Fuva Brain Ltd. (3927) AI Stock Analysis

• Market Cap: ¥5.17B
• Dividend Yield: N/A
• Average Volume (3M): 302.12K
• Price to Earnings (P/E): 45.6
• Beta (1Y): 1.10
• Revenue Growth: 42.19%
• EPS Growth: 299.95%
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 16.78
• Shares Outstanding: 5,604,200
• 10 Day Avg. Volume: 309,490
• 30 Day Avg. Volume: 302,120
• PEG Ratio: -0.63
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 123.17
• 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: 77 Outperform
• Price Target: ¥1,146.00 ▲(21.14%Upside)

Fuva Brain Ltd. scores well due to strong financial performance and bullish technical indicators. However, the high P/E ratio suggests overvaluation, which tempers the overall score. Addressing cash flow volatility could further enhance the stock's appeal.

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. Financial Statement Overview

Summary

Fuva Brain Ltd. has demonstrated strong revenue growth and improved profitability, transitioning from losses to profits. The balance sheet is stable with low leverage, but cash flow volatility, particularly the negative free cash flow in 2025, presents a concern.

Income Statement

Fuva Brain Ltd. has demonstrated strong revenue growth over the years, with notable increases in total revenue from ¥1.68 billion in 2022 to ¥4.37 billion in 2025. The gross profit margin has improved significantly, indicating efficient cost management. The company turned profitable in recent years, with a net profit margin of approximately 2.5% in 2025, up from negative profitability in earlier years. EBIT and EBITDA margins have also shown positive trajectories, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet of Fuva Brain Ltd. shows a strong equity position with a healthy equity ratio, which signifies financial stability. The debt-to-equity ratio remains low, indicating low leverage and reduced financial risk. Return on equity has improved alongside profitability, although there is room for further enhancement. The increasing cash reserves suggest a solid liquidity position.

Cash Flow

The cash flow statement reveals some volatility, with operating cash flow turning negative in 2025. Despite this, the company has maintained free cash flow in previous years, indicating efficient capital management. The negative free cash flow in 2025 is a concern that needs addressing to ensure long-term sustainability. Operating cash flow and free cash flow to net income ratios show room for improvement.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.98B	4.37B	3.08B	2.34B	1.68B	1.08B
	Gross Profit
1.24B	1.30B	1.01B	901.63M	745.99M	572.27M
	EBIT
155.41M	187.40M	22.56M	58.66M	-57.52M	-101.43M
	EBITDA
184.19M	226.11M	68.20M	80.01M	-25.17M	-151.68M
	Net Income Common Stockholders
82.69M	109.46M	27.01M	26.79M	-29.42M	-174.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.50B	1.67B	1.43B	1.42B	1.34B	1.53B
	Total Assets
5.67B	5.60B	4.35B	3.23B	2.23B	2.03B
	Total Debt
390.00M	363.00M	67.50M	84.00M	0.00	50.00M
	Net Debt
-1.11B	-1.16B	-1.34B	-1.33B	-1.34B	-1.48B
	Total Liabilities
4.04B	3.87B	2.98B	1.80B	838.98M	799.52M
	Stockholders Equity
1.45B	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	-14.29M	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: Positive
• Last Price: 946.00
• 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:3927, the sentiment is Positive. The current price of 946 is above the 20-day moving average (MA) of 900.25, above the 50-day MA of 761.72, and above the 200-day MA of 695.74, indicating a bullish trend. The MACD of 59.86 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 61.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥5.17B	45.60		―	42.19%	299.95%
4494	76 Outperform	¥3.61B	10.54		―	1.03%	-1.62%
3858	71 Outperform	¥4.19B	44.17		―	18.96%	195.08%
4391	71 Outperform	¥4.06B	12.25		1.26%	9.28%	73.57%
3680	63 Neutral	¥4.77B	―		―	-15.90%	-388.21%
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
6662	45 Neutral	¥3.62B	―		―	6.87%	4.96%