BROAD ENTERPRISE CO.,LTD. (4415) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: N/A
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.41
• Revenue Growth: 15.58%
• EPS Growth: 38.21%
• Country: JP
• Employees: 142
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 16.44
• Shares Outstanding: 6,115,500
• 10 Day Avg. Volume: 4,240
• 30 Day Avg. Volume: 4,280
• PEG Ratio: 0.52
• Price to Book (P/B): 3.25
• 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: 69 Neutral
• Price Target: ¥752.00 ▲(10.75%Upside)

The stock score is primarily driven by robust financial performance, reflected in strong revenue growth, despite cash flow challenges and high debt levels. Technical analysis presents a mixed outlook, while the valuation suggests the stock is reasonably priced. The lack of earnings call and notable corporate events did not affect the scoring.

BROAD ENTERPRISE CO.,LTD. Business Overview & Revenue Model

Company Description

BROAD ENTERPRISE CO., LTD. (4415) is a forward-thinking company operating in the technology sector, specializing in providing innovative solutions and services. The company focuses on developing and delivering a range of products that cater to the evolving needs of businesses and consumers, leveraging cutting-edge technology to enhance efficiency and performance.

How the Company Makes Money

BROAD ENTERPRISE CO., LTD. generates revenue primarily through the sale of its technology products and services. The company earns income by offering a diverse portfolio of solutions, which may include software products, IT consulting services, and technology infrastructure support. Key revenue streams likely involve direct sales to end-users, subscription-based models for ongoing services, and strategic partnerships with other technology firms to expand its market reach and service offerings. By addressing the needs of both small and large enterprises, the company taps into various market segments to ensure a steady flow of revenue.

BROAD ENTERPRISE CO.,LTD. Financial Statement Overview

Summary

BROAD ENTERPRISE CO.,LTD. shows robust revenue growth but faces challenges with cash flow management and a high debt load, impacting financial flexibility. Addressing these areas could enhance financial stability and support long-term growth.

Income Statement

BROAD ENTERPRISE CO.,LTD. has demonstrated strong revenue growth over the years, with total revenue increasing from ¥1,428 million in 2019 to ¥4,697 million in 2024. The gross profit margin has remained healthy, showcasing the company's ability to manage production costs effectively. However, the net profit margin indicates room for improvement in managing operational expenses and other financial factors impacting net income, as seen in the fluctuating net income figures.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, suggesting greater reliance on debt financing, which poses potential risk if not managed carefully. Despite this, the return on equity has been positive, indicating effective use of equity to generate profits. The equity ratio is relatively moderate, indicating a balanced approach towards asset financing.

Cash Flow

Cash flow analysis reveals challenges in generating positive operating cash flow, with consistent negative figures, indicating the company might be struggling with internal cash generation. Free cash flow has also been negative, which could limit the company's ability to invest in growth opportunities without external financing. However, there has been substantial cash flow from financing activities, reflecting the company's strategy to support operations through external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.70B	3.96B	2.99B	2.50B	1.59B
	Gross Profit
2.10B	1.85B	1.56B	1.60B	1.01B
	EBIT
738.69M	507.63M	289.98M	572.18M	250.03M
	EBITDA
811.00M	468.94M	208.52M	592.79M	217.05M
	Net Income Common Stockholders
346.00M	327.91M	77.76M	346.70M	135.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.11B	990.32M	1.68B	720.04M
	Total Assets
7.95B	7.28B	5.64B	4.46B	2.05B
	Total Debt
3.50B	2.44B	1.72B	1.66B	1.32B
	Net Debt
2.46B	1.32B	731.51M	-21.04M	596.61M
	Total Liabilities
6.74B	6.42B	5.13B	2.33B	1.60B
	Stockholders Equity
1.21B	859.30M	514.75M	2.12B	454.08M
Cash Flow		Free Cash Flow
-1.10B	-645.55M	-608.34M	-692.40M	-322.50M
	Operating Cash Flow
-1.10B	-631.21M	-560.94M	-427.73M	-129.06M
	Investing Cash Flow
-26.00M	-21.52M	-208.01M	-186.08M	-260.30M
	Financing Cash Flow
1.05B	775.68M	80.73M	1.66B	545.07M

BROAD ENTERPRISE CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 679.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4415, the sentiment is Negative. The current price of 679 is below the 20-day moving average (MA) of 689.30, above the 50-day MA of 676.28, and below the 200-day MA of 775.92, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4415.

BROAD ENTERPRISE CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9419	71 Outperform	¥2.94B	10.44		―	-1.07%	6.60%
9446	71 Outperform	¥4.50B	3.31		5.52%	8.10%	85.47%
4415	69 Neutral	¥4.15B	9.97		―	15.58%	38.21%
9445	69 Neutral	¥8.43B	11.50		4.77%	3.93%	1.66%
3776	68 Neutral	¥9.16B	24.00		1.34%	4.70%	35.62%
Sector *	61 Neutral	$14.78B	5.89	-4.32%	3.67%	2.75%	-30.30%
9421	44 Neutral	¥2.96B	22.14		―	-13.42%	-195.53%