Brains Technology, Inc. (4075) AI Stock Analysis

• Market Cap: ¥5.67B
• Dividend Yield: N/A
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.75
• Revenue Growth: 25.01%
• EPS Growth: 175.85%
• Country: JP
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.66
• Shares Outstanding: 5,960,000
• 10 Day Avg. Volume: 5,810
• 30 Day Avg. Volume: 4,566
• PEG Ratio: 0.20
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 3.73
• P/FCF Ratio: 11.30
• 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: 72 Outperform
• Price Target: ¥891.00 ▼(-7.19% Downside)

Brains Technology, Inc. is supported by a robust balance sheet and positive technical indicators, suggesting financial stability and a bullish trend. However, the high P/E ratio and mixed cash flow performance present valuation concerns and potential risks. The lack of earnings call data and new corporate events simplifies the analysis.

Positive Factors

Revenue Growth

Brains Technology, Inc. has demonstrated strong revenue growth of over 21%, indicating successful market penetration and product adoption, which is crucial for sustaining long-term business expansion and competitiveness in the software industry.

Balance Sheet Health

The company's robust balance sheet, characterized by low debt and substantial equity, provides financial stability and flexibility, allowing it to invest in growth opportunities and weather economic downturns effectively.

Cash Flow Stability

Despite mixed cash flow performance, the stability of operating cash flow aligns with reported earnings, ensuring that the company can sustain its operations and fund necessary investments without relying excessively on external financing.

Negative Factors

Profitability Margins

The significant decrease in net profit margins suggests rising operational costs or reduced pricing power, which could impact the company's ability to maintain profitability and invest in future growth initiatives.

Free Cash Flow

The negative free cash flow, driven by high capital expenditures, poses a risk if these investments do not yield expected returns, potentially straining financial resources and limiting future strategic initiatives.

Return on Equity

A decrease in return on equity indicates less effective use of shareholder funds to generate profits, which could signal challenges in operational efficiency and impact investor confidence over the long term.

Brains Technology, Inc. Business Overview & Revenue Model

Company Description

Brains Technology, Inc., an enterprise AI software company, develops and provides data search and data analysis products and services using AI and machine learning. It offers Impulse, an anomaly detection solution; Neuron ES, an enterprise search engine; and Neuron Smart Repository, a file server visualization solution. The company was incorporated in 2008 and is based in Tokyo, Japan.

How the Company Makes Money

Brains Technology, Inc. generates revenue primarily through the sale of its software products and related services. The company offers a suite of software solutions that leverage artificial intelligence and machine learning to help businesses analyze data and improve decision-making processes. Revenue streams include licensing fees for software, subscription models for cloud-based services, and consulting fees for implementation and support services. Strategic partnerships with other technology firms and value-added resellers also contribute to the company's earnings, expanding its market reach and customer base.

Brains Technology, Inc. Financial Statement Overview

Summary

Brains Technology, Inc. has a solid balance sheet with low debt and strong equity, providing financial stability. However, profitability margins are under pressure, and cash flows are mixed due to high capital expenditures. This reflects potential risks if future returns do not justify the investment.

Income Statement

Brains Technology, Inc. shows stable revenue with a slight decline in 2024 compared to 2023. The gross profit margin is healthy, indicating efficient cost management, but the net profit margin has decreased significantly, pointing to rising operational costs or lowered pricing power. The EBIT and EBITDA margins have also diminished, highlighting a potential challenge in maintaining operational efficiency.

Balance Sheet

The company's balance sheet is robust, characterized by low levels of debt and substantial equity, reflected in a very low debt-to-equity ratio. The equity ratio demonstrates strong financial health, with a high proportion of assets funded by shareholders' equity. Return on equity has decreased, suggesting less effective use of equity to generate profits in the latest year.

Cash Flow

Cash flow performance is mixed, with operating cash flow remaining positive yet experiencing a decline. Free cash flow has turned negative, mainly due to high capital expenditures, which could indicate investments in future growth but also pose a risk if not managed properly. The operating cash flow to net income ratio remains stable, affirming operational cash generation aligning with reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26B	1.25B	1.00B	1.05B	934.25M	854.50M
Gross Profit	751.35M	751.00M	565.82M	680.81M	671.74M	682.62M
EBITDA	375.82M	382.00M	263.03M	293.18M	257.83M	205.14M
Net Income	134.40M	133.00M	48.64M	122.65M	141.31M	110.26M
Balance Sheet
Total Assets	2.06B	2.06B	1.86B	1.84B	1.71B	1.64B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.48B	1.31B	1.31B	1.30B	1.40B
Total Debt	0.00	0.00	6.00M	14.00M	80.54M	121.20M
Total Liabilities	414.00M	414.00M	303.70M	347.10M	364.64M	434.09M
Stockholders Equity	1.64B	1.64B	1.56B	1.49B	1.35B	1.21B
Cash Flow
Free Cash Flow	0.00	414.00M	-8.27M	56.08M	-55.14M	151.81M
Operating Cash Flow	0.00	420.00M	230.09M	275.30M	134.65M	221.61M
Investing Cash Flow	0.00	-194.00M	-238.36M	-219.23M	-189.79M	-69.81M
Financing Cash Flow	0.00	-53.30M	11.19M	-48.88M	-49.99M	933.25M

Brains Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4075, the sentiment is Positive. The current price of 960 is above the 20-day moving average (MA) of 871.95, above the 50-day MA of 875.34, and above the 200-day MA of 782.52, indicating a bullish trend. The MACD of 21.22 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4075.

Brains Technology, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5134	73 Outperform	¥3.35B	13.77	―	―	38.35%	632.28%
4075	72 Outperform	¥5.67B	40.39	―	―	25.01%	175.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4167	58 Neutral	¥2.49B	―	―	―	-6.33%	-129.18%
3967	44 Neutral	¥3.96B	-5.11	―	―	15.39%	-562.65%
2345	43 Neutral	¥4.44B	-1.12	―	―	―	―