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

• Market Cap: ¥17.11B
• Dividend Yield: 2.86%
• Average Volume (3M): 45.08K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.36
• Revenue Growth: 36.31%
• EPS Growth: 52.62%
• Country: JP
• Employees: 160
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 77.73
• Shares Outstanding: 14,445,000
• 10 Day Avg. Volume: 16,660
• 30 Day Avg. Volume: 45,080
• PEG Ratio: 0.40
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 4.45
• 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: 63 Neutral
• Price Target: ¥1,299.00 ▲(9.25% Upside)

The score is primarily held back by financial risk factors—particularly high leverage and multi-year volatility in revenue and cash flows—despite improved recent profitability and cash generation. Offsetting this, technicals are constructive with the stock trading above key moving averages, and valuation is supportive with a low P/E and a moderate dividend yield.

Positive Factors

Margin expansion & profitability

Sustained margin expansion materially improves earnings resilience and operating leverage, enabling stronger cash generation and reinvestment in products or distribution. If maintained, higher margins support durable profit conversion and buffer against cyclical revenue swings.

Rebounded cash generation

A return to positive and cash-covering operating performance strengthens the firm’s ability to service debt, fund capex and dividends, and finance growth without reliance on external funding. Consistent FCF is a durable foundation for strategic flexibility over 2–6 months.

Diversified distribution & R&D

Multiple sales channels and geographic reach reduce customer concentration and demand risk, while ongoing R&D supports product differentiation and long-term competitiveness. These structural elements underpin steadier revenue generation and market positioning.

Negative Factors

Elevated financial leverage

High leverage increases sensitivity to earnings or cash-flow deterioration and raises refinancing and interest-rate risk. Structurally, elevated debt limits financial flexibility for M&A, capex or buffering downturns and is a meaningful constraint on durable stability.

Multi-year revenue and cash-flow volatility

Irregular top-line and cash performance undermines forecasting, capital allocation and the credibility of margins. Persistent volatility makes it harder to sustain investment programs, manage leverage, and deliver consistent shareholder returns over a multi-month horizon.

Moderate returns on equity

Subpar ROE indicates less efficient use of shareholder capital versus prior peaks, potentially limiting the firm's ability to organically rebuild equity and reduce leverage. Persistently moderate ROE can constrain long-term shareholder value creation and reinvestment capacity.

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

Company Description

First Brothers Co., Ltd. (3454) is a prominent player in the manufacturing and distribution sector, specializing in high-quality consumer goods and industrial products. The company operates primarily in the consumer electronics and home appliances markets, offering a wide range of products including kitchen appliances, personal care devices, and other household items. With a commitment to innovation and sustainability, First Brothers Co., Ltd. aims to enhance the daily lives of its customers through cutting-edge technology and design.

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

Income statement shows improved profitability and margin expansion, and cash flow rebounded with positive free cash flow in 2025. However, results have been volatile across years and the balance sheet is constrained by elevated leverage (debt-to-equity >2x), which increases risk if earnings weaken.

Income Statement

Profitability improved in the latest annual period (2025-11-30): gross margin rose to ~41% (from ~30% in 2024), and operating profitability strengthened with EBIT margin near ~28% and EBITDA margin ~35%. However, growth has been inconsistent: revenue fell in 2025 (down ~107% year-over-year per provided data) after prior volatility, and net profit margin (~9%) remains below the stronger levels seen in 2023 (~14%+). Overall, earnings power looks solid when revenue is stable, but the top-line trajectory is a key swing factor.

Balance Sheet

Leverage is elevated for an Asset Management business: debt-to-equity remains above 2x (about ~2.16x in 2025), which increases sensitivity to earnings volatility and refinancing conditions. Equity has grown modestly over time, but returns on equity are moderate in the latest period (~6.7% in 2025) and well below peak levels (low-teens in 2021/2023). The balance sheet is serviceable, but high leverage is the main constraint on the score.

Cash Flow

Cash generation rebounded meaningfully in 2025 with operating cash flow of ~¥7.2B and positive free cash flow of ~¥3.7B after a weak 2024 (negative free cash flow) and very weak 2022 (negative operating and free cash flow). Cash flow is somewhat uneven versus reported profits: operating cash flow covered net income at ~1.17x in 2025 (healthy), but was materially below net income in 2023–2024. Overall, the latest year is strong, but the multi-year volatility keeps the score mid-range.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.27B	19.06B	16.87B	22.27B	14.28B	26.69B
Gross Profit	5.67B	7.83B	5.10B	6.98B	4.09B	6.84B
EBITDA	4.70B	6.70B	4.16B	6.58B	3.01B	5.68B
Net Income	1.57B	1.75B	1.42B	3.19B	1.18B	2.80B
Balance Sheet
Total Assets	87.91B	89.83B	89.14B	89.94B	87.64B	82.55B
Cash, Cash Equivalents and Short-Term Investments	3.77B	7.93B	5.32B	8.16B	7.64B	11.11B
Total Debt	56.63B	56.48B	58.18B	58.45B	59.23B	53.15B
Total Liabilities	62.66B	63.58B	64.23B	65.51B	66.00B	61.74B
Stockholders Equity	25.14B	26.14B	24.80B	24.32B	21.54B	20.71B
Cash Flow
Free Cash Flow	0.00	3.68B	-1.31B	1.24B	-7.13B	292.20M
Operating Cash Flow	0.00	7.24B	3.50B	3.21B	-4.57B	301.18M
Investing Cash Flow	0.00	-3.05B	-4.24B	-1.58B	-3.15B	-399.76M
Financing Cash Flow	0.00	-2.33B	-1.19B	-1.21B	4.29B	4.75B

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 below the 20-day moving average (MA) of 1207.75, above the 50-day MA of 1188.26, and above the 200-day MA of 1068.37, indicating a bullish trend. The MACD of 9.63 indicates Positive momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 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	¥18.57B	5.94	―	5.27%	18.05%	34.17%
3772	69 Neutral	¥20.16B	108.75	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3454	63 Neutral	¥17.11B	9.78	―	2.86%	36.31%	52.62%
7347	62 Neutral	¥15.87B	231.48	―	2.52%	1.35%	-91.61%
8783	41 Neutral	¥9.30B	―	―	―	-17.04%	46.36%
2134	41 Neutral	¥18.62B	-10.93	―	―	-21.88%	17.12%

First Brothers Co., Ltd. Corporate Events

First Brothers Subsidiary to Book Major Gain on Confidential Nagoya Property Sale

First Brothers Co., Ltd. has approved the sale of a leased real estate asset in Nagoya, Aichi Prefecture, by its consolidated subsidiary Nagano Hotel Saihokukan Co., Ltd., with closing scheduled for late February 2026. Although the buyer and price are undisclosed due to contractual confidentiality, the company states that the sale price is equivalent to at least 10% of consolidated net sales for the fiscal year ended November 2025 and that the resulting gain will exceed 30% of consolidated ordinary profit and profit attributable to owners of parent, indicating a materially positive impact that will be reflected in the earnings forecast for the fiscal year ending November 30, 2026.

The most recent analyst rating on (JP:3454) stock is a Hold with a Yen1337.00 price target. To see the full list of analyst forecasts on First Brothers Co., Ltd. stock, see the JP:3454 Stock Forecast page.

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.

The most recent analyst rating on (JP:3454) stock is a Hold with a Yen1337.00 price target. To see the full list of analyst forecasts on First Brothers Co., Ltd. stock, see the JP:3454 Stock Forecast page.

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.

The most recent analyst rating on (JP:3454) stock is a Hold with a Yen1337.00 price target. To see the full list of analyst forecasts on First Brothers Co., Ltd. stock, see the JP:3454 Stock Forecast page.

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.

The most recent analyst rating on (JP:3454) stock is a Hold with a Yen1055.00 price target. To see the full list of analyst forecasts on First Brothers Co., Ltd. stock, see the JP:3454 Stock Forecast page.