Brother Industries (6448) AI Stock Analysis

• Market Cap: ¥658.51B
• Dividend Yield: 4.03%
• Average Volume (3M): 713.83K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.90
• Revenue Growth: 4.50%
• EPS Growth: 56.65%
• Country: JP
• Employees: 40,538
• Sector: Industrials
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 17.09
• Shares Outstanding: 257,755,920
• 10 Day Avg. Volume: 755,860
• 30 Day Avg. Volume: 713,830
• 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: ¥3,100.15
• Price Target Upside: 24.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: ¥2,744.00 ▲(10.51% Upside)

Brother Industries scores well due to its strong financial performance and reasonable valuation. However, technical indicators suggest a neutral to slightly bearish sentiment, which tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Brother Industries Business Overview & Revenue Model

Company Description

Brother Industries, Ltd. is a Japanese multinational electronics and electrical equipment company headquartered in Nagoya, Japan. The company operates in various sectors, including printing and solutions, personal and home products, and machinery. Brother is renowned for its wide range of products, such as printers, multifunction printers, sewing machines, and industrial equipment, serving both consumer and industrial markets globally.

How the Company Makes Money

Brother Industries primarily generates revenue through the sale of its diverse product portfolio. The printing and solutions segment is a significant contributor to its income, with products like laser and inkjet printers, label printers, and other printing solutions. The company also earns from its personal and home products division, which includes sewing machines and other home-use products. Additionally, Brother's industrial machinery segment contributes to its revenue, offering machine tools and garment printers. A significant portion of Brother's earnings comes from its global market presence, leveraging strategic partnerships and distribution networks to expand its reach. Service and maintenance contracts, as well as consumables like ink and toner cartridges, also provide recurring revenue streams.

Brother Industries Financial Statement Overview

Summary

Brother Industries exhibits strong revenue growth and profitability margins. The balance sheet is stable with prudent leverage, though cash flow shows variability, indicating possible future challenges in cash consistency.

Income Statement

Brother Industries has demonstrated consistent revenue growth with a notable increase from the previous year. The gross profit margin remains strong, and the company shows a healthy net profit margin. However, a decrease in EBIT margin compared to prior periods suggests rising operational costs or reduced operational efficiency. Despite this, the EBITDA margin is robust, indicating strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reflects a strong financial position with a high equity ratio, indicating substantial shareholder equity compared to total assets. The debt-to-equity ratio is low, showcasing prudent financial leverage. Return on equity is favorable, highlighting effective utilization of equity to generate profits. Overall, the balance sheet suggests financial stability and lower risk from debt obligations.

Cash Flow

The cash flow statement shows a positive trend in free cash flow, suggesting improved cash generation capability. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio shows some variability over periods, suggesting fluctuations in capital expenditures or operational cash flows. This indicates potential challenges in maintaining consistent cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	876.56B	822.93B	815.27B	710.94B	631.81B
Gross Profit	381.59B	333.11B	319.59B	307.32B	286.60B
EBITDA	128.50B	103.50B	103.33B	123.38B	117.18B
Net Income	54.78B	31.64B	39.08B	61.03B	24.52B
Balance Sheet
Total Assets	932.65B	896.11B	850.49B	811.15B	743.90B
Cash, Cash Equivalents and Short-Term Investments	172.78B	166.15B	129.91B	179.33B	199.39B
Total Debt	600.00M	37.71B	37.42B	40.83B	57.46B
Total Liabilities	241.18B	227.99B	253.81B	249.94B	244.19B
Stockholders Equity	691.39B	668.05B	596.62B	561.15B	483.05B
Cash Flow
Free Cash Flow	54.24B	93.54B	-28.05B	36.41B	81.75B
Operating Cash Flow	90.02B	141.03B	14.43B	72.25B	109.27B
Investing Cash Flow	-48.15B	-42.07B	-32.20B	-40.78B	-25.08B
Financing Cash Flow	-34.61B	-61.58B	-36.64B	-65.19B	-74.04B

Brother Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2483.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6448, the sentiment is Positive. The current price of 2483 is below the 20-day moving average (MA) of 2533.55, above the 50-day MA of 2480.06, and below the 200-day MA of 2604.82, indicating a neutral trend. The MACD of 26.67 indicates Negative momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6448.

Brother Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4901	78 Outperform	¥3.76T	14.83	7.61%	1.80%	4.83%	1.58%
7984	74 Outperform	€413.93B	20.78	7.98%	2.27%	3.27%	-12.28%
6448	71 Outperform	¥658.51B	13.17	7.32%	4.03%	4.50%	56.65%
7752	69 Neutral	¥755.73B	17.00	4.52%	2.84%	7.62%	8.47%
8060	67 Neutral	€617.14B	16.44	9.53%	2.48%	6.92%	16.87%
Sector *	64 Neutral	$10.64B	16.01	5.48%	2.12%	2.72%	-24.90%
4902	52 Neutral	$240.49B	―	-16.55%	0.96%	-7.37%	-653.50%