Brother Industries Ltd (JP:6448)
:6448
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Brother Industries
(6448)
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Rating:76Outperform
Price Target:
¥3,245.00
▲(4.78% Upside)
Action:ReiteratedDate:02/08/26
The score is supported primarily by very low financial risk from an exceptionally underlevered balance sheet and generally solid profitability. Technicals are supportive with price above key moving averages and positive MACD, while valuation is reasonable with a mid-teens P/E and a ~3% dividend. The main risks reflected are the sharp reported TTM revenue decline and uneven cash flow conversion history.
Positive Factors
Conservative Balance Sheet
Extremely low leverage gives durable financial flexibility: the company can fund capex, sustain dividends, pursue M&A or weather downturns without refinancing stress. This long-term strength reduces insolvency risk and preserves optionality for strategic investments over multiple quarters.
Negative Factors
Severe TTM Revenue Decline
A reported near-100% TTM revenue drop is a structural red flag: it shrinks the installed base that drives consumables, undermines scale economics, and complicates long-term planning. Even with strong margins, sustained top-line erosion materially reduces cash generation and strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage gives durable financial flexibility: the company can fund capex, sustain dividends, pursue M&A or weather downturns without refinancing stress. This long-term strength reduces insolvency risk and preserves optionality for strategic investments over multiple quarters.
Read all positive factors
Brother Industries (6448) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥761.64B
Dividend Yield3.16%
Average Volume (3M)835.76K
Price to Earnings (P/E)8.3
Beta (1Y)0.91
Revenue Growth1.14%
EPS Growth60.34%
CountryJP
Employees40,538
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)222.34
Shares Outstanding257,755,920
10 Day Avg. Volume864,240
30 Day Avg. Volume835,760
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.00
Price to Sales (P/S)0.79
P/FCF Ratio12.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,000.00Price Target Upside29.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)273.88
Revenue Forecast (FY)¥913.98B
Brother Industries Business Overview & Revenue Model
Company Description
Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through six segments Printing & Solutions, Personal & Ho...
How the Company Makes Money
Brother makes money primarily by selling hardware (printers, multifunction devices, label printers, and related equipment) and by generating recurring revenue from consumables and after-sales services tied to its installed base. A significant port...
Brother Industries Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
92
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 878.81B | 876.56B | 822.93B | 815.27B | 710.94B | 631.81B |
| Gross Profit | 369.27B | 381.59B | 355.34B | 319.59B | 307.32B | 286.60B |
| EBITDA | 126.10B | 128.97B | 103.50B | 104.51B | 128.47B | 83.43B |
| Net Income | 56.29B | 54.78B | 31.64B | 39.08B | 61.03B | 24.52B |
Balance Sheet | ||||||
| Total Assets | 983.11B | 932.65B | 896.11B | 850.49B | 811.15B | 743.90B |
| Cash, Cash Equivalents and Short-Term Investments | 177.31B | 177.90B | 173.36B | 128.60B | 178.38B | 199.17B |
| Total Debt | 755.00M | 33.26B | 37.71B | 66.88B | 66.96B | 83.81B |
| Total Liabilities | 239.33B | 241.17B | 227.98B | 253.80B | 249.94B | 244.18B |
| Stockholders Equity | 743.69B | 691.39B | 668.05B | 596.62B | 561.15B | 483.05B |
Cash Flow | ||||||
| Free Cash Flow | 58.33B | 54.24B | 103.01B | -16.76B | 45.65B | 88.61B |
| Operating Cash Flow | 91.64B | 90.02B | 141.03B | 14.43B | 72.25B | 109.27B |
| Investing Cash Flow | -43.24B | -48.15B | -42.07B | -32.20B | -57.50B | -25.08B |
| Financing Cash Flow | -49.45B | -34.61B | -61.58B | -36.64B | -48.48B | -74.04B |
Brother Industries Technical Analysis
Positive
3097.00
Price Trends
3015.14
Positive
3045.88
Positive
2777.02
Positive
Market Momentum
31.23
Negative
61.87
Neutral
79.23
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 3097 is above the 20-day moving average (MA) of 2979.69, above the 50-day MA of 3015.14, and above the 200-day MA of 2777.02, indicating a bullish trend. The MACD of 31.23 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.23 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥800.61B | 14.35 | 10.50% | 2.03% | 3.03% | 26.77% | |
76 Outperform | ¥761.64B | 8.32 | 7.77% | 3.16% | 1.14% | 60.34% | |
71 Outperform | ¥740.36B | 8.78 | 6.04% | 2.78% | 3.54% | 61.76% | |
66 Neutral | ¥34.52B | 20.04 | ― | 4.37% | -2.99% | -71.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥3.46T | 13.78 | 7.81% | 2.07% | 5.27% | 8.51% | |
46 Neutral | ¥249.33B | -71.33 | -12.69% | 0.71% | -6.32% | -166.94% |
* Industrials Sector Average
JP:6448
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.