Broadband Tower, Inc. (3776) AI Stock Analysis

• Market Cap: ¥9.22B
• Dividend Yield: 1.32%
• Average Volume (3M): 262.52K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.95
• Revenue Growth: 4.70%
• EPS Growth: 35.62%
• Country: JP
• Employees: 243
• Sector: Communication Services
• Sector Strength: 76
• Industry: Telecommunications Services
• EPS (TTM): 1.56
• Shares Outstanding: 61,773,500
• 10 Day Avg. Volume: 266,450
• 30 Day Avg. Volume: 262,520
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.79
• 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: ¥154.00
• Price Target Upside: 3.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥163.00 ▲(9.40%Upside)

Broadband Tower, Inc. demonstrates strong financial performance with improved profitability and cash flow, which is the most significant factor contributing to the score. Technical analysis suggests moderate bullish momentum, but the stock may be slightly overvalued based on its P/E ratio and modest dividend yield. These factors combine to give a balanced overall stock score.

Broadband Tower, Inc. Business Overview & Revenue Model

Company Description

Broadband Tower, Inc. (3776) is a Japan-based company primarily engaged in the information technology and telecommunications sectors. The company offers a range of services including data center operations, cloud services, and network solutions. It caters to various industries by providing robust IT infrastructure support and cutting-edge digital solutions, ensuring efficient data management and connectivity.

How the Company Makes Money

Broadband Tower, Inc. generates revenue through its diversified portfolio of IT and telecommunication services. Key revenue streams include fees from data center services, which provide businesses with secure and reliable hosting solutions; cloud services, offering scalable and flexible computing resources; and network solutions, delivering high-speed and dependable connectivity. The company's earnings are further bolstered by strategic partnerships and collaborations with technology providers, enhancing its service offerings and expanding its market reach.

Broadband Tower, Inc. Financial Statement Overview

Summary

Broadband Tower, Inc. has shown solid financial performance with significant improvements in profitability and cash flow. The company has enhanced operational efficiency and maintains a stable balance sheet with low leverage and improving shareholder returns. However, revenue growth remains modest.

Income Statement

Broadband Tower, Inc. has shown a significant improvement in profitability over the past year, with a strong net profit margin of 3.01% in 2024 compared to 0.75% in 2023. The gross profit margin has also increased from 20.54% to 24.77%. Revenue growth was modest at 1.35%, but the company successfully turned around its EBIT from a loss to a positive margin of 4.98%. EBITDA margin improved to 13.64%, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet reflects a healthy debt-to-equity ratio of 0.34, showcasing strong financial leverage management. Return on Equity (ROE) improved to 4.67% in 2024, up from 1.20% in 2023, indicating better profitability for shareholders. The equity ratio stands at 43.75%, offering a stable capital structure. However, total assets have slightly decreased, which may indicate a need for asset optimization.

Cash Flow

Broadband Tower, Inc. experienced a substantial increase in free cash flow from a negative position in 2023 to a positive 2,213 million JPY in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio improved significantly, suggesting enhanced cash efficiency. The free cash flow to net income ratio is positive, reflecting strong cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.42B	13.24B	14.13B	15.53B	16.08B
Gross Profit	3.33B	2.72B	3.01B	3.61B	3.97B
EBITDA	1.67B	1.08B	1.50B	1.12B	1.92B
Net Income	404.38M	99.78M	-391.99M	-3.89M	342.51M
Balance Sheet
Total Assets	19.79B	19.48B	20.52B	24.40B	23.36B
Cash, Cash Equivalents and Short-Term Investments	7.60B	6.16B	7.01B	5.54B	6.13B
Total Debt	2.94B	3.64B	4.52B	5.05B	6.42B
Total Liabilities	7.79B	7.81B	8.73B	11.04B	11.29B
Stockholders Equity	8.66B	8.31B	8.21B	9.49B	8.46B
Cash Flow
Free Cash Flow	2.21B	-100.14M	502.62M	406.48M	1.67B
Operating Cash Flow	2.76B	737.38M	1.73B	1.60B	2.28B
Investing Cash Flow	-585.00M	-595.00M	301.29M	-1.42B	-984.98M
Financing Cash Flow	-737.46M	-996.94M	-562.11M	-763.69M	-1.08B

Broadband Tower, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 149.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3776, the sentiment is Positive. The current price of 149 is below the 20-day moving average (MA) of 150.80, above the 50-day MA of 147.98, and below the 200-day MA of 165.22, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3776.

Broadband Tower, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	79 Outperform	¥19.13B	10.53		3.52%	6.35%	54.17%
3934	79 Outperform	¥10.30B	12.06		2.16%	-2.46%	13.80%
9428	78 Outperform	¥10.53B	11.12		1.72%	13.00%	-17.83%
9445	69 Neutral	¥8.80B	12.00		3.81%	3.93%	1.66%
3776	66 Neutral	¥9.22B	24.16		1.32%	4.70%	35.62%
9450	64 Neutral	¥14.26B	10.57		3.91%	-8.55%	-14.28%
Sector *	59 Neutral	C$3.46B	8.41	-17.94%	5.27%	-2.61%	-25.43%