Betrend Corp. (4020) AI Stock Analysis

• Market Cap: ¥1.68B
• Dividend Yield: N/A
• Average Volume (3M): 4.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 3.27%
• EPS Growth: -141.89%
• Country: JP
• Employees: 58
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -7.75
• Shares Outstanding: 2,200,400
• 10 Day Avg. Volume: 3,180
• 30 Day Avg. Volume: 4,056
• PEG Ratio: -2.81
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 20.32
• 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: 64 Neutral
• Price Target: ¥851.00 ▲(5.58% Upside)

The score is primarily driven by strong financial resilience from an exceptionally conservative balance sheet and improved 2024 cash flow. Offsetting this are weakened profitability versus 2022 levels, negative near-term technical momentum (below key short-term moving averages with negative MACD), and an unfavorable valuation signal from the negative P/E.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet reduces financial risk and enhances flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Cash Flow Improvement

Strong cash flow generation indicates robust earnings quality and provides the company with the resources to reinvest in its business, pay dividends, or reduce debt.

Revenue Growth Re-acceleration

Re-acceleration of revenue growth suggests the company is successfully capturing market opportunities and enhancing its competitive position.

Negative Factors

Declining Margins

Declining margins indicate rising costs or reduced pricing power, which could pressure profitability and limit the company's ability to invest in growth.

Volatile Cash Flow

Volatile cash flow can signal inconsistent earnings quality and may hinder the company's ability to plan long-term strategic investments or manage working capital effectively.

Profitability Concerns

Inconsistent earnings power raises concerns about the company's ability to maintain profitability, potentially affecting investor confidence and future growth prospects.

Betrend Corp. Business Overview & Revenue Model

Company Description

Betrend Corp. (4020) is a company engaged in the technology and digital services sector, specializing in innovative solutions for businesses and consumers. The company offers a wide range of products and services that include digital marketing, e-commerce platforms, and advanced analytics tools, aimed at enhancing business operations and customer engagement.

How the Company Makes Money

Betrend Corp. generates revenue through multiple streams, primarily from the sale of its digital services and platforms. The company earns income by licensing its e-commerce platforms to businesses, charging subscription fees for its analytics tools, and offering customized digital marketing solutions. Additionally, Betrend Corp. engages in strategic partnerships with other technology firms to expand its market reach and enhance its service offerings, further contributing to its revenue.

Betrend Corp. Financial Statement Overview

Summary

Betrend Corp. exhibits strong financial health with robust revenue growth and efficient cash flow management. The company boasts a high equity ratio and lack of debt, underscoring financial stability, though the slight decrease in net profit margin requires attention. Overall, Betrend Corp. is well-positioned for future growth with a solid foundation.

Income Statement

Betrend Corp. shows strong revenue growth with a 5.87% increase from 2023 to 2024, and a solid gross profit margin of 52.97% for 2024. However, net profit margin decreased to 5.19% in 2024 from 6.05% in 2023, indicating pressure on profitability. The EBIT margin is 6.92%, reflecting operational efficiency, while the EBITDA margin of 10.73% suggests healthy earnings before non-cash expenses.

Balance Sheet

The company has a robust equity position with an equity ratio of 88.74% and zero debt, indicating a very strong financial structure. The return on equity is 6.79%, showing effective utilization of shareholder funds. The absence of debt greatly reduces financial risk.

Cash Flow

Free cash flow increased substantially by 213.95% from 2023 to 2024, demonstrating improved cash generation. The operating cash flow to net income ratio is 2.35, indicating strong cash earnings. The free cash flow to net income ratio is 2.25, signifying efficient conversion of profits to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.16B	1.09B	1.09B	1.05B	857.15M
Gross Profit	582.64M	612.00M	560.88M	565.32M	535.76M	494.37M
EBITDA	51.92M	124.56M	149.88M	201.76M	151.12M	164.62M
Net Income	-5.81M	60.44M	66.00M	100.32M	60.28M	76.08M
Balance Sheet
Total Assets	952.00M	995.53M	948.00M	941.49M	825.72M	700.01M
Cash, Cash Equivalents and Short-Term Investments	499.00M	597.00M	568.00M	595.93M	434.73M	440.78M
Total Debt	0.00	0.00	0.00	0.00	9.45M	26.12M
Total Liabilities	92.00M	111.77M	112.00M	151.95M	142.76M	147.81M
Stockholders Equity	860.00M	883.76M	836.00M	789.54M	682.96M	552.20M
Cash Flow
Free Cash Flow	0.00	70.86M	43.00M	165.06M	29.37M	109.45M
Operating Cash Flow	0.00	141.49M	45.57M	208.69M	86.90M	169.77M
Investing Cash Flow	0.00	-96.26M	-52.49M	-44.30M	-146.89M	-61.26M
Financing Cash Flow	0.00	-15.81M	-20.52M	-3.48M	53.81M	185.09M

Betrend Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 806.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4020, the sentiment is Negative. The current price of 806 is below the 20-day moving average (MA) of 811.95, below the 50-day MA of 854.20, and above the 200-day MA of 704.02, indicating a neutral trend. The MACD of -27.87 indicates Positive momentum. The RSI at 25.74 is Positive, neither overbought nor oversold. The STOCH value of 14.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4020.

Betrend Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3913	75 Outperform	¥3.36B	17.25	―	―	14.42%	3652.58%
4020	64 Neutral	¥1.68B	-49.67	―	―	3.27%	-141.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4255	59 Neutral	¥4.68B	24.32	―	―	12.56%	―
4381	54 Neutral	¥1.42B	-8.38	―	―	-14.58%	54.57%
3787	50 Neutral	¥1.52B	-9.31	―	―	-1.34%	17.01%
4179	48 Neutral	¥1.87B	-12.64	―	―	30.10%	40.65%