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

JP:3673

Broadleaf Co., Ltd.

(TSE/TYO:3673)

Select Model
Rating:68Neutral
Price Target:JPY 534.00â–²(11.48% Upside)
Action:reiterated
Date:08/19/26

Broadleaf's overall score is driven primarily by its exceptional financial performance, highlighted by a dramatic revenue recovery, strong margins, and outstanding cash flow generation. The fortress-like balance sheet provides a solid foundation. However, the high P/E ratio presents a valuation risk, and the technical indicators show a lack of strong momentum, which tempers the overall score. The company's low beta suggests stability but also limited market-driven upside.

Positive Factors
Revenue and Margin ExpansionThe sharp rebound in revenue alongside expanded gross, EBIT, and net margins indicates improving operating traction and stronger earnings conversion. If these gains persist, Broadleaf can fund product investment and customer support internally while strengthening its position in automotive aftermarket software.
Negative Factors
Historical Earnings VolatilityThe prior shift from profitability to sizable losses shows that Broadleaf's earnings are not yet consistently resilient across operating conditions. This volatility makes future profit durability less certain and can constrain planning, investment pace, and confidence in the sustainability of the recent rebound.

Broadleaf Co., Ltd. (3673) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:3673+32.83%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 86.79B
Dividend Yield
1.93%
Average Volume (3M)
891.71K
Price to Earnings (P/E)
47.4
Beta (1Y)
0.09
Revenue Growth
12.00%
EPS Growth
133.89%
Country
Japan
Employees
924
Sector
General
Sector Strength
55
Industry
Software - Application

Broadleaf Co., Ltd. Business Overview & Revenue Model

Company Description

Broadleaf Co., Ltd. is a Japanese firm that develops and supplies a range of software, IT solutions, and related services. Its core business serves the automotive aftermarket, but it also extends its offerings to numerous other industries and sectors...

How the Company Makes Money

Broadleaf primarily makes money by providing business software and related IT services to companies in the automotive aftermarket. Key revenue streams generally include: (1) fees from software products (e.g., licenses and/or subscription/usage fees,...

Broadleaf Co., Ltd. Financial Statement Overview

Summary

Broadleaf's financials show a powerful turnaround with TTM revenue up 94.5%, a robust 66.8% gross margin, and a swing to an 8.4% net profit margin. The balance sheet is a fortress with debt at only 20.2% of equity, and cash flow is exceptional, converting nearly 100% of net income into free cash flow. The score reflects strong profitability and financial health, tempered only by the need to sustain explosive growth.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue21.78B20.82B18.05B15.38B13.83B20.65B
Gross Profit14.54B13.52B11.71B9.34B8.49B14.90B
EBITDA6.22B5.39B3.55B835.31M380.07M5.51B
Net Income1.82B1.24B343.30M-1.49B-2.43B2.17B
Balance Sheet
Total Assets43.01B41.42B40.31B36.93B33.75B34.48B
Cash, Cash Equivalents and Short-Term Investments3.76B4.12B4.31B3.92B3.46B3.52B
Total Debt5.07B4.46B6.13B7.25B5.15B2.82B
Total Liabilities17.86B17.13B17.17B14.44B10.09B8.36B
Stockholders Equity25.14B24.27B23.14B22.47B23.63B26.11B
Cash Flow
Free Cash Flow7.81B6.88B6.52B3.37B1.59B3.74B
Operating Cash Flow7.83B6.90B6.53B3.42B1.61B3.78B
Investing Cash Flow-4.39B-4.41B-4.31B-3.67B-2.88B-3.39B
Financing Cash Flow-3.30B-2.69B-1.83B704.75M1.21B-108.34M

Broadleaf Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price479.00

Price Trends

50DMA476.32Positive
100DMA446.90Positive
200DMA429.99Positive

Market Momentum

MACD2.12Positive
RSI48.69Neutral
STOCH25.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3673, the sentiment is Neutral. The current price of 479.00 is below the 20-day moving average (MA) of 484.25, above the 50-day MA of 476.32, and above the 200-day MA of 429.99, indicating a neutral trend. The MACD of 2.12 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3673.

Broadleaf Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3673 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4776JP:477683OutperformJPY 134.47B17.61―1.36%20.38%45.30%
JP:9629JP:962983OutperformJPY 29.94B15.38―6.00%8.61%30.21%
JP:4481JP:448182OutperformJPY 58.05B13.82―3.67%0.70%-2.66%
JP:4828JP:482882OutperformJPY 77.08B16.0230.58%3.66%15.67%23.19%
JP:2492JP:249274OutperformJPY 204.21B81.84―0.85%11.42%32.73%
JP:3673JP:367368NeutralJPY 89.04B47.38―1.93%12.00%133.89%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:3673JP:4828JP:2492JP:4481JP:4776JP:9629Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3673 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3673Broadleaf Co., Ltd.479.00113.4731.04%
JP:4828Business Engineering Corporation1285.0066.155.43%
JP:2492Infomart Corporation766.00443.46137.49%
JP:4481Base Co., Ltd.3085.00-244.38-7.34%
JP:4776Cybozu, Inc.2931.00-72.13-2.40%
JP:9629PCA Corporation1584.00-101.71-6.03%

Broadleaf Co., Ltd. Corporate Events

Broadleaf Publishes Comprehensive Data Book 2026

Aug 12, 2026

Broadleaf Co., Ltd. has released its Data Book 2026, outlining a wide range of business and financial data for the year. The publication covers sales by service category, usage statistics for its business software and cloud-based “.c Series&#82...

Broadleaf Outlines 2Q FY2026 Results and Growth Strategy

Aug 12, 2026

Broadleaf Co., Ltd. released briefing materials for its second-quarter fiscal 2026 results, outlining consolidated performance under IFRS and updating its full-year earnings forecast. The disclosure is positioned to inform investors about financial t...

Broadleaf Raises 2026 Revenue Forecast on Strong PC and Software Demand

Aug 12, 2026

Broadleaf Co., Ltd. revised its consolidated earnings forecast for the fiscal year ending December 31, 2026, raising expected revenue from 23.5 billion yen to 23.8 billion yen while leaving profit projections unchanged. The company attributes the hig...

Broadleaf Announces Sharp Dividend Increase After Stock Split

Aug 12, 2026

Broadleaf Co., Ltd. has approved an interim dividend of 7.50 yen per share for shareholders of record as of June 30, 2026, matching its previously announced forecast. The payout, totaling 689.12 million yen and sourced from retained earnings, will be...

Broadleaf Lifts FY2026 Earnings Outlook After Strong Interim Results

Aug 12, 2026

Broadleaf Co., Ltd. reported strong interim results for the first half of fiscal 2026, with revenue rising 9.8% year on year to ¥10,781 million and operating profit surging 91.5%. Profit attributable to owners of the parent climbed 140.3%, lifti...

Broadleaf Lifts H1 Earnings Forecast on Strong Software Sales and AI-Driven Cost Cuts

Aug 3, 2026

Broadleaf Co., Ltd. has raised its consolidated earnings forecast for the first half of fiscal 2026, reflecting stronger-than-expected revenue and profitability. The company now expects revenue of ¥10.78 billion and profit attributable to owners...

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: Aug 19, 2026