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

• Market Cap: ¥16.74B
• Dividend Yield: 2.94%
• Average Volume (3M): 45.48K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.38
• Revenue Growth: 36.31%
• EPS Growth: 52.62%
• Country: JP
• Employees: 160
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 31.07
• Shares Outstanding: 14,445,000
• 10 Day Avg. Volume: 19,170
• 30 Day Avg. Volume: 45,476
• PEG Ratio: -0.18
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -11.05
• 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: ¥1,337.00 ▲(12.45% Upside)

The stock's strong technical indicators and attractive valuation are the primary strengths, suggesting potential for price appreciation. However, financial challenges such as declining revenue and high leverage pose risks to long-term stability.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth, indicating successful market expansion and product adoption, which supports long-term business sustainability.

Product Innovation

Continuous investment in R&D for new product innovation helps maintain a competitive edge, ensuring the company can adapt to market changes and meet consumer demands.

Market Expansion

Expanding into international markets, especially emerging economies, allows the company to tap into new customer bases, driving long-term growth and diversification of revenue streams.

Negative Factors

High Leverage

High leverage poses risks to financial stability, as it may limit the company's ability to absorb losses and increase vulnerability to economic downturns, impacting long-term viability.

Negative Free Cash Flow

Negative free cash flow indicates cash outflows exceeding inflows, which can strain the company's ability to fund operations and investments, affecting future growth potential.

Declining Revenue

A decline in revenue suggests potential challenges in maintaining market share or product demand, which could impact long-term profitability and market position.

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

Company Description

First Brothers Co.,Ltd. engages in the investment management and investment banking businesses in Japan. The company offers investment management services, including fund origination, asset acquisition, management, and disposition services; and various real estate investment advisory solutions, as well as develops and manages a range of commercial facilities. It also co-invests in funds; and invests in offices, residences, and commercial assets, as well as a range of areas comprising venture capitals, debts, private equities, and real estate funds. In addition, the company offers various corporate advisory services and strategies, such as mergers and acquisitions, capital tie-ups, and financing. First Brothers Co.,Ltd. was founded in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

First Brothers Co., Ltd. generates revenue through multiple streams, primarily focused on the sales of its consumer electronics and home appliances. The company employs a direct sales model along with partnerships with major retail chains and online platforms to distribute its products. Additionally, it leverages international markets to expand its customer base, tapping into emerging economies where demand for consumer goods is rising. The company also invests in research and development to innovate new products, which helps maintain a competitive edge and attract new customers. Strategic collaborations with suppliers and technology partners further enhance its product offerings and market reach, contributing significantly to its overall earnings.

First Brothers Co., Ltd. Financial Statement Overview

Summary

The company shows moderate profitability with healthy EBIT and EBITDA margins. However, declining revenue, high leverage, and negative free cash flow present significant financial challenges.

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	19.27B	16.87B	22.27B	14.28B	26.69B	15.64B
Gross Profit	5.67B	5.10B	6.98B	4.09B	6.84B	4.29B
EBITDA	4.70B	4.16B	6.58B	3.01B	5.68B	4.18B
Net Income	1.57B	1.42B	3.19B	1.18B	2.80B	2.31B
Balance Sheet
Total Assets	87.91B	89.14B	89.94B	87.64B	82.55B	73.76B
Cash, Cash Equivalents and Short-Term Investments	3.77B	5.32B	8.16B	7.64B	11.11B	6.56B
Total Debt	56.63B	58.18B	58.45B	59.23B	53.15B	47.66B
Total Liabilities	62.66B	64.23B	65.51B	66.00B	61.74B	55.43B
Stockholders Equity	25.14B	24.80B	24.32B	21.54B	20.71B	18.23B
Cash Flow
Free Cash Flow	0.00	-1.31B	1.24B	-7.13B	292.20M	-4.89B
Operating Cash Flow	0.00	3.50B	3.21B	-4.57B	301.18M	-4.88B
Investing Cash Flow	0.00	-4.24B	-1.58B	-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: 1189.00
• 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 1189 is above the 20-day moving average (MA) of 1180.84, above the 50-day MA of 1169.93, and above the 200-day MA of 1048.34, indicating a bullish trend. The MACD of 5.63 indicates Positive momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 70.73 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	¥16.98B	5.44	―	5.40%	18.05%	34.17%
3772	69 Neutral	¥20.77B	112.06	―	1.84%	-40.77%	-91.81%
3454	69 Neutral	¥16.74B	10.63	―	2.94%	36.31%	52.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.95B	247.33	―	2.52%	1.35%	-91.61%
2134	41 Neutral	¥15.88B	-9.65	―	―	-21.88%	17.12%
8783	40 Underperform	¥7.57B	-1.19	―	―	-17.04%	46.36%

First Brothers Co., Ltd. Corporate Events

First Brothers Co., Ltd. Announces Major Real Estate Sale

First Brothers Co., Ltd. announced the sale of a significant real estate asset by its subsidiary, First Brothers Capital Co., Ltd., located in Osaka. The transaction, which is expected to significantly impact the company’s financial results, reflects a gain exceeding 30% of the previous year’s consolidated ordinary profit and profit attributable to owners of the parent. The sale is part of the company’s strategic financial maneuvers, with the impact already factored into the revised earnings forecast for the fiscal year ending November 2025.

First Brothers Revises Earnings Forecast Amid Strategic Real Estate Sales

First Brothers Co., Ltd. has revised its earnings forecast for the fiscal year ending November 30, 2025, expecting significant increases in operating and ordinary profits due to strategic real estate sales and lower non-operating expenses. However, an extraordinary loss from an impairment related to its subsidiary, Saihokukan, limits the upward revision of profit attributable to owners of the parent. The company plans to continue investing in Saihokukan to enhance its value despite delays in renovation plans due to rising construction costs.

First Brothers Co., Ltd. Reports Strong Financial Growth for Nine Months Ending August 2025

First Brothers Co., Ltd. reported a significant increase in its financial performance for the nine months ended August 31, 2025, with net sales rising by 30.4% and operating profit increasing by 37.3% compared to the previous year. This growth reflects the company’s strong market positioning and effective financial strategies, which have resulted in improved profitability and comprehensive income, benefiting stakeholders and enhancing shareholder value.