BroadBand Security, Inc. (4398) AI Stock Analysis

0 Followers

BroadBand Security, Inc.

(TSE/TYO:4398)

Select Model

Rating:80Outperform

Price Target:JPY 2,423.00▲(15.00% Upside)

Action:reiterated

Date:10/29/26

The solid overall score is primarily driven by exceptional technical momentum and a highly resilient balance sheet. BroadBand Security is currently in a powerful uptrend, supported by healthy market indicators and strong top-line recovery. The company benefits from consistent equity growth and minimal debt reliance. While the premium P/E ratio suggests the stock is fully valued, the robust operational rebound and sustained bullish market sentiment strongly support a positive outlook.

Positive Factors

Improving ProfitabilityThe 2026 recovery in revenue and profitability indicates renewed operating momentum after the prior-year decline. Stronger gross and operating margins can support reinvestment and earnings growth, although sustaining this improvement will be important for durable performance.

Negative Factors

Earnings VolatilityMaterial year-to-year earnings swings make the company’s underlying profit trajectory less predictable. This volatility can complicate planning, weaken confidence in the persistence of recent improvement, and make future investment capacity more dependent on operating conditions.

BroadBand Security, Inc. (4398) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.31B
Dividend Yield: 0.76%
Average Volume (3M): 264.01K
Price to Earnings (P/E): 25.0
Beta (1Y): 0.58
Revenue Growth: 11.40%
EPS Growth: 150.69%
Country: Japan
Employees: 254
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

BroadBand Security, Inc. Business Overview & Revenue Model

Company Description

BroadBand Security, Inc. specializes in providing a comprehensive suite of information technology security solutions. Their services cover a broad spectrum, including general security management, secure email systems, and various protective measures....

BroadBand Security, Inc. Financial Statement Overview

Summary

BroadBand Security presents a highly resilient financial profile marked by a fortress balance sheet with exceptionally low leverage. Revenue and net income showed a robust recovery in 2026, although profitability margins and cash conversion rates are still slightly below their historical peaks.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.78B	6.78B	6.10B	6.46B	5.90B	5.22B
Gross Profit	2.11B	2.11B	1.74B	2.05B	1.76B	1.56B
EBITDA	678.76M	663.44M	430.10M	914.37M	785.24M	767.93M
Net Income	371.06M	371.06M	142.72M	455.53M	416.50M	352.35M
Balance Sheet
Total Assets	4.50B	4.50B	3.80B	4.13B	3.57B	3.15B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.68B	1.43B	1.92B	1.36B	1.26B
Total Debt	477.82M	477.82M	383.30M	552.96M	653.61M	691.33M
Total Liabilities	2.07B	2.07B	1.69B	2.06B	1.94B	1.91B
Stockholders Equity	2.43B	2.43B	2.11B	2.07B	1.63B	1.24B
Cash Flow
Free Cash Flow	0	325.05M	15.27M	792.43M	408.41M	651.32M
Operating Cash Flow	0	549.39M	102.08M	895.05M	493.45M	752.83M
Investing Cash Flow	0	-279.06M	-298.35M	-225.24M	-86.02M	-101.91M
Financing Cash Flow	0	-16.48M	-275.22M	-116.31M	-308.20M	-327.39M

BroadBand Security, Inc. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2107.00

Price Trends

50DMA1971.94Positive

100DMA1612.44Positive

200DMA1451.43Positive

Market Momentum

MACD36.49Positive

RSI45.51Neutral

STOCH24.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4398, the sentiment is Neutral. The current price of 2107.00 is below the 20-day moving average (MA) of 2493.80, above the 50-day MA of 1971.94, and above the 200-day MA of 1451.43, indicating a neutral trend. The MACD of 36.49 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 24.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4398.

BroadBand Security, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4398 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4398	80Outperform	JPY 9.52B	24.96	―	0.76%	11.40%	150.69%
JP:3984	76Outperform	JPY 22.19B	13.68	―	1.74%	15.59%	6.88%
JP:4498	73Outperform	JPY 27.93B	22.21	―	0.72%	10.51%	29.95%
JP:3788	71Outperform	JPY 22.64B	16.03	―	2.90%	9.92%	36.73%
JP:3676	70Outperform	JPY 22.73B	19.33	―	2.47%	1.78%	30.06%
JP:6050	62Neutral	JPY 13.01B	23.84	―	3.38%	-0.24%	-42.15%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:4398 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4398	BroadBand Security, Inc.	2107.00	605.02	40.28%
JP:3676	DIGITAL HEARTS HOLDINGS Co., Ltd.	1051.00	102.07	10.76%
JP:3788	GMO GlobalSign Holdings K.K.	1965.00	-364.21	-15.64%
JP:3984	User Local, Inc.	1380.00	-534.86	-27.93%
JP:4498	Cybertrust Japan Co.Ltd.	1666.00	392.36	30.81%
JP:6050	E-Guardian Inc.	1125.00	-515.97	-31.44%

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: Oct 29, 2026

BroadBand Security, Inc. AI Stock Analysis