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EBRAINS,INC. (JP:6599)
:6599
Japanese Market
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EBRAINS,INC. (6599) AI Stock Analysis

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JP:6599

EBRAINS,INC.

(6599)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥3,178.00
▲(24.33% Upside)
Action:Reiterated
Date:05/16/26
The score is supported primarily by strong financial quality (especially the near-zero-debt balance sheet and solid profitability/cash conversion). This is partially offset by weak technical momentum (price below key moving averages with negative MACD and sub-50 RSI). Valuation is reasonable with a mid-teens P/E and a modest dividend yield, providing some support but not enough to fully counter the soft technical picture.
Positive Factors
Conservative balance sheet
Near-zero debt and steadily expanding equity provide durable financial flexibility: the company can fund investment, R&D, or dividends from internal resources, withstand industry downturns with low interest burden, and avoid refinancing risk over the next several quarters.
Negative Factors
Muted, inconsistent revenue growth
Irregular revenue trends and recent flat top line indicate weak demand expansion or limited market penetration. Over 2–6 months this constrains scalable earnings growth, limits operating leverage benefits, and raises reliance on margin improvements or cost cuts to sustain profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero debt and steadily expanding equity provide durable financial flexibility: the company can fund investment, R&D, or dividends from internal resources, withstand industry downturns with low interest burden, and avoid refinancing risk over the next several quarters.
Read all positive factors

EBRAINS,INC. (6599) vs. iShares MSCI Japan ETF (EWJ)

EBRAINS,INC. Business Overview & Revenue Model

Company Description
Established in 1973 and headquartered in Hachioji, Japan, Ebrains, Inc. conceptualizes, manufactures, and markets industrial electronics and computer systems. These products are specifically engineered to support a wide range of applications in in...
How the Company Makes Money
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EBRAINS,INC. Financial Statement Overview

Summary
Financials are strong overall, led by an exceptionally conservative balance sheet (near-zero debt and steadily rising equity). Profitability is solid with improved margins in the latest year, and free cash flow tracks net income well recently, though revenue growth has been muted/uneven and cash generation has shown some variability historically.
Income Statement
72
Positive
Balance Sheet
92
Very Positive
Cash Flow
76
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue3.92B3.99B4.03B3.99B4.26B3.92B
Gross Profit851.97M921.90M864.49M911.14M1.05B927.64M
EBITDA479.98M545.15M481.15M507.07M673.82M557.80M
Net Income318.31M364.43M313.41M332.06M426.20M345.38M
Balance Sheet
Total Assets5.97B6.37B5.93B5.70B5.62B5.20B
Cash, Cash Equivalents and Short-Term Investments2.80B2.25B2.73B2.39B1.92B1.75B
Total Debt0.000.000.000.000.0028.02M
Total Liabilities1.18B1.26B1.14B1.20B1.43B1.41B
Stockholders Equity4.79B5.10B4.79B4.50B4.20B3.79B
Cash Flow
Free Cash Flow0.00566.83M379.61M501.11M236.92M263.42M
Operating Cash Flow0.00570.95M382.20M505.42M247.38M267.96M
Investing Cash Flow0.00-1.04B-3.48M-34.46M-34.74M2.90M
Financing Cash Flow0.00-60.36M-57.34M-40.81M-61.22M-65.16M

EBRAINS,INC. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2556.00
Price Trends
50DMA
3337.84
Negative
100DMA
3250.09
Negative
200DMA
2921.18
Positive
Market Momentum
MACD
-52.37
Negative
RSI
45.15
Neutral
STOCH
34.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6599, the sentiment is Negative. The current price of 2556 is below the 20-day moving average (MA) of 3114.35, below the 50-day MA of 3337.84, and below the 200-day MA of 2921.18, indicating a neutral trend. The MACD of -52.37 indicates Negative momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6599.

EBRAINS,INC. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥4.60B12.631.57%-0.80%16.28%
68
Neutral
¥9.09B9.382.47%29.24%96.17%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥18.47B30.901.65%11.90%45.30%
52
Neutral
¥3.24B141.5111.27%87.81%
41
Neutral
¥1.67B-0.912.68%69.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6599
EBRAINS,INC.
3,050.00
923.54
43.43%
JP:3021
Pacific Net Co., Ltd.
1,728.00
485.18
39.04%
JP:6597
HPC Systems, Inc.
4,300.00
2,540.03
144.32%
JP:6731
Pixela Corporation
104.00
-476.00
-82.07%
JP:6836
Plat'Home Co., Ltd.
680.00
-792.00
-53.80%
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: May 16, 2026