EBRAINS,INC. (6599) AI Stock Analysis

• Market Cap: ¥4.36B
• Dividend Yield: 1.57%
• Average Volume (3M): 14.69K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.39
• Revenue Growth: 4.40%
• EPS Growth: 35.86%
• Country: JP
• Employees: 116
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 62.65
• Shares Outstanding: 1,536,000
• 10 Day Avg. Volume: 3,910
• 30 Day Avg. Volume: 14,686
• PEG Ratio: -1.99
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 9.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,406.00 ▲(33.26% Upside)

The score is driven primarily by strong financial quality (notably the near-zero debt balance sheet and solid free cash flow). Technicals are supportive but appear overbought, which tempers the outlook. Valuation is reasonable with a modest dividend yield, while earnings-call insights are limited due to missing guidance and commentary details.

Positive Factors

Balance sheet strength

Near-zero debt and steadily increasing equity materially reduce financial risk and preserve strategic optionality. Over a multi-month horizon this balance sheet supports capital allocation for R&D, M&A, dividends or buybacks, and improves resilience to cyclical downturns.

Free cash flow quality

Consistent free cash generation near accounting earnings indicates high earnings quality and internal funding capacity. This durable cash conversion supports sustainable reinvestment, shareholder distributions, and deleveraging without reliance on volatile external financing.

Low market volatility exposure

A low beta signals weaker sensitivity to broad market swings and suggests relatively stable operating cash flows. For a 2–6 month horizon this can preserve capital during macro stress, enabling management to execute long-term plans with less short-term funding disruption risk.

Negative Factors

Uneven revenue growth

Inconsistent top-line trends reduce forecasting visibility and complicate capacity planning and long-term investment decisions. Sustained uneven growth can pressure working capital and make it harder to lock in scale benefits, limiting predictable margin and cash-flow expansion.

Margin compression

Declining gross, operating, and net margins from 2023 levels suggest rising cost pressure or competitive pricing weakness. Persistent margin erosion diminishes return on capital and reduces free cash available for reinvestment or distributions, weakening durable profitability.

Limited forward guidance and disclosure

A lack of guidance and limited earnings-call detail reduces investors' ability to model future performance and assess management's roadmap. Over months this transparency gap raises execution risk and can hinder long-term planning by stakeholders and counterparties.

EBRAINS,INC. Business Overview & Revenue Model

Company Description

Ebrains, Inc. designs, develops, produces, and sells industrial electronics and industrial computers designed for information, communications, control, video, and measurement fields. It offers CompactPCI products; advancedTCA backplane products; backplanes, DIN racks, universal boards, card extenders, unit power supplies, cabinets, and related devices; industrial system chassis with CPU boards and various I/O boards; custom backplanes/custom racks and chassis designed on commission; and custom backplanes/custom racks/custom chassis on commission. The company was incorporated in 1973 and is headquartered in Hachioji, Japan.

How the Company Makes Money

EBRAINS, INC. generates revenue through a diversified business model that includes licensing fees for its proprietary software solutions, subscription services for continuous access to its AI platforms, and consulting fees for personalized implementation and integration services. The company also engages in strategic partnerships with industry leaders to co-develop and market new technology solutions, thereby expanding its market reach and enhancing its revenue streams. Additionally, EBRAINS may receive funding through research grants and collaboration agreements aimed at innovative technology advancements.

EBRAINS,INC. Financial Statement Overview

Summary

EBRAINS, INC. demonstrates a strong financial position with efficient operations and low leverage, as evidenced by solid profit margins and a robust equity ratio. However, challenges include a decline in revenue and the absence of cash flow generation in the TTM period.

Income Statement

EBRAINS, INC. exhibited a stable gross profit margin with a TTM (Trailing-Twelve-Months) rate of 21.18%. The net profit margin was strong at 7.30% TTM, demonstrating efficient cost management. However, the revenue displayed a slight downward trend with a decrease of 8.06% from the previous annual report. The company maintained healthy EBIT and EBITDA margins at 10.47% and 10.91% TTM, respectively, indicating robust operating efficiency.

Balance Sheet

The balance sheet remains solid with a low debt-to-equity ratio due to minimal total debt, highlighting financial stability. The company's equity ratio stands at 80.75%, showcasing a strong equity base. However, the return on equity (ROE) decreased to 6.13% TTM, which could indicate less effective utilization of shareholder equity compared to prior periods.

Cash Flow

EBRAINS, INC. faced challenges in cash flow generation with zero operating and free cash flow reported in the TTM period. Despite previous periods showing positive free cash flow growth, the current lack of cash flow could pose a risk to future financial flexibility and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.92B	4.03B	3.99B	4.26B	3.92B	3.20B
Gross Profit	851.20M	864.49M	911.14M	1.05B	927.64M	680.52M
EBITDA	497.59M	492.15M	511.44M	671.70M	550.21M	320.03M
Net Income	318.66M	313.41M	332.06M	426.20M	345.38M	200.17M
Balance Sheet
Total Assets	5.97B	5.90B	5.67B	5.60B	5.18B	4.58B
Cash, Cash Equivalents and Short-Term Investments	2.80B	2.73B	2.39B	1.92B	1.75B	1.53B
Total Debt	0.00	0.00	0.00	0.00	28.02M	66.02M
Total Liabilities	1.18B	1.12B	1.17B	1.41B	1.39B	1.13B
Stockholders Equity	4.79B	4.79B	4.50B	4.20B	3.79B	3.45B
Cash Flow
Free Cash Flow	0.00	379.61M	496.77M	226.05M	261.89M	126.22M
Operating Cash Flow	0.00	382.20M	505.42M	247.38M	267.96M	152.63M
Investing Cash Flow	0.00	-3.48M	-34.46M	-34.74M	2.90M	-18.09M
Financing Cash Flow	0.00	-57.34M	-40.81M	-61.22M	-65.16M	113.36M

EBRAINS,INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2556.00
• 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:6599, the sentiment is Positive. The current price of 2556 is below the 20-day moving average (MA) of 2720.50, below the 50-day MA of 2703.72, and above the 200-day MA of 2354.24, indicating a bullish trend. The MACD of 80.63 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 65.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6599.

EBRAINS,INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6599	78 Outperform	¥4.36B	12.41	―	1.57%	4.40%	35.86%
6734	73 Outperform	¥5.07B	13.90	―	1.89%	33.70%	36.99%
6840	70 Outperform	¥3.99B	11.11	―	―	20.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6803	59 Neutral	¥2.79B	12.27	―	1.08%	7.21%	―
6731	47 Neutral	¥5.63B	-3.33	―	―	-13.93%	―
7709	46 Neutral	¥2.55B	-8.97	―	―	-23.14%	-829.31%