Brother Industries (6448) AI Stock Analysis

• Market Cap: ¥797.17B
• Dividend Yield: 3.21%
• Average Volume (3M): 835.76K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.93
• Revenue Growth: 4.30%
• EPS Growth: 78.29%
• Country: JP
• Employees: 40,538
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 65.32
• Shares Outstanding: 257,755,920
• 10 Day Avg. Volume: 864,240
• 30 Day Avg. Volume: 835,760
• PEG Ratio: 0.17
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 12.73
• 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: ¥2,764.37
• Price Target Upside: -11.37% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,519.00 ▲(12.82% Upside)

Brother Industries is well-positioned with strong financial performance and positive technical indicators. The stock's valuation is reasonable with a good dividend yield, making it attractive for investors seeking both growth and income. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates sustained demand for Brother's products and effective market strategies, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability Margins

Stable profitability margins reflect efficient cost management and operational effectiveness, supporting sustainable earnings over time.

Negative Factors

Cash Conversion Efficiency

Lower cash conversion efficiency indicates potential challenges in converting earnings into cash, which could impact liquidity and investment capacity.

EBIT Margin Pressure

Decreasing EBIT margin suggests potential pressure on operating efficiency, which could affect profitability if not addressed.

Cash Flow Management

Moderate cash flow conversion efficiency may limit the company's ability to reinvest in growth initiatives or return capital to shareholders.

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 multiple streams, primarily from the sale of printing and imaging products, which include printers, multifunction devices, and consumables such as ink cartridges and toner. The company also earns income from its sewing and embroidery machines, which cater to both home users and industrial clients. A significant portion of its revenue comes from the sale of accessories and supplies that are essential for the operation of its devices. Additionally, Brother engages in partnerships with various businesses and retailers, enhancing its distribution channels and market reach. The company invests in research and development to innovate and expand its product offerings, further driving sales and customer loyalty.

Brother Industries Financial Statement Overview

Summary

Brother Industries demonstrates strong profitability and financial stability with low leverage. However, recent revenue and free cash flow declines pose potential risks. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.

Income Statement

Brother Industries shows strong gross and net profit margins, indicating efficient cost management and profitability. However, the recent revenue decline in TTM suggests potential market challenges. The EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio, reflecting strong financial stability and low leverage risk. Return on equity is solid, indicating effective use of equity to generate profits. The equity ratio is robust, underscoring a strong capital structure.

Cash Flow

Operating cash flow is positive, but free cash flow has seen a significant decline, which could impact future investments. The operating cash flow to net income ratio is moderate, suggesting reasonable cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	887.11B	876.56B	822.93B	815.27B	710.94B	631.81B
Gross Profit	379.45B	381.59B	355.34B	319.59B	307.32B	286.60B
EBITDA	124.71B	122.58B	103.50B	103.33B	125.72B	117.18B
Net Income	54.90B	54.78B	31.64B	39.08B	61.03B	24.52B
Balance Sheet
Total Assets	939.14B	932.65B	896.11B	850.49B	811.15B	743.90B
Cash, Cash Equivalents and Short-Term Investments	169.15B	172.78B	173.56B	129.91B	179.33B	199.39B
Total Debt	823.00M	600.00M	37.71B	66.88B	66.96B	83.81B
Total Liabilities	229.71B	241.18B	227.99B	253.81B	249.94B	244.19B
Stockholders Equity	709.34B	691.39B	668.05B	596.62B	561.15B	483.05B
Cash Flow
Free Cash Flow	43.50B	54.24B	93.54B	-28.05B	36.41B	81.75B
Operating Cash Flow	78.69B	90.02B	141.03B	14.43B	72.25B	109.27B
Investing Cash Flow	-47.84B	-48.15B	-42.07B	-32.20B	-40.78B	-25.08B
Financing Cash Flow	-44.57B	-34.61B	-61.58B	-36.64B	-65.19B	-74.04B

Brother Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3119 is above the 20-day moving average (MA) of 3082.85, above the 50-day MA of 2860.47, and above the 200-day MA of 2576.94, indicating a bullish trend. The MACD of 69.77 indicates Positive momentum. The RSI at 63.39 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 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
8060	79 Outperform	¥747.08B	18.75	10.63%	2.05%	5.40%	23.70%
6448	76 Outperform	¥797.17B	14.48	7.77%	3.21%	4.30%	78.29%
7984	76 Outperform	¥418.94B	18.89	8.83%	2.27%	6.29%	8.74%
7752	74 Outperform	¥777.08B	12.83	5.91%	2.86%	4.46%	70.22%
4901	72 Outperform	¥4.05T	14.97	7.92%	2.08%	5.39%	12.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4902	55 Neutral	¥338.13B	-23.98	-12.69%	0.73%	-11.22%	-731.07%