BBD Initiative, Inc. (5259) AI Stock Analysis

• Market Cap: ¥11.18B
• Dividend Yield: 0.38%
• Average Volume (3M): 22.07K
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.70
• Revenue Growth: 12.37%
• EPS Growth: 199.06%
• Country: JP
• Employees: 241
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 9.61
• Shares Outstanding: 6,120,221
• 10 Day Avg. Volume: 17,340
• 30 Day Avg. Volume: 22,073
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,004.00
• Price Target Upside: 9.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,004.00 ▲(9.69% Upside)

BBD Initiative, Inc. is well-positioned financially with strong revenue growth and profitability, contributing significantly to its overall score. Technical analysis shows positive momentum, although the stock appears overbought. The high P/E ratio suggests potential overvaluation, which slightly offsets the positive financial and technical indicators.

BBD Initiative, Inc. Business Overview & Revenue Model

Company Description

BBD Initiative Inc. develops and sells SaaS based cloud solutions in Japan. The company offers Knowledge Suite and VCRM, which are tools to solve online business negotiations; Shelter, a business application platform; InCircle business chat tool; ROBOT ID, a solution to manage authentication information used for business; GEOCRM.com, a mobile CRM cloud service; and Papatto Cloud, a tool that allows to check department sales list. It also provides business process outsourcing services, including web marketing support to help companies solve marketing and system issues; contracted development and maintenance services for various systems; and system engineering services. The company was founded in 2006 and is based in Tokyo, Japan.

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. exhibits strong financial health with consistent revenue growth and improved profitability. The balance sheet is stable with moderate leverage, and cash flow generation is robust, supporting future growth and investment opportunities.

Income Statement

BBD Initiative, Inc. has demonstrated robust revenue growth with a 15.6% increase from the previous year, indicating strong market demand. The gross profit margin stands at 41.3%, reflecting effective cost management. The net profit margin improved significantly to 4.0%, showcasing enhanced profitability. EBIT and EBITDA margins also improved, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.69, suggesting moderate leverage. The return on equity (ROE) is 12.9%, indicating effective use of equity to generate profits. The equity ratio is 31.0%, showing a balanced capital structure. Overall, the balance sheet reflects stability with manageable debt levels.

Cash Flow

Free cash flow grew by 40.4%, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is 3.37, indicating efficient cash conversion. The free cash flow to net income ratio is 1.46, highlighting the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35B	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	668.21M	597.35M	343.75M	436.50M	117.93M	121.65M
Net Income	186.85M	164.73M	30.00M	117.36M	-118.19M	-6.50M
Balance Sheet
Total Assets	4.17B	4.13B	3.75B	3.43B	3.29B	2.52B
Cash, Cash Equivalents and Short-Term Investments	880.56M	746.35M	671.56M	722.96M	678.45M	748.86M
Total Debt	1.33B	2.17B	2.10B	1.96B	1.95B	1.11B
Total Liabilities	1.94B	2.85B	2.66B	2.41B	2.40B	1.52B
Stockholders Equity	2.24B	1.28B	1.09B	1.02B	894.26M	993.09M
Cash Flow
Free Cash Flow	531.63M	241.17M	171.80M	-78.46M	-386.50M	-168.81M
Operating Cash Flow	603.96M	555.02M	530.34M	329.60M	29.23M	115.49M
Investing Cash Flow	-273.77M	-530.42M	-370.73M	-276.51M	-904.42M	-228.21M
Financing Cash Flow	-83.69M	50.17M	-214.27M	-8.57M	804.78M	-132.01M

BBD Initiative, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1827.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5259, the sentiment is Positive. The current price of 1827 is above the 20-day moving average (MA) of 1746.55, above the 50-day MA of 1572.10, and above the 200-day MA of 1293.41, indicating a bullish trend. The MACD of 52.80 indicates Positive momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 77.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5259.

BBD Initiative, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5259	73 Outperform	¥11.18B	50.00	―	0.38%	12.37%	199.06%
4476	68 Neutral	¥7.20B	74.14	8.69%	―	14.20%	-57.38%
4845	57 Neutral	¥7.44B	7.41	―	3.94%	-25.27%	―
2138	49 Neutral	¥6.67B	-14.29	-5.76%	―	-6.68%	-255.00%
4397	46 Neutral	¥10.52B	131.06	―	―	9.91%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%