Branding Technology, Inc. (7067) AI Stock Analysis

• Market Cap: ¥1.83B
• Dividend Yield: 1%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.88
• Revenue Growth: 5.79%
• EPS Growth: -30.56%
• Country: JP
• Employees: 230
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 6.24
• Shares Outstanding: 1,601,615
• 10 Day Avg. Volume: 3,240
• 30 Day Avg. Volume: 3,893
• PEG Ratio: <0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 30.06
• 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: 69 Neutral
• Price Target: ¥1,269.00 ▲(25.02% Upside)

The score is driven primarily by improving financial performance (growth and margin expansion with low leverage) and strong technical momentum (price above major DMAs and positive MACD). This is meaningfully offset by expensive valuation (high P/E and low dividend yield).

Positive Factors

Sustained Revenue Growth

Consistent top-line growth near double digits shows the business is expanding client engagements and product uptake. Given the firm's multi-stream revenue model (services, subscriptions, co-branded initiatives), sustained revenue growth supports reinvestment and scaling over the next several quarters.

Improving Profitability and Margins

Rising gross and net margins reflect improved pricing, operational efficiency, and mix shifts toward higher-margin offerings. Margin expansion suggests better operating leverage in digital services and analytics products, increasing the company's ability to generate durable profits from future revenue.

Conservative Capital Structure

Low leverage and a strong equity base provide financial flexibility for investments, M&A, or navigating cyclicality in advertising spend. A conservative balance sheet reduces solvency risk and supports long-term strategic spending without pressuring cash flow or borrowing.

Negative Factors

Modest Return on Equity

A subpar ROE indicates limited efficiency in converting equity into profit, constraining shareholder returns over time. Unless productivity or margin trends accelerate, modest ROE can limit the company's ability to attract capital and deliver sustained shareholder value.

Cash Flow Volatility and Moderate Conversion

While cash flow recently improved, historical volatility and a <1.0 OCF/NI ratio imply inconsistent cash conversion. This raises risk for funding working capital, consistent investment in product development, or steady shareholder returns during demand downturns.

Declining EPS Trajectory

Material EPS deterioration despite revenue gains suggests margin pressure, non-operating impacts, or dilution that erode per-share profitability. Persistent EPS weakness can limit dividend capacity and investor confidence unless operational improvements translate to higher net income per share.

Branding Technology, Inc. Business Overview & Revenue Model

Company Description

Branding Technology Inc. engages in the brand, digital marketing, and offshore related businesses in Japan. It offers brand, Website, advertising operation, SNS operation, SEO/MEO, and DX consulting services; website, recruitment site, video, article content, and logo and sales tool production services, as well as Web system construction; and listing advertisement, display/DSP/article advertisement, SNS/video ads, content SEO, email magazine planning and production, and posting/flyer advertisement services. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Branding Technology, Inc. generates revenue through multiple streams, primarily by offering its branding and digital marketing services on a project or retainer basis. Key revenue streams include consulting fees for brand strategy development, service fees for executing digital advertising campaigns, and subscription fees for access to proprietary analytics tools. The company also collaborates with major tech platforms for co-branded initiatives, which provide additional revenue opportunities. Strategic partnerships with advertising agencies and technology providers further enhance its market reach and contribute to earnings through joint ventures and collaborative projects.

Branding Technology, Inc. Financial Statement Overview

Summary

Branding Technology, Inc. exhibits solid financial health with strong revenue growth and improving profitability margins. The balance sheet is stable with low leverage, although return on equity could be enhanced. Cash flow improvements are notable, yet historical fluctuations pose a risk. Overall, the company is on a positive financial trajectory, with opportunities for further strengthening its financial performance.

Income Statement

Branding Technology, Inc. has demonstrated strong revenue growth with a 9.15% increase from 2024 to 2025. The gross profit margin is healthy at 23.65%, and the net profit margin improved significantly to 1.53% in 2025, indicating enhanced profitability. EBIT and EBITDA margins also show positive trends, reflecting operational efficiency improvements.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 56.94%. The debt-to-equity ratio is low at 0.18, suggesting conservative leverage. However, the return on equity is modest at 6.49%, indicating room for improvement in generating returns for shareholders.

Cash Flow

Free cash flow has improved significantly, transitioning from negative to positive in 2025, reflecting better cash management. The operating cash flow to net income ratio is 0.69, indicating reasonable cash conversion. However, historical volatility in cash flows suggests potential risks in cash generation consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.07B	5.03B	4.61B	5.16B	4.94B	4.42B
Gross Profit	1.18B	1.19B	1.11B	1.18B	1.18B	991.84M
EBITDA	122.48M	144.50M	58.16M	153.53M	127.61M	3.59M
Net Income	56.95M	76.95M	3.30M	79.85M	81.92M	-42.10M
Balance Sheet
Total Assets	1.93B	2.08B	1.95B	2.16B	2.39B	2.32B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.20B	1.13B	1.32B	1.54B	1.53B
Total Debt	190.00M	215.02M	116.68M	223.37M	386.69M	490.01M
Total Liabilities	759.57M	890.11M	756.36M	948.08M	1.25B	1.27B
Stockholders Equity	1.16B	1.19B	1.19B	1.21B	1.14B	1.05B
Cash Flow
Free Cash Flow	0.00	48.42M	-56.95M	-42.94M	103.12M	61.48M
Operating Cash Flow	0.00	53.04M	-46.70M	-9.20M	131.60M	80.52M
Investing Cash Flow	0.00	-4.62M	-9.66M	-31.32M	-24.61M	61.22M
Financing Cash Flow	0.00	25.49M	-132.00M	-179.86M	-100.20M	476.82M

Branding Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1015.00
• 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:7067, the sentiment is Positive. The current price of 1015 is below the 20-day moving average (MA) of 1023.80, above the 50-day MA of 1003.54, and above the 200-day MA of 973.37, indicating a bullish trend. The MACD of 38.41 indicates Negative momentum. The RSI at 65.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7067.

Branding Technology, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.83B	50.26	―	1.00%	5.79%	-30.56%
7357	62 Neutral	¥4.10B	404.44	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9254	58 Neutral	¥1.90B	11.06	―	―	21.68%	110.72%
2156	55 Neutral	¥1.33B	20.05	―	1.98%	5.87%	―
9241	53 Neutral	¥1.49B	52.52	―	―	1.95%	1083.13%
7689	47 Neutral	¥1.37B	-3.20	―	―	―	―