bBreak Systems Co. Ltd. (3986) AI Stock Analysis

• Market Cap: ¥2.13B
• Dividend Yield: 1.38%
• Average Volume (3M): 2.03K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.38
• Revenue Growth: -0.32%
• EPS Growth: -15.27%
• Country: JP
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.72
• Shares Outstanding: 4,610,880
• 10 Day Avg. Volume: 2,860
• 30 Day Avg. Volume: 2,033
• PEG Ratio: -0.71
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 18.46
• 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: 69 Neutral
• Price Target: ¥492.00 ▼(-64.11% Downside)

The score is driven mainly by solid financial resilience (debt-free balance sheet) and supportive valuation (low P/E). Offsetting this, financial momentum has deteriorated with a 2025 revenue decline, margin compression, and weaker/volatile operating cash flow, while technical indicators are broadly neutral to slightly bearish.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet significantly reduces financial risk, providing resilience in economic downturns and flexibility for future investments.

Equity Growth

Steady equity growth and positive returns on equity indicate strong shareholder value creation and efficient capital management over the long term.

Cash Conversion

Strong cash conversion reflects efficient operations and the ability to generate cash, supporting reinvestment and shareholder returns.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive pressures, impacting long-term growth prospects.

Margin Compression

Margin compression suggests increased cost pressures or reduced pricing power, which could affect profitability and competitive positioning.

Volatile Cash Flow

Volatility in cash flow can indicate operational inefficiencies or timing issues, potentially impacting liquidity and financial planning.

bBreak Systems Co. Ltd. Business Overview & Revenue Model

Company Description

bBreak Systems Company, Limited builds and integrates business system solutions. It offers MA-EYES, an accounting management system that allows users to understand profits and losses in real time; GLOBAL EYES, an overseas offices management system, which allows the users to use the local language and to create the accounting data in the local currency; and J-Fusion that provides tools for developing systems, as well as information regarding programming practices, project specifications, and data modeling. The company was founded in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

bBreak 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.

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.

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.

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	643.38M	643.69M	659.89M	636.88M	587.90M	533.46M
EBITDA	119.97M	121.82M	192.83M	176.41M	154.91M	122.51M
Net Income	90.85M	91.84M	136.45M	136.17M	116.75M	91.50M
Balance Sheet
Total Assets	2.29B	2.29B	2.23B	2.02B	1.88B	1.72B
Cash, Cash Equivalents and Short-Term Investments	2.00B	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	577.81M	577.81M	582.74M	495.98M	448.96M	385.77M
Stockholders Equity	1.71B	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

• Technical Analysis Sentiment: Positive
• Last Price: 1371.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3986, the sentiment is Positive. The current price of 1371 is above the 20-day moving average (MA) of 444.45, above the 50-day MA of 448.83, and above the 200-day MA of 469.70, indicating a neutral trend. The MACD of 3.59 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 76.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3986.

bBreak Systems Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3986	69 Neutral	¥2.13B	24.56	―	1.38%	-0.32%	-15.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4052	55 Neutral	¥1.76B	-29.29	―	―	-9.71%	-1076.54%
3976	54 Neutral	¥2.17B	-10.59	―	―	-14.55%	-8.13%
4166	53 Neutral	¥2.21B	-16.36	―	―	12.27%	73.45%
4424	45 Neutral	¥1.98B	-5.32	―	―	-20.74%	36.84%