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

• Market Cap: ¥4.65B
• Dividend Yield: N/A
• Average Volume (3M): 10.45K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.43
• Revenue Growth: 15.58%
• EPS Growth: 38.21%
• Country: JP
• Employees: 142
• Sector: Communication Services
• Sector Strength: 76
• Industry: Telecommunications Services
• EPS (TTM): 16.44
• Shares Outstanding: 6,115,500
• 10 Day Avg. Volume: 20,670
• 30 Day Avg. Volume: 10,453
• PEG Ratio: 0.57
• Price to Book (P/B): 3.59
• 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: ¥742.00
• Price Target Upside: -2.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥840.00 ▲(9.95%Upside)

The overall score reflects strong financial performance with notable revenue growth and effective cost management, though hindered by cash flow and debt challenges. Technical indicators suggest a bullish trend, but caution is warranted due to overbought signals. The stock's valuation suggests it could be a good opportunity for growth investors.

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

Company Description

BROAD ENTERPRISE CO., LTD. (4415) is a prominent player in the information technology sector, specializing in the development and distribution of software solutions and IT services. The company offers a wide range of products and services, including enterprise software, cloud solutions, and IT consulting services, designed to enhance business operations and efficiency for its clients across various industries.

How the Company Makes Money

BROAD ENTERPRISE CO., LTD. generates revenue primarily through the sale of its enterprise software solutions and IT services. The company charges licensing fees for its software products, which can include one-time purchases or subscription-based models, providing a steady stream of income. Additionally, the company earns from offering IT consulting services, where it leverages its expertise to assist businesses in optimizing their IT infrastructure. Significant partnerships with other technology providers and continuous innovation in product offerings also contribute to the company's financial performance.

BROAD ENTERPRISE CO.,LTD. Financial Statement Overview

Summary

BROAD ENTERPRISE CO.,LTD. has shown strong revenue growth and a healthy gross profit margin, indicating effective cost management. However, challenges with cash flow management and a high debt-to-equity ratio suggest potential risks in financial flexibility and 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
EBITDA	811.00M	468.94M	208.52M	592.79M	217.05M
Net Income	346.00M	327.91M	77.76M	346.70M	135.51M
Balance Sheet
Total Assets	7.95B	7.28B	5.64B	4.46B	2.05B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.11B	990.32M	1.68B	720.04M
Total Debt	3.50B	2.44B	1.72B	1.66B	1.32B
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: Positive
• Last Price: 764.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4415, the sentiment is Positive. The current price of 764 is above the 20-day moving average (MA) of 715.75, above the 50-day MA of 698.24, and below the 200-day MA of 770.54, indicating a neutral trend. The MACD of 22.08 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 72.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9446	71 Outperform	¥4.68B	3.44		4.40%	8.10%	85.47%
4415	69 Neutral	¥4.65B	11.21		―	15.58%	38.21%
9445	69 Neutral	¥8.80B	12.00		3.81%	3.93%	1.66%
9419	67 Neutral	¥2.76B	9.83		―	-1.07%	6.60%
3776	66 Neutral	¥9.22B	24.16		1.32%	4.70%	35.62%
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
9421	50 Neutral	¥3.10B	22.14		―	-13.42%	-195.53%