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

• Market Cap: ¥66.00B
• Dividend Yield: 0.6%
• Average Volume (3M): 198.73K
• Price to Earnings (P/E): 86.8
• Beta (1Y): 0.60
• 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: 163,840
• 30 Day Avg. Volume: 198,726
• 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: ¥799.00
• Price Target Upside: 6.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥799.00 ▲(6.25% Upside)

Broadleaf Co., Ltd. demonstrates strong financial performance with robust cash flow and a stable balance sheet, which are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators present mixed signals, contributing to a moderate overall stock score.

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company Description

Broadleaf Co., Ltd. (3673) is a Japan-based company primarily engaged in providing IT solutions and services, specifically tailored for sectors such as the automotive aftermarket, where it offers software solutions, electronic ordering systems, and business management tools. The company also extends its expertise to other industries by developing and providing cloud-based platforms and operational support services.

How the Company Makes Money

Broadleaf Co., Ltd. generates revenue primarily through the sale and licensing of its software solutions and platforms designed for business management and operational support. Key revenue streams include subscription fees for its cloud-based services, sales of software licenses, and fees from electronic ordering systems. The company also benefits from maintenance and support contracts, offering ongoing technical assistance and updates to its clients. Additionally, Broadleaf may engage in strategic partnerships with other technology providers and businesses to expand its market reach and enhance its service offerings, contributing further to its revenue.

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: Positive
• Last Price: 752.00
• 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 752 is above the 20-day moving average (MA) of 737.35, above the 50-day MA of 741.60, and above the 200-day MA of 691.86, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 79.76 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	67.98B	15.85	―	3.02%	12.36%	19.42%
3836	75 Outperform	59.40B	16.58	22.02%	1.58%	15.59%	22.71%
3712	72 Outperform	21.61B	18.80	―	1.71%	6.96%	16.13%
3663	70 Outperform	68.68B	43.53	―	1.78%	12.47%	-16.11%
3673	64 Neutral	¥66.00B	86.77	―	0.60%	18.44%	―
3983	63 Neutral	41.31B	23.01	18.59%	1.12%	5.39%	-6.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.