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

• Market Cap: ¥64.50B
• Dividend Yield: 0.68%
• Average Volume (3M): 261.81K
• Price to Earnings (P/E): 113.9
• Beta (1Y): 0.73
• Revenue Growth: 19.15%
• EPS Growth: N/A
• Country: JP
• Employees: 920
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 2.19
• Shares Outstanding: 97,896,800
• 10 Day Avg. Volume: 258,310
• 30 Day Avg. Volume: 261,806
• PEG Ratio: 0.08
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.47
• 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

• Rating: 65 Neutral
• Price Target: ¥762.00 ▲(3.96%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. Business Overview & Revenue Model

Company Description

Broadleaf 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 Money

Broadleaf 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.79B	18.05B	15.38B	13.83B	20.65B	21.16B
Gross Profit	12.23B	11.71B	9.34B	8.49B	14.90B	15.07B
EBITDA	4.19B	3.59B	874.28M	-244.45M	5.61B	6.02B
Net Income	574.54M	343.30M	-1.49B	-2.43B	2.17B	2.46B
Balance Sheet
Total Assets	39.51B	39.89B	36.75B	33.54B	34.48B	32.27B
Cash, Cash Equivalents and Short-Term Investments	3.33B	4.31B	3.92B	3.46B	3.61B	3.29B
Total Debt	6.36B	6.13B	7.25B	5.15B	2.82B	1.54B
Total Liabilities	16.25B	16.75B	14.26B	9.87B	8.36B	7.67B
Stockholders Equity	23.24B	23.14B	22.47B	23.63B	26.11B	24.60B
Cash Flow
Free Cash Flow	4.90B	6.52B	-698.21M	-1.41B	284.71M	2.38B
Operating Cash Flow	6.06B	6.53B	3.42B	1.61B	3.78B	5.06B
Investing Cash Flow	-4.59B	-4.31B	-3.67B	-2.91B	-3.39B	-2.77B
Financing Cash Flow	-3.38B	-1.83B	704.75M	1.24B	-108.00M	-2.08B

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 733.00
• 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 733 is above the 20-day moving average (MA) of 718.21, above the 50-day MA of 698.68, and above the 200-day MA of 660.46, indicating a bullish trend. The MACD of 8.60 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 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	¥64.20B	15.54		3.34%	8.13%	10.47%
3983	73 Outperform	¥45.51B	24.16		1.02%	8.10%	0.69%
3712	72 Outperform	¥17.08B	14.19		2.16%	2.71%	9.95%
3663	70 Outperform	¥54.20B	30.52		2.92%	1.41%	131.82%
3836	67 Neutral	¥58.31B	18.01		1.61%	19.57%	46.10%
3673	65 Neutral	¥64.50B	113.92		0.68%	19.15%	―
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.50%	-19.96%

Broadleaf Co., Ltd. Corporate Events

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.

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

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.