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

• Market Cap: ¥8.03B
• Dividend Yield: 3.41%
• Average Volume (3M): 3.31K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.58
• Revenue Growth: 0.61%
• EPS Growth: -11.34%
• Country: JP
• Employees: 331
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 14.13
• Shares Outstanding: 5,936,816
• 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: ¥1,504.00 ▲(11.41% Upside)
• Action: N/A Date: 07/28/25
• Date: Action: N/A 07/28/25

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

Revenue Growth

Sustained revenue growth (15.32% latest year) indicates strengthening product demand and market share expansion. Over the medium term this supports scale economics, recurring premium inflows and funds strategic investments, making top-line expansion a durable pillar for future profitability.

Strong Balance Sheet

A very strong equity ratio and virtually no leverage materially reduce financial risk and increase resilience to shocks. This durable capital structure provides flexibility to fund underwriting, pay dividends or pursue selective M&A without stressing liquidity or raising costly debt.

High Gross Margin

An 81% gross margin reflects structural pricing power or a low cost base in core operations. High gross profitability creates a buffer to absorb SG&A or claims volatility and provides persistent capacity to invest in distribution, technology or product development over coming quarters.

Negative Factors

Falling Net Margin

A materially lower net margin limits the firm's ability to convert revenue into shareholder earnings. Persistently compressed net profitability can constrain retained earnings, slow equity build-up and reduce funds available for growth or dividends unless cost structure or underwriting results improve.

Weakened Free Cash Flow

Declining free cash flow and low FCF-to-net-income signal weaker cash conversion. Over months this reduces capacity for capex, dividends or bolt-on investments and may increase reliance on external funding, weakening financial flexibility despite a strong balance sheet.

Modest ROE

A moderate ROE suggests the company is not extracting high returns from shareholder capital versus peers. Unless management improves operational efficiency or pricing, modest ROE can limit long-term shareholder value creation despite low leverage and strong equity.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 1350.00
• 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:7343, the sentiment is Positive. The current price of 1350 is above the 20-day moving average (MA) of 1337.40, below the 50-day MA of 1350.04, and above the 200-day MA of 1230.09, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8771	84 Outperform	¥81.80B	21.69	―	2.02%	13.52%	7.75%
7192	73 Outperform	¥9.62B	5.72	―	3.94%	7.06%	34.95%
7343	71 Outperform	¥8.03B	23.88	―	3.41%	0.61%	-11.34%
7183	71 Outperform	¥3.81B	3.97	―	2.04%	12.86%	-63.06%
7326	69 Neutral	¥52.97B	19.36	6.16%	1.10%	13.99%	85.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5843	63 Neutral	¥6.87B	11.55	―	0.72%	16.04%	86.97%