Broad-minded Co., Ltd. (7343) AI Stock Analysis

• Market Cap: ¥7.90B
• Dividend Yield: 3.41%
• Average Volume (3M): 3.31K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.62
• Revenue Growth: 0.61%
• EPS Growth: -11.34%
• Country: JP
• Employees: 331
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 19.35
• Shares Outstanding: 5,932,216
• 10 Day Avg. Volume: 4,780
• 30 Day Avg. Volume: 3,306
• PEG Ratio: -0.50
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 166.64
• 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: 71 Outperform
• Price Target: ¥1,481.00 ▲(9.70% Upside)

Broad-minded Co., Ltd. scores well due to strong financial performance with robust revenue growth and a stable balance sheet. The technical analysis supports a bullish trend, although the stock is nearing overbought levels. Valuation is a concern with a high P/E ratio, but the attractive dividend yield provides a counterbalance. Overall, the stock is positioned for growth, but investors should be cautious of potential overvaluation and focus on operational efficiency improvements.

Positive Factors

Sustained revenue growth

Consistent top-line growth demonstrates durable market demand for the firm's IT services, ERP and cloud offerings. Recurring subscription and long-term service contracts in its revenue mix support predictable cash flows and provide a base to scale R&D, sales and margin expansion over months.

Very high gross margin

An 81% gross margin indicates the business benefits from low direct costs typical of software and services, enabling scalable revenue. High gross margins provide structural capacity to absorb SG&A increases, fund product development, and protect operating profitability over the medium term.

Conservative balance sheet and minimal leverage

Very low leverage and a strong equity ratio materially reduce financial risk and increase strategic flexibility. This balance-sheet strength supports sustained investment in technology, bolt-on M&A or dividend policy without forcing dilutive financing during business slowdowns.

Negative Factors

Declining net profit margin

A falling net margin compresses retained earnings despite revenue growth, indicating rising operating or non-operating costs. Persistently thin net margins limit ability to convert sales into shareholder returns and make the business more sensitive to cost shocks over the medium term.

Weakened free cash flow generation

Declining FCF and a low FCF-to-net-income ratio signal weaker earnings quality and constrained internal funding for capex, working capital or dividends. Even with low debt, limited cash conversion raises reliance on strict cost control or external funding for growth initiatives.

EPS contraction and modest shareholder returns

Negative EPS growth despite revenue gains highlights problems converting sales into bottom-line earnings, limiting long-term shareholder value. Combined with a moderate ROE, this suggests management must improve operational efficiency or pricing to sustainably lift returns for investors.

Broad-minded Co., Ltd. Business Overview & Revenue Model

Company Description

Broad-minded Co.,Ltd. engages in the financial partner business. It provides consulting services related to financial planning, such as insurance, housing loans, asset management, retirement asset formation, and corporate financial measures. The company is also involved in the real estate brokerage, real estate investment consulting, etc. activities. Broad-minded Co.,Ltd. was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Broad-minded Co., Ltd. generates revenue primarily through its IT services and software solutions. The company earns money by charging clients for custom software development, system integration projects, and ongoing maintenance contracts. Additionally, it generates income from subscription-based models for its cloud services and ERP solutions. Key revenue streams include project-based fees for consulting services, licensing fees for proprietary software, and recurring revenue from long-term service agreements. Strategic partnerships with other technology firms and service providers further enhance its market reach and capabilities, contributing positively to its earnings.

Broad-minded Co., Ltd. Financial Statement Overview

Summary

Broad-minded Co., Ltd. demonstrates strong revenue growth and a stable financial position with low leverage. However, declining net profit margins and reduced free cash flow growth highlight potential challenges in profitability and cash generation. The company is well-positioned in terms of equity, but improving operational efficiency and cash flow management will be crucial for sustaining growth.

Income Statement

Broad-minded Co., Ltd. shows strong revenue growth with a consistent upward trend over the years, highlighted by a 15.32% increase in the latest year. The gross profit margin is robust at 81.16%, indicating effective cost management. However, the net profit margin has decreased to 3.85%, suggesting rising expenses or other financial pressures impacting net income.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 73.64%, reflecting financial stability. The debt-to-equity ratio is exceptionally low at 0.0005, indicating minimal leverage and low financial risk. Return on equity is moderate at 5.86%, showing room for improvement in generating returns for shareholders.

Cash Flow

Operating cash flow is positive, and the company has managed to maintain a positive free cash flow, though it has decreased significantly in the latest year. The free cash flow to net income ratio is low, suggesting limited cash generation relative to net income, which could impact future investments or debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.79B	6.02B	5.22B	4.32B	3.62B	3.28B
Gross Profit	5.01B	4.99B	4.34B	3.75B	3.35B	3.14B
EBITDA	380.52M	421.88M	715.76M	779.25M	530.08M	450.24M
Net Income	229.30M	231.62M	447.09M	535.12M	327.50M	282.87M
Balance Sheet
Total Assets	4.69B	5.37B	5.03B	4.63B	4.06B	3.68B
Cash, Cash Equivalents and Short-Term Investments	956.53M	1.98B	1.99B	2.81B	2.51B	2.29B
Total Debt	20.00M	2.13M	3.64M	4.91M	50.00M	308.53M
Total Liabilities	1.04B	1.41B	1.11B	1.07B	951.23M	976.04M
Stockholders Equity	3.65B	3.95B	3.90B	3.55B	3.11B	2.70B
Cash Flow
Free Cash Flow	0.00	35.01M	107.89M	378.41M	11.65M	670.20M
Operating Cash Flow	0.00	311.10M	170.65M	427.13M	26.03M	692.19M
Investing Cash Flow	0.00	-138.07M	-904.23M	-17.43M	551.85M	-138.22M
Financing Cash Flow	0.00	-175.35M	-92.95M	-112.02M	-264.16M	245.72M

Broad-minded Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7343, the sentiment is Neutral. The current price of 1350 is below the 20-day moving average (MA) of 1366.00, above the 50-day MA of 1296.14, and above the 200-day MA of 1173.13, indicating a neutral trend. The MACD of 12.88 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 5.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7343.

Broad-minded Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7325	73 Outperform	¥7.65B	19.05	―	2.85%	12.33%	-15.46%
7343	71 Outperform	¥7.90B	23.80	―	3.41%	0.61%	-11.34%
7192	71 Outperform	¥7.69B	7.29	―	3.94%	7.06%	34.95%
7326	69 Neutral	¥54.58B	20.86	6.16%	1.10%	13.99%	85.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	65 Neutral	¥7.14B	11.28	―	3.66%	4.48%	19.69%
8798	46 Neutral	¥7.27B	-2.69	―	―	-16.91%	28.05%