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bBreak Systems Co. Ltd. (JP:3986)
:3986
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bBreak Systems Co. Ltd.
(3986)
Select Model
Select Model
Rating:68Neutral
Price Target:―
bBreak Systems Co. Ltd. exhibits solid financial performance with strong profitability and a robust balance sheet. However, cash flow management issues need addressing. Technical analysis reflects a stable short-term position but potential resistance in the longer term. The valuation highlights a potentially high P/E ratio, suggesting caution for value-focused investors. Overall, the company is stable but faces challenges in cash flow and valuation.
bBreak Systems Co. Ltd. (3986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.19B
Dividend Yield1.26%
Average Volume (3M)2.97K
Price to Earnings (P/E)23.6
Beta (1Y)0.32
Revenue Growth-1.00%
EPS Growth-32.70%
CountryJP
Employees148
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)12.85
Shares Outstanding1,536,960
10 Day Avg. Volume2,450
30 Day Avg. Volume2,966
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
bBreak Systems Co. Ltd. Business Overview & Revenue Model
Company DescriptionbBreak Systems Co. Ltd. (3986) is a Japanese company that specializes in providing comprehensive software solutions, particularly focusing on enterprise resource planning (ERP) systems. The company caters to a variety of industries, offering products and services aimed at optimizing business processes, enhancing operational efficiency, and facilitating digital transformation. Its portfolio includes software development, implementation services, and ongoing support, which are designed to help businesses effectively manage their resources and information technology infrastructure.
How the Company Makes MoneybBreak Systems Co. Ltd. generates revenue primarily through the sale and licensing of its ERP software solutions. The company offers customized software packages tailored to the specific needs of different industries, which clients purchase or license for use within their organizations. Additionally, bBreak Systems Co. Ltd. earns income from providing professional services such as consulting, system integration, and ongoing technical support to ensure the effective deployment and utilization of its software solutions. The company may also engage in strategic partnerships with other technology providers to expand its market reach and enhance its product offerings, contributing to its overall revenue.
bBreak Systems Co. Ltd. Financial Statement Overview
Summary
bBreak Systems Co. Ltd. is financially sound, with strong profitability and a robust balance sheet, characterized by zero debt and high equity. While the income statement reflects good revenue growth and profitability, cash flow management needs attention due to unusual zero values in the latest period. Overall, the company is well-positioned in the Software - Application industry but should improve cash flow reliability.Income Statement
bBreak Systems Co. Ltd. demonstrates solid profitability with a stable gross profit margin and a healthy net profit margin. The company shows a consistent revenue growth trend, with a 3.3% increase from 2023 to TTM (Trailing-Twelve-Months). However, there was a slight dip in EBIT margin in the TTM period, suggesting some operational challenges. EBITDA margin remains robust, indicating strong operational efficiency.78
Positive
Balance Sheet
The balance sheet is strong, with zero debt, resulting in an excellent debt-to-equity ratio. The equity ratio is high, reflecting a solid capital structure. Return on Equity (ROE) is impressive, indicating effective utilization of shareholders' equity to generate profits. The company's financial position is very stable, reducing risk.85
Very Positive
Cash Flow
Cash flow metrics indicate a stable financial position, although there is room for improvement. Operating cash flow to net income ratio is not calculable in the TTM period due to zero operating cash flow, which is unusual for a software company. There is a strong historical free cash flow, but the recent period shows zero free cash flow, which needs to be addressed.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.38B | 1.39B | 1.38B | 1.26B | 1.17B |
| Gross Profit | 637.39M | 643.69M | 659.89M | 636.88M | 587.90M | 533.46M |
| EBITDA | 103.08M | 121.82M | 192.83M | 176.41M | 154.91M | 122.51M |
| Net Income | 75.74M | 91.84M | 136.45M | 136.17M | 116.75M | 91.50M |
Balance Sheet | ||||||
| Total Assets | 2.30B | 2.29B | 2.23B | 2.02B | 1.88B | 1.72B |
| Cash, Cash Equivalents and Short-Term Investments | 1.97B | 2.00B | 1.92B | 1.73B | 1.66B | 1.48B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 608.14M | 577.81M | 582.74M | 495.98M | 448.96M | 385.77M |
| Stockholders Equity | 1.69B | 1.71B | 1.65B | 1.53B | 1.43B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 114.88M | 176.75M | 159.96M | 194.97M | 112.77M |
| Operating Cash Flow | 0.00 | 114.88M | 239.85M | 159.96M | 194.97M | 112.77M |
| Investing Cash Flow | 0.00 | -1.49B | -38.93M | -41.51M | -1.00K | -5.00K |
| Financing Cash Flow | 0.00 | -22.78M | -18.22M | -42.20M | -18.48M | -18.53M |
bBreak Systems Co. Ltd. Technical Analysis
Negative
1423.00
Price Trends
1465.34
Negative
1438.83
Negative
1426.02
Negative
Market Momentum
-7.88
Positive
38.57
Neutral
30.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3986, the sentiment is Negative. The current price of 1423 is below the 20-day moving average (MA) of 1502.80, below the 50-day MA of 1465.34, and below the 200-day MA of 1426.02, indicating a bearish trend. The MACD of -7.88 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 30.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3986.
bBreak Systems Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥2.19B | 23.58 | ― | 1.26% | -1.00% | -32.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | ¥2.35B | ― | ― | ― | -4.52% | 2.56% | |
52 Neutral | ¥1.93B | 15,811.97 | ― | ― | 0.69% | -386.26% | |
52 Neutral | ¥5.80B | 172.59 | ― | ― | -4.84% | -161.59% | |
51 Neutral | ¥1.79B | ― | ― | ― | -24.70% | -129.02% | |
42 Neutral | ¥1.96B | ― | ― | ― | 0.90% | 65.04% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.