Betrend Corp. (4020) AI Stock Analysis

• Market Cap: ¥1.57B
• Dividend Yield: N/A
• Average Volume (3M): 4.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 3.27%
• EPS Growth: -141.89%
• Country: JP
• Employees: 58
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 2,200,400
• 10 Day Avg. Volume: 3,180
• 30 Day Avg. Volume: 4,056
• PEG Ratio: 0.06
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 1.46
• P/FCF Ratio: -31.66
• 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: 50 Neutral
• Price Target: ¥759.00 ▼(-5.83% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by the 2025 profitability swing into losses and weaker cash flow (including negative free cash flow). A strong, low-debt balance sheet provides meaningful stability, but technical indicators show a broadly weak trend and valuation metrics are impaired by losses (negative P/E).

Positive Factors

Low‑debt balance sheet

A conservatively financed balance sheet with essentially no debt materially lowers financial risk and preserves optionality. Over the next several months this provides a durable buffer against operating volatility, enabling the company to fund operations or selective investments without urgent refinancing pressures.

Prior margin and revenue track record

A multi‑year history of healthy margins and steady revenue growth indicates an underlying business model and cost structure that can be profitable. This legacy performance suggests the 2025 setback may be cyclical or operational rather than structural, supporting a plausible path to margin recovery if management addresses drivers.

Operating cash flow remained positive

Positive operating cash flow in 2025, even if reduced, shows the core business still generates cash from operations. That durability gives management time to adjust spending or working capital and reduces immediate liquidity risk compared with firms already burning cash from operations.

Negative Factors

Profitability reversal in 2025

A material swing from profits to meaningful losses is a durable negative: it erodes retained earnings, strains operating flexibility, and raises the risk of sustained margin compression. Over the 2–6 month horizon this can force cost cuts, strategic shifts, or slower investment, impairing growth execution.

Negative free cash flow

Negative free cash flow reduces internally available funds for capex, R&D, or acquisitions and may require external financing if prolonged. This weakens the company's ability to invest in growth initiatives and raises funding risk over the medium term, even if operating cash remains positive.

Erosion of equity base

Declining equity following a loss reduces the firm’s capital cushion and financial flexibility. Over months this can constrain strategic choices, reduce ability to absorb further losses, and limit room for debt capacity or shareholder returns until profitability and retained earnings rebuild.

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

Balance sheet strength is high with essentially no debt (Balance Sheet Score: 78), but 2025 saw a sharp profitability reversal into losses (Income Statement Score: 45) and weaker cash conversion with negative free cash flow (Cash Flow Score: 52). Overall: resilient financial structure, but clear near-term operating and cash flow deterioration.

Income Statement

Revenue has been relatively steady with modest growth (about 3% in 2025 vs. ~6% in 2024), but profitability deteriorated sharply in 2025: EBIT and net income swung from solidly positive in 2024 to meaningful losses in 2025. Earlier years (2020–2024) show generally healthy margins, but the latest annual result indicates a clear earnings setback and higher volatility in operating performance.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt in recent years (and only minimal debt in 2020–2021), which reduces financial risk. Equity remains substantial versus assets, supporting stability. The main weakness is that equity declined in 2025 versus 2024, consistent with the year’s net loss and indicating some erosion in the capital base.

Cash Flow

Cash generation has been uneven. Operating cash flow remained positive in 2025, but it fell sharply from 2024 levels, and free cash flow turned negative in 2025 after being positive in 2024 and 2023. While prior years included strong cash flow periods (notably 2022 and 2024), the latest year suggests weaker cash conversion and higher reinvestment/working-capital pressure.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	1.16B	1.16B	1.09B	1.09B	1.05B
Gross Profit	582.64M	544.41M	612.00M	560.88M	565.32M	535.76M
EBITDA	51.92M	-11.33M	124.56M	149.88M	201.76M	151.12M
Net Income	-5.81M	-101.40M	60.44M	66.00M	100.32M	60.28M
Balance Sheet
Total Assets	952.00M	909.10M	995.53M	948.00M	941.49M	825.72M
Cash, Cash Equivalents and Short-Term Investments	499.00M	467.44M	597.00M	568.00M	595.93M	434.73M
Total Debt	0.00	0.00	0.00	0.00	0.00	9.45M
Total Liabilities	92.00M	129.43M	111.77M	112.00M	151.95M	142.76M
Stockholders Equity	860.00M	779.67M	883.76M	836.00M	789.54M	682.96M
Cash Flow
Free Cash Flow	0.00	-53.54M	70.86M	43.00M	165.06M	29.37M
Operating Cash Flow	0.00	17.25M	141.49M	45.57M	208.69M	86.90M
Investing Cash Flow	0.00	-148.09M	-96.26M	-52.49M	-44.30M	-146.89M
Financing Cash Flow	0.00	392.00K	-15.81M	-20.52M	-3.48M	53.81M

Betrend Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 806.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 above the 20-day moving average (MA) of 750.90, above the 50-day MA of 779.16, and above the 200-day MA of 731.15, indicating a bearish trend. The MACD of -18.83 indicates Positive momentum. The RSI at 28.67 is Positive, neither overbought nor oversold. The STOCH value of 11.18 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
5256	69 Neutral	¥2.92B	16.36	―	―	13.48%	61.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	55 Neutral	¥5.10B	26.11	―	―	4.36%	-0.02%
3976	54 Neutral	¥2.40B	-11.69	―	―	-14.55%	-8.13%
3909	51 Neutral	¥2.65B	2.75	―	―	-32.56%	―
4020	50 Neutral	¥1.57B	-15.19	―	―	3.27%	-141.89%
3910	44 Neutral	¥1.66B	13.87	―	1.35%	9.45%	―