Betrend Corp. (4020) AI Stock Analysis

• Market Cap: ¥1.50B
• Dividend Yield: N/A
• Average Volume (3M): 4.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• 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: ¥666.00 ▼(-17.37% 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

Conservative balance sheet

Essentially no debt and substantial equity vs assets provide durable financial stability, lowering solvency risk and preserving optionality for strategic investment or acquisitions. This structural strength cushions operating volatility and supports funding flexibility over 2–6 months.

Recent revenue growth

Reported revenue growth (~31.5% in the fundamentals field) indicates persistent top-line expansion and demand traction. Durable revenue momentum improves scale economics, supports reinvestment capacity, and provides a foundation for margin recovery if costs are managed.

Historically healthy margins

Prior multi-year profitability implies underlying operational leverage and a repeatable business model. A track record of healthy margins suggests management can restore profitability when transitory issues abate, supporting long-term margin sustainability.

Negative Factors

2025 profitability reversal

A material swing to net losses in 2025 is a structural concern: it erodes retained earnings, can force tougher capital allocation choices, and signals potential demand, pricing, or cost-structure issues that could impair growth and investment for several quarters.

Negative free cash flow

Negative free cash flow reduces internal funding for R&D and customer acquisition, increasing reliance on external financing or equity dilution. Persistently weak cash conversion constrains strategic flexibility and heightens vulnerability to slower revenue periods.

Erosion in equity base

A declining equity base shrinks the capital buffer that absorbs future losses and funds growth. Even with low debt, reduced shareholders' equity limits balance-sheet resilience and could constrain investment or make new funding pricier if negative performance persists.

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.

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	581.85M	544.41M	609.08M	561.01M	561.84M	532.38M
EBITDA	53.49M	-11.33M	124.56M	150.37M	202.49M	150.96M
Net Income	-6.39M	-101.40M	60.44M	66.91M	100.32M	60.28M
Balance Sheet
Total Assets	952.00M	909.10M	995.53M	954.93M	947.94M	832.66M
Cash, Cash Equivalents and Short-Term Investments	499.00M	467.44M	597.89M	568.49M	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	118.83M	158.39M	149.70M
Stockholders Equity	860.00M	779.67M	883.76M	836.10M	789.55M	682.96M
Cash Flow
Free Cash Flow	0.00	-53.54M	135.38M	43.33M	206.00M	81.94M
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 695.65, above the 50-day MA of 739.18, and above the 200-day MA of 737.49, indicating a bearish trend. The MACD of -19.38 indicates Negative momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 is Neutral, 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	¥2.76B	27.18	―	―	13.48%	61.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	55 Neutral	¥4.99B	29.81	―	―	4.36%	-0.02%
3976	54 Neutral	¥2.26B	-91.39	―	―	-14.55%	-8.13%
3909	51 Neutral	¥2.33B	206.76	―	―	-32.56%	―
4020	50 Neutral	¥1.50B	-16.72	―	―	3.27%	-141.89%
3910	44 Neutral	¥1.62B	7.76	―	1.35%	9.45%	―