BML (4694) AI Stock Analysis

• Market Cap: ¥158.56B
• Dividend Yield: 3.34%
• Average Volume (3M): 54.09K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.43
• Revenue Growth: 5.90%
• EPS Growth: 16.30%
• Country: JP
• Employees: 4,513
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 62.09
• Shares Outstanding: 40,749,428
• 10 Day Avg. Volume: 38,460
• 30 Day Avg. Volume: 54,093
• PEG Ratio: 4.96
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 177.64
• 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: 74 Outperform
• Price Target: ¥4,751.00 ▲(24.53% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

BML's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust balance sheet and profitability metrics provide a solid foundation, while technical analysis suggests a positive market trend. The valuation is reasonable, with a moderate P/E ratio and attractive dividend yield. However, declining revenue and fluctuating cash flow present potential risks.

Positive Factors

Strong balance sheet and capitalization

A strong equity base and low leverage provide durable financial resilience, reducing bankruptcy risk and preserving strategic optionality. This capital strength supports sustained R&D, capex, dividends or opportunistic M&A in the diagnostics sector over a multi-quarter horizon.

Sustained profitability and margins

Consistent gross and net margins indicate structural pricing power and cost control in diagnostics operations. Durable margins enable reinvestment in product development and service quality, supporting long-term competitiveness and cash generation even if top-line growth slows.

Positive operating cash flow conversion

Reliable operating cash flow and solid conversion from net income reflect high-quality earnings and the ability to fund operations internally. This cash generation supports capex, recurring investments and shareholder distributions without immediate reliance on external financing.

Negative Factors

Declining revenue trend

A multi-period revenue decline threatens long-term growth and market share in diagnostics. Persisting top-line contraction can force margin trade-offs, constrain reinvestment in technology or sales, and necessitate strategic shifts to restore structural revenue momentum.

Volatile free cash flow

Significant FCF volatility complicates capital allocation and raises execution risk for multi-quarter plans. Irregular free cash flow can limit consistent investment in R&D, capex or dividends, and makes sustaining growth initiatives and balance-sheet resilience harder to predict.

Eroding operational margins

Declining EBIT/EBITDA margins and recent net income decreases indicate pressure on operational efficiency or pricing. Continued margin erosion reduces free cash available for strategic initiatives and weakens return on equity, challenging long-term profitability sustainability.

BML Business Overview & Revenue Model

Company Description

BML, Inc. provides laboratory testing and related services in Japan. The company offers general laboratory tests, including biochemical and hematologic examinations; special laboratory tests, such as RIA, cellular, immunological, and DNA analysis; microbiological tests for medical and pharmaceutical societies and organizations; and laboratory tests in tumorology, infectious disease, diabetes, hypertension, allergy, and genetic studies. It also develops Frontier and Symphony automation systems, which automate pre-processing procedures from sorting to dispensing, and subsequent test procedures; and provides electronic medical charts for networking medical information, as well as offers preventive medicine services. In addition, the company provides food sanitation control and food processing services comprising contract services for microorganism testing of raw materials, and prepared and processed foods; environmental hygiene testing of food processing facilities and kitchens; and microorganism testing services, as well as assesses genetically modified organisms. Further, it provides drinking water and waste water tests; work sanitation management services, such as measurement of ethylene oxide gas, formaldehyde, organic solvents, and dust; environmental monitoring services, including measurement of indoor contaminants and other indoor environmental variables; and biological dioxin monitoring services. Additionally, the company offers analysis services for residual agricultural chemicals; dental test services for dental caries and periodontal diseases; consulting services for the approval of pharmaceuticals; investigative analysis services to pharmaceutical manufacturers; and gene expression analysis and testing for genes that cause susceptibility to infectious diseases. BML, Inc. was founded in 1955 and is headquartered in Tokyo, Japan.

How the Company Makes Money

BML generates revenue primarily through a subscription-based model for its software solutions, which includes recurring fees for cloud services and maintenance. Additionally, the company earns income from consulting services that assist clients in implementing and optimizing technology solutions. Key revenue streams include licensing fees for proprietary software, project-based consulting contracts, and partnerships with other tech firms that facilitate joint offerings. Significant collaborations with major cloud service providers also contribute to BML's earnings by expanding its market reach and enhancing service offerings.

BML Financial Statement Overview

Summary

BML exhibits strong profitability indicators with a consistent gross profit margin and a healthy net profit margin. The company maintains a robust balance sheet with a strong equity base and low debt-to-equity ratio, indicating financial stability. However, declining revenue and fluctuating free cash flow could pose future challenges.

Income Statement

BML exhibits strong profitability indicators with a consistent gross profit margin and a healthy net profit margin, reflecting effective cost management and strong revenue generation. However, the company has experienced a decline in revenue over recent years, which could be a concern for future growth. The EBIT and EBITDA margins indicate efficient operations, although they have decreased from prior years, suggesting room for improving operational efficiency.

Balance Sheet

BML maintains a robust balance sheet with a strong equity base and a low debt-to-equity ratio, indicating financial stability and a low risk of financial distress. The equity ratio suggests strong capitalization, providing a solid buffer against liabilities. The return on equity has remained healthy, showcasing efficient use of shareholders' funds despite a decrease in net income in recent periods.

Cash Flow

BML's cash flow management appears stable, with positive operating cash flow supporting its operations. However, free cash flow has fluctuated significantly, pointing to potential volatility in capital expenditures and investment activities. The operating cash flow to net income ratio demonstrates the company's ability to convert income into cash, although the volatility in free cash flow indicates potential challenges in maintaining consistent cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	145.63B	143.19B	137.96B	159.46B	186.07B	138.57B
Gross Profit	46.42B	45.86B	45.63B	61.45B	86.95B	54.77B
EBITDA	18.27B	17.51B	16.42B	30.57B	56.26B	26.50B
Net Income	6.42B	6.26B	6.03B	15.58B	33.74B	13.71B
Balance Sheet
Total Assets	175.54B	177.51B	170.99B	168.94B	179.20B	139.17B
Cash, Cash Equivalents and Short-Term Investments	65.46B	67.56B	74.11B	86.52B	92.13B	63.48B
Total Debt	4.29B	5.29B	5.26B	4.15B	5.44B	5.39B
Total Liabilities	42.81B	43.73B	40.85B	42.20B	57.52B	46.05B
Stockholders Equity	128.46B	129.40B	125.86B	122.49B	116.20B	88.42B
Cash Flow
Free Cash Flow	0.00	663.00M	-6.48B	5.28B	38.52B	15.38B
Operating Cash Flow	0.00	15.81B	14.45B	11.74B	45.60B	19.57B
Investing Cash Flow	0.00	-16.79B	-21.14B	-7.63B	-7.30B	-4.58B
Financing Cash Flow	0.00	-5.43B	-5.73B	-9.71B	-9.83B	-3.38B

BML Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3815.00
• 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:4694, the sentiment is Positive. The current price of 3815 is below the 20-day moving average (MA) of 4119.50, below the 50-day MA of 3966.70, and above the 200-day MA of 3591.90, indicating a bullish trend. The MACD of 94.16 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 68.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4694.

BML Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4694	74 Outperform	¥158.56B	22.05	5.59%	3.34%	5.90%	16.30%
2395	74 Outperform	¥68.69B	17.77	―	2.79%	28.06%	19.48%
4549	68 Neutral	¥103.36B	27.01	―	2.31%	4.36%	79.43%
4974	52 Neutral	¥138.12B	-19.18	―	2.18%	-0.16%	-802.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥135.85B	39.27	4.32%	3.73%	0.04%	―

BML Corporate Events

BML Raises Full-Year Earnings Forecast on New Customer Growth and Price Optimization

BML, Inc. has revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance. The company now projects net sales of ¥149.0 billion, operating profit of ¥10.0 billion, ordinary profit of ¥10.5 billion, and profit attributable to owners of parent of ¥7.0 billion, all above the previous forecast and surpassing last year’s results, with basic earnings per share expected to rise to ¥183.88. Management attributes the improved outlook to steady acquisition of new customers and successful price optimization initiatives started in the prior fiscal year, which more than offset increased depreciation costs linked to new wings at the BML General Laboratory, signaling stronger profitability and operational leverage despite higher investment-related expenses.

The most recent analyst rating on (JP:4694) stock is a Hold with a Yen4233.00 price target. To see the full list of analyst forecasts on BML stock, see the JP:4694 Stock Forecast page.

BML Delivers Strong Q3 Earnings and Raises Full-Year Outlook While Maintaining Dividend Plan

BML reported solid growth for the third quarter of fiscal 2025, with net sales rising 5.4% year-on-year to ¥114.5 billion and profit attributable to owners of the parent climbing 24.6% to ¥6.6 billion, reflecting improved profitability and higher earnings per share. Despite a slight decline in total assets and equity ratio compared with the end of the previous fiscal year, the company maintained a robust financial position and confirmed its full-year dividend forecast of ¥120 per share, while revising its full-year earnings outlook upward to project increases in sales, operating profit and net income, signaling continued earnings momentum and shareholder returns stability.

The most recent analyst rating on (JP:4694) stock is a Hold with a Yen4233.00 price target. To see the full list of analyst forecasts on BML stock, see the JP:4694 Stock Forecast page.

BML Overhauls Shareholder Benefits to Reward Long-Term Investors

BML, Inc. has approved changes to its shareholder benefits program aimed at expressing gratitude to investors while making its shares more attractive for long-term ownership. Effective for shareholders of record as of March 31, 2027, the company will scrap its previous, no-holding-period structure—where investors with at least 100 shares received QUO cards worth ¥1,500 or ¥3,000 depending on stake size—and replace it with a tenure-based system. Under the revised program, only shareholders holding 100 shares or more for at least one year will receive a QUO card worth ¥3,000, increasing to ¥5,000 for those with a holding period of three years or more, as verified through continuous appearance in the shareholder registry on semiannual record dates. The move aligns BML’s incentives more clearly with shareholder loyalty and is likely to support a more stable shareholder base by rewarding extended holding periods rather than short-term ownership.

The most recent analyst rating on (JP:4694) stock is a Buy with a Yen4095.00 price target. To see the full list of analyst forecasts on BML stock, see the JP:4694 Stock Forecast page.