Broadband Tower, Inc. (3776) AI Stock Analysis

• Market Cap: ¥9.83B
• Dividend Yield: 1.25%
• Average Volume (3M): 324.12K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.95
• Revenue Growth: 1.95%
• EPS Growth: -59.39%
• Country: JP
• Employees: 243
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.40
• Shares Outstanding: 61,773,500
• 10 Day Avg. Volume: 359,220
• 30 Day Avg. Volume: 324,116
• PEG Ratio: 0.09
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 5.10
• 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: ¥162.00
• Price Target Upside: 1.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥172.00 ▲(7.50% Upside)

Broadband Tower, Inc. demonstrates strong financial performance with improved profitability and cash flow, which is the most significant factor in its score. However, technical indicators suggest a neutral to bearish short-term outlook, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Broadband Tower, Inc. Business Overview & Revenue Model

Company Description

Broadband Tower, Inc. (3776) is a telecommunications infrastructure company based in Japan, primarily focused on providing high-quality wireless and broadband connectivity solutions. The company engages in the development, operation, and maintenance of communication towers, data centers, and related infrastructure services. By catering to both mobile network operators and internet service providers, Broadband Tower aims to enhance connectivity and support the growing demand for data services across various sectors.

How the Company Makes Money

Broadband Tower, Inc. generates revenue through multiple key streams, primarily from leasing tower space to telecommunication companies and internet service providers. The company charges fees for the installation and maintenance of antennas and other equipment on its towers. Additionally, Broadband Tower earns income from its data center operations, offering colocation services to businesses that require secure and reliable data storage solutions. The company may also engage in partnerships with major telecommunications firms to expand its network coverage and enhance service offerings, further contributing to its earnings. Furthermore, government contracts for infrastructure development and maintenance can provide significant revenue opportunities.

Broadband Tower, Inc. Financial Statement Overview

Summary

Broadband Tower, Inc. has demonstrated solid financial performance with significant improvements in profitability and operational efficiency. The company has a strong net profit margin and improved EBITDA margin, indicating enhanced operational efficiency. The balance sheet is stable with low leverage and improving shareholder returns. Cash flow generation is strong, with a substantial increase in free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.25B	13.42B	13.24B	14.13B	15.53B	16.08B
Gross Profit	3.07B	3.33B	2.72B	3.01B	3.61B	3.97B
EBITDA	1.78B	1.67B	1.08B	1.50B	1.12B	1.92B
Net Income	241.12M	404.38M	99.78M	-391.99M	-3.89M	342.51M
Balance Sheet
Total Assets	19.76B	19.79B	19.48B	20.52B	24.40B	23.36B
Cash, Cash Equivalents and Short-Term Investments	8.01B	7.60B	6.16B	7.01B	5.54B	6.13B
Total Debt	2.76B	2.94B	3.64B	4.52B	5.05B	6.42B
Total Liabilities	7.49B	7.79B	7.81B	8.73B	11.04B	11.29B
Stockholders Equity	8.84B	8.66B	8.31B	8.21B	9.49B	8.46B
Cash Flow
Free Cash Flow	0.00	2.21B	-100.14M	502.62M	406.48M	1.67B
Operating Cash Flow	0.00	2.76B	737.38M	1.73B	1.60B	2.28B
Investing Cash Flow	0.00	-585.00M	-595.00M	301.29M	-1.42B	-984.98M
Financing Cash Flow	0.00	-737.46M	-996.94M	-562.11M	-763.69M	-1.08B

Broadband Tower, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3776, the sentiment is Negative. The current price of 160 is below the 20-day moving average (MA) of 165.00, below the 50-day MA of 166.50, and above the 200-day MA of 157.29, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥19.71B	12.01	―	3.48%	6.35%	3.10%
3934	76 Outperform	¥11.43B	11.90	―	1.94%	5.84%	27.86%
9428	74 Outperform	¥13.59B	9.97	―	1.33%	13.18%	70.08%
9445	69 Neutral	¥9.89B	10.90	―	3.73%	8.17%	25.32%
9450	64 Neutral	¥14.34B	10.74	―	3.86%	3.62%	-15.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3776	60 Neutral	¥9.83B	40.68	―	1.25%	1.95%	-59.39%