B&P Co., Ltd. (7804) AI Stock Analysis

• Market Cap: ¥5.87B
• Dividend Yield: 3.26%
• Average Volume (3M): 14.18K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.48
• Revenue Growth: 27.11%
• EPS Growth: 24.70%
• Country: US
• Employees: 208
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 61.07
• Shares Outstanding: 2,326,800
• 10 Day Avg. Volume: 8,560
• 30 Day Avg. Volume: 14,180
• PEG Ratio: 0.47
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 8.69
• 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: 78 Outperform
• Price Target: ¥2,779.00 ▲(13.99% Upside)

The score is driven primarily by strong financial performance (rapid recent growth, improving margins, and a very low-debt balance sheet) and supported by reasonable valuation (low P/E and attractive dividend yield). This is partially offset by weaker near-term technical signals (negative MACD, sub-50 RSI, and price below key short/mid-term moving averages).

Positive Factors

Revenue Growth

The significant revenue growth in 2025 indicates strong demand for B&P Co., Ltd.'s services, suggesting a robust market position and potential for continued expansion.

Margin Improvement

Improved margins highlight operational efficiency and pricing power, which can lead to sustainable profitability and competitive advantage in the long term.

Balance Sheet Health

A strong balance sheet with minimal debt reduces financial risk, providing stability and flexibility to invest in growth opportunities without leveraging excessively.

Negative Factors

Cash Flow Volatility

Inconsistent cash flow relative to net income suggests potential working capital challenges, which could impact liquidity management and financial planning.

Margin Sensitivity

Fluctuating margins indicate sensitivity to cost pressures and product mix, which could affect profitability under changing market conditions.

Growth Limitation

While low debt reduces risk, it may also constrain the company's ability to capitalize on high-growth opportunities that require significant capital investment.

B&P Co., Ltd. Business Overview & Revenue Model

Company Description

B&P Co.,Ltd. engages in the production and sale of sign displays for sales promotion in Japan. It offers outdoor signs and advertisements; and building interior goods. The company is also involved in planning and production of advertisement; digital signage solution; and web promotion suggestions. B&P Co.,Ltd. was incorporated in 1985 and is headquartered in Osaka, Japan.

How the Company Makes Money

B&P Co., Ltd. Financial Statement Overview

Summary

Strong financial profile: revenue accelerated sharply in 2025 (~38% growth) and profitability improved with expanding operating and net margins. Balance sheet is very conservative with minimal debt and improving ROE (~5.4% to ~12.9%), lowering financial risk. Cash flow is solid and rising, though cash conversion was uneven in 2021–2024 before improving in 2025.

Income Statement

Revenue accelerated meaningfully over the last several years, capped by a sharp step-up in 2025 (annual revenue growth of ~38%) after steady positive growth in 2021–2024. Profitability also improved: gross margin stayed healthy (~39–44%) while operating and net margins expanded versus earlier years (net margin rising from ~5.8% in 2020 to ~10.9% in 2025). The main watchout is that margins were not perfectly linear year-to-year (e.g., gross margin eased in 2025 versus 2024), suggesting some sensitivity to mix and cost pressure.

Balance Sheet

The balance sheet is very conservatively positioned with minimal debt across the period and near-zero debt relative to equity in most years, which materially reduces financial risk. Equity has steadily grown alongside assets, and returns on equity improved from ~5.4% (2020) to ~12.9% (2025), indicating strengthening capital efficiency. A minor consideration is that such low leverage can limit upside in high-growth phases, but overall balance sheet risk appears very low.

Cash Flow

Cash generation is solid and improving: operating cash flow rose strongly into 2025 and free cash flow reached a new high in 2025 as well. Cash flow quality is generally good, with free cash flow consistently covering a large portion of net income (about ~0.69–0.89x across years). The key weakness is that operating cash flow has not consistently exceeded net income (operating cash flow to net income below 1.0 in 2021–2024 before improving to ~1.09 in 2025), pointing to periodic working-capital or timing headwinds.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.25B	4.50B	3.54B	3.17B	2.92B	2.55B
Gross Profit	1.38B	1.92B	1.56B	1.34B	1.19B	1.00B
EBITDA	577.23M	806.39M	621.90M	511.37M	413.63M	323.47M
Net Income	349.60M	491.32M	391.88M	300.00M	240.39M	189.60M
Balance Sheet
Total Assets	4.39B	4.70B	4.14B	3.79B	3.52B	3.19B
Cash, Cash Equivalents and Short-Term Investments	3.07B	3.35B	2.98B	2.74B	2.50B	2.33B
Total Debt	3.73M	3.00M	0.00	0.00	490.00K	4.84M
Total Liabilities	733.84M	885.36M	710.50M	666.11M	600.99M	438.66M
Stockholders Equity	3.65B	3.81B	3.43B	3.12B	2.92B	2.75B
Cash Flow
Free Cash Flow	0.00	654.09M	340.15M	340.92M	255.44M	134.85M
Operating Cash Flow	0.00	743.01M	442.08M	405.69M	298.07M	196.42M
Investing Cash Flow	0.00	-265.82M	-102.44M	-65.10M	-44.36M	-70.33M
Financing Cash Flow	0.00	-114.57M	-95.28M	-101.85M	-85.11M	-59.10M

B&P Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2438.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7804, the sentiment is Positive. The current price of 2438 is below the 20-day moving average (MA) of 2520.25, below the 50-day MA of 2496.06, and above the 200-day MA of 2357.11, indicating a bullish trend. The MACD of 18.04 indicates Positive momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 14.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7804.

B&P Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	78 Outperform	¥5.87B	11.83	―	3.26%	27.11%	24.70%
6038	77 Outperform	¥4.73B	10.41	―	2.38%	-2.25%	116.29%
2411	74 Outperform	¥5.89B	11.60	―	4.65%	5.94%	617.63%
7857	67 Neutral	¥5.50B	49.67	―	1.93%	-0.57%	-69.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9159	56 Neutral	¥4.63B	66.27	―	―	-14.77%	-76.32%
7078	52 Neutral	¥4.26B	-3.29	―	―	-8.67%	-407.35%