Broadleaf Co., Ltd. (3673) AI Stock Analysis

• Market Cap: ¥62.48B
• Dividend Yield: 0.28%
• Average Volume (3M): 221.91K
• Price to Earnings (P/E): 110.3
• Beta (1Y): 0.77
• Revenue Growth: 19.15%
• EPS Growth: N/A
• Country: JP
• Employees: 920
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): 2.19
• Shares Outstanding: 97,896,800
• 10 Day Avg. Volume: 325,180
• 30 Day Avg. Volume: 221,906
• PEG Ratio: 0.92
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.95
• 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

• Rating: 54 Neutral
• Price Target: ―

Broadleaf Co., Ltd. is in a recovery phase with strong cash flow and stable financial position, but profitability issues and a high P/E ratio suggest caution. The technical analysis shows a negative trend, and the stock valuation appears stretched. Despite the company's potential for future growth, current market conditions and valuation metrics present significant risks.

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company Description

Broadleaf Co., Ltd. (3673) is a Japanese company primarily engaged in providing IT solutions for the automotive aftermarket and other industries. The company's core offerings include software development and cloud-based services tailored to the needs of automotive repair shops, parts retailers, and other related sectors. Broadleaf's solutions aim to enhance operational efficiency and business management for its clients, supporting a diverse range of activities, from inventory management to customer relationship management.

How the Company Makes Money

Broadleaf Co., Ltd. generates revenue primarily through the sale and subscription of its software and IT services. The company offers both on-premise software solutions and cloud-based platforms, charging clients on a subscription basis for access to its cloud services. Additionally, Broadleaf earns income from the sale and licensing of its software products, consulting services, and technical support. Partnerships with automotive industry players and continuous innovation in its product offerings contribute significantly to the company's earnings, helping it to maintain a competitive edge in the market.

Broadleaf Co., Ltd. Financial Statement Overview

Summary

Broadleaf Co., Ltd. demonstrates a recovery trajectory with improved revenue and margins. While the balance sheet remains stable with strong equity ratios, profitability metrics reveal areas of needed improvement. The cash flow position is particularly strong, reflecting healthy liquidity and operational cash generation. Despite challenges in profitability, the overall financial health is supported by solid cash flow and balance sheet stability, positioning the company for potential future growth.

Income Statement

Broadleaf Co., Ltd. has shown significant improvement in revenue from 2023 to 2024 with a growth rate of approximately 17.3%, recovering from a prior decline. The gross profit margin improved to 64.9%, indicating cost management efficiency. However, the net profit margin, while positive at 1.9%, reflects a low profitability level. Notably, the company turned around from a negative EBIT margin in 2023 to a positive 3.7% in 2024, showcasing operational improvement but still below optimal levels. These mixed results provide a moderate overall performance.

Balance Sheet

The balance sheet of Broadleaf Co., Ltd. indicates a stable financial position with a debt-to-equity ratio of 0.27, suggesting manageable leverage. The equity ratio is robust at 58.0%, highlighting a strong equity base. However, return on equity is relatively low at 1.5%, pointing to potential inefficiencies in generating returns on investments. Overall, the balance sheet reflects stability but also hints at areas for improved capital utilization.

Cash Flow

The cash flow statement exhibits a strong free cash flow growth rate with a turnaround from negative in 2023 to significantly positive in 2024. The operating cash flow to net income ratio is robust at 19.0, showing strong cash generation relative to net income. Free cash flow to net income is also impressive, illustrating effective cash management. These factors contribute to a healthy cash flow position, underpinning the company's liquidity and operational cash efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.05B	15.38B	13.83B	20.65B	21.16B
	Gross Profit
11.71B	9.34B	8.49B	14.90B	15.07B
	EBIT
674.09M	-1.89B	-2.90B	3.40B	4.14B
	EBITDA
3.59B	874.28M	-244.45M	5.61B	6.02B
	Net Income Common Stockholders
343.30M	-1.49B	-2.43B	2.17B	2.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.31B	3.92B	3.46B	3.61B	3.29B
	Total Assets
39.89B	36.75B	33.54B	34.48B	32.27B
	Total Debt
6.13B	7.25B	5.15B	2.82B	1.54B
	Net Debt
1.83B	3.33B	1.69B	-704.30M	-1.70B
	Total Liabilities
16.75B	14.26B	9.87B	8.36B	7.67B
	Stockholders Equity
23.14B	22.47B	23.63B	26.11B	24.60B
Cash Flow		Free Cash Flow
6.52B	-698.21M	-1.41B	284.71M	2.38B
	Operating Cash Flow
6.53B	3.42B	1.61B	3.78B	5.06B
	Investing Cash Flow
-4.31B	-3.67B	-2.91B	-3.39B	-2.77B
	Financing Cash Flow
-1.83B	704.75M	1.24B	-108.00M	-2.08B

Broadleaf Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3673, the sentiment is Positive. The current price of 710 is above the 20-day moving average (MA) of 687.90, above the 50-day MA of 676.02, and above the 200-day MA of 654.42, indicating a bullish trend. The MACD of 8.26 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3673.

Broadleaf Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4481	79 Outperform	¥62.69B	15.18		3.10%	8.13%	10.47%
3983	78 Outperform	¥40.36B	21.43		1.36%	8.10%	0.69%
3836	74 Outperform	¥56.20B	17.36		1.26%	19.57%	46.10%
3712	72 Outperform	¥17.45B	14.50		2.13%	2.71%	9.95%
3663	70 Outperform	¥49.73B	28.00		1.72%	1.41%	131.82%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
3673	54 Neutral	¥62.48B	110.35		0.28%	19.15%	―

Broadleaf Co., Ltd. Corporate Events

Broadleaf Co., Ltd. Revises Earnings Forecast Upward for First Half of 2025

Broadleaf Co., Ltd. has revised its earnings forecast for the first half of 2025, indicating a positive outlook due to successful customer migration to cloud-based software and higher-than-expected demand for hardware replacements. The company anticipates increased revenue and profits, driven by cost reductions achieved through the use of generative AI, although the full-year forecast remains unchanged.

Broadleaf Co., Ltd. Announces Disposal of Treasury Shares for Stock Compensation

Broadleaf Co., Ltd. announced the disposal of 85,496 treasury shares as restricted stock compensation for its directors and corporate officers. This initiative, approved by the Board of Directors, aims to align the interests of the company’s leadership with shareholders by tying compensation to stock performance, thereby incentivizing efforts to increase corporate value.

Broadleaf Co., Ltd. Announces Corporate Officer Restructuring

Broadleaf Co., Ltd. has announced a restructuring of its corporate officer team following its 16th Annual General Meeting of Shareholders. Four new corporate officers have been appointed, each with specific duties, while six executive officers will retire upon the expiration of their terms. This restructuring is likely aimed at enhancing operational efficiency and aligning leadership with strategic goals.

Broadleaf Co., Ltd. Increases Dividend Forecast for 2025

Broadleaf Co., Ltd. has announced an upward revision of its dividend forecast for the fiscal year ending December 2025, increasing the annual dividend per share from 4.00 yen to 5.00 yen. This decision reflects the company’s commitment to returning profits to shareholders and is based on an improved financial outlook, aiming to enhance shareholder returns and maintain financial soundness.