Brains Technology, Inc. (4075) AI Stock Analysis

• Market Cap: ¥4.93B
• Dividend Yield: N/A
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.82
• Revenue Growth: 28.63%
• EPS Growth: 551.37%
• Country: JP
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.95
• 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: 67 Neutral
• Price Target: ¥906.00 ▲(8.50% Upside)
• Action: Downgraded Date: 01/04/26
• Date: Action: Downgraded 01/04/26

The score is driven primarily by strong financial quality—especially an exceptionally conservative balance sheet and improved 2025 profitability/cash generation—tempered by volatility in margins and free cash flow. Technical signals are currently weak (below key moving averages with negative MACD), and valuation looks demanding at ~28.8x earnings without dividend support.

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

Strong overall financial profile led by a very conservative balance sheet (minimal debt and rising equity) and a solid 2025 profitability rebound. Key offset is volatility: margins and free cash flow have swung meaningfully across years, making sustainability of the latest improvement the main risk.

Income Statement

Revenue has grown meaningfully over time (from 2020 to 2025), including a strong rebound in 2025 after a small decline in 2024. Profitability is solid with 2025 net margin around 10.6% and strong operating profitability, but margins have been volatile—peaking in 2021–2022, compressing in 2024, then recovering in 2025. Overall, the income statement shows good earnings power with some cyclicality in margins.

Balance Sheet

The balance sheet is very conservative: debt is effectively eliminated by 2025 (and minimal in recent years), with a near-zero debt-to-equity profile. Equity has steadily increased versus earlier years, and returns on equity are healthy in 2025 (~8.1%), improving sharply from 2024. The main watch-out is that returns were materially lower in 2024, showing profitability can swing even with a strong capital structure.

Cash Flow

Cash generation is a strength in 2025, with operating cash flow exceeding net income and free cash flow closely matching net income, indicating good earnings quality. However, cash flow has been inconsistent: free cash flow was negative in 2022 and 2024 despite positive profits, suggesting periodic working-capital or investment swings. The latest year is strong, but the track record shows variability.

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

Brains Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 835.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 835 is above the 20-day moving average (MA) of 834.30, above the 50-day MA of 828.82, and above the 200-day MA of 834.80, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 57.46 is Neutral, 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
4429	73 Outperform	¥4.32B	13.21	―	―	―	―
4075	67 Neutral	¥4.93B	29.16	―	―	28.63%	551.37%
3917	66 Neutral	¥4.89B	7.98	―	―	7.40%	―
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
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%
3936	48 Neutral	¥5.08B	75.16	―	―	33.73%	―