BBD Initiative, Inc. (5259) AI Stock Analysis

• Market Cap: ¥7.14B
• Dividend Yield: 0.6%
• Average Volume (3M): 6.73K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.68
• Revenue Growth: 14.23%
• EPS Growth: 425.33%
• Country: JP
• Employees: 241
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 10.11
• Shares Outstanding: 6,120,221
• 10 Day Avg. Volume: 6,090
• 30 Day Avg. Volume: 6,733
• PEG Ratio: 3.97
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.04
• 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

• Rating: 63 Neutral
• Price Target: ―

BBD Initiative, Inc. demonstrates strong financial performance with solid revenue growth and profitability improvements, which are significant strengths for the stock. However, the technical analysis indicates bearish momentum, suggesting potential short-term price weakness. The valuation reflects a high P/E ratio, pointing to potential overvaluation concerns despite the financial health. Overall, while the company's long-term prospects appear sound, the current market sentiment requires caution.

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. Financial Statement Overview

Summary

BBD Initiative, Inc. exhibits strong financial health with consistent revenue growth and improving profitability margins. The company has effectively managed its leverage and demonstrated significant improvements in return on equity. Although the balance sheet indicates increasing leverage, which could be a potential risk, the robust cash flow generation mitigates immediate concerns. The company's financials reflect a well-managed growth trajectory with a focus on enhancing operational efficiency and profitability.

Income Statement

BBD Initiative, Inc. has shown a robust revenue growth with a consistent upward trajectory from $2.11 billion in 2020 to $4.13 billion in 2024. Gross profit margins have remained strong, indicating effective cost management, with a margin of approximately 41.2% in 2024. The net profit margin improved significantly from a negative margin in 2020 to 3.99% in 2024. Additionally, both EBIT and EBITDA margins have shown substantial improvement, reflecting enhanced operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which stood at 1.69 in 2024, indicating a balanced approach towards leveraging. The return on equity has seen substantial improvement from negative returns in earlier years to 12.87% in 2024, showcasing enhanced profitability. Meanwhile, the equity ratio has decreased slightly, reflecting an increase in leverage, which might pose potential risks if not managed carefully.

Cash Flow

BBD Initiative, Inc. has demonstrated a strong free cash flow growth rate, with free cash flow increasing from negative figures in 2020 to $241 million in 2024. The operating cash flow to net income ratio remains healthy, indicating that the company efficiently converts its earnings into cash. However, the free cash flow to net income ratio, while positive, suggests room for further improvement in cash flow management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.26B	4.13B	3.57B	3.23B	2.52B	2.12B
	Gross Profit
1.70B	1.70B	1.58B	1.39B	999.52M	859.60M
	EBIT
319.38M	285.50M	22.58M	122.98M	-118.46M	-20.02M
	EBITDA
641.97M	597.35M	343.75M	436.50M	117.93M	121.65M
	Net Income Common Stockholders
180.71M	164.73M	30.97M	117.36M	-118.19M	-6.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
737.42M	746.35M	671.56M	722.96M	678.45M	748.86M
	Total Assets
4.09B	4.13B	3.75B	3.43B	3.29B	2.52B
	Total Debt
1.74B	2.17B	2.10B	1.96B	1.95B	1.11B
	Net Debt
1.00B	1.42B	1.43B	1.23B	1.27B	362.52M
	Total Liabilities
2.33B	2.85B	2.65B	2.41B	2.40B	1.52B
	Stockholders Equity
1.76B	1.28B	1.09B	1.02B	894.26M	993.09M
Cash Flow		Free Cash Flow
440.96M	241.17M	171.80M	-78.46M	-386.50M	-168.81M
	Operating Cash Flow
582.02M	555.02M	530.34M	329.60M	29.23M	115.49M
	Investing Cash Flow
-309.70M	-530.42M	-370.73M	-276.51M	-904.42M	-228.21M
	Financing Cash Flow
-236.93M	50.17M	-214.27M	-8.57M	804.78M	-132.01M

BBD Initiative, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1167.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1167 is above the 20-day moving average (MA) of 1150.10, above the 50-day MA of 1130.28, and above the 200-day MA of 1021.26, indicating a bullish trend. The MACD of 10.49 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 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
4476	76 Outperform	¥7.10B	42.50		―	13.76%	-15.36%
5259	63 Neutral	¥7.14B	34.51		0.60%	14.23%	425.33%
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%
4845	55 Neutral	¥7.02B	―		6.77%	-15.71%	65.07%
2138	49 Neutral	¥7.00B	―		―	5.28%	-159.45%
4397	46 Neutral	¥6.97B	―		―	12.44%	97.13%