BrainPad Inc. (3655) AI Stock Analysis

• Market Cap: ¥58.91B
• Dividend Yield: 0.28%
• Average Volume (3M): 734.39K
• Price to Earnings (P/E): 71.8
• Beta (1Y): 0.89
• Revenue Growth: 8.64%
• EPS Growth: -23.20%
• Country: JP
• Employees: 545
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.51
• Shares Outstanding: 22,300,596
• 10 Day Avg. Volume: 704,770
• 30 Day Avg. Volume: 734,393
• PEG Ratio: 1.52
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 2.45
• P/FCF Ratio: 21.83
• 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: 70 Outperform
• Price Target: ¥2,994.00 ▲(9.99% Upside)

The score is primarily supported by strong financial quality—debt-free balance sheet, improving profitability, and consistent positive free cash flow. Technicals are moderately positive with an uptrend versus longer-term averages but neutral momentum signals. The main constraint is valuation: a very high P/E and low dividend yield limit upside confidence at the current price.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and provides flexibility for future investments, supporting long-term stability and growth.

Margin Expansion

Sustained margin expansion indicates improved operational efficiency and pricing power, enhancing long-term profitability and competitive positioning.

Strategic Acquisition by Fujitsu

The acquisition by Fujitsu could enhance BrainPad's strategic direction, leveraging Fujitsu's resources and market presence for long-term growth.

Negative Factors

Earnings Volatility

Earnings volatility can impact investor confidence and complicate long-term planning, potentially affecting the company's valuation and market perception.

Profit Decline

A significant decline in profitability suggests challenges in cost management or revenue generation, potentially impacting future financial performance.

Uneven Cash Flow Conversion

Inconsistent cash flow conversion can affect liquidity and limit the company's ability to invest in growth opportunities, impacting long-term sustainability.

BrainPad Inc. Business Overview & Revenue Model

Company Description

BrainPad Inc. provides prediction/analysis, system integration, and digital marketing services in Japan. It offers various professional services related to data analytics/prediction and concrete action plans and measures suggestions; and services related to wisdom and prediction of scores utilizing machine learning/deep learning/optimization, etc. The company also provides automatic operational systems development services, which include system integration of prediction developed logics/algorithms and 3rd party analytics packages; and customer relationship management system consulting services. In addition, it offers software as a service-based marketing, data management platform, and natural language analysis services. BrainPad Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

BrainPad Inc. generates revenue through various streams, primarily from its data analytics and AI consulting services. The company offers customized solutions to businesses, helping them integrate data-driven strategies into their operations. Revenue is earned from service fees for consulting projects, the development and implementation of data platforms, and ongoing support and maintenance contracts. Additionally, BrainPad may have strategic partnerships with other technology firms that expand its service offerings and market reach, contributing to its earnings.

BrainPad Inc. Financial Statement Overview

Summary

BrainPad Inc. exhibits a robust financial profile with strong revenue growth and a healthy net profit margin. The balance sheet is particularly strong with no debt and a high equity ratio. While cash flow data for the latest period is unavailable, historical trends have been positive.

Income Statement

BrainPad Inc. demonstrates strong revenue growth with a TTM revenue of 11.27 billion, marking a year-over-year increase. The gross profit margin has remained robust at 47.6%, indicating cost efficiency. The net profit margin reached 10.6% TTM, reflecting solid profitability. EBIT and EBITDA margins are healthy, underscoring efficient operations.

Balance Sheet

The company showcases a strong balance sheet with zero debt, resulting in a debt-to-equity ratio of zero, which minimizes financial risk. The equity ratio is impressive at 77.5%, pointing to a solid capital structure. Return on equity is favorable at 19.5%, indicating effective use of equity capital.

Cash Flow

Cash flow metrics are mixed due to unavailable data for the latest period. However, historical free cash flow has grown consistently, and the free cash flow to net income ratio was strong in prior years. Operating cash flow has supported net income well, although recent data is missing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.77B	11.77B	10.56B	9.80B	8.56B	7.10B
Gross Profit	5.65B	5.65B	4.70B	3.93B	3.88B	3.18B
EBITDA	1.98B	2.01B	1.76B	1.08B	1.29B	1.01B
Net Income	1.06B	1.06B	909.48M	515.08M	803.25M	537.83M
Balance Sheet
Total Assets	7.52B	7.52B	7.26B	6.52B	6.15B	5.78B
Cash, Cash Equivalents and Short-Term Investments	3.40B	3.40B	3.36B	2.51B	2.91B	3.39B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.75B	1.75B	1.72B	1.62B	1.30B	1.10B
Stockholders Equity	5.77B	5.77B	5.53B	4.90B	4.85B	4.67B
Cash Flow
Free Cash Flow	0.00	1.32B	1.44B	728.29M	606.84M	541.87M
Operating Cash Flow	0.00	1.35B	1.54B	889.69M	1.13B	779.79M
Investing Cash Flow	0.00	-439.89M	-317.66M	-788.12M	-948.97M	-378.03M
Financing Cash Flow	0.00	-870.74M	-372.03M	-503.25M	-698.78M	44.28M

BrainPad Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2722.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3655, the sentiment is Neutral. The current price of 2722 is below the 20-day moving average (MA) of 2727.55, above the 50-day MA of 2710.48, and above the 200-day MA of 1624.45, indicating a neutral trend. The MACD of 16.85 indicates Positive momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3655.

BrainPad Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	80 Outperform	¥32.34B	21.23	―	0.73%	17.86%	21.52%
4396	76 Outperform	¥31.73B	20.13	―	1.70%	22.25%	31.88%
2349	72 Outperform	¥25.34B	10.75	―	1.21%	7.21%	0.30%
4072	71 Outperform	¥38.06B	11.62	―	2.22%	9.57%	315.38%
5574	71 Outperform	¥27.28B	56.12	―	―	29.61%	93.16%
3655	70 Outperform	¥58.91B	71.82	―	0.28%	8.64%	-23.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

BrainPad Inc. Corporate Events

BrainPad Announces Significant Reduction in Stake by Major Shareholder

BrainPad Inc. has announced a change in its major shareholders following an update of its shareholder register as of December 31, 2025. The Master Trust Bank of Japan, Ltd. (Trust Account) significantly reduced its stake in BrainPad, with its voting rights falling from 11.97% (2,503,700 shares), where it ranked as the second-largest shareholder, to 3.38% (706,600 shares), now ranking third among major shareholders. The company stated that this change in major shareholder composition will have no impact on its business performance.

The most recent analyst rating on (JP:3655) stock is a Buy with a Yen3078.00 price target. To see the full list of analyst forecasts on BrainPad Inc. stock, see the JP:3655 Stock Forecast page.

Fujitsu Acquires Majority Stake in BrainPad Inc.

BrainPad Inc. announced the successful completion of a tender offer by Fujitsu Limited, resulting in Fujitsu becoming the new parent company and largest shareholder. This acquisition, set to be finalized on December 22, 2025, marks a significant shift in BrainPad’s shareholder structure, with implications for its strategic direction and market positioning.

BrainPad Inc. Updates on Fujitsu Tender Offer Agreement

BrainPad Inc. announced amendments to its previous statement regarding the tender offer by Fujitsu Limited, following a new agreement with ITOCHU Corporation to tender all its shares. This development signifies a strategic move in the business integration process, potentially impacting shareholder dynamics and the company’s market positioning.

BrainPad Inc. Sets Record Date for Potential Extraordinary Shareholders’ Meeting

BrainPad Inc. has announced the establishment of a record date for an upcoming Extraordinary Shareholders’ Meeting, scheduled for late February 2026. This meeting is contingent on the outcome of a tender offer by Fujitsu Limited to acquire BrainPad’s shares. If Fujitsu’s tender offer is successful but does not result in complete acquisition, the meeting will address proposals to consolidate shares and amend the company’s Articles of Incorporation. The outcome of these proceedings could significantly impact BrainPad’s ownership structure and operational control.

BrainPad Inc. Reports Decline in Q1 Financial Performance

BrainPad Inc. reported a significant decline in its financial performance for the first quarter ended September 30, 2026, with operating profit and net income dropping by over 77% compared to the previous year. Despite maintaining steady net sales, the company faces challenges in profitability, which could impact its market positioning and stakeholder confidence.

BrainPad Inc. Supports Fujitsu Tender Offer and Business Integration

BrainPad Inc. has announced its Board of Directors’ support for a tender offer by Fujitsu Limited for its common shares, alongside a Business Integration Agreement. This strategic move is expected to accelerate BrainPad’s growth by leveraging Fujitsu’s extensive business foundation and cutting-edge technologies, while maintaining BrainPad’s brand and operational independence. The integration aims to position BrainPad as a core brand within Fujitsu’s Data & AI domain, enhancing management flexibility and promoting long-term growth.

BrainPad Inc. Supports Fujitsu’s Tender Offer for Business Integration

BrainPad Inc. has announced its support for a tender offer by Fujitsu Limited, aiming to make BrainPad a wholly-owned subsidiary. This move involves a business integration agreement and is expected to lead to the delisting of BrainPad’s shares, marking a significant shift in its market presence and operations.

BrainPad Inc. Revises Year-End Dividend Forecast Amid Fujitsu Acquisition Plans

BrainPad Inc. has announced a revision to its year-end dividend forecast, deciding not to distribute any dividends for the fiscal year ending June 2026. This decision is contingent upon the successful completion of a tender offer by Fujitsu Limited, which plans to acquire BrainPad and make it a wholly-owned subsidiary, leading to the delisting of BrainPad shares.

BrainPad Inc. Reports Significant Profit Decline in Q3 2025

BrainPad Inc. announced its preliminary consolidated financial results for the quarter ending September 30, 2025, showing a significant decline in profits compared to the same period last year. Despite stable net sales, operating profit, ordinary profit, and net profit attributed to owners of the parent decreased by over 75%, indicating challenges in maintaining profitability.

BrainPad Inc. Completes Treasury Share Disposal

BrainPad Inc. has completed the payment procedures for the disposal of treasury shares as restricted stocks, a move that was resolved in a recent Board of Directors meeting. This disposal involved 20,390 shares of common stock, distributed among directors, executive officers, and employees, and is part of the company’s strategy to incentivize and retain key personnel.