Base Co., Ltd. (4481) AI Stock Analysis

• Market Cap: ¥56.79B
• Dividend Yield: 3.34%
• Average Volume (3M): 28.66K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.07
• Revenue Growth: 11.81%
• EPS Growth: 18.17%
• Country: JP
• Employees: 1,243
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 56.53
• Shares Outstanding: 18,805,200
• 10 Day Avg. Volume: 25,960
• 30 Day Avg. Volume: 28,663
• PEG Ratio: 1.34
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 13.94
• 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: 79 Outperform
• Price Target: ¥3,710.00 ▲(12.77% Upside)

The score is driven primarily by excellent financial performance (strong profitability, robust multi-year revenue scaling, and a near debt-free balance sheet). Valuation is also favorable with a moderate P/E and solid dividend yield. Offsetting these positives, technical indicators are mixed, with weaker medium-to-long-term trend signals despite neutral momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Health

A near debt-free balance sheet reduces financial risk and enhances financial flexibility, allowing the company to invest in growth opportunities.

Profitability

Strong and improving profitability margins indicate efficient operations and pricing power, supporting sustainable long-term earnings growth.

Negative Factors

Growth Volatility

Year-to-year growth volatility introduces uncertainty in revenue projections, potentially impacting strategic planning and investor confidence.

Cash Flow Timing Issues

Volatile cash flow growth can affect liquidity management and investment capacity, posing challenges in maintaining consistent financial health.

Executive Changes

Frequent executive changes can disrupt strategic continuity and operational stability, potentially affecting long-term company performance.

Base Co., Ltd. Business Overview & Revenue Model

Company Description

Base Co., Ltd. engages in the computer software development and related work in Japan. The company offers services in the areas of system integration, ERP solutions, ICT solutions, and other solutions. BASE CO., LTD. was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

Base Co., Ltd. generates revenue through a combination of subscription fees for its platform services and transaction fees on sales made through its e-commerce platform. The company offers various pricing plans that cater to different business sizes, allowing users to choose the plan that best suits their needs. Additionally, Base Co., Ltd. partners with payment processors to facilitate transactions on its platform, earning a percentage of each transaction. The company also benefits from strategic partnerships with financial institutions and technology providers, which help expand its service offerings and enhance its platform capabilities.

Base Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by high Income Statement (92), Balance Sheet (96), and Cash Flow (89) scores. Revenue scaled materially over time with strong and improving profitability (solid gross/operating/net margins). Balance sheet is near debt-free with high ROE, lowering financial risk. Main watch-outs are year-to-year growth volatility and periodic cash flow timing/working-capital headwinds.

Income Statement

Revenue has scaled materially over the period (from ~9.7B in 2019 to ~20.2B in 2024), with 2024 growth re-accelerating versus 2023. Profitability is a clear strength: 2024 gross margin (~32%) and operating margin (~26%) improved versus earlier years, and net margin (~19%) is consistently strong for application software. Key watch-out is growth volatility year-to-year (notably softer 2023 growth), which adds some uncertainty around the near-term trajectory despite strong margins.

Balance Sheet

The balance sheet is exceptionally conservative: debt is effectively eliminated by 2024 (debt-to-equity ~0), down from already-manageable leverage in earlier years. Equity has expanded steadily (to ~13.2B in 2024), and returns on equity remain high (~29% in 2024), indicating strong profitability without financial leverage. The main trade-off is that with minimal debt, future returns depend more on sustaining operating performance rather than balance-sheet optimization.

Cash Flow

Cash generation is strong and high-quality: free cash flow is very close to net income across years (about ~1.0x in 2024), suggesting earnings are translating into cash. Operating cash flow coverage improved over time (from ~0.46x in 2019 to ~0.94x in 2024), though it is not consistently above 1.0x, implying periodic working-capital or timing headwinds. Free cash flow growth is volatile (including declines in 2021 and 2023), even though absolute free cash flow levels remain robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.58B	20.23B	18.71B	17.05B	13.29B	12.40B
Gross Profit	7.00B	6.46B	5.83B	4.91B	3.90B	3.41B
EBITDA	5.80B	5.25B	4.72B	3.97B	3.08B	2.49B
Net Income	4.26B	3.87B	3.43B	2.73B	2.13B	1.74B
Balance Sheet
Total Assets	17.91B	17.75B	16.32B	14.56B	11.44B	10.29B
Cash, Cash Equivalents and Short-Term Investments	12.22B	11.62B	10.55B	10.19B	7.49B	7.18B
Total Debt	0.00	0.00	11.94M	92.88M	266.15M	715.03M
Total Liabilities	3.36B	4.16B	3.87B	3.96B	2.86B	3.38B
Stockholders Equity	14.22B	13.23B	12.15B	10.33B	8.37B	6.73B
Cash Flow
Free Cash Flow	0.00	3.86B	3.24B	3.64B	1.38B	2.54B
Operating Cash Flow	0.00	3.88B	3.28B	3.67B	1.44B	2.56B
Investing Cash Flow	0.00	52.59M	-1.20B	-38.20M	-116.80M	-12.08M
Financing Cash Flow	0.00	-2.92B	-1.75B	-948.99M	-1.06B	-1.24B

Base Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3290.00
• 50DMA: Negative
• 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:4481, the sentiment is Negative. The current price of 3290 is above the 20-day moving average (MA) of 3222.25, above the 50-day MA of 3212.44, and below the 200-day MA of 3304.78, indicating a bearish trend. The MACD of -52.17 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 15.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4481.

Base Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥43.71B	15.18	―	1.92%	20.81%	68.06%
4481	79 Outperform	¥56.79B	12.88	―	3.34%	11.81%	18.17%
3835	75 Outperform	¥20.27B	17.21	―	3.14%	0.50%	-2.92%
4826	70 Outperform	¥32.15B	17.94	―	2.83%	4.51%	75.35%
4477	62 Neutral	¥37.94B	65.98	―	―	27.97%	-5.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3673	61 Neutral	¥57.02B	55.16	―	0.62%	18.86%	―

Base Co., Ltd. Corporate Events

Base Co., Ltd. Completes Share Repurchase

Base Co., Ltd. has completed the acquisition of its own shares, purchasing 15,000 shares at a total cost of 49,909,000 yen through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader strategy authorized by the Board of Directors to repurchase up to 400,000 shares, enhancing shareholder value and optimizing capital structure.

BASE Co., Ltd. Announces Executive Officer Changes for 2026

BASE Co., Ltd. has announced changes in its executive officers, effective January 1, 2026, following a resolution by the Board of Directors. The reappointments and new appointments aim to strengthen the company’s System Headquarters, with several executives taking on new roles or continuing in their current positions, reflecting the company’s focus on enhancing its system development and assurance capabilities.

Base Co., Ltd. Reports Strong Financial Growth in 2025

Base Co., Ltd. reported a significant increase in its financial performance for the nine months ending September 30, 2025, with net sales and profits showing double-digit growth compared to the previous year. This positive financial outcome underscores the company’s strong market positioning and operational efficiency, potentially benefiting its stakeholders and enhancing its competitive edge in the industry.

Base Co., Ltd. Announces Share Acquisition Progress

Base Co., Ltd. has announced the acquisition of 66,400 of its own common shares, amounting to 232,858,000 yen, through market purchases on the Tokyo Stock Exchange during October 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 400,000 shares by the end of 2025, reflecting the company’s efforts to enhance shareholder value and optimize its capital structure.