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BroadBand Security, Inc. (JP:4398)
:4398
Japanese Market
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BroadBand Security, Inc. (4398) AI Stock Analysis

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JP:4398

BroadBand Security, Inc.

(4398)

Rating:55Neutral
Price Target:
¥1,248.00
▲(1.22%Upside)
The overall stock score for BroadBand Security, Inc. is primarily impacted by its solid financial foundation and profitability. However, technical analysis reveals bearish signals, and valuation metrics indicate potential overvaluation. The absence of earnings call guidance or notable corporate events leaves the score more dependent on existing financial and market data.

BroadBand Security, Inc. (4398) vs. iShares MSCI Japan ETF (EWJ)

BroadBand Security, Inc. Business Overview & Revenue Model

Company DescriptionBroadBand Security, Inc. (4398) is a Japan-based company primarily engaged in providing comprehensive security services. The company operates across various sectors, offering solutions such as vulnerability assessment, security consulting, and monitoring services to protect enterprises from cyber threats. With a focus on cybersecurity, BroadBand Security, Inc. aims to safeguard information systems, ensuring data integrity and confidentiality for its clients.
How the Company Makes MoneyBroadBand Security, Inc. generates revenue primarily through its cybersecurity service offerings. The company charges clients for services such as vulnerability assessments, security monitoring, and consultancy. These services are often provided on a subscription or contract basis, ensuring a steady stream of income. Additionally, the company may engage in partnerships with technology firms to enhance its service offerings, thereby expanding its client base and increasing revenue. By leveraging its expertise in cybersecurity, BroadBand Security, Inc. positions itself as a critical partner for businesses seeking to protect their digital assets.

BroadBand Security, Inc. Financial Statement Overview

Summary
BroadBand Security, Inc. exhibits strong financial performance with healthy profit margins and a robust balance sheet. However, recent revenue growth decline and unreported cash flow metrics suggest a need for strategic focus on liquidity management.
Income Statement
85
Very Positive
BroadBand Security, Inc. has demonstrated strong revenue growth over recent years, with TTM revenue reaching 6.24 billion JPY, up from 5.21 billion JPY in 2022. The gross profit margin is healthy at 30.5% TTM, and the net profit margin is also robust at 4.05% TTM. EBIT and EBITDA margins are 6.61% and 9.94% respectively, indicating efficient operations. However, the revenue growth rate from 2023 to 2024 was slightly negative, warranting attention.
Balance Sheet
80
Positive
The company maintains a strong equity position, with a debt-to-equity ratio of 0.21 TTM, indicating low leverage. The equity ratio stands at 54.53% TTM, emphasizing financial stability. Return on equity is modest at 11.9% TTM, reflecting a balanced approach to growth and risk. The company's balance sheet reflects a solid financial foundation with manageable liabilities.
Cash Flow
70
Positive
Cash flow analysis shows challenges in operational cash generation, with TTM operating cash flow reported as zero. Historical data indicates positive free cash flow, but recent data lacks comparable metrics. The TTM free cash flow remains unreported, raising concerns about liquidity management.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

BroadBand Security, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1233.00
Price Trends
50DMA
1298.96
Negative
100DMA
1319.53
Negative
200DMA
1380.00
Negative
Market Momentum
MACD
-25.41
Positive
RSI
39.98
Neutral
STOCH
33.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4398, the sentiment is Negative. The current price of 1233 is below the 20-day moving average (MA) of 1267.20, below the 50-day MA of 1298.96, and below the 200-day MA of 1380.00, indicating a bearish trend. The MACD of -25.41 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4398.

BroadBand Security, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥6.39B8.75
3.81%4.48%9.27%
81
Outperform
¥5.43B12.73
1.02%13.25%16826.25%
81
Outperform
¥5.99B13.73
1.06%12.89%-8.37%
72
Outperform
¥6.30B14.92
2.41%11.17%2.06%
69
Neutral
¥6.08B12.80
0.58%30.89%421.07%
63
Neutral
$34.94B5.14-11.21%1.86%5.61%-19.33%
55
Neutral
¥5.52B28.50
1.22%-3.90%-63.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4398
BroadBand Security, Inc.
1,233.00
-474.38
-27.78%
JP:3625
Techfirm Holdings, Inc.
861.00
314.98
57.69%
JP:3920
Internetworking & Broadband Consulting Co., Ltd.
977.00
429.54
78.46%
JP:3940
Nomura System Corporation Co., Ltd.
135.00
6.55
5.10%
JP:3988
SYS Holdings Co. Ltd.
566.00
-42.00
-6.91%
JP:4752
Showa System Engineering Corporation
1,435.00
68.63
5.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025