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

• Market Cap: ¥63.09B
• Dividend Yield: 0.63%
• Average Volume (3M): 182.26K
• Price to Earnings (P/E): 83.0
• Beta (1Y): 0.67
• Revenue Growth: 18.44%
• EPS Growth: N/A
• Country: JP
• Employees: 920
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.45
• Shares Outstanding: 97,896,800
• 10 Day Avg. Volume: 186,690
• 30 Day Avg. Volume: 182,263
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥756.00
• Price Target Upside: 5.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥756.00 ▲(5.44% Upside)

Broadleaf Co., Ltd. demonstrates strong financial performance with robust cash flow and a stable balance sheet, which are the most significant factors in its overall score. However, the high P/E ratio and low dividend yield suggest valuation concerns, while technical indicators reflect a lack of clear momentum, contributing to a moderate overall stock score.

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company Description

Broadleaf Co., Ltd. develops and provides software, and IT solutions and services for the automotive aftermarket, and other business sectors and industries in Japan. The company offers broadleaf cloud platform; IT solutions, such as customer management, sales management, and inventory management systems; and operations analysis software. It also provides big data analysis related to automobiles and other services to mobile phone distributors, travel agencies, bus operators, and machine tools dealers. Broadleaf Co., Ltd. was founded in 2005 and is headquartered in Tokyo, Japan.

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.

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	19.44B	18.05B	15.38B	13.83B	20.65B	21.16B
Gross Profit	12.62B	11.71B	9.34B	8.49B	14.90B	15.07B
EBITDA	4.62B	3.59B	874.28M	-244.45M	5.61B	6.31B
Net Income	773.52M	343.30M	-1.49B	-2.43B	2.17B	2.46B
Balance Sheet
Total Assets	40.56B	39.89B	36.75B	33.54B	34.48B	32.27B
Cash, Cash Equivalents and Short-Term Investments	3.62B	4.31B	3.92B	3.46B	3.61B	3.23B
Total Debt	6.15B	6.13B	7.25B	5.15B	2.82B	1.54B
Total Liabilities	16.99B	16.75B	14.26B	9.87B	8.36B	7.67B
Stockholders Equity	23.54B	23.14B	22.47B	23.63B	26.11B	24.60B
Cash Flow
Free Cash Flow	6.56B	6.52B	-698.21M	-1.41B	284.71M	2.38B
Operating Cash Flow	6.57B	6.53B	3.42B	1.61B	3.78B	5.06B
Investing Cash Flow	-4.54B	-4.31B	-3.67B	-2.91B	-3.39B	-2.77B
Financing Cash Flow	-2.45B	-1.83B	704.75M	1.24B	-108.00M	-2.08B

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 717.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3673, the sentiment is Negative. The current price of 717 is below the 20-day moving average (MA) of 734.50, below the 50-day MA of 733.90, and above the 200-day MA of 695.10, indicating a neutral trend. The MACD of -3.17 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥64.22B	14.89	―	3.21%	12.36%	19.42%
3836	74 Outperform	¥55.82B	15.75	―	1.67%	15.59%	22.71%
3712	72 Outperform	¥20.83B	17.35	―	1.77%	6.96%	16.13%
3663	70 Outperform	¥59.71B	38.55	―	2.14%	12.47%	-16.11%
3983	63 Neutral	¥38.02B	21.53	―	1.22%	5.39%	-6.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3673	61 Neutral	¥63.09B	82.95	―	0.63%	18.44%	―

Broadleaf Co., Ltd. Corporate Events

Broadleaf Co., Ltd. Revises Earnings Forecasts Upward for First Half of 2025

Broadleaf Co., Ltd. has revised its earnings forecast for the first half of 2025, expecting higher revenue and profits due to increased demand for PC replacements and strong sales in non-automotive sectors. The company is leveraging generative AI for operational efficiency and anticipates incurring expenses for cybersecurity in the latter half of the year. The revisions reflect better-than-expected performance, although an impairment loss on shares of affiliated companies is expected to impact profits.

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