Fuva Brain Ltd. (3927) AI Stock Analysis

• Market Cap: ¥4.65B
• Dividend Yield: N/A
• Average Volume (3M): 98.91K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.22
• Revenue Growth: 48.76%
• EPS Growth: 978.31%
• Country: JP
• Employees: 186
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 8.07
• 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: 76 Outperform
• Price Target: ¥953.00 ▲(17.65% Upside)

Fuva Brain Ltd. shows strong financial performance with impressive revenue growth and profitability, supported by a solid balance sheet. The stock's valuation is attractive, with a low P/E ratio indicating potential upside. Technical indicators suggest mixed signals, with short-term bullish momentum but potential bearish pressure. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company's impressive revenue growth indicates a successful business model and strong market demand for its AI solutions, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability Improvements

Improved profitability through better net profit margins suggests effective cost management and operational efficiency, bolstering long-term financial health.

Negative Factors

Cash Flow Management

Challenges in cash flow management could hinder the company's ability to fund operations and growth, impacting its long-term financial sustainability.

Free Cash Flow Fluctuations

Fluctuations in free cash flow growth may limit the company's capacity to reinvest in business development and innovation, affecting future competitiveness.

Operational Efficiency

Suboptimal operational efficiency, as indicated by EBIT and EBITDA margins, could reduce profitability and hinder the company's ability to scale effectively.

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

Fuva Brain Ltd. demonstrates strong revenue growth and profitability improvements, supported by a robust balance sheet with low leverage. However, cash flow management requires attention to ensure sustainable financial health. Overall, the company is on a positive trajectory but should focus on enhancing operational efficiency and cash flow stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 810.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 810 is above the 20-day moving average (MA) of 798.05, above the 50-day MA of 783.98, and above the 200-day MA of 805.04, indicating a bullish trend. The MACD of 14.43 indicates Negative momentum. The RSI at 69.95 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 is Negative, 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	76 Outperform	¥4.65B	11.44	―	―	48.76%	978.31%
4494	75 Outperform	¥3.70B	9.94	―	―	1.62%	9.93%
4391	74 Outperform	¥3.59B	14.52	―	1.59%	8.31%	-2.44%
3858	70 Outperform	¥4.03B	-125.71	―	―	4.78%	-234.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3680	52 Neutral	¥4.17B	-5.05	―	1.17%	-21.76%	-5832.28%
6662	48 Neutral	¥3.86B	-10.00	―	―	24.22%	-22.37%