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

• Market Cap: ¥7.32B
• Dividend Yield: N/A
• Average Volume (3M): 16.99K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.66
• 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: 47 Neutral
• Price Target: ¥1,174.00 ▼(-6.45% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is weighed down primarily by weak cash generation (negative operating and free cash flow) alongside rising leverage, despite strong revenue growth and profitability on the income statement. Technical indicators are mixed with near-term weakness versus key moving averages, while valuation appears reasonable on a mid-teens P/E.

Positive Factors

Accelerating Revenue Growth

Sustained, accelerating top-line growth signals durable market demand and successful commercial execution. Higher revenue provides scale economics, supports reinvestment and strategic initiatives, and gives management latitude to pursue long-term growth even if near-term margins need repair.

Consistent Accounting Profitability

Repeated positive net income demonstrates an economically viable business model across cycles. Persistent accounting profitability gives the firm ability to retain earnings, attract partners, and justify investment in product or network expansion that can strengthen its market position over the medium term.

Strong Returns on Equity

Mid-20%+ ROE indicates management is generating high returns on invested capital, reflecting operational effectiveness and profitable deployment of equity. This durable profitability metric supports shareholder value creation and signals competitive strength in core service offerings.

Negative Factors

Persistent Negative Cash Flow

Chronic negative operating and free cash flow materially weakens financial flexibility. Without cash conversion of accounting profits, the company must rely on external financing or working-capital fixes to fund growth and service debt, creating sustained liquidity and execution risk over the coming months.

Sharply Rising Leverage

A rapid increase in leverage increases interest and refinancing risk and reduces balance-sheet flexibility. Elevated debt levels constrain strategic options, raise vulnerability to rate moves, and make the company more dependent on capital markets during times it already shows weak cash generation.

Material Margin Compression

Sustained declines in gross and net margins indicate weakening pricing power or rising costs as the business scales. Lower margins reduce the cushion to absorb shocks, limit ability to generate cash from earnings, and make achieving durable profitability and deleveraging harder without structural fixes.

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.

BROAD ENTERPRISE CO.,LTD. Financial Statement Overview

Summary

Strong and accelerating revenue growth with consistent net income, but financial risk is elevated due to materially compressed margins, sharply higher leverage (high debt-to-equity), and persistently negative—and worsening—operating and free cash flow.

Income Statement

Revenue growth is strong and accelerating in the latest annual period (2025 revenue up ~32% versus 2024), with consistent profitability (positive net income every year shown). That said, profitability has compressed versus earlier years: gross margin has trended down materially (from ~64% in 2020–2021 to ~40% in 2025) and net margin has also fallen from 2021 highs (~13.9%) to ~5.6% in 2025, indicating weaker cost structure and/or pricing power even as the business scales.

Balance Sheet

Leverage has increased sharply: total debt rose meaningfully into 2025 and debt-to-equity is elevated (~3.75x in 2025, up from ~2.90x in 2024 and ~0.78x in 2021). Equity has grown versus 2020–2024 levels, and returns on equity remain strong (mid-20%+ in 2024–2025), but the capital structure looks more risk-heavy and less flexible due to the higher reliance on debt.

Cash Flow

Cash generation is the key weakness: operating cash flow is negative in every year shown and deteriorates significantly in 2025 (about -2.5B), with free cash flow also deeply negative (about -2.6B). This creates funding pressure—particularly concerning alongside rising debt—because the company is not currently converting accounting profits into cash, increasing dependence on external financing or working-capital improvements to sustain growth.

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	2.09B	1.82B	1.54B	1.59B
EBITDA	908.91M	1.04B	820.97M	588.03M	359.06M	616.17M
Net Income	462.30M	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	859.31M	514.75M	2.12B
Cash Flow
Free Cash Flow	0.00	-2.63B	-1.10B	-638.03M	-606.58M	-685.44M
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: Neutral
• Last Price: 1255.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1255 is below the 20-day moving average (MA) of 1305.15, below the 50-day MA of 1265.04, and above the 200-day MA of 1030.44, indicating a neutral trend. The MACD of -10.00 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 9.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥18.20B	13.52	―	3.53%	5.03%	-9.55%
9450	68 Neutral	¥14.14B	10.17	―	4.02%	5.13%	-13.74%
9424	66 Neutral	¥21.02B	23.11	―	―	30.15%	31.28%
9419	62 Neutral	¥3.10B	5.37	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3776	59 Neutral	¥12.60B	37.44	―	1.01%	17.19%	-43.91%
4415	47 Neutral	¥7.32B	15.40	―	―	39.18%	27.87%