Business Brain Showaota Inc. (9658) AI Stock Analysis

• Market Cap: ¥21.86B
• Dividend Yield: 2.65%
• Average Volume (3M): 21.92K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.62
• Revenue Growth: 16.54%
• EPS Growth: 69.97%
• Country: JP
• Employees: 2,258
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 50.91
• Shares Outstanding: 11,615,200
• 10 Day Avg. Volume: 18,320
• 30 Day Avg. Volume: 21,916
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,866.00
• Price Target Upside: -2.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,866.00 ▼(-2.75% Downside)

Business Brain Showaota Inc. shows strong financial health with steady revenue growth and favorable valuation metrics. The technical analysis indicates bearish short-term momentum, which slightly impacts the overall score.

Business Brain Showaota Inc. Business Overview & Revenue Model

Company Description

Business Brain Showaota Inc. (9658) is a Japanese company operating primarily in the IT services and consulting sectors. It provides a range of services including system integration, software development, and IT consulting to clients across various industries. The company's core products and services focus on enhancing business operations through technology-driven solutions.

How the Company Makes Money

Business Brain Showaota Inc. generates revenue through a combination of system integration projects, software development contracts, and IT consulting services. The company engages with businesses from different sectors, providing customized technology solutions that address specific operational needs. Key revenue streams include long-term service contracts, bespoke software development projects, and consulting fees. The company's earnings are supplemented by strategic partnerships with technology providers and enterprises seeking digital transformation solutions.

Business Brain Showaota Inc. Financial Statement Overview

Summary

Business Brain Showaota Inc. demonstrates strong financial performance with consistent revenue growth and solid profit margins. However, potential cost management challenges are indicated by a decrease in EBITDA margin.

Income Statement

Business Brain Showaota Inc. has demonstrated strong financial performance, with consistent revenue growth from 2020 to 2025. The revenue growth rate for the most recent period was approximately 13.4%, indicating a healthy upward trajectory. Gross profit margins are solid, maintaining above 20% in recent years. The net profit margin has also improved, reflecting enhanced operational efficiency. However, the decrease in EBITDA margin from 2024 to 2025 suggests potential cost management challenges.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio indicating prudent leverage management. The company has consistently increased its stockholders' equity, contributing to a favorable equity ratio of approximately 64.3% in 2025. Return on equity has shown positive trends, though it slightly decreased in the latest period, suggesting room for improved profitability. Overall, the company's financial stability is strong, with ample cash reserves and manageable liabilities.

Cash Flow

Operating cash flow remains healthy, supporting strong free cash flow generation. However, the free cash flow growth rate has been relatively stable without significant increases, suggesting a potential plateau in cash generation efficiency. The operating cash flow to net income ratio indicates effective conversion of earnings into cash, though there is room for improvement in enhancing free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.80B	38.80B	34.22B	37.06B	32.35B	29.16B
Gross Profit	8.59B	8.59B	7.87B	9.03B	8.03B	6.37B
EBITDA	4.23B	4.31B	21.28B	4.29B	3.81B	3.14B
Net Income	2.47B	2.47B	14.15B	1.84B	1.78B	1.55B
Balance Sheet
Total Assets	45.32B	45.32B	44.71B	30.39B	28.30B	22.79B
Cash, Cash Equivalents and Short-Term Investments	9.91B	9.91B	11.01B	10.22B	8.64B	8.26B
Total Debt	2.69B	2.69B	2.77B	3.38B	4.13B	2.08B
Total Liabilities	15.71B	15.71B	15.31B	14.20B	14.25B	11.74B
Stockholders Equity	29.14B	29.14B	28.97B	14.96B	12.89B	10.63B
Cash Flow
Free Cash Flow	0.00	2.70B	2.74B	3.09B	-121.11M	2.90B
Operating Cash Flow	0.00	2.75B	3.15B	3.31B	682.47M	3.08B
Investing Cash Flow	0.00	552.24M	-2.07B	-1.32B	-844.81M	-528.91M
Financing Cash Flow	0.00	-3.30B	-1.40B	-414.84M	535.09M	-719.79M

Business Brain Showaota Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2947.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9658, the sentiment is Positive. The current price of 2947 is above the 20-day moving average (MA) of 2890.95, above the 50-day MA of 2740.10, and above the 200-day MA of 2480.72, indicating a bullish trend. The MACD of 34.21 indicates Positive momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9658.

Business Brain Showaota Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4498	78 Outperform	¥23.04B	23.01		0.63%	20.51%	94.75%
4396	76 Outperform	¥29.49B	20.09		1.67%	22.28%	19.69%
3923	76 Outperform	¥490.41B	51.98		0.16%	25.22%	70.77%
9658	74 Outperform	¥21.86B	11.83		2.65%	16.54%	69.97%
3918	74 Outperform	¥12.40B	10.52		2.78%	-7.36%	35.89%
3788	73 Outperform	¥25.11B	32.94		1.67%	5.38%	-8.86%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%

Business Brain Showaota Inc. Corporate Events

Business Brain Showaota Inc. Announces Treasury Share Disposal for Stock Compensation

Business Brain Showaota Inc. announced the disposal of 152,821 treasury shares as stock compensation to The Master Trust Bank of Japan, Ltd., under its Board Incentive Plan (BIP) Trust. This move is intended to motivate directors and improve the company’s long-term performance, with minimal expected impact on the stock market due to the controlled nature of the share disposal.

Business Brain Showaota Inc. Announces Treasury Share Cancellation

Business Brain Showaota Inc. announced the cancellation of 1,109,800 treasury shares, representing 8.72% of its total issued shares, as resolved in a recent Board of Directors meeting. This strategic move is expected to optimize the company’s capital structure and may enhance shareholder value by reducing the number of outstanding shares.

Business Brain Showaota Inc. Reports Strong Financial Growth in Q2 2025

Business Brain Showaota Inc. reported significant growth in its financial results for the three months ending June 30, 2025, with a 15% increase in revenue and substantial improvements in profits compared to the previous year. The company also announced a forecasted increase in annual dividends, reflecting its strong financial position and commitment to delivering value to shareholders.

Business Brain Showa-Ota Inc. Extends Stock Compensation System

Business Brain Showa-Ota Inc. announced the continuation and revision of its stock compensation system for directors, extending the trust period by six years to align with its long-term vision up to 2030. The revisions include extending the coverage period to six years and increasing the upper limit of funds contributed to the trust, reflecting a strategic move to enhance director incentives and align them with the company’s performance objectives.