Brother Industries (6448) AI Stock Analysis

• Market Cap: $621.07B
• Dividend Yield: 4.12%
• Average Volume (3M): 879.61K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.92
• Revenue Growth: 6.52%
• EPS Growth: 73.06%
• 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: 835,660
• 30 Day Avg. Volume: 879,610
• PEG Ratio: -0.37
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.18
• 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: $2,933.10
• Price Target Upside: 20.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥2,712.00 ▲(11.60%Upside)

Brother Industries' stock is supported by strong financial performance and an attractive valuation, highlighted by a low P/E ratio and high dividend yield. However, technical analysis indicates a bearish trend, which weighs down the overall score. The absence of recent earnings call data and notable corporate events results in a focus on financial and valuation metrics.

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 & Home, Machinery, Network & Contents, Domino, and Others. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; fax machines and scanners; and electronic stationary comprising labeling systems, and label and mobile printers. The Personal & Home segment provides home sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Machinery segment offers industrial sewing machines, machine tools, and garment printers, as well as industrial parts, such as reducers and gears. The Network & Contents segment provides online karaoke systems, music boxes, applications for smartphones/tablets, health care supporting equipment, and content services, as well as manages Karaoke clubs. The Domino segment offers coding and marking equipment, and digital printing equipment. The Others segment engages in real estate and other activities. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Brother Industries generates revenue through several key streams. The printing and solutions segment is a significant contributor, encompassing the sale of printers, multifunctional printers, and related consumables such as ink and toner. The company also benefits from its personal and home segment, which includes sewing machines and home appliances. Additionally, Brother has a machinery business that sells industrial sewing machines and machine tools. Revenue is further supplemented by services and solutions, including maintenance and support for its products. Strategic partnerships and a robust global distribution network enhance its market reach, contributing to sustained earnings.

Brother Industries Financial Statement Overview

Summary

Brother Industries demonstrates strong revenue growth and profitability margins. The balance sheet indicates financial stability with a high equity ratio and low debt-to-equity ratio. Cash flows are generally positive, though there are concerns about variability in free cash flow to net income ratio.

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
	EBIT
28.18B	75.58B	55.38B	85.50B	42.73B
	EBITDA
128.50B	103.50B	103.33B	123.38B	117.18B
	Net Income Common Stockholders
54.78B	31.64B	39.08B	61.03B	24.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
172.78B	166.15B	129.91B	179.33B	199.39B
	Total Assets
932.65B	896.11B	850.49B	811.15B	743.90B
	Total Debt
600.00M	37.71B	37.42B	40.83B	57.46B
	Net Debt
-172.18B	-128.44B	-81.62B	-127.09B	-133.54B
	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: Neutral
• Last Price: 2430.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 2430 is above the 20-day moving average (MA) of 2422.68, above the 50-day MA of 2425.58, and below the 200-day MA of 2637.73, indicating a neutral trend. The MACD of -5.40 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6448.

Brother Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6448	74 Outperform	$621.07B	11.34	7.94%	4.12%	6.52%	73.06%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
RICO		¥746.90B	17.06	4.42%	2.85%	―	―
FUJIF		$25.42B	14.92	7.89%	2.20%	―	―
KNCAF		$1.55B	―	-18.21%	0.96%	―	―
KOK		€2.00B	17.64	7.55%	2.46%	―	―
CNJ		€3.61B	16.26	9.38%	2.58%	―	―