Brother Industries (6448) AI Stock Analysis

• Market Cap: $645.22B
• Dividend Yield: 3.96%
• Average Volume (3M): 783.88K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.92
• Revenue Growth: 6.52%
• EPS Growth: 73.06%
• Country: JP
• Employees: 40,538
• Sector: Industrials
• Sector Strength: 89
• Industry: Business Equipment & Supplies
• EPS (TTM): 17.09
• Shares Outstanding: 257,755,920
• 10 Day Avg. Volume: 734,000
• 30 Day Avg. Volume: 783,880
• PEG Ratio: 0.22
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.35
• 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: $3,099.41
• Price Target Upside: 23.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥2,811.00 ▲(11.99%Upside)

Brother Industries shows a strong financial position, highlighted by solid revenue and profitability margins. The technical indicators suggest moderate bullish momentum, while valuation metrics indicate a reasonably priced stock with a strong dividend yield. Despite variability in cash flow, the company is well-positioned in its industry.

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 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: 2510.00
• 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 Positive. The current price of 2510 is above the 20-day moving average (MA) of 2486.93, above the 50-day MA of 2456.17, and below the 200-day MA of 2621.98, indicating a neutral trend. The MACD of 18.72 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 51.00 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	74 Outperform	$645.22B	11.78	7.94%	3.96%	6.52%	73.06%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
RICO	―	¥742.06B	17.55	4.42%	2.77%	―	―
FUJIF	―	$24.23B	15.07	7.89%	2.20%	―	―
KNCAF	―	$1.51B	―	-18.21%	0.96%	―	―
KOK	―	€2.35B	18.42	7.55%	2.53%	―	―
CNJ	―	€3.23B	14.68	9.38%	2.36%	―	―