BBD Initiative, Inc. (5259) AI Stock Analysis

• Market Cap: ¥8.59B
• Dividend Yield: N/A
• Average Volume (3M): 10.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 6.59%
• EPS Growth: -294.11%
• Country: JP
• Employees: 241
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -87.97
• Shares Outstanding: 6,120,221
• 10 Day Avg. Volume: 9,390
• 30 Day Avg. Volume: 10,040
• 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: 49 Neutral
• Price Target: ¥1,514.00 ▼(-3.81% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative profit margins. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Generation

Strong cash generation with a 21.54% increase in free cash flow enhances financial stability, supporting operations and potential reinvestment.

Leverage Management

Improved leverage management with a moderate debt-to-equity ratio enhances financial health, reducing risk and increasing flexibility.

Business Model

The subscription-based model provides predictable revenue streams, enhancing financial stability and supporting long-term growth.

Negative Factors

Revenue Decline

The sharp decline in revenue growth suggests potential market or operational challenges, impacting long-term business sustainability.

Profitability Concerns

Negative profit margins indicate cost management issues and profitability challenges, threatening long-term financial health.

Equity Ratio

A low equity ratio limits financial flexibility, potentially constraining growth opportunities and increasing vulnerability to financial stress.

BBD Initiative, Inc. Business Overview & Revenue Model

Company Description

BBD Initiative, Inc. is a company focused on delivering innovative solutions in the technology sector, particularly in software development and digital transformation services. The company operates in various industries, including healthcare, finance, and education, providing core products such as custom software applications, data analytics tools, and cloud-based solutions designed to enhance operational efficiency and drive growth for its clients.

How the Company Makes Money

BBD Initiative, Inc. generates revenue primarily through a subscription-based model for its software products, alongside project-based fees for customized development services. Key revenue streams include licensing fees from proprietary software, maintenance and support contracts, and consulting services that assist clients in implementing technology solutions. Significant partnerships with major cloud service providers and technology firms further bolster its revenue potential by offering bundled services and co-marketing opportunities, contributing to a steady flow of earnings.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.42B	4.40B	4.13B	3.57B	3.23B	2.52B
Gross Profit	1.69B	1.67B	1.70B	1.58B	1.39B	999.52M
EBITDA	685.01M	-7.96M	597.35M	343.75M	436.50M	117.93M
Net Income	209.32M	-377.48M	164.73M	30.00M	117.36M	-118.19M
Balance Sheet
Total Assets	4.16B	3.99B	4.13B	3.75B	3.43B	3.29B
Cash, Cash Equivalents and Short-Term Investments	838.71M	1.40B	746.35M	671.56M	722.96M	678.45M
Total Debt	1.26B	1.51B	2.17B	2.10B	1.96B	1.95B
Total Liabilities	1.86B	2.23B	2.85B	2.66B	2.41B	2.40B
Stockholders Equity	2.30B	1.76B	1.28B	1.09B	1.02B	894.26M
Cash Flow
Free Cash Flow	552.60M	671.65M	241.17M	171.80M	-78.46M	-386.50M
Operating Cash Flow	563.27M	677.19M	555.02M	530.34M	329.60M	29.23M
Investing Cash Flow	-263.08M	-234.98M	-530.42M	-370.73M	-276.51M	-904.42M
Financing Cash Flow	-128.37M	176.59M	50.17M	-214.27M	-8.57M	804.78M

BBD Initiative, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1574.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 above the 20-day moving average (MA) of 1489.60, above the 50-day MA of 1556.38, and above the 200-day MA of 1385.17, indicating a neutral trend. The MACD of -43.51 indicates Positive momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 6.95 is Positive, 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	¥7.21B	86.82	―	―	10.43%	-65.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4845	61 Neutral	¥6.91B	7.16	―	4.24%	-24.66%	―
5259	49 Neutral	¥8.59B	-23.03	―	―	6.59%	-294.11%
4397	46 Neutral	¥8.35B	23.31	―	―	11.32%	―
2138	44 Neutral	¥6.03B	-14.86	―	―	-12.37%	12.44%