First Brothers Co., Ltd. (3454) AI Stock Analysis

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First Brothers Co., Ltd.

(TSE/TYO:3454)

Select Model

Rating:70Outperform

Price Target:JPY 1,378.00▲(10.33% Upside)

Action:reiterated

Date:11/05/26

The overall score is primarily driven by the company's deeply discounted valuation (4.8x P/E) and a strong recovery in financial performance, marked by expanding margins and robust cash flow generation. These strengths provide a solid foundation but are partially offset by historical earnings volatility and slightly weak near-term technical momentum, though long-term moving averages remain supportive.

Positive Factors

Stronger ProfitabilityThe sharp improvement in gross, EBIT, and EBITDA margins indicates stronger earnings conversion when revenue is stable. Higher operating profitability can support reinvestment, improve resilience against cost pressure, and provide a more durable base for cash generation over coming quarters.

Negative Factors

Elevated LeverageDebt-to-equity above 2x leaves the company more sensitive to earnings volatility and refinancing conditions. Elevated leverage can absorb a larger share of future cash generation, reduce financial flexibility, and constrain investment or shareholder-return decisions if operating performance weakens.

First Brothers Co., Ltd. (3454) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 17.45B
Dividend Yield: 2.80%
Average Volume (3M): 6,908
Price to Earnings (P/E): 4.8
Beta (1Y): 0.21
Revenue Growth: 11.72%
EPS Growth: 131.44%
Country: Japan
Employees: 174
Sector: Financial
Sector Strength: 68
Industry: Investment - Banking & Investment Services

First Brothers Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in Tokyo, Japan in 2004, First Brothers Co.,Ltd. is a Japanese entity primarily engaged in investment management and investment banking. Its investment management division oversees the entire lifecycle of funds, from their creation and asset...

First Brothers Co., Ltd. Financial Statement Overview

Summary

The company demonstrates a solid recovery with revenues rebounding to 19.06 billion JPY and strong gross margin expansion to 41%. Robust cash flow generation and a decreasing debt-to-equity ratio (2.16x) reflect improved stability, though inherent cyclicality in the asset management sector tempers the score.

Income Statement

68Positive

Balance Sheet

58Neutral

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	21.53B	19.06B	16.87B	22.27B	14.28B	26.69B
Gross Profit	7.92B	6.45B	5.10B	6.98B	4.09B	6.84B
EBITDA	9.14B	5.45B	4.16B	6.58B	3.01B	5.68B
Net Income	3.64B	1.75B	1.42B	3.19B	1.18B	2.80B
Balance Sheet
Total Assets	88.69B	89.83B	89.14B	89.94B	87.64B	82.55B
Cash, Cash Equivalents and Short-Term Investments	8.72B	7.93B	5.32B	8.16B	7.64B	11.11B
Total Debt	54.47B	56.48B	58.18B	58.45B	59.23B	53.15B
Total Liabilities	60.37B	63.58B	64.23B	65.51B	66.00B	61.74B
Stockholders Equity	28.21B	26.14B	24.80B	24.32B	21.54B	20.71B
Cash Flow
Free Cash Flow	3.68B	3.68B	-1.31B	1.24B	-7.13B	292.20M
Operating Cash Flow	7.24B	7.24B	3.50B	3.21B	-4.57B	301.18M
Investing Cash Flow	-3.05B	-3.05B	-4.24B	-1.58B	-3.15B	-399.76M
Financing Cash Flow	-2.33B	-2.33B	-1.19B	-1.21B	4.29B	4.75B

First Brothers Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1249.00

Price Trends

50DMA1259.10Negative

100DMA1252.39Negative

200DMA1222.76Positive

Market Momentum

MACD-4.00Positive

RSI48.65Neutral

STOCH53.16Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3454, the sentiment is Positive. The current price of 1249.00 is below the 20-day moving average (MA) of 1249.90, below the 50-day MA of 1259.10, and above the 200-day MA of 1222.76, indicating a neutral trend. The MACD of -4.00 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3454.

First Brothers Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

JP:3454 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8739	79Outperform	JPY 75.69B	11.37	21.29%	5.96%	30.22%	45.03%
JP:8624	71Outperform	JPY 45.35B	7.87	18.92%	7.11%	42.54%	219.32%
JP:3454	70Outperform	JPY 17.33B	4.81	―	2.80%	11.72%	131.44%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JP:8595	67Neutral	JPY 114.93B	18.71	4.55%	6.08%	-38.26%	-6.57%
JP:3772	47Neutral	JPY 20.35B	-100.57	―	1.88%	-14.28%	-209.46%
JP:2134	37Underperform	JPY 8.50B	-5.68	―	―	263.03%	23.09%

* Financial Sector Average

Performance Comparison

JP:3454 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3454	First Brothers Co., Ltd.	1249.00	53.06	4.44%
JP:8624	Ichiyoshi Securities Co	1420.00	570.67	67.19%
JP:8595	Jafco Co	2186.00	-96.47	-4.23%
JP:8739	Sparx Group Co., Ltd.	2433.00	1054.55	76.50%
JP:2134	Sun Capital Management Corp.	15.00	-10.00	-40.00%
JP:3772	Wealth Management Inc	1064.00	16.91	1.61%

First Brothers Co., Ltd. Corporate Events

First Brothers Targets Steady Equity Growth and Flexible Dividends

Oct 21, 2026

First Brothers Co., Ltd. has reaffirmed its strategy of driving stable, sustainable growth in shareholders’ equity as a core means of maximizing shareholder value. The company’s consolidated equity has increased steadily over the past decade, underpi...

First Brothers Delivers Surging Profits and Raises Equity Ratio Ahead of FY2026 Close

Oct 9, 2026

First Brothers Co., Ltd. reported strong consolidated results for the nine months ended August 31, 2026, with net sales up 23.9% to ¥12.78 billion and operating profit jumping 86.3% to ¥2.94 billion. Profit attributable to owners of parent surged 287...

First Brothers Acquires Sawaracity Mall Operator to Bolster Regional Real Estate Portfolio

Oct 5, 2026

First Brothers Capital, a consolidated subsidiary of First Brothers Co., Ltd., will acquire all issued shares of Sawaracity Co., Ltd., operator of the Sawaracity shopping mall in Katori City, Chiba Prefecture, making it a consolidated subsidiary and...

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, 2026

First Brothers Co., Ltd. AI Stock Analysis