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

BroadBand Security, Inc. (4398) AI Stock Analysis

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JP

BroadBand Security, Inc.

(4398)

Rating:69Neutral
Price Target:
¥1,420.00
▲(8.73%Upside)
BroadBand Security, Inc. has a solid financial foundation with strong profitability and a robust balance sheet, but cash flow concerns require attention. Technical analysis indicates mixed signals with potential bearish trends. The valuation suggests the stock may be overvalued, which could limit upside potential.

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

BroadBand Security, Inc. Business Overview & Revenue Model

Company DescriptionBroadBand Security, Inc. (4398) is a cybersecurity company based in Japan that specializes in providing comprehensive security solutions for a wide range of digital platforms. The company offers a variety of services including vulnerability assessments, security audits, and cybersecurity consulting to help businesses protect their digital assets from potential threats. BroadBand Security, Inc. is known for its advanced security technologies and expertise in safeguarding networks against cyber attacks.
How the Company Makes MoneyBroadBand Security, Inc. generates revenue primarily through its cybersecurity services offered to businesses across various industries. The company's key revenue streams include fees charged for vulnerability assessments, security audits, and consulting services. Additionally, BroadBand Security, Inc. may engage in partnerships with technology firms to enhance their service offerings and expand their market reach. These collaborations often contribute to the company's earnings by integrating cutting-edge technologies into their security solutions, thereby increasing their value proposition to clients.

BroadBand Security, Inc. Financial Statement Overview

Summary
BroadBand Security, Inc. shows a solid financial performance with strong profitability and a robust balance sheet. The income statement indicates strong revenue growth historically, but recent negative revenue growth warrants attention. The balance sheet is strong with low leverage and a solid equity position. However, challenges in cash flow generation, evidenced by zero operating cash flow, raise concerns about 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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.24B6.46B5.90B5.22B4.34B4.18B
Gross Profit1.90B2.07B1.78B1.58B1.22B1.23B
EBITDA620.22M914.37M785.24M767.93M490.56M621.75M
Net Income252.63M455.53M416.50M352.35M121.39M218.22M
Balance Sheet
Total Assets2.96B4.13B3.57B3.15B2.79B2.70B
Cash, Cash Equivalents and Short-Term Investments974.59M1.92B1.36B1.26B945.61M829.30M
Total Debt762.77M552.96M653.61M691.33M834.03M881.02M
Total Liabilities1.83B2.06B1.94B1.91B1.79B1.78B
Stockholders Equity1.13B2.07B1.63B1.24B998.62M920.15M
Cash Flow
Free Cash Flow0.00792.43M408.45M651.83M306.38M382.70M
Operating Cash Flow0.00895.05M493.45M752.83M406.38M747.70M
Investing Cash Flow0.00-225.24M-86.02M-101.91M-99.37M-398.38M
Financing Cash Flow0.00-116.31M-308.20M-327.39M-185.44M-225.80M

BroadBand Security, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1306.00
Price Trends
50DMA
1319.37
Negative
100DMA
1348.62
Negative
200DMA
1397.04
Negative
Market Momentum
MACD
-3.67
Positive
RSI
46.97
Neutral
STOCH
32.76
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 1306 is below the 20-day moving average (MA) of 1318.81, below the 50-day MA of 1319.37, and below the 200-day MA of 1397.04, indicating a bearish trend. The MACD of -3.67 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 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
¥6.38B8.73
3.82%4.48%9.27%
81
Outperform
¥5.94B13.63
1.07%12.89%-8.37%
76
Outperform
¥5.94B12.50
0.59%30.89%421.07%
75
Outperform
¥4.62B10.83
1.44%13.25%16826.25%
72
Outperform
¥6.12B14.47
2.48%11.17%2.06%
69
Neutral
¥5.84B30.19
0.77%-3.90%-63.64%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4398
BroadBand Security, Inc.
1,306.00
-415.98
-24.16%
JP:3625
Techfirm Holdings, Inc.
842.00
296.98
54.49%
JP:3920
Internetworking & Broadband Consulting Co., Ltd.
858.00
376.51
78.20%
JP:3940
Nomura System Corporation Co., Ltd.
131.00
-1.35
-1.02%
JP:3988
SYS Holdings Co. Ltd.
562.00
-59.35
-9.55%
JP:4752
Showa System Engineering Corporation
1,455.00
123.11
9.24%
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 03, 2025