Brains Technology, Inc. (4075) AI Stock Analysis

• Market Cap: ¥5.35B
• Dividend Yield: N/A
• Average Volume (3M): 22.88K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.73
• Revenue Growth: 25.01%
• EPS Growth: 175.85%
• Country: JP
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.66
• Shares Outstanding: 5,945,600
• 10 Day Avg. Volume: 41,180
• 30 Day Avg. Volume: 22,883
• 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: ¥891.00
• Price Target Upside: -0.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥891.00 ▼(-0.89% Downside)

Brains Technology, Inc. is supported by a robust balance sheet and positive technical indicators, suggesting financial stability and a bullish trend. However, the high P/E ratio and mixed cash flow performance present valuation concerns and potential risks. The lack of earnings call data and new corporate events simplifies the analysis.

Brains Technology, Inc. Business Overview & Revenue Model

Company Description

Brains Technology, Inc. (4075) is a company specializing in the development and provision of advanced software solutions. The company operates in the information technology sector, focusing on creating innovative products and services that aid businesses in optimizing their operations through data analysis and artificial intelligence.

How the Company Makes Money

Brains Technology, Inc. generates revenue primarily through the sale of its software products and related services. The company offers a suite of software solutions that leverage artificial intelligence and machine learning to help businesses analyze data and improve decision-making processes. Revenue streams include licensing fees for software, subscription models for cloud-based services, and consulting fees for implementation and support services. Strategic partnerships with other technology firms and value-added resellers also contribute to the company's earnings, expanding its market reach and customer base.

Brains Technology, Inc. Financial Statement Overview

Summary

Brains Technology, Inc. has a solid balance sheet with low debt and strong equity, providing financial stability. However, profitability margins are under pressure, and cash flows are mixed due to high capital expenditures. This reflects potential risks if future returns do not justify the investment.

Income Statement

Brains Technology, Inc. shows stable revenue with a slight decline in 2024 compared to 2023. The gross profit margin is healthy, indicating efficient cost management, but the net profit margin has decreased significantly, pointing to rising operational costs or lowered pricing power. The EBIT and EBITDA margins have also diminished, highlighting a potential challenge in maintaining operational efficiency.

Balance Sheet

The company's balance sheet is robust, characterized by low levels of debt and substantial equity, reflected in a very low debt-to-equity ratio. The equity ratio demonstrates strong financial health, with a high proportion of assets funded by shareholders' equity. Return on equity has decreased, suggesting less effective use of equity to generate profits in the latest year.

Cash Flow

Cash flow performance is mixed, with operating cash flow remaining positive yet experiencing a decline. Free cash flow has turned negative, mainly due to high capital expenditures, which could indicate investments in future growth but also pose a risk if not managed properly. The operating cash flow to net income ratio remains stable, affirming operational cash generation aligning with reported earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	1.05B	934.25M	854.50M	631.60M
Gross Profit	565.82M	680.81M	671.74M	682.62M	499.90M
EBITDA	263.03M	293.18M	257.83M	205.14M	117.98M
Net Income	48.64M	122.65M	141.31M	110.26M	78.87M
Balance Sheet
Total Assets	1.86B	1.84B	1.71B	1.64B	520.67M
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.31B	1.30B	1.40B	319.82M
Total Debt	6.00M	14.00M	80.54M	121.20M	202.14M
Total Liabilities	303.70M	347.10M	364.64M	434.09M	440.12M
Stockholders Equity	1.56B	1.49B	1.35B	1.21B	80.55M
Cash Flow
Free Cash Flow	-8.27M	56.08M	-55.14M	151.81M	128.35M
Operating Cash Flow	230.09M	275.30M	134.65M	221.61M	184.95M
Investing Cash Flow	-238.36M	-219.23M	-189.79M	-69.81M	-56.60M
Financing Cash Flow	11.19M	-48.88M	-49.99M	933.25M	40.91M

Brains Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 899.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4075, the sentiment is Positive. The current price of 899 is below the 20-day moving average (MA) of 919.70, above the 50-day MA of 857.34, and above the 200-day MA of 743.10, indicating a neutral trend. The MACD of 7.50 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4075.

Brains Technology, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4075	72 Outperform	¥5.35B	37.40		―	25.01%	175.85%
4167	69 Neutral	2.90B	51.86	6.61%	―	-3.92%	3.93%
5134	66 Neutral	4.39B	18.01	11.57%	―	38.35%	632.28%
2345	49 Neutral	4.16B	-1.10	-136.90%	―	0.00%	0.00%
3967	44 Neutral	4.26B	-5.28	-46.67%	―	12.16%	-478.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%