6.26%
• Average Volume (3M): 8.66K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.46
• Revenue Growth: 22.01%
• EPS Growth: 26.92%
• Country: JP
• Employees: 160
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 11.12
• Shares Outstanding: 14,445,000
• 10 Day Avg. Volume: 5,000
• 30 Day Avg. Volume: 8,663
• PEG Ratio: 32.80
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.16
• 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: ¥1,055.00
• Price Target Upside: -0.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,055.00 ▼(-0.47%Downside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and negative cash flow, despite attractive valuation metrics. The mixed technical analysis suggests neutral to slightly positive momentum.

First Brothers Co., Ltd. Business Overview & Revenue Model

Company Description

First Brothers Co., Ltd. (3454) is a Japan-based company primarily engaged in the real estate business. The company operates in various sectors, including real estate investment, asset management, and advisory services. It focuses on acquiring, managing, and selling real estate properties and providing comprehensive asset management solutions to its clients. Its core services include real estate investment trust (REIT) management, private real estate fund management, and real estate consulting services.

How the Company Makes Money

First Brothers Co., Ltd. generates revenue through a combination of real estate investments, asset management fees, and advisory services. The company earns income by acquiring and managing real estate properties, which may include residential, commercial, and industrial properties. Through its asset management segment, it charges management fees for overseeing REITs and private real estate funds, which are collected from investors in those funds. Additionally, First Brothers Co., Ltd. provides consulting services to clients, offering expertise in real estate investment strategies and market analysis, thereby earning advisory fees. Key revenue streams include rental income from properties, management fees from investment funds, and consulting fees from advisory services. The company may also benefit from strategic partnerships with financial institutions and real estate developers that enhance its investment opportunities and operational capabilities.

First Brothers Co., Ltd. Financial Statement Overview

Summary

The company shows moderate profitability with decent margins but faces challenges due to declining revenue, high leverage, and negative free cash flow, which pose risks to financial stability.

Income Statement

The company's income statement shows a mixed performance. Gross profit margin and net profit margin for the latest period stand at approximately 30.27% and 8.40% respectively, indicating decent profitability. However, there is a notable decline in revenue from the previous year, with a revenue growth rate of -24.24%. EBIT and EBITDA margins are healthy at 16.83% and 24.67%, respectively, highlighting efficient operations.

Balance Sheet

The balance sheet reveals a high level of leverage with a debt-to-equity ratio of 2.35, which poses a risk in terms of financial stability. The return on equity is 5.71%, reflecting moderate profitability. The equity ratio is 27.82%, indicating a lower proportion of equity financing, which may affect the firm's ability to absorb losses.

Cash Flow

The cash flow statement shows challenges with negative free cash flow and a free cash flow growth rate of -205.68% compared to the previous year, indicating significant cash outflows. The operating cash flow to net income ratio is 2.47, suggesting that operating cash flow covers net income well. However, the free cash flow to net income ratio is -0.92, underscoring cash flow difficulties.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.87B	22.27B	14.28B	26.69B	15.64B
Gross Profit	5.10B	6.98B	4.09B	6.84B	4.29B
EBITDA	4.16B	5.77B	3.11B	5.85B	3.22B
Net Income	1.42B	3.19B	1.18B	2.80B	2.31B
Balance Sheet
Total Assets	89.14B	89.94B	87.64B	82.55B	73.76B
Cash, Cash Equivalents and Short-Term Investments	5.32B	8.16B	7.64B	11.11B	6.56B
Total Debt	58.18B	58.45B	59.23B	53.15B	47.66B
Total Liabilities	64.23B	65.51B	66.00B	61.74B	55.43B
Stockholders Equity	24.80B	24.32B	21.54B	20.71B	18.23B
Cash Flow
Free Cash Flow	-1.31B	1.24B	-7.13B	292.20M	-4.89B
Operating Cash Flow	3.50B	3.21B	-4.57B	301.18M	-4.88B
Investing Cash Flow	-4.24B	-1.86B	-3.15B	-399.76M	-1.99B
Financing Cash Flow	-1.19B	-1.21B	4.29B	4.75B	5.42B

First Brothers Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1060.00
• 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:3454, the sentiment is Positive. The current price of 1060 is above the 20-day moving average (MA) of 1056.40, above the 50-day MA of 1027.88, and above the 200-day MA of 1025.49, indicating a bullish trend. The MACD of 9.53 indicates Positive momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 58.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3454.

First Brothers Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8737	73 Outperform	¥16.49B	6.13		5.39%	21.00%	4.63%
7347	68 Neutral	¥15.65B	31.99		2.74%	-4.73%	-51.89%
3772	64 Neutral	¥19.45B	17.62		1.99%	-36.03%	-39.34%
3454	61 Neutral	¥14.86B	10.17		6.26%	22.01%	26.92%
Sector *	58 Neutral	HK$92.20B	5.61	-3.20%	4.95%	5.50%	-56.25%
2134	43 Neutral	¥44.36B	―		―	133.46%	0.03%
8783	39 Underperform	¥7.20B	―		―	-13.81%	46.88%

First Brothers Co., Ltd. Corporate Events

First Brothers Co., Ltd. Sells Major Real Estate Asset

First Brothers Co., Ltd. has announced the sale of a real estate asset located in Miyakojima, Okinawa Prefecture, by its subsidiary, First Brothers Capital Co., Ltd., to Ichigo Hotel REIT Investment Corporation for ¥2,300 million. This transaction, which represents a significant portion of the company’s consolidated net sales, is expected to impact the company’s financial performance for the fiscal year ending November 30, 2025, and reflects the company’s strategic focus on optimizing its investment portfolio.