Fuva Brain Ltd. (3927) AI Stock Analysis

• Market Cap: ¥5.94B
• Dividend Yield: N/A
• Average Volume (3M): 98.91K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.00
• 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: 77 Outperform
• Price Target: ¥1,205.00 ▲(48.77% Upside)
• Action: Upgraded Date: 03/11/26
• Date: Action: Upgraded 03/11/26

The score is driven primarily by strong financial performance (notably revenue growth and improving profitability) and bullish technical trend signals with price above major moving averages. This is tempered by mixed cash-flow quality and a valuation that appears only moderate based on the P/E, with no dividend yield support.

Positive Factors

Revenue Growth

Sustained ~36% revenue growth indicates strong product-market fit and expanding customer adoption. Over 2-6 months this supports scale economics, increased pricing leverage, and reinvestment capacity, making future margin expansion and market share gains more attainable.

Improving Profitability

Marked improvement in net profitability and strong gross margins point to durable earnings power and effective cost control at the direct cost level. This underpins sustainable cash generation potential and gives management flexibility to invest in growth or deleverage.

Balance Sheet Strength

Low leverage and a healthy equity ratio provide financial resilience and funding optionality. Over the medium term this reduces refinancing risk, supports opportunistic M&A or capex, and cushions cyclical downturns without straining interest coverage.

Negative Factors

Cash-Flow Conversion

Inconsistent conversion of income into cash and a falling free cash flow growth rate weaken the company's ability to self-fund investments, dividends, or debt reduction. Persisting conversion issues raise funding and sustainability risks despite accounting profits.

Operational Efficiency

While gross and net margins have improved, suboptimal EBIT/EBITDA margins imply structural cost or operating inefficiencies. If not addressed, these could constrain long-term margin expansion and make earnings more sensitive to slower revenue growth or competitive pressure.

Return on Equity

A middling ROE indicates the firm may not be maximizing returns on invested capital. Over months this could limit shareholder value creation versus peers unless capital allocation, pricing, or operating leverage improve to generate higher incremental 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

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Fuva Brain Ltd. Financial Statement Overview

Summary

Strong revenue growth and improved net profitability support a solid score, backed by low leverage and a healthy equity position. The main offset is weaker cash-flow conversion and inconsistent free cash flow, plus some remaining 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: Positive
• Last Price: 810.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 below the 20-day moving average (MA) of 923.65, below the 50-day MA of 896.94, and below the 200-day MA of 856.79, indicating a bullish trend. The MACD of 42.89 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 92.75 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	77 Outperform	¥5.94B	23.47	―	―	48.76%	978.31%
3858	70 Outperform	¥3.62B	-7.14	―	―	4.78%	-234.94%
3915	68 Neutral	¥21.15B	9.96	―	―	17.93%	91.21%
3993	68 Neutral	¥94.81B	29.14	6.41%	―	28.88%	27.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	58 Neutral	¥8.94B	86.07	―	―	7.00%	-244.58%
4180	56 Neutral	¥76.23B	42.73	―	0.18%	25.88%	80.30%