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

• Market Cap: ¥5.33B
• Dividend Yield: 3.26%
• Average Volume (3M): 14.18K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.46
• Revenue Growth: 27.11%
• EPS Growth: 24.70%
• Country: JP
• Employees: 208
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 30.51
• Shares Outstanding: 2,334,100
• 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)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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 & Margin Improvement

A substantial step-up in revenue and expanding operating/net margins indicate durable demand and improved pricing or cost control in core services. Sustained top-line expansion paired with margin recovery supports stronger cash generation, reinvestment capacity, and long-term profitability resilience.

Very Conservative Balance Sheet

Minimal leverage materially lowers solvency and refinancing risk, giving the company flexibility through cycles. Strong equity growth and rising ROE reflect improving capital efficiency while preserving financial optionality for investments, dividends, or opportunistic M&A.

Improving Cash Generation

Rising operating and free cash flow improves self-funding of working capital, capex and distributions. Higher FCF coverage of net income reduces external funding need, supports sustainable dividends, and strengthens the company's ability to finance strategic initiatives over the medium term.

Negative Factors

Margin Sensitivity

Gross and operating margins show sensitivity to mix and cost pressures, implying profitability is dependent on project composition and input costs. Over time, persistent margin volatility can compress returns, complicate planning, and require stricter commercial controls to sustain margins.

Uneven Cash Conversion

Inconsistent cash conversion historically signals working-capital or timing risks in project billing and collections. Even with 2025 improvement, episodic cash conversion shortfalls can strain liquidity in slower months and require precautionary cash buffers or credit facilities for durable operations.

Low Leverage Limits Upside

Extremely conservative capital structure reduces financial risk but can limit return amplification during rapid growth phases. Without modest, disciplined leverage, the company may miss opportunities to scale faster, finance larger projects, or undertake accretive investments that enhance long-term growth.

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.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	4.50B	3.54B	3.17B	2.92B	2.55B
Gross Profit	1.92B	1.56B	1.34B	1.19B	1.00B
EBITDA	806.39M	621.90M	511.37M	413.63M	323.47M
Net Income	491.32M	391.88M	300.00M	240.39M	189.60M
Balance Sheet
Total Assets	4.70B	4.14B	3.79B	3.52B	3.20B
Cash, Cash Equivalents and Short-Term Investments	3.35B	2.98B	2.74B	2.50B	2.33B
Total Debt	3.00M	0.00	0.00	490.00K	4.84M
Total Liabilities	885.36M	711.38M	667.11M	603.68M	443.10M
Stockholders Equity	3.81B	3.43B	3.12B	2.92B	2.75B
Cash Flow
Free Cash Flow	654.09M	340.15M	340.92M	255.44M	134.85M
Operating Cash Flow	743.01M	442.08M	405.69M	298.07M	196.42M
Investing Cash Flow	-265.82M	-102.44M	-65.10M	-44.36M	-70.33M
Financing Cash Flow	-114.57M	-95.28M	-101.85M	-85.11M	-59.10M

B&P Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2438.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7804, the sentiment is Negative. The current price of 2438 is below the 20-day moving average (MA) of 2533.65, below the 50-day MA of 2547.02, and below the 200-day MA of 2457.29, indicating a bearish trend. The MACD of -62.03 indicates Positive momentum. The RSI at 23.65 is Positive, neither overbought nor oversold. The STOCH value of 8.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥5.33B	20.65	―	3.26%	27.11%	24.70%
7068	75 Outperform	¥13.10B	11.18	―	1.27%	7.24%	215.65%
7354	65 Neutral	¥14.05B	10.92	―	1.51%	7.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%