BroadBand Security, Inc. (4398) AI Stock Analysis

• Market Cap: ¥5.52B
• Dividend Yield: 1.22%
• Average Volume (3M): 3.40K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.64
• Revenue Growth: -3.90%
• EPS Growth: -63.64%
• Country: JP
• Employees: 236
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 25.18
• Shares Outstanding: 4,585,674
• 10 Day Avg. Volume: 3,110
• 30 Day Avg. Volume: 3,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥1,427.00
• Price Target Upside: 15.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• 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. Business Overview & Revenue Model

Company Description

BroadBand 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 Money

BroadBand 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

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

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

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 Price: 1233.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	83 Outperform	¥6.39B	8.75		3.81%	4.48%	9.27%
3920	81 Outperform	¥5.43B	12.73		1.02%	13.25%	16826.25%
3988	81 Outperform	¥5.99B	13.73		1.06%	12.89%	-8.37%
3940	72 Outperform	¥6.30B	14.92		2.41%	11.17%	2.06%
3625	69 Neutral	¥6.08B	12.80		0.58%	30.89%	421.07%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
4398	55 Neutral	¥5.52B	28.50		1.22%	-3.90%	-63.64%