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

• Market Cap: ¥63.18B
• Dividend Yield: 0.62%
• Average Volume (3M): 182.26K
• Price to Earnings (P/E): 52.1
• Beta (1Y): 0.67
• Revenue Growth: 18.86%
• EPS Growth: N/A
• Country: JP
• Employees: 920
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 4.08
• Shares Outstanding: 97,896,800
• 10 Day Avg. Volume: 186,690
• 30 Day Avg. Volume: 182,263
• PEG Ratio: 0.21
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 3.19
• P/FCF Ratio: 9.66
• 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): 23.6
• Revenue Forecast (FY): ¥21.07B

• Rating: 62 Neutral
• Price Target: ¥755.00 ▲(2.17% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is supported by improving financial performance (profitability recovery, strong gross margins, solid cash generation, and low leverage). Offsetting this, technical indicators are notably weak (price below key moving averages and negative MACD), and valuation is stretched with a high P/E and modest dividend yield.

Positive Factors

High Gross Margins

Sustained ~65% gross margins in 2024–2025 indicate durable product economics and pricing power in its verticalized software. High gross margins provide scope for operating leverage, support reinvestment in product and service delivery, and cushion earnings through demand cycles.

Strong Cash Generation

Consistent operating and free cash flow near ¥6.5–¥6.9B and FCF roughly tracking net income (~1x) signal high earnings quality. Reliable cash conversion supports capex, SaaS investment, and shareholder returns while reducing dependence on external financing over the medium term.

Low Leverage / Financial Flexibility

A falling debt-to-equity ratio to ~0.18 indicates conservative leverage and improved balance sheet resilience. This enhances refinancing flexibility, lowers interest burden, and allows management to pursue targeted M&A or product investment without materially increasing financial risk.

Negative Factors

Profitability Volatility

The company experienced losses in 2022–2023 before returning to modest profitability in 2024–2025. This multi-year earnings volatility suggests sensitivity to demand or execution risks and makes forward margin predictability and investor confidence more challenging over the medium term.

Inconsistent Revenue Trends

Sharp revenue decline in 2022 followed by uneven recovery implies the business is exposed to cyclical or contract-timing dynamics in the automotive aftermarket. Inconsistent top-line trends complicate capacity planning and long-term growth visibility for SaaS and services revenue streams.

Historical FCF Instability

Although FCF was solid in 2024–2025, prior negative free cash flow in 2022–2023 highlights execution or timing risks in cash conversion. Recurrence of negative FCF would constrain investment, weaken liquidity buffers, and limit the company's ability to fund growth internally.

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

Financials show a meaningful recovery: profitability returned in 2024 and improved further in 2025 (EBIT margin ~10%, net margin ~6%) with strong, stable gross margins (~65%). Leverage is conservative and improving (debt-to-equity ~0.18 in 2025). Cash generation is a key strength with solid operating cash flow/free cash flow in 2024–2025 and good earnings-to-cash conversion, though the prior 2022–2023 volatility remains the main watch item.

Income Statement

Profitability has rebounded meaningfully: after losses in 2022–2023, the company returned to positive earnings in 2024 and improved further in 2025 with EBIT margin rising to ~10% and net margin to ~6%. Gross margin remains strong and stable around ~65% in 2024–2025, supporting earnings leverage. The main offset is growth consistency: revenue fell sharply in 2022, then recovered with stronger growth in 2025, but the multi-year pattern remains volatile versus earlier peak profitability in 2020–2021.

Balance Sheet

Leverage looks conservative and improving: debt-to-equity declined to ~0.18 in 2025 (down from ~0.32 in 2023), with equity remaining sizable versus total assets. This provides financial flexibility and reduces refinancing risk. The key weakness is profitability variability across the cycle, which can pressure returns on equity in weaker years (negative in 2022–2023, modest in 2024), though the 2025 earnings recovery helps stabilize the profile.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are both solid in 2024–2025 (roughly ¥6.5–¥6.9B), and free cash flow tracks net income closely in both years (near 1x), indicating earnings quality. The main risk is historical volatility—free cash flow was negative in 2022–2023—plus 2025 shows a slight free-cash-flow decline versus 2024, suggesting the improved run-rate should still be monitored for durability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.82B	18.05B	15.38B	13.83B	20.65B
Gross Profit	13.52B	11.71B	9.34B	8.49B	14.90B
EBITDA	5.39B	3.59B	874.28M	-244.45M	5.61B
Net Income	1.24B	343.30M	-1.49B	-2.43B	2.17B
Balance Sheet
Total Assets	41.42B	39.89B	36.75B	33.54B	34.48B
Cash, Cash Equivalents and Short-Term Investments	4.12B	4.31B	3.92B	3.46B	3.61B
Total Debt	4.46B	6.13B	7.25B	5.15B	2.82B
Total Liabilities	17.13B	16.75B	14.26B	9.87B	8.36B
Stockholders Equity	24.27B	23.14B	22.47B	23.63B	26.11B
Cash Flow
Free Cash Flow	6.88B	6.52B	-698.21M	-1.41B	284.71M
Operating Cash Flow	6.90B	6.53B	3.42B	1.61B	3.78B
Investing Cash Flow	-4.41B	-4.31B	-3.67B	-2.91B	-3.39B
Financing Cash Flow	-2.69B	-1.83B	704.75M	1.24B	-108.00M

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 739.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 640.75, above the 50-day MA of 693.53, and above the 200-day MA of 718.01, indicating a neutral trend. The MACD of -1.73 indicates Negative momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.48 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	78 Outperform	¥63.00B	14.61	―	3.34%	11.81%	18.17%
4828	77 Outperform	¥84.58B	18.62	31.13%	1.68%	16.12%	46.57%
4776	71 Outperform	¥102.40B	14.57	―	1.02%	26.47%	142.77%
9629	68 Neutral	¥37.21B	25.92	―	4.58%	4.58%	-15.00%
2492	63 Neutral	¥92.12B	47.45	―	0.72%	22.13%	254.87%
3673	62 Neutral	¥63.18B	52.05	―	0.62%	18.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Broadleaf Co., Ltd. Corporate Events

Broadleaf Plans Higher Year-End Dividend, Signaling Stronger Shareholder Returns

Broadleaf Co., Ltd. has announced that its board of directors will propose a year-end dividend of 3.50 yen per share for the fiscal year ended December 31, 2025, at its 17th Annual General Meeting of Shareholders scheduled for March 24, 2026. This brings the total annual dividend to 6.00 yen per share, compared with a 2.00 yen year-end dividend for the previous fiscal year, and reflects a higher total dividend payout of 321.38 million yen funded from retained earnings.

The company emphasizes shareholder returns as a key management priority, stating that its dividend policy is to distribute profits in line with business results while retaining sufficient surplus to support business development and preserve financial stability. The planned increase in dividends signals confidence in its earnings capacity and balance sheet, and may strengthen its appeal to income-focused investors while underscoring a commitment to long-term corporate value creation.

The most recent analyst rating on (JP:3673) stock is a Hold with a Yen642.00 price target. To see the full list of analyst forecasts on Broadleaf Co., Ltd. stock, see the JP:3673 Stock Forecast page.

Broadleaf Revamps Employee Stock Benefit Trust With Restricted Stock Plan

Broadleaf Co., Ltd. has resolved to partially amend its existing employee stock benefit trust and introduce a new J-ESOP-RS scheme that grants shares with transfer restrictions to employees of the company and its consolidated subsidiaries. Under the revised plan, points will be allocated to employees based on their contribution, converted into company shares or cash subject to certain conditions, with shares acquired in advance through a trust arrangement with Mizuho Trust & Banking and locked up until the employees resign or retire.

The move is designed to strengthen the link between employee compensation, the company’s share price, and business performance, thereby reinforcing engagement and supporting sustainable enhancement of corporate value. By tying stock delivery and restricted transfer terms to continued service and performance criteria, Broadleaf seeks to motivate employees to focus more on improving corporate results, aligning their interests more closely with those of shareholders and other stakeholders.

The most recent analyst rating on (JP:3673) stock is a Buy with a Yen728.00 price target. To see the full list of analyst forecasts on Broadleaf Co., Ltd. stock, see the JP:3673 Stock Forecast page.

Broadleaf Lifts 2025 Dividend Forecast on Better-Than-Expected Earnings

Broadleaf Co., Ltd. has revised its dividend forecast for the fiscal year ending December 31, 2025, increasing the planned year-end dividend from 2.50 yen to 3.50 yen per share after consolidated results exceeded prior expectations. Together with the already paid interim dividend of 2.50 yen, the annual dividend is now forecast at 6.00 yen per share, compared with 2.00 yen in the previous fiscal year, resulting in a consolidated payout ratio of 43.5%.

The company reiterated that shareholder returns are a core management priority, balancing profit distribution with internal reserves for business development and financial stability. In line with this stance, Broadleaf maintains a target dividend payout ratio of at least 35% and has decided to raise this threshold to 40% or higher from the fiscal year ending December 2026, signaling a stronger commitment to shareholder returns going forward.

The most recent analyst rating on (JP:3673) stock is a Buy with a Yen728.00 price target. To see the full list of analyst forecasts on Broadleaf Co., Ltd. stock, see the JP:3673 Stock Forecast page.

Broadleaf Outlines FY2025 Results and Strategy for Physical AI Era

Broadleaf Co., Ltd. has released briefing materials covering its financial results for the fiscal year ending December 2025, alongside a medium-term plan for 2026–2028. The materials also outline the company’s strategic direction for becoming a leader in what it calls the Physical AI era, signaling a focus on integrating artificial intelligence with real-world operations and solutions.

The announcement suggests Broadleaf is positioning itself for long-term growth by aligning its business roadmap with the rise of AI-driven, physical-world applications. This strategic emphasis could reshape its product offerings, influence its competitive stance in the technology market, and affect how stakeholders view the company’s future role in the emerging Physical AI landscape.

The most recent analyst rating on (JP:3673) stock is a Buy with a Yen728.00 price target. To see the full list of analyst forecasts on Broadleaf Co., Ltd. stock, see the JP:3673 Stock Forecast page.

Broadleaf Posts Sharp Profit Rebound and Plans Dividend Hike on Subscription Growth

Broadleaf Co., Ltd. reported strong consolidated results for fiscal 2025, with revenue rising 15.4% year on year to ¥20.8 billion and operating profit surging 206.0% to ¥2.1 billion, driven by improved profitability in its core software business. Net income attributable to owners of the parent jumped 261.3% to ¥1.24 billion, while return on assets and operating margin improved to 4.6% and 9.9%, respectively.

The company strengthened its financial position, with equity attributable to owners of the parent increasing to ¥24.3 billion and cash flow from operating activities reaching ¥6.9 billion despite continued investment outflows. Reflecting confidence in earnings growth, Broadleaf raised its annual dividend for 2025 to ¥6.00 per share and forecasts further gains in 2026, projecting revenue of ¥23.5 billion, operating profit of ¥4.8 billion, and a significant increase in the annual dividend to ¥15.00 per share.

The most recent analyst rating on (JP:3673) stock is a Buy with a Yen728.00 price target. To see the full list of analyst forecasts on Broadleaf Co., Ltd. stock, see the JP:3673 Stock Forecast page.