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

• Market Cap: ¥8.15B
• Dividend Yield: N/A
• Average Volume (3M): 16.99K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.62
• Revenue Growth: 39.18%
• EPS Growth: 27.87%
• Country: JP
• Employees: 142
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 20.89
• Shares Outstanding: 6,145,000
• 10 Day Avg. Volume: 15,000
• 30 Day Avg. Volume: 16,993
• PEG Ratio: 0.79
• Price to Book (P/B): 3.95
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -2.44
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,367.00 ▲(8.92% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by persistent negative operating/free cash flow and increased leverage despite accounting profitability. Technicals are a key positive with clear trend support and constructive momentum indicators, while valuation appears moderate based on the provided P/E.

Positive Factors

Strong revenue growth

Sustained, accelerating top-line growth (noted as strong and accelerating) indicates rising market adoption and expands the revenue base. Over 2–6 months this supports scale economies, strengthens strategic options for reinvestment, and underpins longer-term capacity to fund growth initiatives.

Consistent profitability

Consistent positive EBIT and net income demonstrate operational viability beyond one-off items. Durable profitability provides an earnings buffer to absorb cyclicality, supports internal capital formation for product/service investment, and helps preserve stakeholder confidence over the medium term.

Equity growth and solid ROE

Rising equity and solid ROE point to retained earnings and efficient use of shareholder capital. This creates a longer-term buffer against losses, aids access to capital markets if needed, and signals management effectiveness in generating returns on invested equity.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow forces reliance on external financing to fund operations or investment. Over months this elevates refinancing risk, constrains ability to self-fund growth or pay down debt, and can pressure liquidity during downturns or higher interest costs.

High and rising leverage

A materially higher debt-to-equity ratio reduces financial flexibility and raises interest and refinancing exposure. Coupled with weak cash conversion, elevated leverage can force austerity measures, increase default risk under stress, and limit strategic investments over the medium term.

Margin compression

Declining gross and net margins suggest structural cost pressures or pricing erosion as the business scales. Sustained margin compression reduces cash earnings per revenue dollar, weakening resilience to shocks and making profitable growth harder without corrective pricing or efficiency measures.

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

Company Description

BROAD ENTERPRISE CO.,LTD. (4415) is a diversified company primarily engaged in the manufacturing and distribution of electronics and related products. The company operates in several sectors, including consumer electronics, industrial automation, and renewable energy solutions. BROAD ENTERPRISE is known for its innovative products, including smart home devices, automation systems, and energy-efficient technologies, aimed at enhancing productivity and sustainability across various industries.

How the Company Makes Money

BROAD ENTERPRISE CO.,LTD. generates revenue through multiple streams, including the sale of consumer electronics, industrial automation equipment, and renewable energy solutions. The company capitalizes on its technological advancements and strong market presence to attract both individual consumers and businesses. Key revenue streams include direct product sales, long-term contracts with industrial clients, and partnerships with technology firms for integrated solutions. Additionally, the company benefits from recurring revenue through maintenance services and software subscriptions linked to its automation and smart home products.

BROAD ENTERPRISE CO.,LTD. Financial Statement Overview

Summary

Strong and accelerating revenue growth with consistent positive EBIT and net income, but this is offset by materially weaker cash generation (negative operating and free cash flow every year, worsening in 2025) and meaningfully higher leverage (debt-to-equity roughly 3.8x), reducing financial flexibility.

Income Statement

Revenue growth is strong and accelerating (2025 revenue up ~32% vs. 2024), and the company remains profitable with positive EBIT and net income across all years shown. That said, profitability has compressed: gross margin has trended down materially since 2020–2021, and net margin declined in 2025 vs. 2024, suggesting rising costs and/or pricing pressure as the company scales.

Balance Sheet

Leverage has increased meaningfully: total debt rose sharply in 2025 and debt relative to equity is high (roughly 3.8x in 2025), reducing balance-sheet flexibility. Equity has grown, and returns on equity are solid, but the capital structure looks more debt-heavy than earlier years (notably vs. 2021), which elevates refinancing and downturn risk.

Cash Flow

Cash generation is the key weakness: operating cash flow and free cash flow are negative every year provided, and the cash outflow expanded significantly in 2025 (operating cash flow around -2.5B; free cash flow around -2.6B). While earnings are positive, the business is not converting those profits into cash, implying working-capital strain and/or heavy ongoing investment that may require continued external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.61B	7.41B	4.70B	3.96B	2.99B	2.50B
Gross Profit	2.40B	2.96B	2.10B	1.85B	1.56B	1.60B
EBITDA	906.08M	894.41M	665.84M	468.94M	208.52M	592.79M
Net Income	462.53M	417.00M	346.00M	327.91M	77.76M	346.70M
Balance Sheet
Total Assets	9.29B	10.77B	7.95B	7.28B	5.64B	4.46B
Cash, Cash Equivalents and Short-Term Investments	942.24M	969.85M	1.04B	1.11B	990.32M	1.68B
Total Debt	5.13B	6.11B	3.50B	2.44B	1.72B	1.66B
Total Liabilities	7.82B	9.14B	6.74B	6.42B	5.13B	2.33B
Stockholders Equity	1.47B	1.63B	1.21B	859.30M	514.75M	2.12B
Cash Flow
Free Cash Flow	0.00	-2.63B	-1.10B	-645.55M	-608.34M	-692.40M
Operating Cash Flow	0.00	-2.52B	-1.10B	-631.21M	-560.94M	-427.73M
Investing Cash Flow	0.00	-130.93M	-26.69M	-21.52M	-208.01M	-186.08M
Financing Cash Flow	0.00	2.58B	1.05B	775.68M	80.73M	1.66B

BROAD ENTERPRISE CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1255.00
• 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:4415, the sentiment is Positive. The current price of 1255 is below the 20-day moving average (MA) of 1337.05, above the 50-day MA of 1192.32, and above the 200-day MA of 985.20, indicating a neutral trend. The MACD of 46.51 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.95 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
3834	80 Outperform	¥19.32B	12.60	―	3.53%	5.03%	-9.55%
9424	66 Neutral	¥22.35B	22.27	―	―	30.15%	31.28%
9450	64 Neutral	¥14.32B	10.97	―	4.02%	5.13%	-13.74%
3776	63 Neutral	¥13.77B	47.06	―	1.01%	17.19%	-43.91%
9419	62 Neutral	¥3.51B	27.33	―	―	-3.76%	-67.98%
4415	61 Neutral	¥8.15B	19.45	―	―	39.18%	27.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%