Fuva Brain Ltd. (3927) AI Stock Analysis

• Market Cap: ¥4.50B
• Dividend Yield: N/A
• Average Volume (3M): 98.91K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.16
• Revenue Growth: 48.76%
• EPS Growth: 978.31%
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 8.44
• Shares Outstanding: 5,604,200
• 10 Day Avg. Volume: 142,280
• 30 Day Avg. Volume: 98,910
• PEG Ratio: 0.11
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -133.04
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥925.00 ▲(14.20% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven mainly by strong financial performance (growth and improving profitability with low leverage), partially offset by weaker cash-flow consistency. Technical indicators are mixed-to-weak with the stock trading below key short-term averages and subdued momentum, while valuation is supportive due to a relatively low P/E.

Positive Factors

Revenue Growth

Sustained ~36% revenue growth indicates expanding product adoption and market penetration. Over 2–6 months this growth supports scale advantages, stronger negotiation leverage with customers and suppliers, and a larger base to convert into recurring revenues and long-term profitability.

Improving Profitability

Improved net profit margins and a strong gross margin reflect durable cost management and pricing power. This structural improvement increases retained earnings and reinvestment capacity, supporting sustained R&D, product development and margin expansion over medium-term horizons.

Low Leverage / Strong Equity

A healthy equity ratio and low leverage provide financial flexibility for capex, M&A or downturns without heavy refinancing risk. Over months this balance sheet strength supports strategic investments and lowers bankruptcy risk, preserving optionality for growth.

Negative Factors

Inconsistent Free Cash Flow

Fluctuating free cash flow and a declining FCF growth rate indicate the company struggles to consistently turn profits into cash. This undermines durable funding for dividends, debt repayment and organic reinvestment, increasing reliance on external financing for long-term initiatives.

Operational Efficiency Gap

Relatively weaker EBIT/EBITDA margins imply operating leverage or cost structure inefficiencies versus peers. Without structural margin improvements, long-term returns and ability to fund growth internally may be constrained, making profitability gains less durable.

ROE Needs Improvement

A noted need to raise return on equity signals suboptimal asset or capital allocation. Persistently middling ROE can limit shareholder value creation over time unless management enhances margins, asset turns or capital deployment priorities to drive higher sustained returns.

Fuva Brain Ltd. Business Overview & Revenue Model

Company Description

Fuva Brain Limited engages in the development and sale of cyber security solutions in Japan. The company offers gateway network, endpoint security, internal fraud countermeasures, and productivity improvement solutions. It provides Eye "247" Work Smart for supporting productivity improvement for business visualization analysis and information leakage countermeasures; Eye "247" Work Smart Server, a model file server for small and medium-sized businesses; Eye "247" AntiMalware for protection against known, subspecies, and unknown threats; SecureSphere, integrated security solution for web applications and database servers; and Incapsula for cloud-based web security. The company was formerly known as Ahkun Co., Ltd. and changed its name to Fuva Brain Limited in October 2018. Fuva Brain Limited was incorporated in 2001 and is based in Tokyo, Japan.

How the Company Makes Money

Fuva Brain Ltd. generates revenue primarily through the sale of its software products and subscription services. The company offers tiered pricing models for its AI solutions, allowing businesses to choose packages that best fit their operational demands. Additionally, Fuva Brain earns money through consulting services, where experts help clients implement and optimize AI technologies within their organizations. Strategic partnerships with other technology firms and industry players, along with participation in collaborative research projects, also provide supplementary revenue through joint ventures and shared developments.

Fuva Brain Ltd. Financial Statement Overview

Summary

Strong revenue growth and improved net profitability support a high score, reinforced by a healthy, low-leverage balance sheet. The main offset is weaker cash-flow quality (inconsistent free cash flow and challenges converting earnings into cash), plus some room to improve operating efficiency (EBIT/EBITDA margins).

Income Statement

Fuva Brain Ltd. has shown impressive revenue growth over the past years, with a significant increase from 2024 to 2025. The gross profit margin is strong, indicating efficient cost management. The net profit margin has improved substantially, reflecting enhanced profitability. However, EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

The company maintains a solid equity position with a favorable debt-to-equity ratio, indicating low leverage. The equity ratio is healthy, reflecting a strong balance sheet. However, the return on equity, while positive, could be improved to enhance shareholder value.

Cash Flow

Cash flow management appears mixed. While the company has experienced fluctuations in free cash flow, the operating cash flow to net income ratio indicates potential challenges in converting income into cash. The recent decline in free cash flow growth rate is a concern, suggesting the need for more consistent cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.72B	4.37B	3.08B	2.34B	1.68B	1.08B
Gross Profit	1.39B	1.30B	1.01B	901.63M	745.99M	572.27M
EBITDA	652.96M	226.11M	68.20M	80.01M	-25.17M	-151.68M
Net Income	356.98M	109.46M	27.01M	26.79M	-29.42M	-174.21M
Balance Sheet
Total Assets	8.28B	5.60B	4.35B	3.23B	2.23B	2.03B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.67B	1.43B	1.42B	1.34B	1.53B
Total Debt	541.30M	363.00M	67.50M	84.00M	0.00	50.00M
Total Liabilities	5.19B	3.87B	2.98B	1.80B	838.98M	799.52M
Stockholders Equity	3.01B	1.54B	1.34B	1.41B	1.38B	1.23B
Cash Flow
Free Cash Flow	0.00	-26.85M	203.04M	26.22M	-98.36M	-83.38M
Operating Cash Flow	0.00	98.63M	208.00M	36.26M	-92.02M	-79.68M
Investing Cash Flow	0.00	-147.98M	-112.33M	37.68M	-123.88M	-6.84M
Financing Cash Flow	0.00	281.24M	-118.58M	-8.99M	29.99M	993.11M

Fuva Brain Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 810.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3927, the sentiment is Negative. The current price of 810 is below the 20-day moving average (MA) of 906.85, below the 50-day MA of 867.76, and below the 200-day MA of 849.53, indicating a bearish trend. The MACD of -4.88 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 31.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3927.

Fuva Brain Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3927	71 Outperform	¥4.50B	10.66	―	―	48.76%	978.31%
3858	70 Outperform	¥3.66B	-30.44	―	―	4.78%	-234.94%
3915	68 Neutral	¥20.68B	13.57	―	―	17.93%	91.21%
3993	68 Neutral	¥97.80B	43.43	8.26%	―	28.88%	27.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	58 Neutral	¥8.84B	-22.15	―	―	7.00%	-244.58%
4180	56 Neutral	¥78.59B	30.47	―	0.18%	25.88%	80.30%