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

• Market Cap: ¥63.38B
• Dividend Yield: 3.34%
• Average Volume (3M): 28.66K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.01
• Revenue Growth: 11.81%
• EPS Growth: 18.17%
• Country: JP
• Employees: 1,243
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 62.22
• Shares Outstanding: 18,806,400
• 10 Day Avg. Volume: 25,960
• 30 Day Avg. Volume: 28,663
• PEG Ratio: 1.30
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 13.22
• 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): 245.4
• Revenue Forecast (FY): ¥24.50B

• Rating: 78 Outperform
• Price Target: ¥3,694.00 ▲(12.28% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (high profitability, near debt-free balance sheet, and solid cash conversion). Valuation is also favorable with a moderate P/E and healthy dividend yield. Technical indicators are the main offset, showing weaker longer-term trend and negative MACD despite a modest short-term recovery.

Positive Factors

Recurring SaaS revenue model

A subscription-based SaaS model creates durable, predictable recurring revenue and higher customer lifetime value versus one-off sales. This supports steady cash flows, easier forecasting, and opportunities for upsell/expansion within accounts, underpinning margin sustainability and long-term profitability.

Very conservative balance sheet

Near-zero debt and rising equity (~¥14.25B in 2025) provide strong financial flexibility and downside protection. High ROE (~25%–30%) with low leverage indicates returns driven by operations, allowing the company to invest or withstand shocks without costly external financing.

High-quality cash conversion

Free cash flow roughly matching net income and improved OCF coverage (~1.04x in 2025) indicate earnings are translating into real cash. Reliable cash conversion supports reinvestment, dividend capacity and reduces dependence on external capital for growth or shareholder returns.

Negative Factors

2025 growth spike sustainability

An atypical, large one-year growth surge raises execution and comparability risk: sustaining such a jump is difficult, and normalization would pressure future top-line growth rates and investor expectations. Planning, resource allocation and margin assumptions may need revision if growth reverts.

Modest multi-year organic growth before 2025

Prior to 2025 the company delivered only mid-single-digit revenue growth, suggesting limited organic expansion or slower market penetration. Absent repeatable new drivers, long-term EPS and cash-flow compounding may remain constrained versus faster-growing software peers.

FCF volatility and internal funding reliance

Year-to-year FCF swings and a funding model reliant on internal cash and equity reduce ability to rapidly scale via leverage. If operating performance cools, constrained external funding appetite or slower equity issuance could delay strategic investments or M&A, limiting growth flexibility.

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 steady multi-year revenue growth with a sharp 2025 acceleration, healthy and improving profitability (notably strong EBIT and net margins), a near debt-free balance sheet with high ROE, and solid cash conversion with free cash flow closely tracking net income. Key risk is the unusually large 2025 growth spike, which may be difficult to sustain.

Income Statement

Revenue has grown steadily from 2021–2024 and then accelerated sharply in 2025 (annual growth ~95.5%), while profitability remains very strong for the industry. 2025 margins are notably healthy (gross margin ~32.3%, EBIT margin ~26.4%, net margin ~19.4%) and have generally trended upward since 2020, indicating improving operating efficiency and scaling. Key watch-out: the 2025 growth spike is unusually large versus prior years, which can be harder to sustain and may raise questions around normalization in future periods.

Balance Sheet

The balance sheet is very conservative with effectively no debt in 2024–2025 (and minimal debt before that), resulting in extremely low leverage and strong financial flexibility. Equity has expanded consistently (to ~¥14.25B in 2025) alongside asset growth, and returns on equity are strong and stable (~25%–30% across the period, ~29.6% in 2025). Primary downside is that the company’s strong returns are driven by operating performance rather than leverage—great for resilience, but it also means growth is funded mainly by internal generation and equity build, which can be slower if profitability or growth cools.

Cash Flow

Cash generation is solid and high-quality: operating cash flow and free cash flow closely track earnings (free cash flow roughly equal to net income in every year shown, ~1.00x in 2025). Operating cash flow coverage of net income improved to ~1.04x in 2025 from below 1.0x in prior years, signaling better cash conversion. The main weakness is volatility in free cash flow growth year-to-year (notably declines in 2021 and 2023), even though absolute free cash flow has risen meaningfully into 2025.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.58B	21.79B	20.23B	18.71B	17.05B	13.29B
Gross Profit	7.00B	7.05B	6.46B	5.83B	4.91B	3.90B
EBITDA	5.80B	5.77B	5.25B	4.72B	3.97B	3.08B
Net Income	4.26B	4.22B	3.87B	3.43B	2.73B	2.13B
Balance Sheet
Total Assets	17.91B	18.92B	17.75B	16.32B	14.56B	11.44B
Cash, Cash Equivalents and Short-Term Investments	12.22B	13.02B	11.62B	10.55B	10.19B	7.49B
Total Debt	0.00	0.00	0.00	11.94M	92.88M	266.15M
Total Liabilities	3.36B	4.30B	4.16B	3.87B	3.96B	2.86B
Stockholders Equity	14.22B	14.25B	13.23B	12.15B	10.33B	8.37B
Cash Flow
Free Cash Flow	0.00	4.46B	3.86B	3.24B	3.64B	1.38B
Operating Cash Flow	0.00	4.46B	3.88B	3.28B	3.67B	1.44B
Investing Cash Flow	0.00	52.99M	52.59M	-1.20B	-38.20M	-116.80M
Financing Cash Flow	0.00	-3.22B	-2.92B	-1.75B	-948.99M	-1.06B

Base Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4481, the sentiment is Positive. The current price of 3290 is above the 20-day moving average (MA) of 3128.20, above the 50-day MA of 3188.84, and below the 200-day MA of 3328.35, indicating a bullish trend. The MACD of 31.64 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥41.93B	14.20	―	1.92%	20.81%	68.06%
4481	78 Outperform	¥63.38B	14.61	―	3.34%	11.81%	18.17%
4828	77 Outperform	¥81.04B	18.62	31.13%	1.68%	16.12%	46.57%
4477	73 Outperform	¥36.31B	20.04	―	―	27.97%	-5.25%
2492	63 Neutral	¥91.66B	47.45	―	0.72%	22.13%	254.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5027	49 Neutral	¥30.52B	33.52	―	―	20.84%	10.41%

Base Co., Ltd. Corporate Events

Base Co. Forms AI Promotion Office to Drive Shift Toward IT Services

Base Co., Ltd. has established an AI Promotion Office under its System Headquarters, effective February 13, 2026, as part of a broader strategic push toward digital transformation. The new unit is tasked with driving AI empowerment throughout the organization, maximizing the capabilities of employees and teams through AI to support more advanced operations and creative activities.

This move aligns with the company’s BASE 2030 medium-term management plan and aims to accelerate its evolution from a traditional manufacturing-centered model to an IT services–based business. By formalizing AI promotion in a dedicated office, Base is signaling a commitment to reshaping its business structure and competitiveness, which could influence its positioning in technology-driven markets and its value proposition to customers and partners.

The most recent analyst rating on (JP:4481) stock is a Buy with a Yen4003.00 price target. To see the full list of analyst forecasts on Base Co., Ltd. stock, see the JP:4481 Stock Forecast page.

Base Co., Ltd. Confirms Director Lineup and Elevates AI Oversight in Executive Reshuffle

Base Co., Ltd. announced changes in its leadership structure following a February 13, 2026 board meeting, confirming that current Representative Director and President Katsunari Nakayama will be reappointed, together with Senior Vice President Director and Finance chief Noriyuki Takano, and outside directors Shigefumi Wada and Toru Ueno. The company also renewed the mandate of Senior Executive Officer Yijie Zhao, who remains in charge of the System Headquarters and corporate and public sector business while adding responsibility as director of the AI Promotion Office, signaling a stronger focus on AI-driven initiatives and continuity in corporate governance ahead of the March 27, 2026 shareholders’ meeting.

The most recent analyst rating on (JP:4481) stock is a Buy with a Yen4003.00 price target. To see the full list of analyst forecasts on Base Co., Ltd. stock, see the JP:4481 Stock Forecast page.

Base Co., Ltd. Raises Payout and Plans 30th Anniversary Commemorative Dividends

Base Co., Ltd. has approved a year-end dividend of 60 yen per share for the fiscal year ended December 31, 2025, unchanged from its prior forecast and up from 52 yen a year earlier. This brings the total annual dividend for 2025 to 117 yen per share, reflecting the company’s policy of targeting a roughly 50% dividend payout ratio while retaining earnings to support future business development and management reinforcement.

Looking ahead, the company plans to mark its 30th anniversary in 2027 with commemorative dividends in the fiscal year ending December 31, 2026. It forecasts interim and year-end dividends of 93 yen per share each, including 30 yen commemorative portions, for a total annual dividend of 186 yen, signaling an enhanced shareholder return policy and underscoring confidence in its earnings outlook and financial position.

The most recent analyst rating on (JP:4481) stock is a Buy with a Yen4003.00 price target. To see the full list of analyst forecasts on Base Co., Ltd. stock, see the JP:4481 Stock Forecast page.

Base Co., Ltd. Posts Higher Profits and Dividends, Forecasts Further Growth for 2026

Base Co., Ltd. reported consolidated net sales of ¥21.8 billion for the fiscal year ended December 31, 2025, up 7.7% year on year, with operating profit rising 10.0% to ¥5.7 billion and profit attributable to owners of parent increasing 9.1% to ¥4.2 billion. The company strengthened its financial position, with total assets reaching ¥18.9 billion, an equity-to-asset ratio of 75.3%, and higher cash and cash equivalents, while also lifting annual dividends to ¥117 per share and projecting continued growth in sales, profits, and a further dividend increase to ¥186 per share in fiscal 2026.

Base is guiding for double-digit net sales growth to ¥24.1 billion and higher operating profit of ¥6.3 billion in fiscal 2026, implying sustained margin strength and an 8.1% rise in profit attributable to owners of parent. The planned mix of ordinary and commemorative dividends signals confidence in earnings momentum and shareholder returns, suggesting a positive outlook for investors amid solid cash flow generation and disciplined balance sheet management.

The most recent analyst rating on (JP:4481) stock is a Buy with a Yen4003.00 price target. To see the full list of analyst forecasts on Base Co., Ltd. stock, see the JP:4481 Stock Forecast page.

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.