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

• Market Cap: ¥87.38B
• Dividend Yield: 0.62%
• Average Volume (3M): 182.26K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 0.43
• 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): 29.5
• Revenue Forecast (FY): ¥21.07B

• Rating: 68 Neutral
• Price Target: ¥1,082.00 ▲(46.41% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by improving financial performance (profitability recovery, conservative leverage, and strong recent free cash flow). Technicals are supportive but look overextended, raising near-term volatility risk. Valuation is the biggest drag due to a high P/E and limited dividend yield.

Positive Factors

Strong cash generation

Consistent operating and free cash flow near ¥6.5–¥6.9B in 2024–2025 with FCF tracking net income (~1x) implies high earnings quality and internal funding capacity. This durability supports reinvestment in SaaS, continued service operations, debt reduction or shareholder returns over the medium term.

Conservative leverage

A debt-to-equity ratio around 0.18 and declining leverage since 2023 indicate a conservative balance sheet with meaningful equity buffer. That reduces refinancing and solvency risk, giving management flexibility to fund SaaS transitions, M&A, or weather cyclical downturns without stressing liquidity.

High gross margins and profitability recovery

Stable ~65% gross margins and an earnings comeback (EBIT ~10%, net ~6% in 2025) reflect durable product pricing power and scalable delivery of software/cloud services. These structural margins support operating leverage as recurring SaaS and services revenue grows, enhancing long-term cash conversion.

Negative Factors

Earnings and cash volatility

The company experienced losses and negative free cash flow in 2022–2023, then recovered in 2024–2025. Such multi-year swings imply that earnings and cash generation are cyclical or execution-sensitive, increasing the chance of profit reversals and making long-term forecasting and capital allocation harder.

Inconsistent revenue growth

Top-line history shows a sharp revenue decline in 2022 and a recovery thereafter, yielding uneven multi-year growth. This inconsistency complicates the scaling of recurring SaaS economics, raises uncertainty about sustained demand, and increases risk for investments predicated on steady revenue expansion.

Industry concentration risk

Revenue is concentrated in software and services for the automotive aftermarket niche. That specialization provides domain expertise but concentrates exposure to auto aftermarket cycles, replacement demand shifts, and structural auto industry changes, limiting diversification and raising cyclicality risk.

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 primarily earns revenue by providing industry-specific software and IT services to customers in the automotive aftermarket. Key revenue streams include: (1) recurring subscription/usage fees from cloud-based/SaaS offerings and ongoing system/service contracts (e.g., access to platforms, updates, maintenance, and support); (2) licensing or provision of packaged software (where applicable) and related fees; (3) implementation revenue from initial setup, configuration, data migration, and integration with customer environments; and (4) customer support, maintenance, and other professional services delivered after go-live. The company’s earnings are supported by long-term customer relationships in workflow-critical domains (repair/maintenance and parts distribution), where customers typically pay ongoing fees for continued system availability, updates, and support. Specific partner names, customer concentration, and segment-level revenue breakdowns: null.

Broadleaf Co., Ltd. Financial Statement Overview

Summary

Financials show a strong recovery with profitability back to positive and improving (EBIT margin ~10%, net margin ~6% in 2025), a conservatively leveraged balance sheet (debt-to-equity ~0.18), and strong operating/free cash flow in 2024–2025 with good earnings-to-cash conversion. The main constraint on the score is multi-year volatility, including losses and negative free cash flow in 2022–2023.

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	3.55B	835.31M	380.07M	5.51B
Net Income	1.24B	343.30M	-1.49B	-2.43B	2.17B
Balance Sheet
Total Assets	41.42B	40.31B	36.93B	33.75B	34.48B
Cash, Cash Equivalents and Short-Term Investments	4.12B	4.31B	3.92B	3.46B	3.52B
Total Debt	4.46B	6.13B	7.25B	5.15B	2.82B
Total Liabilities	17.13B	17.17B	14.44B	10.09B	8.36B
Stockholders Equity	24.27B	23.14B	22.47B	23.63B	26.11B
Cash Flow
Free Cash Flow	6.88B	6.52B	3.37B	1.59B	3.74B
Operating Cash Flow	6.90B	6.53B	3.42B	1.61B	3.78B
Investing Cash Flow	-4.41B	-4.31B	-3.67B	-2.88B	-3.39B
Financing Cash Flow	-2.69B	-1.83B	704.75M	1.21B	-108.34M

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 739.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 808.95, above the 50-day MA of 727.96, and above the 200-day MA of 729.80, indicating a bullish trend. The MACD of 76.45 indicates Negative momentum. The RSI at 83.01 is Negative, neither overbought nor oversold. The STOCH value of 93.66 is Negative, 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	¥59.62B	13.98	―	3.34%	11.81%	18.17%
4828	77 Outperform	¥73.78B	21.08	31.71%	1.68%	16.12%	46.57%
4776	70 Outperform	¥95.52B	18.51	―	1.02%	26.47%	142.77%
3673	68 Neutral	¥87.38B	53.57	―	0.62%	18.86%	―
9629	68 Neutral	¥32.79B	20.63	―	4.58%	4.58%	-15.00%
2492	63 Neutral	¥94.67B	49.92	―	0.72%	22.13%	254.87%
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.