BBD Initiative, Inc. (5259) AI Stock Analysis

• Market Cap: ¥9.00B
• Dividend Yield: N/A
• Average Volume (3M): 8.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 6.59%
• EPS Growth: -303.80%
• Country: JP
• Employees: 241
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -91.00
• Shares Outstanding: 6,120,221
• 10 Day Avg. Volume: 11,070
• 30 Day Avg. Volume: 8,340
• PEG Ratio: 0.05
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 16.39
• 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: 67 Neutral
• Price Target: ¥1,806.00 ▲(14.74% Upside)

BBD Initiative, Inc. shows strong financial performance with consistent revenue growth and improved profitability, which is the most significant factor in the score. However, the technical analysis indicates a neutral trend with potential bearish momentum, and the valuation suggests the stock might be overvalued. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability.

Balance Sheet Health

Improved debt-to-equity ratio enhances financial stability, providing the company with greater flexibility to invest in growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring the company can sustain growth and manage financial obligations.

Negative Factors

Cost Management Pressure

Decreasing gross profit margins suggest challenges in managing costs, which could impact profitability if not addressed effectively.

Past High Leverage Concerns

Historical high leverage could pose risks if financial conditions change, potentially affecting the company's ability to secure favorable financing.

Cash Flow Efficiency

While cash conversion is efficient, further improvement is needed to enhance liquidity and support long-term financial health.

BBD Initiative, Inc. Business Overview & Revenue Model

Company Description

BBD Initiative, Inc. (5259) is a forward-thinking organization focused on innovative solutions in the technology and consulting sectors. The company specializes in providing strategic advisory services, technology integration, and digital transformation solutions tailored for businesses across various industries. Its core offerings include data analytics, cloud services, and customized software development, aimed at enhancing operational efficiency and driving growth for its clients.

How the Company Makes Money

BBD Initiative, Inc. generates revenue primarily through its consulting services, which include strategic planning, operational improvement, and technology implementation. Key revenue streams come from project-based contracts, retainer agreements with ongoing clients, and subscription models for software services. The company also benefits from significant partnerships with technology providers, allowing it to offer comprehensive solutions that leverage third-party tools and platforms. Additionally, BBD Initiative, Inc. may earn income through training and support services, further diversifying its revenue base.

BBD Initiative, Inc. Financial Statement Overview

Summary

BBD Initiative, Inc. demonstrates strong revenue growth and improving profitability, supported by efficient operations and a healthier balance sheet. The company has successfully reduced leverage, enhancing financial stability. Cash flow generation is strong, although there is potential for further improvement in cash flow efficiency. The company is well-positioned for future growth, but must continue to manage costs and leverage effectively.

Income Statement

BBD Initiative, Inc. has shown consistent revenue growth, with a TTM revenue growth rate of 1.77% and a strong increase from previous years. The gross profit margin has slightly decreased to 38.98% in the TTM, indicating some pressure on cost management. However, the net profit margin improved to 4.30%, reflecting better profitability. The EBIT and EBITDA margins also show positive trends, suggesting operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.60 in the TTM, indicating reduced leverage and a stronger equity position. Return on equity is stable at 11.04%, demonstrating effective use of equity to generate profits. The equity ratio is healthy, suggesting a balanced capital structure. However, past high leverage remains a concern.

Cash Flow

The free cash flow growth rate is robust at 3.95% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.45 indicates efficient cash conversion. The free cash flow to net income ratio of 0.88 suggests a solid cash flow position relative to net income, although there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	4.13B	3.57B	3.23B	2.52B	2.12B
Gross Profit	1.69B	1.70B	1.58B	1.39B	999.52M	859.60M
EBITDA	685.01M	597.35M	343.75M	436.50M	117.93M	121.65M
Net Income	209.32M	164.73M	30.00M	117.36M	-118.19M	-6.50M
Balance Sheet
Total Assets	4.16B	4.13B	3.75B	3.43B	3.29B	2.52B
Cash, Cash Equivalents and Short-Term Investments	838.71M	746.35M	671.56M	722.96M	678.45M	748.86M
Total Debt	1.26B	2.17B	2.10B	1.96B	1.95B	1.11B
Total Liabilities	1.86B	2.85B	2.66B	2.41B	2.40B	1.52B
Stockholders Equity	2.30B	1.28B	1.09B	1.02B	894.26M	993.09M
Cash Flow
Free Cash Flow	552.60M	241.17M	171.80M	-78.46M	-386.50M	-168.81M
Operating Cash Flow	563.27M	555.02M	530.34M	329.60M	29.23M	115.49M
Investing Cash Flow	-263.08M	-530.42M	-370.73M	-276.51M	-904.42M	-228.21M
Financing Cash Flow	-128.37M	50.17M	-214.27M	-8.57M	804.78M	-132.01M

BBD Initiative, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1574.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5259, the sentiment is Negative. The current price of 1574 is below the 20-day moving average (MA) of 1581.50, below the 50-day MA of 1616.76, and above the 200-day MA of 1367.03, indicating a neutral trend. The MACD of -29.46 indicates Positive momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5259.

BBD Initiative, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4476	68 Neutral	¥7.12B	73.31	―	―	10.43%	-65.78%
5259	67 Neutral	¥9.00B	―	―	―	6.59%	-303.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4845	58 Neutral	¥6.93B	6.89	―	4.17%	-24.66%	―
4397	46 Neutral	¥8.37B	23.04	―	―	11.32%	―
2138	44 Neutral	¥6.48B	―	―	―	-12.37%	12.44%