BRIDGE International Corp. (7039) AI Stock Analysis

• Market Cap: ¥7.08B
• Dividend Yield: 2.94%
• Average Volume (3M): 4.72K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.51
• Revenue Growth: 8.00%
• EPS Growth: 3.22%
• Country: JP
• Employees: 695
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 18.65
• Shares Outstanding: 3,768,600
• 10 Day Avg. Volume: 4,290
• 30 Day Avg. Volume: 4,716
• PEG Ratio: -0.75
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 15.60
• 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: 70 Outperform
• Price Target: ¥2,089.00 ▲(4.40% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is supported primarily by strong financial stability (very low leverage) and generally solid profitability despite a weaker 2025, with valuation further helped by a reasonable P/E and high dividend yield. These positives are partly offset by weak technical signals (below key moving averages and negative MACD), indicating near-term price pressure.

Positive Factors

Very low leverage

The company's extremely low debt-to-equity (~0.014 in 2025) materially reduces refinancing and solvency risk, giving management durable financial flexibility to fund operations, absorb cyclical downturns, pursue selective investments or returns, and maintain stability over the next 2–6 months and beyond.

Consistent free cash flow

Free cash flow has historically tracked net income closely (roughly 0.93–0.96x), indicating high earnings quality and the company's ability to generate cash from operations. This structural cash generation supports capital allocation flexibility for investments, dividends or buybacks and cushions medium-term profitability volatility.

Long‑run revenue growth & gross margin

A multi-year revenue expansion through 2024 and improving gross margin (~34% in 2025) signal underlying demand, pricing power and scalable delivery for the consulting business. These structural attributes support sustainable profitability and competitive positioning despite short-term topline variability.

Negative Factors

Recent revenue and earnings decline

Revenue and net income declined in 2025, indicating a near-term demand slowdown. For a consulting firm, sustained revenue weakness would erode operating leverage, compress returns and limit reinvestment capacity, creating a durable headwind to restoring prior profitability levels if it persists.

Margin compression & weaker cash conversion

Net margin compression and a sharp drop in operating cash flow conversion to ~0.53 suggest rising cost pressure or working-capital drag. This reduces sustainable cash available for growth and returns, and if structural, can depress ROE and limit strategic options over the medium term.

Free cash flow volatility

Historical FCF volatility, including a notable negative year in 2020, implies episodic cash strain despite low leverage. Volatile cash flows can force conservative capital allocation, constrain investment timing, and make earnings and dividend sustainability harder to predict across economic cycles.

BRIDGE International Corp. Business Overview & Revenue Model

Company Description

BRIDGE International Corp. (7039) is a diversified company primarily engaged in providing innovative technology solutions and services across various sectors, including telecommunications, information technology, and digital transformation. The company focuses on developing and delivering products that enhance connectivity and operational efficiency for businesses and consumers alike, with a commitment to sustainability and cutting-edge advancements in the tech landscape.

How the Company Makes Money

BRIDGE International Corp. generates revenue through multiple key streams, including the sale of software and hardware products, subscription services for cloud-based solutions, and consulting services for digital transformation projects. The company also earns income from strategic partnerships with telecommunications providers and technology firms, which allow it to offer bundled services and expand its market reach. Additionally, BRIDGE benefits from licensing agreements and joint ventures that enhance its product offerings and drive customer acquisition, contributing significantly to its overall earnings.

BRIDGE International Corp. Financial Statement Overview

Summary

Strong underlying fundamentals supported by an exceptionally low-leverage balance sheet, but the latest year shows softness: revenue down 2.6% in 2025, net margin compressed to ~6.3% (vs ~7.7% in 2024 and ~9.2% in 2023), and operating cash flow conversion weakened to ~0.53 (from ~0.75).

Income Statement

Revenue expanded strongly over the longer run (2020–2024) but slipped slightly in 2025 (annual revenue down 2.6%), signaling a near-term demand slowdown. Profitability remains solid for a consulting business, with gross margin improving to ~34% in 2025, but operating and net margins compressed versus 2023–2024 (2025 net margin ~6.3% vs ~7.7% in 2024 and ~9.2% in 2023). Net income declined in 2025, indicating weaker operating leverage and/or higher costs despite stable top-line scale.

Balance Sheet

The balance sheet is very conservative, with exceptionally low leverage (debt-to-equity ~0.014 in 2025) and substantial equity relative to assets. Total debt fell sharply in 2025 versus 2024, strengthening financial flexibility and reducing refinancing risk. A watch item is that returns on equity were strong in 2022–2024 (about mid-teens where provided) but 2025 profitability fell, which could pressure returns if the earnings softness persists.

Cash Flow

Cash generation is generally healthy with positive free cash flow in most years and free cash flow closely tracking net income (roughly ~0.93–0.96x in 2023–2025), which supports earnings quality. However, operating cash flow weakened materially in 2025 versus 2024, and cash conversion (operating cash flow relative to net income) fell to ~0.53 in 2025 from ~0.75 in 2024, suggesting higher working-capital use or timing effects. Free cash flow volatility is also evident historically (notably negative free cash flow in 2020).

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.79B	8.56B	8.62B	7.02B	6.71B	5.59B
Gross Profit	2.97B	2.91B	2.85B	2.26B	2.16B	1.73B
EBITDA	1.20B	1.06B	1.19B	1.15B	1.14B	827.10M
Net Income	706.11M	536.41M	661.86M	644.00M	594.23M	493.34M
Balance Sheet
Total Assets	6.25B	5.64B	5.99B	5.18B	4.65B	4.10B
Cash, Cash Equivalents and Short-Term Investments	2.55B	2.64B	2.70B	2.69B	2.19B	1.78B
Total Debt	322.85M	65.09M	431.73M	126.00M	129.14M	237.54M
Total Liabilities	1.56B	948.76M	1.59B	1.01B	1.11B	1.16B
Stockholders Equity	4.67B	4.69B	4.37B	4.16B	3.54B	2.94B
Cash Flow
Free Cash Flow	0.00	465.62M	892.37M	653.00M	532.97M	681.20M
Operating Cash Flow	0.00	491.92M	957.34M	677.00M	716.33M	905.57M
Investing Cash Flow	0.00	-197.00M	-344.45M	-141.88M	-194.85M	-347.90M
Financing Cash Flow	0.00	-346.56M	-617.92M	-29.58M	-110.89M	112.09M

BRIDGE International Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2001.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7039, the sentiment is Negative. The current price of 2001 is above the 20-day moving average (MA) of 1940.55, above the 50-day MA of 1968.37, and above the 200-day MA of 1900.98, indicating a bearish trend. The MACD of -25.42 indicates Positive momentum. The RSI at 23.89 is Positive, neither overbought nor oversold. The STOCH value of 9.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7039.

BRIDGE International Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4490	71 Outperform	¥5.08B	6.47	―	―	0.36%	―
7034	71 Outperform	¥5.26B	25.52	―	―	283.85%	-35.61%
7039	70 Outperform	¥7.08B	12.55	―	2.94%	8.00%	3.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3719	58 Neutral	¥7.08B	37.81	―	―	156.37%	495.81%
6560	52 Neutral	¥7.50B	10.81	―	1.34%	5.97%	-5.60%