Business Brain Showaota Inc. (9658) AI Stock Analysis

• Market Cap: ¥41.76B
• Dividend Yield: 2.58%
• Average Volume (3M): 20.55K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.67
• Revenue Growth: 16.59%
• EPS Growth: 40.56%
• Country: JP
• Employees: 2,258
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 62.66
• Shares Outstanding: 11,615,200
• 10 Day Avg. Volume: 22,380
• 30 Day Avg. Volume: 20,546
• PEG Ratio: -0.14
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 10.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥4,161.00 ▲(19.23% Upside)

Business Brain Showaota Inc. scores well due to its strong financial performance and bullish technical indicators. The attractive valuation further supports the stock's potential, making it a compelling option in the Information Technology Services industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth opportunities.

Profitability

Sustained high gross profit margins demonstrate effective cost management and pricing power, contributing to long-term profitability.

Negative Factors

Cash Flow Efficiency

Stable free cash flow growth may indicate challenges in enhancing cash generation efficiency, potentially limiting reinvestment capabilities.

EBITDA Margin Decline

A declining EBITDA margin can signal rising costs or inefficiencies, which may impact future profitability if not addressed.

Free Cash Flow to Net Income Ratio

Improving the conversion of net income to free cash flow is crucial for sustaining operations and funding growth without increasing debt.

Business Brain Showaota Inc. Business Overview & Revenue Model

Company Description

Business Brain Showa-Ota Inc. provides system development and IT solutions in Japan. The company offers consulting, work restructuring, system development, system integration and sustainment services. It also provides managed services based on specialized human resources, such as certified accountants, certified tax accountants, social insurance consultants, and SEs; and BPO solutions in the field of accounting, finance, HR, payroll, labor, and IT. Business Brain Showa-Ota Inc. was founded in 1967 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Business Brain Showaota Inc. generates revenue primarily through the sale of software licenses and subscription-based services for its data analytics platforms. Additionally, the company earns income from consulting services provided to businesses seeking to implement advanced analytics and AI-driven strategies. Key revenue streams include project-based consulting fees, recurring subscription fees for software usage, and maintenance contracts. The company also benefits from strategic partnerships with tech firms, providing integrated solutions that enhance its market reach and customer base.

Business Brain Showaota Inc. Financial Statement Overview

Summary

Business Brain Showaota Inc. shows strong financial health with consistent revenue growth and solid profitability. The balance sheet is robust with low debt and high equity ratio, though there is room for improvement in cost management and cash flow optimization.

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	40.12B	38.80B	34.22B	37.06B	32.35B	29.16B
Gross Profit	8.96B	8.59B	7.87B	9.03B	8.03B	6.37B
EBITDA	4.82B	4.31B	21.28B	4.29B	3.74B	3.03B
Net Income	2.82B	2.47B	14.15B	1.84B	1.78B	1.55B
Balance Sheet
Total Assets	44.58B	45.32B	44.71B	30.39B	28.30B	22.79B
Cash, Cash Equivalents and Short-Term Investments	9.84B	9.91B	11.01B	10.22B	8.64B	8.26B
Total Debt	2.62B	2.69B	2.77B	3.38B	4.13B	2.08B
Total Liabilities	15.33B	15.71B	15.31B	14.20B	14.25B	11.74B
Stockholders Equity	28.78B	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: 3490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3490 is below the 20-day moving average (MA) of 3490.50, above the 50-day MA of 3227.15, and above the 200-day MA of 2775.82, indicating a neutral trend. The MACD of 72.91 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.39 is Neutral, 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
9658	82 Outperform	¥41.76B	14.48	―	2.58%	16.59%	40.56%
4396	76 Outperform	¥29.17B	18.53	―	1.74%	22.25%	31.88%
3788	76 Outperform	¥24.73B	32.44	―	1.56%	7.83%	49.73%
3918	74 Outperform	¥11.81B	11.67	―	3.62%	-2.26%	3.37%
3923	71 Outperform	¥445.78B	47.25	―	0.20%	25.00%	62.07%
4498	66 Neutral	¥21.29B	22.44	―	0.98%	17.75%	44.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Business Brain Showaota Inc. Corporate Events

Business Brain Showa-Ota Inc. Enhances Shareholder Benefits

Business Brain Showa-Ota Inc. announced a correction to their shareholder benefit plan, aiming to make their shares more attractive by increasing the value of benefits provided to shareholders. The adjustments involve enhancing the QUO Card benefits for shareholders, which is expected to encourage more people to invest in the company’s shares and support social contribution activities.

The most recent analyst rating on (JP:9658) stock is a Buy with a Yen3379.00 price target. To see the full list of analyst forecasts on Business Brain Showaota Inc. stock, see the JP:9658 Stock Forecast page.

Business Brain Showa-Ota Inc. Revises Dividend Policy to Enhance Shareholder Returns

Business Brain Showa-Ota Inc. announced a revision to its dividend policy, shifting from a dividend payout ratio to a dividend on equity (DOE) ratio of 5%. This change aims to provide more stable dividends and accommodate the company’s increased equity capital following the listing of its affiliate, Global Security Expert. The interim dividend has been increased to 66.50 yen per share, and the annual dividend forecast is raised to 133 yen per share, reflecting the company’s strong financial position and commitment to shareholder returns.

The most recent analyst rating on (JP:9658) stock is a Buy with a Yen3379.00 price target. To see the full list of analyst forecasts on Business Brain Showaota Inc. stock, see the JP:9658 Stock Forecast page.

Business Brain Showa-Ota Inc. Enhances Shareholder Benefit Plan

Business Brain Showa-Ota Inc. has announced adjustments to its Shareholder Benefit Plan, aiming to make its shares more appealing to investors. The changes, effective March 31, 2026, increase the value of QUO Card benefits for shareholders, thereby encouraging more individuals to invest in the company and supporting charitable contributions.

The most recent analyst rating on (JP:9658) stock is a Buy with a Yen3379.00 price target. To see the full list of analyst forecasts on Business Brain Showaota Inc. stock, see the JP:9658 Stock Forecast page.

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.