Brains Technology, Inc. (4075) AI Stock Analysis

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Brains Technology, Inc.

(4075)

Rating:67Neutral

Price Target:

¥742.00

▲(8.48%Upside)

Brains Technology, Inc. scores moderately due to a strong balance sheet and positive technical indicators. However, the high P/E ratio and cash flow concerns due to capital expenditures weigh down the overall score.

Brains Technology, Inc. (4075) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥3.88B

Dividend YieldN/A

Average Volume (3M)4.01K

Price to Earnings (P/E)130.4

Beta (1Y)0.99

Revenue Growth-3.57%

EPS Growth-82.76%

CountryJP

Employees70

SectorTechnology

Sector Strength81

IndustrySoftware - Application

Share Statistics

EPS (TTM)6.75

Shares Outstanding5,675,600

10 Day Avg. Volume8,290

30 Day Avg. Volume4,013

Financial Highlights & Ratios

PEG Ratio6.73

Price to Book (P/B)2.36

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

Brains Technology, Inc. Business Overview & Revenue Model

Company DescriptionBrains Technology, Inc. (4075) is a company that operates in the technology sector, focusing on the development and provision of advanced software solutions. The company specializes in offering innovative products and services that leverage artificial intelligence and machine learning technologies to optimize data analysis and enhance decision-making processes for businesses across various industries.

How the Company Makes MoneyBrains Technology, Inc. generates revenue primarily through the sale of its software products and services. The company offers its solutions to a wide range of industries, including finance, manufacturing, and telecommunications, often through a subscription-based model. Revenue streams include licensing fees for software usage, consulting services for implementation and optimization, and ongoing technical support and maintenance contracts. Significant partnerships with other technology firms and industry leaders also contribute to its earnings, enabling the company to expand its market reach and enhance its product offerings.

Brains Technology, Inc. Financial Statement Overview

Summary

Brains Technology, Inc. displays a strong balance sheet with low debt and high equity, which is a major strength. However, the income statement indicates pressure on profitability due to declining profit margins. Cash flow is mixed, with positive operating cash flow but negative free cash flow due to high capital expenditures, posing a risk if returns are not realized.

Income Statement

Positive

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

Very Positive

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

Positive

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.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
1.02B	1.00B	1.05B	934.25M	854.50M	631.60M
	Gross Profit
554.69M	565.82M	680.81M	671.74M	682.62M	499.90M
	EBIT
39.27M	73.26M	163.25M	174.04M	158.16M	69.49M
	EBITDA
189.25M	263.03M	293.18M	257.83M	205.14M	117.98M
	Net Income Common Stockholders
25.69M	48.64M	122.65M	141.31M	110.26M	78.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.31B	1.31B	1.30B	1.40B	319.82M
	Total Assets
1.76B	1.86B	1.84B	1.71B	1.64B	520.67M
	Total Debt
4.00M	6.00M	14.00M	80.54M	121.20M	202.14M
	Net Debt
-1.19B	-1.30B	-1.29B	-1.22B	-1.28B	-117.67M
	Total Liabilities
283.00M	303.70M	347.10M	364.64M	434.09M	440.12M
	Stockholders Equity
1.48B	1.56B	1.49B	1.35B	1.21B	80.55M
Cash Flow		Free Cash Flow
0.00	-8.27M	56.08M	-55.14M	151.81M	128.35M
	Operating Cash Flow
0.00	230.09M	275.30M	134.65M	221.61M	184.95M
	Investing Cash Flow
0.00	-238.36M	-219.23M	-189.79M	-69.81M	-56.60M
	Financing Cash Flow
0.00	11.19M	-48.88M	-49.99M	933.25M	40.91M

Brains Technology, Inc. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price684.00

Price Trends

50DMA

652.84

Positive

100DMA

688.03

Negative

200DMA

687.81

Negative

Market Momentum

MACD

7.28

Negative

RSI

55.91

Neutral

STOCH

55.06

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 684 is above the 20-day moving average (MA) of 663.90, above the 50-day MA of 652.84, and below the 200-day MA of 687.81, indicating a neutral trend. The MACD of 7.28 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 55.06 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5134	77 Outperform	¥4.10B	31.96		―	37.21%	309.47%
4173	75 Outperform	¥3.86B	38.22		―	1.71%	-53.67%
4167	74 Outperform	¥4.23B	32.13		―	10.24%	280.34%
4075	67 Neutral	¥3.88B	130.37		―	-3.57%	-82.76%
Sector *	61 Neutral	$11.56B	10.44	-6.88%	2.93%	7.49%	-8.97%
3967	57 Neutral	¥4.67B	17.07		―	11.96%	-434.38%
2345	38 Underperform	¥4.02B	―		―	―	―

* Technology Sector Average

Performance Comparison

JP:4075

Brains Technology, Inc.

683.00

-154.00

-18.40%

JP:2345

Kushim,Inc.

221.00

-32.00

-12.65%

JP:3967

Eltes Co., Ltd.

732.00

-61.00

-7.69%

JP:4167

Kokopelli, Inc.

534.00

75.00

16.34%

JP:4173

WACUL INC

498.00

17.00

3.53%

JP:5134

POPER Co., Ltd.

1,046.00

377.00

56.35%

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.