Brains Technology, Inc. (4075) AI Stock Analysis

• Market Cap: ¥9.74B
• Dividend Yield: N/A
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.40
• Revenue Growth: 28.63%
• EPS Growth: 551.37%
• Country: JP
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 11.05
• Shares Outstanding: 5,960,000
• 10 Day Avg. Volume: 5,810
• 30 Day Avg. Volume: 4,566
• PEG Ratio: 0.19
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 3.53
• P/FCF Ratio: 10.68
• 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: 66 Neutral
• Price Target: ¥2,010.00 ▲(140.72% Upside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

The score is supported primarily by strong financial health (especially the low-debt balance sheet) and an improving 2025 performance, but it is held back by historically volatile margins/free cash flow, overbought technical conditions, and weak valuation signals due to a negative P/E and no dividend yield data.

Positive Factors

Conservative balance sheet

A near-zero debt profile and rising equity provide durable financial flexibility. With debt effectively eliminated by 2025, the company can fund growth, absorb shocks, and prioritize strategic investments without relying on external financing, lowering long-term solvency risk.

Sustained revenue growth with 2025 rebound

Multi-year top-line growth and a clear rebound in 2025 indicate product-market fit and rising customer adoption. This trend supports durable earnings potential and provides a foundation for margin recovery and reinvestment into product and go-to-market capabilities.

Operating cash generation quality in 2025

Operating cash flow exceeding reported earnings in 2025 signals high earnings quality and internal funding capacity. Reliable cash generation enables capex, R&D and working-capital needs to be met internally, supporting sustainable execution without frequent equity or debt raises.

Negative Factors

Margin and free cash flow volatility

Recurring swings in free cash flow and margins, including negative FCF years, create uncertainty for long-term planning. Volatility can restrict steady reinvestment, complicate forecasting and heighten execution risk when funding growth or returning capital to shareholders.

Profitability swings and ROE variability

Material year-to-year swings in profitability and ROE point to operational cyclicality or sensitivity to specific cost or revenue drivers. Such variability undermines predictability of returns and can signal execution challenges when scaling margins sustainably over time.

Limited scale / small employee base

A small workforce (~70 employees) limits R&D bandwidth, sales reach and capacity to pursue multiple product initiatives concurrently. In the software-application industry, scale is a durable advantage for distribution, partnerships and enterprise sales; limited scale can constrain long-term market share gains.

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.

Brains Technology, Inc. Financial Statement Overview

Summary

Strong overall fundamentals led by an exceptionally conservative balance sheet (debt effectively eliminated) and a solid 2025 profitability rebound. Cash flow quality is good in 2025 (operating cash flow > net income), but multi-year margin and free-cash-flow volatility (including negative FCF in 2022 and 2024) lowers confidence in consistency.

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	1.26B	1.00B	1.05B	934.25M	854.50M
Gross Profit	749.46M	563.33M	678.14M	670.14M	681.83M
EBITDA	383.46M	263.00M	293.01M	256.68M	216.93M
Net Income	133.69M	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	414.33M	224.08M	266.58M	126.32M	217.83M
Operating Cash Flow	420.53M	230.09M	275.30M	134.65M	221.61M
Investing Cash Flow	-194.66M	-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: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 below the 20-day moving average (MA) of 1161.75, below the 50-day MA of 961.52, and below the 200-day MA of 879.87, indicating a bullish trend. The MACD of 239.45 indicates Negative momentum. The RSI at 72.59 is Negative, neither overbought nor oversold. The STOCH value of 75.30 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	¥4.31B	10.74	―	―	―	―
4075	66 Neutral	¥9.74B	18.46	―	―	28.63%	551.37%
3917	66 Neutral	¥4.72B	62.68	―	―	7.40%	―
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
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%
3936	48 Neutral	¥4.68B	-29.24	―	―	33.73%	―