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

• Market Cap: ¥14.02B
• Dividend Yield: 6.8%
• Average Volume (3M): 9.41K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.45
• Revenue Growth: -22.99%
• EPS Growth: -50.67%
• Country: JP
• Employees: 160
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 101.36
• Shares Outstanding: 14,445,000
• 10 Day Avg. Volume: 7,580
• 30 Day Avg. Volume: 9,406
• PEG Ratio: -0.18
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.68
• 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: 61 Neutral
• Price Target: ¥1,055.00 ▲(5.50%Upside)

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 Japanese company primarily engaged in the real estate sector. The company focuses on investment management, property development, and real estate brokerage services. It provides comprehensive solutions in the acquisition, development, and management of commercial and residential properties, catering to various client needs in the real estate market.

How the Company Makes Money

First Brothers Co., Ltd. generates revenue through its diversified real estate operations. The primary revenue streams include investment management fees from managing real estate assets, profits from property development projects, and commissions from real estate brokerage services. The company also benefits from rental income through its management of commercial and residential properties. Strategic partnerships with financial institutions and real estate developers further enhance its revenue-generating capabilities, enabling it to leverage market opportunities and expand its asset portfolio.

First Brothers Co., Ltd. Financial Statement Overview

Summary

The company shows moderate profitability and operational efficiency with decent profit margins. However, it faces challenges such as declining revenue, high leverage, and negative free cash flow, which could impact future financial stability and growth.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.14B	16.87B	22.27B	14.28B	26.69B	15.64B
	Gross Profit
4.51B	5.10B	6.98B	4.09B	6.84B	4.29B
	EBIT
2.25B	2.84B	4.46B	1.82B	4.94B	2.54B
	EBITDA
2.60B	4.16B	5.77B	3.11B	5.85B	3.22B
	Net Income Common Stockholders
1.03B	1.42B	3.19B	1.18B	2.80B	2.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.69B	5.32B	8.16B	7.64B	11.11B	6.56B
	Total Assets
87.73B	89.14B	89.94B	87.64B	82.55B	73.76B
	Total Debt
58.25B	58.18B	58.45B	59.23B	53.15B	47.66B
	Net Debt
53.56B	53.36B	50.92B	51.93B	42.38B	41.45B
	Total Liabilities
63.70B	64.23B	65.51B	66.00B	61.74B	55.43B
	Stockholders Equity
23.92B	24.80B	24.32B	21.54B	20.71B	18.23B
Cash Flow		Free Cash Flow
637.77M	-1.31B	1.24B	-7.13B	292.20M	-4.89B
	Operating Cash Flow
637.77M	3.50B	3.21B	-4.57B	301.18M	-4.88B
	Investing Cash Flow
0.00	-4.24B	-1.86B	-3.15B	-399.76M	-1.99B
	Financing Cash Flow
0.00	-1.19B	-1.21B	4.29B	4.75B	5.42B

First Brothers Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1000.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3454, the sentiment is Positive. The current price of 1000 is above the 20-day moving average (MA) of 992.55, above the 50-day MA of 989.58, and below the 200-day MA of 1033.61, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 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	81 Outperform	¥15.15B	5.64		6.97%	21.00%	4.55%
7347	68 Neutral	¥14.70B	30.05		2.90%	-4.73%	-51.89%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
3772	62 Neutral	¥20.10B	18.00		1.91%	-36.03%	-39.21%
3454	61 Neutral	¥14.02B	9.87		6.80%	-22.99%	-50.67%
2134	43 Neutral	¥10.08B	―		―	133.46%	0.03%
8783	39 Underperform	¥9.55B	―		―	-10.80%	55.36%

First Brothers Co., Ltd. Corporate Events

First Brothers Co., Ltd. Announces Dividend Payout for FY 2024

First Brothers Co., Ltd. has announced a dividend payout of ¥34.00 per share with a record date of November 30, 2024, approved by the Board of Directors. The company bases its dividends on a benchmark DOE of 2.0% due to fluctuating financial results linked to real estate transactions, ensuring continuous and stable year-end dividends for shareholders.