BroadBand Security, Inc. (4398) AI Stock Analysis

• Market Cap: ¥6.63B
• Dividend Yield: 1.01%
• Average Volume (3M): 15.58K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 0.78
• Revenue Growth: -3.46%
• EPS Growth: -59.98%
• Country: JP
• Employees: 236
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.16
• Shares Outstanding: 4,585,674
• 10 Day Avg. Volume: 8,660
• 30 Day Avg. Volume: 15,576
• PEG Ratio: -0.59
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 381.23
• 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): 19,708.48
• Revenue Forecast (FY): ¥1.24T

• Rating: 68 Neutral
• Price Target: ¥1,712.00 ▲(31.79% Upside)

BroadBand Security, Inc. has a strong technical outlook with bullish momentum, which is the most significant factor in its score. However, the high P/E ratio suggests potential overvaluation, and financial performance indicates challenges in growth and profitability. These factors collectively result in a moderate overall stock score.

Positive Factors

Low Leverage

Low leverage indicates financial stability, allowing the company to withstand economic downturns and invest in growth opportunities without excessive debt burden.

Subscription-Based Revenue

Subscription-based revenue provides a steady income flow, enhancing predictability and stability in financial performance, and supporting long-term strategic planning.

Strategic Partnerships

Strategic partnerships enhance market reach and integration of solutions, potentially leading to increased revenue and competitive advantage in the cybersecurity sector.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and product adoption, potentially impacting long-term competitiveness and financial performance.

Profitability Challenges

Decreasing profitability margins indicate rising costs or pricing pressures, which could affect the company's ability to invest in growth and maintain competitive pricing.

Limited Free Cash Flow

Limited free cash flow restricts the company's ability to invest in new projects, pay down debt, or return capital to shareholders, potentially hindering growth initiatives.

BroadBand Security, Inc. Business Overview & Revenue Model

Company Description

BroadBand Security, Inc. is a leading provider of innovative cybersecurity solutions, specializing in protecting broadband networks and internet-connected devices from cyber threats. The company operates in the technology sector, focusing on sectors such as telecommunications, IoT security, and enterprise security. Its core products include advanced firewall systems, intrusion detection and prevention systems, and comprehensive security analytics tools designed to safeguard data integrity and ensure user privacy.

How the Company Makes Money

BroadBand Security, Inc. generates revenue through multiple streams, primarily by selling its cybersecurity products and services to telecommunications companies, enterprises, and government agencies. The company offers subscription-based services that provide continuous updates and support, which create a steady income flow. Additionally, BroadBand Security engages in strategic partnerships with major telecom operators to integrate its security solutions into their existing infrastructure, further enhancing its revenue potential. Professional services, such as consulting and customized security assessments, also contribute to its earnings, allowing the company to provide tailored solutions that meet specific client needs.

BroadBand Security, Inc. Financial Statement Overview

Summary

BroadBand Security, Inc. demonstrates a mixed financial performance. The company has a strong balance sheet with low leverage, but faces challenges in revenue growth and profitability. The cash flow statement shows adequate operational cash generation but highlights potential constraints in free cash flow. Overall, the company maintains financial stability but struggles with growth and profitability.

Income Statement

BroadBand Security, Inc. has shown a decline in revenue growth rate by -2.12% in the latest year, indicating a potential challenge in maintaining its growth trajectory. The gross profit margin and net profit margin have decreased compared to previous years, suggesting a decline in profitability. However, the company maintains a reasonable EBIT margin of 4.23% and EBITDA margin of 7.05%, which are indicative of operational efficiency.

Balance Sheet

The company has a strong equity position with a debt-to-equity ratio of 0.18, reflecting low leverage and financial stability. The return on equity (ROE) is 6.77%, which, while lower than previous years, still indicates a positive return on shareholders' investments. The equity ratio of 55.48% demonstrates a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The free cash flow growth rate is notably high at 'Infinity', due to a low base effect from the previous year. The operating cash flow to net income ratio is 0.72, indicating that the company is generating adequate cash from operations relative to its net income. However, the free cash flow to net income ratio of 0.11 suggests limited free cash flow relative to net income, which may impact future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.19B	6.10B	6.46B	5.90B	5.22B	4.34B
Gross Profit	1.83B	1.75B	2.07B	1.78B	1.58B	1.22B
EBITDA	523.66M	430.10M	914.37M	785.24M	767.93M	490.56M
Net Income	190.41M	142.72M	455.53M	416.50M	352.35M	121.39M
Balance Sheet
Total Assets	3.72B	3.80B	4.13B	3.57B	3.15B	2.79B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.43B	1.92B	1.36B	1.26B	945.61M
Total Debt	476.71M	383.30M	552.96M	653.61M	691.33M	834.03M
Total Liabilities	1.59B	1.69B	2.06B	1.94B	1.91B	1.79B
Stockholders Equity	2.13B	2.11B	2.07B	1.63B	1.24B	998.62M
Cash Flow
Free Cash Flow	0.00	15.27M	792.43M	408.45M	651.83M	306.38M
Operating Cash Flow	0.00	102.08M	895.05M	493.45M	752.83M	406.38M
Investing Cash Flow	0.00	-298.35M	-225.24M	-86.02M	-101.91M	-99.37M
Financing Cash Flow	0.00	-275.22M	-116.31M	-308.20M	-327.39M	-185.44M

BroadBand Security, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1299.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1299 is below the 20-day moving average (MA) of 1479.95, below the 50-day MA of 1387.40, and below the 200-day MA of 1331.48, indicating a bullish trend. The MACD of 27.14 indicates Positive momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	¥7.61B	9.91	―	3.36%	5.25%	23.64%
3920	79 Outperform	¥5.27B	12.68	―	1.27%	10.06%	62.79%
3940	72 Outperform	¥6.30B	15.91	―	2.41%	2.92%	-0.94%
4398	68 Neutral	¥6.63B	41.41	―	1.01%	-3.46%	-59.98%
3988	68 Neutral	¥6.27B	14.72	―	1.20%	13.34%	-10.66%
3625	65 Neutral	¥4.57B	9.67	―	1.23%	26.70%	93.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%