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Broadleaf Co., Ltd. (JP:3673)
:3673
Japanese Market

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

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JP

Broadleaf Co., Ltd.

(3673)

Rating:65Neutral
Price Target:
¥762.00
▲(6.87%Upside)
Broadleaf Co., Ltd. scores moderately due to a combination of strong technical indicators and stable financial performance. The bullish technical analysis suggests positive market momentum, while the financials provide a solid foundation despite areas that require improvement. However, the stock's high P/E ratio and low dividend yield indicate overvaluation, which negatively impacts the overall score.

Broadleaf Co., Ltd. (3673) vs. iShares MSCI Japan ETF (EWJ)

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company DescriptionBroadleaf Co., Ltd. (3673) is a Japanese company primarily engaged in providing IT solutions for the automotive aftermarket and other industries. The company's core offerings include software development and cloud-based services tailored to the needs of automotive repair shops, parts retailers, and other related sectors. Broadleaf's solutions aim to enhance operational efficiency and business management for its clients, supporting a diverse range of activities, from inventory management to customer relationship management.
How the Company Makes MoneyBroadleaf Co., Ltd. generates revenue primarily through the sale and subscription of its software and IT services. The company offers both on-premise software solutions and cloud-based platforms, charging clients on a subscription basis for access to its cloud services. Additionally, Broadleaf earns income from the sale and licensing of its software products, consulting services, and technical support. Partnerships with automotive industry players and continuous innovation in its product offerings contribute significantly to the company's earnings, helping it to maintain a competitive edge in the market.

Broadleaf Co., Ltd. Financial Statement Overview

Summary
Broadleaf Co., Ltd. demonstrates a sound financial position with positive revenue growth and improving profitability margins. The company's balance sheet reflects moderate leverage and a solid equity base, while cash flow metrics indicate strong cash generation capabilities. Despite some areas needing improvement, such as operational efficiency and free cash flow growth, the overall financial health of the company is stable.
Income Statement
72
Positive
Broadleaf Co., Ltd. shows an overall positive trend in its income statement metrics. The Gross Profit Margin stands at 65.05% for TTM (Trailing-Twelve-Months), indicating effective cost management. The Net Profit Margin has improved to 3.06% for TTM, showcasing a recovery from prior losses. Revenue growth is positive at 4.13% over the last year, pointing to effective business strategies. However, the EBIT and EBITDA margins are relatively low at 6.10% and 22.27% respectively, which suggests room for operational improvements.
Balance Sheet
65
Positive
The balance sheet of Broadleaf Co., Ltd. reflects a stable financial position with a Debt-to-Equity ratio of 0.27, indicating moderate leverage. The Return on Equity (ROE) is a modest 2.47%, highlighting limited profitability on equity capital. The Equity Ratio is strong at 58.83%, demonstrating a solid equity base. The company has managed to maintain a stable equity base despite fluctuations in profitability, which is a positive indicator of financial health.
Cash Flow
68
Positive
Broadleaf Co., Ltd.'s cash flow situation is improving, with a Free Cash Flow growth rate of -24.92% compared to the previous year, indicating a decrease in free cash flow due to higher capital expenditures. The Operating Cash Flow to Net Income Ratio is a robust 10.55, suggesting strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also healthy at 8.52, indicating efficient conversion of income into cash. While free cash flow has decreased, the strong cash flow ratios provide a cushion for future investments and debt servicing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
18.79B18.05B15.38B13.83B20.65B21.16B
Gross Profit
12.23B11.71B9.34B8.49B14.90B15.07B
EBIT
1.15B674.09M-1.89B-2.90B3.40B4.14B
EBITDA
4.19B3.59B874.28M-244.45M5.61B6.02B
Net Income Common Stockholders
574.54M343.30M-1.49B-2.43B2.17B2.46B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.33B4.31B3.92B3.46B3.61B3.29B
Total Assets
39.51B39.89B36.75B33.54B34.48B32.27B
Total Debt
6.36B6.13B7.25B5.15B2.82B1.54B
Net Debt
3.03B1.83B3.33B1.69B-704.30M-1.70B
Total Liabilities
16.25B16.75B14.26B9.87B8.36B7.67B
Stockholders Equity
23.24B23.14B22.47B23.63B26.11B24.60B
Cash FlowFree Cash Flow
4.90B6.52B-698.21M-1.41B284.71M2.38B
Operating Cash Flow
6.06B6.53B3.42B1.61B3.78B5.06B
Investing Cash Flow
-4.59B-4.31B-3.67B-2.91B-3.39B-2.77B
Financing Cash Flow
-3.38B-1.83B704.75M1.24B-108.00M-2.08B

Broadleaf Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price713.00
Price Trends
50DMA
680.40
Positive
100DMA
665.33
Positive
200DMA
661.58
Positive
Market Momentum
MACD
10.19
Negative
RSI
54.86
Neutral
STOCH
44.75
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 713 is above the 20-day moving average (MA) of 703.50, above the 50-day MA of 680.40, and above the 200-day MA of 661.58, indicating a bullish trend. The MACD of 10.19 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 44.75 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥65.80B15.93
2.98%8.13%10.47%
78
Outperform
¥41.71B22.15
1.30%8.10%0.69%
72
Outperform
¥16.92B14.05
2.18%2.71%9.95%
70
Outperform
¥54.45B30.66
1.59%1.41%131.82%
67
Neutral
¥56.84B17.55
1.26%19.57%46.10%
65
Neutral
¥62.74B110.81
0.28%19.15%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3673
Broadleaf Co., Ltd.
713.00
178.61
33.42%
JP:3663
CELSYS, Inc.
1,511.00
690.62
84.18%
JP:3712
Information Planning Co., Ltd.
5,050.00
1,347.54
36.40%
JP:3836
AVANT GROUP CORPORATION
1,510.00
231.58
18.11%
JP:3983
ORO Co. Ltd.
2,699.00
155.10
6.10%
JP:4481
Base Co., Ltd.
3,420.00
702.30
25.84%

Broadleaf Co., Ltd. Corporate Events

Broadleaf Co., Ltd. Revises Earnings Forecast Upward for First Half of 2025
May 14, 2025

Broadleaf Co., Ltd. has revised its earnings forecast for the first half of 2025, indicating a positive outlook due to successful customer migration to cloud-based software and higher-than-expected demand for hardware replacements. The company anticipates increased revenue and profits, driven by cost reductions achieved through the use of generative AI, although the full-year forecast remains unchanged.

Broadleaf Co., Ltd. Announces Disposal of Treasury Shares for Stock Compensation
Apr 16, 2025

Broadleaf Co., Ltd. announced the disposal of 85,496 treasury shares as restricted stock compensation for its directors and corporate officers. This initiative, approved by the Board of Directors, aims to align the interests of the company’s leadership with shareholders by tying compensation to stock performance, thereby incentivizing efforts to increase corporate value.

Broadleaf Co., Ltd. Announces Corporate Officer Restructuring
Mar 21, 2025

Broadleaf Co., Ltd. has announced a restructuring of its corporate officer team following its 16th Annual General Meeting of Shareholders. Four new corporate officers have been appointed, each with specific duties, while six executive officers will retire upon the expiration of their terms. This restructuring is likely aimed at enhancing operational efficiency and aligning leadership with strategic goals.

Broadleaf Co., Ltd. Increases Dividend Forecast for 2025
Mar 17, 2025

Broadleaf Co., Ltd. has announced an upward revision of its dividend forecast for the fiscal year ending December 2025, increasing the annual dividend per share from 4.00 yen to 5.00 yen. This decision reflects the company’s commitment to returning profits to shareholders and is based on an improved financial outlook, aiming to enhance shareholder returns and maintain financial soundness.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.