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

• Market Cap: ¥16.88B
• Dividend Yield: 5.58%
• Average Volume (3M): 15.74K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.43
• 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: 20,310
• 30 Day Avg. Volume: 15,740
• 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

• 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.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.87B	16.87B	22.27B	14.28B	26.69B	15.64B
Gross Profit	5.39B	5.10B	6.98B	4.09B	6.84B	4.29B
EBITDA	4.46B	4.16B	5.77B	3.11B	5.85B	3.22B
Net Income	1.46B	1.42B	3.19B	1.18B	2.80B	2.31B
Balance Sheet
Total Assets	89.12B	89.14B	89.94B	87.64B	82.55B	73.76B
Cash, Cash Equivalents and Short-Term Investments	4.53B	5.32B	8.16B	7.64B	11.11B	6.56B
Total Debt	58.44B	58.18B	58.45B	59.23B	53.15B	47.66B
Total Liabilities	64.29B	64.23B	65.51B	66.00B	61.74B	55.43B
Stockholders Equity	24.73B	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: 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 1189 is above the 20-day moving average (MA) of 1175.70, above the 50-day MA of 1137.68, and above the 200-day MA of 1042.77, indicating a bullish trend. The MACD of 18.89 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.08 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	¥16.52B	6.19	―	5.50%	17.92%	15.44%
3454	69 Neutral	¥16.88B	10.63	―	5.58%	36.31%	52.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	65 Neutral	¥16.27B	236.19	―	2.61%	11.20%	-93.41%
3772	60 Neutral	¥19.83B	12.70	―	1.91%	-30.94%	26.14%
2134	41 Neutral	¥20.81B	―	―	―	59.21%	3.41%
8783	40 Neutral	¥9.07B	―	―	―	-17.04%	46.36%

First Brothers Co., Ltd. Corporate Events

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.

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

First Brothers Co., Ltd. announced the sale of two real estate properties in Hakone-machi, Kanagawa Prefecture, through its subsidiary, First Brothers Capital Co., Ltd. The sale is significant, with the transaction’s value exceeding 10% of the company’s consolidated net sales for the previous fiscal year. The gain from the sale is expected to surpass 30% of the consolidated ordinary profit and profit attributable to owners of the parent for the same period, indicating a substantial impact on the company’s financial performance.

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.

First Brothers Co., Ltd. Acquires Sugawara Cold Storage to Boost Regional Growth

First Brothers Co., Ltd. announced the acquisition of Sugawara Cold Storage Co., Ltd. through its subsidiary Higashinihon Fudosan, converting it into a second-tier subsidiary. This strategic move aims to address succession challenges at Sugawara Cold Storage, enhance logistics infrastructure, and expand business opportunities, marking a significant ESG investment for First Brothers.

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.