Brother Industries (6448) AI Stock Analysis

• Market Cap: $680.75B
• Dividend Yield: 3.83%
• Average Volume (3M): 835.76K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.86
• 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: 0.72
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 4.18
• 1Y Price Target: $2,799.94
• Price Target Upside: -6.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,406.00 ▲(13.63% Upside)

The overall stock score of 78 reflects strong technical momentum and reasonable valuation, despite some financial performance concerns due to recent revenue and free cash flow declines. The stock's bullish trend is a significant positive, but investors should be cautious of potential overbought conditions.

Positive Factors

Financial Stability

Brother Industries' low debt-to-equity ratio indicates robust financial health, reducing risk and providing flexibility for future investments.

Profit Margins

High profit margins suggest effective cost control and operational efficiency, enhancing long-term profitability and competitive positioning.

Revenue Diversification

A diverse product portfolio across consumer and industrial markets provides resilience against sector-specific downturns and supports stable revenue streams.

Negative Factors

Revenue Decline

A decline in revenue indicates potential market challenges, which could affect growth prospects if not addressed through strategic initiatives.

Free Cash Flow Decline

Declining free cash flow may limit Brother Industries' ability to invest in growth opportunities, affecting long-term expansion and innovation.

Revenue Growth Challenges

Sustained revenue growth challenges could hinder Brother Industries' market competitiveness and financial performance if not strategically managed.

Brother Industries Business Overview & Revenue Model

Company Description

Brother Industries, Ltd. (6448) is a multinational company based in Japan, primarily engaged in the manufacturing and marketing of printers, multifunction devices, and sewing machines. The company operates in several sectors, including printing technology, sewing and embroidery machinery, and industrial automation. Brother's core products include inkjet and laser printers, label printers, and a variety of sewing and quilting machines, serving both consumer and business markets globally.

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	874.91B	876.56B	822.93B	815.27B	710.94B	631.81B
Gross Profit	375.83B	381.59B	355.34B	319.59B	307.32B	286.60B
EBITDA	117.71B	122.58B	103.50B	103.33B	125.72B	117.18B
Net Income	49.99B	54.78B	31.64B	39.08B	61.03B	24.52B
Balance Sheet
Total Assets	905.22B	932.65B	896.11B	850.49B	811.15B	743.90B
Cash, Cash Equivalents and Short-Term Investments	145.64B	172.78B	173.56B	129.91B	179.33B	199.39B
Total Debt	600.00M	600.00M	37.71B	66.88B	66.96B	83.81B
Total Liabilities	219.68B	241.18B	227.99B	253.81B	249.94B	244.19B
Stockholders Equity	685.45B	691.39B	668.05B	596.62B	561.15B	483.05B
Cash Flow
Free Cash Flow	39.30B	54.24B	93.54B	-28.05B	36.41B	81.75B
Operating Cash Flow	74.83B	90.02B	141.03B	14.43B	72.25B	109.27B
Investing Cash Flow	-49.49B	-48.15B	-42.07B	-32.20B	-40.78B	-25.08B
Financing Cash Flow	-41.51B	-34.61B	-61.58B	-36.64B	-65.19B	-74.04B

Brother Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2997.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 2997.5 is above the 20-day moving average (MA) of 2811.95, above the 50-day MA of 2654.56, and above the 200-day MA of 2530.53, indicating a bullish trend. The MACD of 103.81 indicates Negative momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.33 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
6448	78 Outperform	$680.75B	13.62	7.77%	3.83%	4.30%	78.29%
4901	78 Outperform	$4.28T	16.89	7.92%	1.83%	5.39%	12.69%
8060	76 Outperform	€697.85B	17.52	10.63%	2.08%	5.40%	23.70%
7984	72 Outperform	¥410.91B	18.52	8.83%	2.32%	6.29%	8.74%
7752	66 Neutral	¥787.32B	13.00	5.91%	2.94%	4.46%	70.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4902	50 Neutral	$266.56B	-7.27	-12.69%	0.78%	-11.22%	-731.07%