BBD Initiative, Inc. (5259) AI Stock Analysis

• Market Cap: ¥9.57B
• Dividend Yield: 0.51%
• Average Volume (3M): 11.43K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.70
• Revenue Growth: 14.23%
• EPS Growth: 425.33%
• Country: JP
• Employees: 241
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 9.61
• Shares Outstanding: 6,120,221
• 10 Day Avg. Volume: 16,370
• 30 Day Avg. Volume: 11,433
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,474.00
• Price Target Upside: -5.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,474.00 ▼(-5.93% Downside)

BBD Initiative, Inc. has a strong financial foundation with robust revenue growth and cash flow generation, making it well-positioned for future opportunities. The technical indicators show positive momentum, although caution is advised due to potential overbought conditions. The high P/E ratio suggests the stock may be overvalued, which could limit upside potential.

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 financial health with consistent revenue and profit growth, improved operational margins, and solid cash flow generation. The balance sheet is stable, with moderate leverage and strong equity. The company is well-positioned for further growth, although attention to maintaining margin improvements and managing debt levels remains crucial.

Income Statement

BBD Initiative, Inc. has demonstrated strong revenue growth with a TTM revenue increase of 5.29% compared to the previous period. Gross profit margin remains robust at 38.98%, though slightly down from the prior year. The EBIT and EBITDA margins have improved to 7.53% and 15.38%, respectively, indicating enhanced operational efficiency. Net profit margin also increased to 4.30%, showcasing improved profitability.

Balance Sheet

The company's balance sheet reflects a strong equity position with a total stockholders' equity of $2.24 billion, resulting in an equity ratio of 53.59%. The debt-to-equity ratio stands at 0.60, indicating moderate leverage. Return on equity improved to 8.35%, pointing towards better utilization of shareholder capital. The overall balance sheet shows stability with manageable debt levels.

Cash Flow

BBD Initiative, Inc. showcases a healthy cash flow with a significant increase in free cash flow to $531.63 million. The operating cash flow to net income ratio is favorable at 3.23, suggesting efficient cash generation from operations. Free cash flow to net income ratio is also strong at 2.84, reflecting solid cash flow management.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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: 1567.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1567 is above the 20-day moving average (MA) of 1391.90, above the 50-day MA of 1296.32, and above the 200-day MA of 1167.47, indicating a bullish trend. The MACD of 78.48 indicates Negative momentum. The RSI at 87.20 is Negative, neither overbought nor oversold. The STOCH value of 90.73 is Negative, 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	75 Outperform	¥9.57B	46.22		0.51%	14.23%	425.33%
4476	64 Neutral	¥6.95B	71.63		―	13.76%	-15.36%
2138	63 Neutral	¥7.10B	―		―	-6.68%	-255.00%
Sector *	61 Neutral	$36.26B	7.13	-7.27%	1.97%	7.78%	-8.61%
4845	57 Neutral	¥7.73B	―		3.79%	-15.71%	65.07%
4397	46 Neutral	¥8.47B	107.40		―	12.44%	97.13%