EBRAINS,INC. (6599) AI Stock Analysis

• Market Cap: ¥4.93B
• Dividend Yield: 1.57%
• Average Volume (3M): 14.69K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.40
• Revenue Growth: 4.40%
• EPS Growth: 35.86%
• Country: JP
• Employees: 116
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 55.02
• Shares Outstanding: 1,536,000
• 10 Day Avg. Volume: 3,910
• 30 Day Avg. Volume: 14,686
• PEG Ratio: -1.98
• 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: ¥3,728.00 ▲(45.85% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by strong financial strength (near-zero debt and consistently positive free cash flow), partially offset by softer profitability versus the 2023 peak and uneven revenue growth. Technicals are supportive with price above key moving averages, while valuation is reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Very low leverage

Near-zero debt and minimal leverage materially reduce financial risk and increase strategic optionality. This durable strength improves resilience through downturns, supports recurring dividends or buybacks, and preserves capacity for opportunistic M&A or capex without stressing cash flow.

Consistent free cash flow

Sustained free cash flow roughly comparable to net income underpins capital allocation flexibility. Durable FCF supports reinvestment, dividends and debt avoidance, and signals earnings quality despite some year-to-year timing swings in working capital.

Revenue rebound in 2025

A clear rebound in top-line activity in 2025 indicates the business can recover from cyclical softness and regain scale. Combined with positive EPS growth in recent periods, this trend supports medium-term revenue recovery and the potential to restore prior margin levels if sustained.

Negative Factors

Uneven revenue growth

Negative and uneven revenue growth complicates operational planning and forecasting and signals sensitivity to demand or execution. Over the next several quarters, inconsistent top-line trends can limit operating leverage and make sustainable margin expansion harder without reliable sales momentum.

Softer profitability vs. 2023 peak

Declining margins from the 2023 high reduce earnings resilience and the cushion against cost inflation or pricing pressure. If margins remain pressured, the company will need sustained revenue improvement or structural cost actions to restore return on capital and support long-term cash generation.

Cash generation volatility

Intermittent volatility in cash conversion—driven by working-capital swings—creates timing risk for capex, dividends and investment. Even with strong average FCF, this variability raises execution risk and can strain liquidity in quarters of weak cash conversion.

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

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EBRAINS,INC. Financial Statement Overview

Summary

Strong overall financial quality led by an exceptionally low-debt balance sheet and consistently positive free cash flow. Key risk is a softer profitability trend versus the 2023 peak and uneven revenue growth, indicating some margin pressure and execution sensitivity.

Income Statement

Revenue growth has been uneven (strong rebound in 2025 after a slight 2024 decline), while profitability has softened from the 2023 peak. Gross, operating, and net margins remain healthy for the period but have trended down over the last two years, with net income also stepping down from 2023 levels—suggesting some margin pressure despite stable scale.

Balance Sheet

The balance sheet is a clear strength: debt is essentially zero in recent years and leverage is minimal even historically, reducing financial risk. Equity has steadily increased and returns on equity remain positive (though down from the 2023 high), indicating solid capital strength with slightly moderating profitability on that capital.

Cash Flow

Free cash flow has been consistently strong relative to net income (roughly near 1x across years), supporting earnings quality. However, cash generation versus accounting profit has been volatile at times (notably weaker coverage in 2021–2023 before improving in 2024–2025), which points to working-capital or timing swings that can introduce variability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.92B	4.03B	3.99B	4.26B	3.92B	3.20B
Gross Profit	851.97M	864.49M	911.14M	1.05B	927.64M	680.52M
EBITDA	479.98M	481.15M	507.07M	673.82M	557.80M	317.33M
Net Income	318.31M	313.41M	332.06M	426.20M	345.38M	200.17M
Balance Sheet
Total Assets	5.97B	5.93B	5.70B	5.62B	5.20B	4.59B
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	1.14B	1.20B	1.43B	1.41B	1.14B
Stockholders Equity	4.79B	4.79B	4.50B	4.20B	3.79B	3.45B
Cash Flow
Free Cash Flow	0.00	379.61M	501.11M	236.92M	263.42M	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: Positive
• 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 3039.95, below the 50-day MA of 2944.36, and above the 200-day MA of 2547.24, indicating a neutral trend. The MACD of 7.31 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 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	¥4.93B	12.39	―	1.57%	4.40%	35.86%
6734	73 Outperform	¥5.03B	14.35	―	1.89%	33.70%	36.99%
3021	71 Outperform	¥11.31B	8.19	―	2.47%	20.51%	42.33%
6597	67 Neutral	¥7.03B	13.29	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥3.77B	-92.18	―	―	17.29%	―
6731	47 Neutral	¥4.10B	-3.53	―	―	-13.93%	―