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Business Brain Showaota Inc. (JP:9658)
:9658
Japanese Market

Business Brain Showaota Inc. (9658) AI Stock Analysis

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JP:9658

Business Brain Showaota Inc.

(9658)

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Outperform 82 (OpenAI - 5.2)
Rating:82Outperform
Price Target:
¥1,095.00
▼(-69.24% Downside)
Action:ReiteratedDate:11/05/25
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
Consistent revenue growth
Sustained ~13% top-line growth across multiple years indicates durable demand for the company’s IT services and successful client engagement. This trend supports capacity planning, recurring contract renewals and long-term revenue visibility rather than one-off project spikes.
Negative Factors
EBITDA margin deterioration
A falling EBITDA margin signals pressure on operational efficiency or higher project delivery costs. If persistent, margin erosion can compress free cash flow and limit reinvestment capacity, requiring either pricing power improvements or tighter project and labor controls to restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Sustained ~13% top-line growth across multiple years indicates durable demand for the company’s IT services and successful client engagement. This trend supports capacity planning, recurring contract renewals and long-term revenue visibility rather than one-off project spikes.
Read all positive factors

Business Brain Showaota Inc. (9658) vs. iShares MSCI Japan ETF (EWJ)

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 spe...
How the Company Makes Money
The company primarily makes money by delivering IT services to corporate clients under project-based and recurring service arrangements. Key revenue streams typically include: (1) systems integration and custom development fees earned from designi...

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
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
75
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue40.12B38.80B34.22B37.06B32.35B29.16B
Gross Profit8.96B8.59B7.87B9.03B8.03B6.37B
EBITDA4.82B4.31B21.28B4.29B3.74B3.03B
Net Income2.82B2.47B14.15B1.84B1.78B1.55B
Balance Sheet
Total Assets44.58B45.32B44.80B30.39B28.30B22.79B
Cash, Cash Equivalents and Short-Term Investments9.84B9.91B9.91B11.33B9.04B8.26B
Total Debt2.62B2.73B2.84B3.38B4.13B2.08B
Total Liabilities15.33B15.71B15.41B14.20B14.25B11.74B
Stockholders Equity28.78B29.14B28.96B14.96B13.22B10.63B
Cash Flow
Free Cash Flow0.002.70B2.74B3.09B-121.11M2.90B
Operating Cash Flow0.002.75B3.15B3.31B682.47M3.08B
Investing Cash Flow0.00552.24M-2.07B-1.32B-844.81M-528.91M
Financing Cash Flow0.00-3.30B-1.40B-414.84M535.09M-719.79M

Business Brain Showaota Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3560.00
Price Trends
50DMA
1007.23
Negative
100DMA
1077.68
Negative
200DMA
998.65
Negative
Market Momentum
MACD
-18.51
Negative
RSI
41.08
Neutral
STOCH
39.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9658, the sentiment is Negative. The current price of 3560 is above the 20-day moving average (MA) of 957.28, above the 50-day MA of 1007.23, and above the 200-day MA of 998.65, indicating a bearish trend. The MACD of -18.51 indicates Negative momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 39.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9658.

Business Brain Showaota Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥32.96B11.662.97%16.59%40.56%
74
Outperform
¥267.56B28.540.22%25.00%62.07%
73
Outperform
¥186.59B9.342.55%10.98%8.65%
73
Outperform
¥46.22B18.4717.50%2.88%5.62%3.81%
71
Outperform
¥22.86B11.391.70%22.25%31.88%
65
Neutral
¥30.85B10.7510.34%4.82%-3.03%38.83%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9658
Business Brain Showaota Inc.
946.00
202.01
27.15%
JP:3844
Comture
1,450.00
116.28
8.72%
JP:4725
CAC Holdings Corporation
1,827.00
75.88
4.33%
JP:3923
RAKUS Co., Ltd.
755.00
-114.31
-13.15%
JP:4396
System Support, Inc.
1,100.00
270.61
32.63%
JP:9746
TKC Corporation
3,770.00
296.35
8.53%

Business Brain Showaota Inc. Corporate Events

Business Brain Showa-ota Adds Second Representative Director to Strengthen Management
Mar 27, 2026
Business Brain Showa-ota Inc. has resolved to shift to a two-person representative director structure, appointing Senior Executive Officer and Group Management Supervisor Hitoshi Uehara as a new representative director alongside incumbent presiden...
Business Brain Showa-ota Announces 3-for-1 Stock Split and Boost in Authorized Shares
Feb 27, 2026
Business Brain Showa-ota Inc. has approved a three-for-one stock split of its common shares, effective April 1, 2026, with March 31, 2026 set as the record date. The move will reduce the per-share investment unit and is intended to improve share l...
Business Brain Showa・Ota Lifts Profits, Confirms Outlook and Doubles Dividend Payout
Feb 12, 2026
Business Brain Showa・Ota Inc. reported consolidated sales of ¥31.1 billion for the nine months to December 31, 2025, up 10% year on year, with business profit rising 11.6% to ¥2.45 billion and profit attributable to owners of the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 05, 2025