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

• Market Cap: ¥7.07B
• Dividend Yield: 3.48%
• Average Volume (3M): 3.30K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.59
• Revenue Growth: 2.56%
• EPS Growth: -45.01%
• Country: JP
• Employees: 331
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 8.21
• Shares Outstanding: 5,904,516
• 10 Day Avg. Volume: 3,900
• 30 Day Avg. Volume: 3,296
• 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

• Rating: 71 Outperform
• Price Target: ¥1,233.00 ▲(1.07% 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.

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

Company Description

Broad-minded Co., Ltd. (7343) is a Japanese company primarily engaged in the development and provision of IT services and solutions. The company operates in various sectors including software development, system integration, and cloud services, focusing on delivering innovative technology solutions to enhance business efficiency and productivity. Its core products include custom software applications, enterprise resource planning (ERP) systems, and digital transformation consulting services.

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	389.00M	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: 1220.00
• 50DMA: Negative
• 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 1220 is above the 20-day moving average (MA) of 1218.60, above the 50-day MA of 1213.08, and above the 200-day MA of 1179.11, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.86 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	―	¥7.45B	16.31	―	2.67%	18.97%	24.78%
7192	―	¥6.45B	6.28	―	4.56%	7.53%	27.27%
7343	―	¥7.07B	30.10	―	3.48%	2.56%	-45.01%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7326	―	¥38.52B	18.29	5.13%	1.48%	9.57%	56.23%
8700	―	¥6.49B	20.05	―	3.69%	4.48%	19.69%
8798	―	¥8.44B	―	―	―	-26.24%	-48.73%