BrainPad Inc. (3655) AI Stock Analysis

• Market Cap: ¥45.50B
• Dividend Yield: 0.39%
• Average Volume (3M): 363.78K
• Price to Earnings (P/E): 55.5
• Beta (1Y): 1.11
• Revenue Growth: 8.64%
• EPS Growth: -23.23%
• Country: JP
• Employees: 545
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 22,300,596
• 10 Day Avg. Volume: 357,890
• 30 Day Avg. Volume: 363,780
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 56.6
• Revenue Forecast (FY): ¥13.50B

• Rating: 73 Outperform
• Price Target: ―

BrainPad Inc.'s strong financial performance, highlighted by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. Technical analysis suggests caution due to mixed signals and potential resistance. The valuation is reasonable, with a moderate P/E ratio and a small dividend yield.

BrainPad Inc. Business Overview & Revenue Model

Company Description

BrainPad Inc. provides prediction/analysis, system integration, and digital marketing services in Japan. It offers various professional services related to data analytics/prediction and concrete action plans and measures suggestions; and services related to wisdom and prediction of scores utilizing machine learning/deep learning/optimization, etc. The company also provides automatic operational systems development services, which include system integration of prediction developed logics/algorithms and 3rd party analytics packages; and customer relationship management system consulting services. In addition, it offers software as a service-based marketing, data management platform, and natural language analysis services. BrainPad Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

BrainPad Inc. generates revenue through various streams, primarily from its data analytics and AI consulting services. The company offers customized solutions to businesses, helping them integrate data-driven strategies into their operations. Revenue is earned from service fees for consulting projects, the development and implementation of data platforms, and ongoing support and maintenance contracts. Additionally, BrainPad may have strategic partnerships with other technology firms that expand its service offerings and market reach, contributing to its earnings.

BrainPad Inc. Financial Statement Overview

Summary

BrainPad Inc. exhibits a robust financial profile with strong revenue growth and a healthy net profit margin. The balance sheet is particularly strong with no debt and a high equity ratio. While cash flow data for the latest period is unavailable, historical trends have been positive.

Income Statement

BrainPad Inc. demonstrates strong revenue growth with a TTM revenue of 11.27 billion, marking a year-over-year increase. The gross profit margin has remained robust at 47.6%, indicating cost efficiency. The net profit margin reached 10.6% TTM, reflecting solid profitability. EBIT and EBITDA margins are healthy, underscoring efficient operations.

Balance Sheet

The company showcases a strong balance sheet with zero debt, resulting in a debt-to-equity ratio of zero, which minimizes financial risk. The equity ratio is impressive at 77.5%, pointing to a solid capital structure. Return on equity is favorable at 19.5%, indicating effective use of equity capital.

Cash Flow

Cash flow metrics are mixed due to unavailable data for the latest period. However, historical free cash flow has grown consistently, and the free cash flow to net income ratio was strong in prior years. Operating cash flow has supported net income well, although recent data is missing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.61B	11.77B	10.56B	9.80B	8.56B	7.10B
Gross Profit	5.57B	5.65B	4.70B	3.93B	3.88B	3.18B
EBITDA	2.13B	2.01B	1.76B	1.08B	1.29B	1.01B
Net Income	1.20B	1.06B	909.48M	515.08M	803.25M	537.83M
Balance Sheet
Total Assets	7.96B	7.52B	7.26B	6.52B	6.15B	5.78B
Cash, Cash Equivalents and Short-Term Investments	4.00B	3.40B	3.36B	2.51B	2.91B	3.39B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.50B	1.75B	1.72B	1.62B	1.30B	1.10B
Stockholders Equity	6.46B	5.77B	5.53B	4.90B	4.85B	4.67B
Cash Flow
Free Cash Flow	0.00	1.32B	1.44B	728.29M	606.84M	541.87M
Operating Cash Flow	0.00	1.35B	1.54B	889.69M	1.13B	779.79M
Investing Cash Flow	0.00	-439.89M	-317.66M	-788.12M	-948.97M	-378.03M
Financing Cash Flow	0.00	-870.74M	-372.03M	-503.25M	-698.78M	44.28M

BrainPad Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1262.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3655, the sentiment is Positive. The current price of 1262 is below the 20-day moving average (MA) of 1390.30, below the 50-day MA of 1347.06, and above the 200-day MA of 1233.84, indicating a bullish trend. The MACD of 84.41 indicates Negative momentum. The RSI at 87.11 is Negative, neither overbought nor oversold. The STOCH value of 94.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3655.

BrainPad Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	77 Outperform	¥31.31B	21.80	―	0.72%	17.26%	20.28%
4396	76 Outperform	¥31.14B	21.21	―	1.63%	22.28%	19.79%
3655	73 Outperform	¥45.50B	55.50	―	0.39%	8.64%	-23.23%
2349	72 Outperform	¥25.10B	10.57	―	1.24%	9.56%	7.39%
4072	71 Outperform	¥38.22B	18.73	―	2.26%	5.55%	18.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5574	60 Neutral	¥28.40B	62.71	―	―	26.95%	87.59%