Broadleaf Co., Ltd. (3673) AI Stock Analysis

• Market Cap: ¥65.03B
• Dividend Yield: 0.61%
• Average Volume (3M): 182.26K
• Price to Earnings (P/E): 62.9
• Beta (1Y): 0.62
• Revenue Growth: 18.86%
• EPS Growth: N/A
• Country: JP
• Employees: 920
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 5.07
• Shares Outstanding: 97,896,800
• 10 Day Avg. Volume: 186,690
• 30 Day Avg. Volume: 182,263
• PEG Ratio: -1.42
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 3.32
• P/FCF Ratio: 9.18
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥760.00 ▲(2.84% Upside)

Broadleaf Co., Ltd. shows strong financial performance with consistent revenue growth and robust cash flow. However, the technical indicators suggest a bearish trend, and the high P/E ratio raises concerns about valuation. The low dividend yield further limits the stock's attractiveness. Overall, while the company is financially stable, market sentiment and valuation metrics suggest caution.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, allowing for reinvestment and strategic initiatives to drive future growth.

Balance Sheet Health

A strong balance sheet with low leverage provides stability and reduces financial risk, supporting sustainable long-term operations.

Negative Factors

Net Profit Margin

Low net profit margins may limit profitability, impacting the company's ability to reinvest in growth and compete effectively.

Return on Equity

A modest return on equity indicates less efficient use of shareholder funds, which could hinder investor confidence and capital attraction.

Dividend Yield

A low dividend yield may reduce the stock's attractiveness to income-focused investors, potentially affecting demand and stock price stability.

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company Description

Broadleaf Co., Ltd. (3673) is a prominent Japanese technology company specializing in e-commerce solutions and digital marketing services. Operating primarily in the software development sector, Broadleaf focuses on providing robust platforms for online retail businesses, including comprehensive systems for inventory management, payment processing, and customer relationship management. The company caters to a diverse range of industries, aiming to enhance the digital transformation of its clients through innovative technology and tailored solutions.

How the Company Makes Money

Broadleaf Co., Ltd. generates revenue primarily through the sale of its e-commerce software licenses and subscription services, which provide clients with ongoing access to their platforms and regular updates. Additionally, the company earns income from consulting services that help businesses integrate and optimize their e-commerce systems. Key revenue streams include transaction fees from payment processing, maintenance contracts, and custom development projects tailored to specific client needs. Strategic partnerships with other technology firms and integrations with popular payment gateways further bolster revenue opportunities, enabling Broadleaf to attract a wider client base and enhance its service offerings.

Broadleaf Co., Ltd. Financial Statement Overview

Summary

Broadleaf Co., Ltd. is on a positive growth trajectory with improving revenue and profitability metrics. The company maintains a stable balance sheet with prudent leverage and a strong equity position. Cash flow generation is robust, supporting the company's ability to invest in growth opportunities. While profitability margins have room for improvement, the current financial health is solid, positioning the company well for future challenges and opportunities.

Income Statement

Broadleaf Co., Ltd. shows a positive trajectory in revenue growth with a 3.48% increase in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin remains strong at 65.07%, indicating efficient cost management. However, the net profit margin is relatively low at 3.06%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved significantly over the past year, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.27, indicating a conservative approach to leverage. The return on equity (ROE) has improved to 2.50% in the TTM, showing a recovery in profitability. However, the equity ratio stands at 58.05%, suggesting a strong equity base relative to total assets, which is a positive sign of financial stability.

Cash Flow

Broadleaf Co., Ltd. demonstrates strong cash flow performance with a 33.87% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.45, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio of 0.81 suggests effective conversion of earnings into cash, supporting future growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.32B	18.05B	15.38B	13.83B	20.65B	21.16B
Gross Profit	13.16B	11.71B	9.34B	8.49B	14.90B	15.07B
EBITDA	5.10B	3.59B	874.28M	-244.45M	5.61B	6.31B
Net Income	1.05B	343.30M	-1.49B	-2.43B	2.17B	2.46B
Balance Sheet
Total Assets	41.43B	39.89B	36.75B	33.54B	34.48B	32.27B
Cash, Cash Equivalents and Short-Term Investments	4.03B	4.31B	3.92B	3.46B	3.61B	3.23B
Total Debt	6.07B	6.13B	7.25B	5.15B	2.82B	1.54B
Total Liabilities	17.55B	16.75B	14.26B	9.87B	8.36B	7.67B
Stockholders Equity	23.85B	23.14B	22.47B	23.63B	26.11B	24.60B
Cash Flow
Free Cash Flow	7.02B	6.52B	-698.21M	-1.41B	284.71M	2.38B
Operating Cash Flow	7.03B	6.53B	3.42B	1.61B	3.78B	5.06B
Investing Cash Flow	-4.45B	-4.31B	-3.67B	-2.91B	-3.39B	-2.77B
Financing Cash Flow	-2.36B	-1.83B	704.75M	1.24B	-108.00M	-2.08B

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 739.00
• 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:3673, the sentiment is Positive. The current price of 739 is above the 20-day moving average (MA) of 728.05, above the 50-day MA of 729.18, and above the 200-day MA of 713.65, indicating a bullish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3673.

Broadleaf Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4481	79 Outperform	¥61.02B	13.84	―	3.36%	11.81%	18.17%
3836	76 Outperform	¥66.55B	17.57	―	1.41%	13.38%	24.62%
3712	72 Outperform	¥21.04B	17.63	―	1.83%	6.39%	6.38%
3663	70 Outperform	¥58.99B	32.69	―	2.08%	15.45%	-9.67%
3983	70 Outperform	¥32.16B	17.21	―	1.44%	5.48%	5.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3673	61 Neutral	¥65.03B	62.90	―	0.61%	18.86%	―

Broadleaf Co., Ltd. Corporate Events

Broadleaf Co., Ltd. Revises Earnings Forecasts for FY2025

Broadleaf Co., Ltd. has revised its consolidated earnings forecast for the fiscal year ending December 31, 2025, due to higher-than-expected demand for hardware replacements and successful cloud transition initiatives. Despite increased procurement costs, the company anticipates improved operating profits through cost optimization efforts, although financial expenses are expected to maintain the forecasts for profit before tax and profit attributable to owners.

Broadleaf Co., Ltd. Reports Strong Q3 2025 Financial Results and Upward Earnings Forecast

Broadleaf Co., Ltd. reported significant growth in its financial results for the third quarter of the fiscal year 2025, with a notable increase in revenue and profits compared to the previous year. The company also announced an upward revision in its earnings forecasts for the full fiscal year, indicating strong operational performance and positive future prospects.