BroadBand Security, Inc. (4398) AI Stock Analysis

• Market Cap: ¥5.96B
• Dividend Yield: 0.75%
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.68
• Revenue Growth: -3.90%
• EPS Growth: -63.64%
• Country: JP
• Employees: 236
• Sector: Technology
• Sector Strength: 79
• Industry: Information Technology Services
• EPS (TTM): 25.18
• Shares Outstanding: 4,582,174
• 10 Day Avg. Volume: 2,060
• 30 Day Avg. Volume: 5,180
• PEG Ratio: -1.26
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Outperform
• Price Target: ¥1,465.00 ▲(9.98%Upside)

BroadBand Security, Inc.'s solid financial performance, marked by strong profitability and a robust balance sheet, significantly supports the stock score. However, concerns about revenue growth and liquidity management, coupled with a high P/E ratio, moderate the overall outlook. Technical indicators suggest neutral market momentum, neither bolstering nor detracting significantly from the stock's attractiveness.

BroadBand Security, Inc. Business Overview & Revenue Model

Company Description

BroadBand 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 Money

BroadBand 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.24B	6.46B	5.90B	5.22B	4.34B	4.18B
	Gross Profit
1.90B	2.07B	1.78B	1.58B	1.22B	1.23B
	EBIT
412.56M	689.21M	531.91M	509.00M	210.66M	342.13M
	EBITDA
620.22M	914.37M	785.24M	767.93M	490.56M	621.75M
	Net Income Common Stockholders
252.63M	455.53M	416.50M	352.35M	121.39M	218.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
974.59M	1.92B	1.36B	1.26B	945.61M	829.30M
	Total Assets
2.96B	4.13B	3.57B	3.15B	2.79B	2.70B
	Total Debt
762.77M	552.96M	653.61M	691.33M	834.03M	881.02M
	Net Debt
-211.82M	-1.37B	-702.54M	-571.18M	-111.57M	51.73M
	Total Liabilities
1.83B	2.06B	1.94B	1.91B	1.79B	1.78B
	Stockholders Equity
1.13B	2.07B	1.63B	1.24B	998.62M	920.15M
Cash Flow		Free Cash Flow
0.00	792.43M	408.45M	651.83M	306.38M	382.70M
	Operating Cash Flow
0.00	895.05M	493.45M	752.83M	406.38M	747.70M
	Investing Cash Flow
0.00	-225.24M	-86.02M	-101.91M	-99.37M	-398.38M
	Financing Cash Flow
0.00	-116.31M	-308.20M	-327.39M	-185.44M	-225.80M

BroadBand Security, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1332.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1332 is below the 20-day moving average (MA) of 1333.35, above the 50-day MA of 1318.92, and below the 200-day MA of 1413.56, indicating a neutral trend. The MACD of 3.87 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 62.87 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	¥6.45B	8.82		3.77%	4.48%	9.26%
3920	81 Outperform	¥5.08B	12.64		1.31%	13.25%	16826.25%
3988	79 Outperform	¥5.45B	12.86		1.17%	12.37%	0.75%
3625	75 Outperform	¥6.64B	13.81		0.53%	30.89%	421.07%
3940	72 Outperform	¥6.44B	15.25		2.35%	11.17%	2.06%
4398	70 Outperform	¥5.96B	30.46		0.75%	-3.90%	-63.64%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%