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Brother Industries Ltd (JP:6448)
:6448
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Brother Industries (6448) AI Stock Analysis

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JP:6448

Brother Industries

(OTC:6448)

Rating:76Outperform
Price Target:
¥2,850.00
▲(13.46% Upside)
Brother Industries scores well due to its strong financial performance and attractive valuation. While technical indicators are neutral, the company's solid balance sheet and dividend yield enhance its investment appeal. Attention to cash flow consistency and operational efficiencies could further strengthen its position.

Brother Industries (6448) vs. iShares MSCI Japan ETF (EWJ)

Brother Industries Business Overview & Revenue Model

Company DescriptionBrother 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 MoneyBrother 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 financial performance with consistent revenue growth and robust profitability margins. The balance sheet is stable with low debt levels, though cash flow variability suggests some challenges in maintaining consistent growth.
Income Statement
78
Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue874.91B876.56B822.93B815.27B710.94B631.81B
Gross Profit375.83B381.59B355.34B319.59B307.32B286.60B
EBITDA117.71B122.58B103.50B103.33B123.38B117.18B
Net Income49.99B54.78B31.64B39.08B61.03B24.52B
Balance Sheet
Total Assets905.22B932.65B896.11B850.49B811.15B743.90B
Cash, Cash Equivalents and Short-Term Investments145.64B172.78B173.56B129.91B179.33B199.39B
Total Debt600.00M600.00M37.71B37.42B40.83B57.46B
Total Liabilities219.68B241.18B227.99B253.81B249.94B244.19B
Stockholders Equity685.45B691.39B668.05B596.62B561.15B483.05B
Cash Flow
Free Cash Flow39.30B54.24B93.54B-28.05B36.41B81.75B
Operating Cash Flow74.83B90.02B141.03B14.43B72.25B109.27B
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
Negative
Last Price2512.00
Price Trends
50DMA
2519.06
Negative
100DMA
2469.61
Positive
200DMA
2573.10
Negative
Market Momentum
MACD
0.61
Positive
RSI
46.29
Neutral
STOCH
15.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6448, the sentiment is Negative. The current price of 2512 is below the 20-day moving average (MA) of 2549.90, below the 50-day MA of 2519.06, and below the 200-day MA of 2573.10, indicating a bearish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6448.

Brother Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$646.12B12.927.32%3.98%4.50%56.65%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
¥740.64B15.944.52%2.94%
$29.27B17.147.61%1.85%
$1.72B-16.55%0.96%
€2.41B18.687.98%
€3.63B15.399.53%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6448
Brother Industries
2,512.00
-86.34
-3.32%
GB:RICO
RICOH CO
1,318.00
-158.55
-10.74%
FUJIF
FUJIFILM Holdings
23.97
-2.07
-7.95%
KNCAF
Konica Minolta
2.90
0.06
2.11%
DE:KOK
Kokuyo Co
5.05
1.41
38.74%
DE:CNJ
Canon Marketing Japan Inc.
33.00
5.80
21.32%
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.Date of analysis: Aug 27, 2025