Brother Industries (6448) AI Stock Analysis

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JP:6448 Dividends

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Brother Industries

(OTC:6448)

63Neutral

Brother Industries is financially stable with strong revenue growth and effective cash management, which is a key strength. However, technical indicators suggest caution due to the bearish trend and oversold conditions. The stock has a fair valuation, supported by a reasonable P/E ratio and an attractive dividend yield. Overall, while the company is fundamentally sound, technical challenges may weigh on short-term stock performance.

Brother Industries (6448) vs. S&P 500 (SPY)

Market Cap

¥645.86B

Dividend Yield3.58%

Average Volume (3M)772.44K

Price to Earnings (P/E)18.2

Beta (1Y)0.92

Revenue Growth6.67%

EPS Growth-17.06%

CountryJP

Employees40,538

SectorIndustrials

Sector Strength78

IndustryBusiness Equipment & Supplies

Share Statistics

EPS (TTM)138.61

Shares Outstanding257,755,920

10 Day Avg. Volume633,060

30 Day Avg. Volume772,440

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)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 Target

¥3,149.48

Price Target Upside24.63% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Brother Industries Business Overview & Revenue Model

Company DescriptionBrother Industries, Ltd. is a multinational electronics and electrical equipment company headquartered in Nagoya, Japan. Founded in 1908, the company operates in various sectors, including printing and solutions, personal and home, machinery, and network and contents. Brother is renowned for its printers, multifunctional devices, sewing machines, and industrial equipment, offering a wide range of products that cater to both consumer and business markets worldwide.

How the Company Makes MoneyBrother Industries generates revenue through several key streams. The printing and solutions segment is a significant contributor, encompassing the sale of printers, multifunctional printers, and related consumables such as ink and toner. The company also benefits from its personal and home segment, which includes sewing machines and home appliances. Additionally, Brother has a machinery business that sells industrial sewing machines and machine tools. Revenue is further supplemented by services and solutions, including maintenance and support for its products. Strategic partnerships and a robust global distribution network enhance its market reach, contributing to sustained earnings.

Brother Industries Financial Statement Overview

Summary

Brother Industries demonstrates solid financial health with strong revenue growth and effective cash flow management. The company's low leverage and strong equity position provide stability, although challenges in net profitability and free cash flow growth suggest areas for ongoing improvement. Overall, the financial statements reflect a stable company with potential for enhanced profitability.

Income Statement

―

Brother Industries has shown strong revenue growth, with a notable increase from the previous year, indicating solid demand for its products. The gross profit margin remains healthy at 43.5% in the TTM, reflecting effective cost management. However, the net profit margin shows a decline to 4.1%, highlighting potential pressure on net profitability despite a solid EBIT margin of 9.5%.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.001, suggesting minimal leverage and financial risk. An equity ratio of 74.8% underscores the company's financial stability and strong equity base. Return on equity is reasonable at 5.0%, though it indicates room for improvement in generating returns for shareholders.

Cash Flow

―

Operating cash flow is strong, exceeding net income, which is a positive indicator of cash-generating efficiency. However, free cash flow has decreased, impacting growth potential. The free cash flow to net income ratio stands at 1.88, showing effective cash utilization relative to profits, yet free cash flow growth remains a concern.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
822.93B	815.27B	710.94B	631.81B	637.26B
	Gross Profit
355.34B	319.59B	307.32B	286.60B	282.27B
	EBIT
75.58B	55.38B	85.50B	42.73B	67.33B
	EBITDA
101.25B	103.33B	123.38B	117.18B	107.59B
	Net Income Common Stockholders
31.64B	39.08B	61.03B	24.52B	49.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
166.15B	129.91B	179.33B	199.39B	179.70B
	Total Assets
896.11B	850.49B	811.15B	743.90B	731.47B
	Total Debt
37.71B	37.42B	40.83B	57.46B	107.01B
	Net Debt
-128.44B	-81.62B	-127.09B	-133.54B	-61.41B
	Total Liabilities
227.99B	253.81B	249.94B	244.19B	286.30B
	Stockholders Equity
668.05B	596.62B	561.15B	483.05B	428.52B
Cash Flow		Free Cash Flow
93.54B	-28.05B	36.41B	81.75B	61.66B
	Operating Cash Flow
141.03B	14.43B	72.25B	109.27B	87.75B
	Investing Cash Flow
-42.07B	-32.20B	-40.78B	-25.08B	-27.95B
	Financing Cash Flow
-61.58B	-36.64B	-65.19B	-74.04B	-14.92B

Brother Industries Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2527.00

Price Trends

50DMA

2591.17

Negative

100DMA

2609.23

Negative

200DMA

2698.88

Negative

Market Momentum

MACD

-23.67

Negative

RSI

53.45

Neutral

STOCH

95.76

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6448, the sentiment is Neutral. The current price of 2527 is above the 20-day moving average (MA) of 2393.52, below the 50-day MA of 2591.17, and below the 200-day MA of 2698.88, indicating a neutral trend. The MACD of -23.67 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 95.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6448.

Brother Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	79 Outperform	$22.80T	19.98	14.40%	0.52%	9.56%	26.52%
6501	77 Outperform	¥16.77T	27.44	10.50%	1.06%	0.56%	5.32%
6702	73 Outperform	¥5.80T	26.08	11.70%	0.85%	-5.48%	-11.96%
7751	72 Outperform	¥4.38T	25.34		3.42%	9.08%	-33.61%
7735	71 Outperform	¥940.63B	9.80	25.48%	2.77%	30.34%	55.11%
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%
6448	63 Neutral	¥645.86B	18.23	5.01%	3.58%	6.67%	-17.06%

* Industrials Sector Average

Performance Comparison

JP:6448

Brother Industries

2,527.00

-205.07

-7.51%

JP:7751

Canon Inc.

4,535.00

340.96

8.13%

JP:6501

Hitachi,Ltd.

3,673.00

766.18

26.36%

JP:6758

Sony

3,732.00

1,211.45

48.06%

JP:7735

SCREEN Holdings Co

9,660.00

-7,370.88

-43.28%

JP:6702

Fujitsu

3,154.00

721.76

29.67%

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.