bBreak Systems Co. Ltd. (3986) AI Stock Analysis

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bBreak Systems Co. Ltd.

(3986)

68Neutral

bBreak Systems Co. Ltd. exhibits solid financial performance with strong profitability and a robust balance sheet. However, cash flow management issues need addressing. Technical analysis reflects a stable short-term position but potential resistance in the longer term. The valuation highlights a potentially high P/E ratio, suggesting caution for value-focused investors. Overall, the company is stable but faces challenges in cash flow and valuation.

bBreak Systems Co. Ltd. (3986) vs. S&P 500 (SPY)

Market Cap

¥2.20B

Dividend Yield1.05%

Average Volume (3M)870.00

Price to Earnings (P/E)28.4

Beta (1Y)0.28

Revenue Growth-3.26%

EPS Growth-57.17%

CountryJP

Employees148

SectorTechnology

Sector Strength77

IndustrySoftware - Application

Share Statistics

EPS (TTM)18.60

Shares Outstanding1,536,960

10 Day Avg. Volume720

30 Day Avg. Volume870

Financial Highlights & Ratios

PEG Ratio-1.05

Price to Book (P/B)1.34

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

bBreak Systems Co. Ltd. Business Overview & Revenue Model

Company DescriptionbBreak Systems Co. Ltd. (3986) is a Japanese company that specializes in providing comprehensive software solutions, particularly focusing on enterprise resource planning (ERP) systems. The company caters to a variety of industries, offering products and services aimed at optimizing business processes, enhancing operational efficiency, and facilitating digital transformation. Its portfolio includes software development, implementation services, and ongoing support, which are designed to help businesses effectively manage their resources and information technology infrastructure.

How the Company Makes MoneybBreak Systems Co. Ltd. generates revenue primarily through the sale and licensing of its ERP software solutions. The company offers customized software packages tailored to the specific needs of different industries, which clients purchase or license for use within their organizations. Additionally, bBreak Systems Co. Ltd. earns income from providing professional services such as consulting, system integration, and ongoing technical support to ensure the effective deployment and utilization of its software solutions. The company may also engage in strategic partnerships with other technology providers to expand its market reach and enhance its product offerings, contributing to its overall revenue.

bBreak Systems Co. Ltd. Financial Statement Overview

Summary

bBreak Systems Co. Ltd. is financially sound, with strong profitability and a robust balance sheet, characterized by zero debt and high equity. While the income statement reflects good revenue growth and profitability, cash flow management needs attention due to unusual zero values in the latest period. Overall, the company is well-positioned in the Software - Application industry but should improve cash flow reliability.

Income Statement

Positive

bBreak Systems Co. Ltd. demonstrates solid profitability with a stable gross profit margin and a healthy net profit margin. The company shows a consistent revenue growth trend, with a 3.3% increase from 2023 to TTM (Trailing-Twelve-Months). However, there was a slight dip in EBIT margin in the TTM period, suggesting some operational challenges. EBITDA margin remains robust, indicating strong operational efficiency.

Balance Sheet

Very Positive

The balance sheet is strong, with zero debt, resulting in an excellent debt-to-equity ratio. The equity ratio is high, reflecting a solid capital structure. Return on Equity (ROE) is impressive, indicating effective utilization of shareholders' equity to generate profits. The company's financial position is very stable, reducing risk.

Cash Flow

Positive

Cash flow metrics indicate a stable financial position, although there is room for improvement. Operating cash flow to net income ratio is not calculable in the TTM period due to zero operating cash flow, which is unusual for a software company. There is a strong historical free cash flow, but the recent period shows zero free cash flow, which needs to be addressed.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.37B	1.39B	1.38B	1.26B	1.17B	1.16B
	Gross Profit
632.22M	659.89M	636.88M	587.90M	533.46M	521.32M
	EBIT
91.75M	152.05M	176.47M	153.59M	120.48M	138.59M
	EBITDA
134.64M	192.83M	176.41M	154.91M	122.51M	140.71M
	Net Income Common Stockholders
69.64M	136.45M	136.17M	116.75M	91.50M	104.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.96B	1.92B	1.73B	1.66B	1.48B	1.39B
	Total Assets
2.26B	2.23B	2.02B	1.88B	1.72B	1.59B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.96B	-1.92B	-1.73B	-1.66B	-1.48B	-1.39B
	Total Liabilities
620.26M	582.74M	495.98M	448.96M	385.77M	329.23M
	Stockholders Equity
1.64B	1.65B	1.53B	1.43B	1.33B	1.26B
Cash Flow		Free Cash Flow
0.00	176.75M	159.96M	194.97M	112.77M	146.66M
	Operating Cash Flow
0.00	239.85M	159.96M	194.97M	112.77M	146.66M
	Investing Cash Flow
0.00	-38.93M	-41.51M	-1.00K	-5.00K	-5.00K
	Financing Cash Flow
0.00	-18.22M	-42.20M	-18.48M	-18.53M	-18.59M

bBreak Systems Co. Ltd. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1431.00

Price Trends

50DMA

1422.00

Positive

100DMA

1433.04

Negative

200DMA

1468.52

Negative

Market Momentum

MACD

2.43

Positive

RSI

49.93

Neutral

STOCH

46.15

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3986, the sentiment is Negative. The current price of 1431 is below the 20-day moving average (MA) of 1435.05, above the 50-day MA of 1422.00, and below the 200-day MA of 1468.52, indicating a neutral trend. The MACD of 2.43 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3986.

bBreak Systems Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4776	72 Outperform	¥151.40B	35.62		0.91%	16.68%	43.49%
3986	68 Neutral	¥2.20B	28.38		1.05%	-3.26%	-57.17%
4768	66 Neutral	$1.11T	19.66	16.17%	2.61%	15.49%	18.42%
9640	63 Neutral	¥29.16B	19.56		4.95%	1.12%	89.58%
3626	62 Neutral	¥1.06T	21.12		1.54%	3.33%	-5.12%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
4819	56 Neutral	¥200.99B	―	-9.01%	1.17%	18.11%	-212.45%

* Technology Sector Average

Performance Comparison

JP:3986

bBreak Systems Co. Ltd.

1,431.00

-158.33

-9.96%

JP:3626

TIS Inc.

4,596.00

1,674.16

57.30%

JP:4776

Cybozu, Inc.

3,185.00

1,552.00

95.04%

JP:9640

Saison Technology Co.Ltd.

1,800.00

55.53

3.18%

JP:4768

Otsuka

2,935.00

73.67

2.57%

JP:4819

Digital Garage

4,375.00

1,848.48

73.16%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.