Brother Industries (6448) AI Stock Analysis

• Market Cap: $665.67B
• Dividend Yield: 3.84%
• Average Volume (3M): 683.91K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.84
• Revenue Growth: 4.50%
• EPS Growth: 56.65%
• Country: JP
• Employees: 40,538
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 45.98
• Shares Outstanding: 257,755,920
• 10 Day Avg. Volume: 770,130
• 30 Day Avg. Volume: 683,906
• 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: 0.74
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 4.18
• 1Y Price Target: $2,793.83
• Price Target Upside: 7.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,904.00 ▲(11.50% Upside)

Brother Industries scores well due to its strong financial stability and attractive valuation. The positive technical indicators further support the stock's potential. However, recent declines in revenue and free cash flow are concerns that need addressing to maintain long-term growth.

Brother Industries Business Overview & Revenue Model

Company Description

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through six segments Printing & Solutions, Personal & Home, Machinery, Network & Contents, Domino, and Others. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; fax machines and scanners; and electronic stationary comprising labeling systems, and label and mobile printers. The Personal & Home segment provides home sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Machinery segment offers industrial sewing machines, machine tools, and garment printers, as well as industrial parts, such as reducers and gears. The Network & Contents segment provides online karaoke systems, music boxes, applications for smartphones/tablets, health care supporting equipment, and content services, as well as manages Karaoke clubs. The Domino segment offers coding and marking equipment, and digital printing equipment. The Others segment engages in real estate and other activities. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Brother Industries primarily generates revenue through the sale of its diverse product portfolio. The printing and solutions segment is a significant contributor to its income, with products like laser and inkjet printers, label printers, and other printing solutions. The company also earns from its personal and home products division, which includes sewing machines and other home-use products. Additionally, Brother's industrial machinery segment contributes to its revenue, offering machine tools and garment printers. A significant portion of Brother's earnings comes from its global market presence, leveraging strategic partnerships and distribution networks to expand its reach. Service and maintenance contracts, as well as consumables like ink and toner cartridges, also provide recurring revenue streams.

Brother Industries Financial Statement Overview

Summary

Brother Industries demonstrates strong profitability and financial stability with low leverage. However, recent revenue and free cash flow declines pose potential risks. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.

Income Statement

Brother Industries shows strong gross and net profit margins, indicating efficient cost management and profitability. However, the recent revenue decline in TTM suggests potential market challenges. The EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio, reflecting strong financial stability and low leverage risk. Return on equity is solid, indicating effective use of equity to generate profits. The equity ratio is robust, underscoring a strong capital structure.

Cash Flow

Operating cash flow is positive, but free cash flow has seen a significant decline, which could impact future investments. The operating cash flow to net income ratio is moderate, suggesting reasonable cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	874.91B	876.56B	822.93B	815.27B	710.94B	631.81B
Gross Profit	375.83B	381.59B	355.34B	319.59B	307.32B	286.60B
EBITDA	117.71B	122.58B	103.50B	100.81B	125.72B	82.61B
Net Income	49.99B	54.78B	31.64B	39.08B	61.03B	24.52B
Balance Sheet
Total Assets	905.22B	932.65B	896.11B	850.49B	811.15B	743.90B
Cash, Cash Equivalents and Short-Term Investments	145.64B	172.78B	173.56B	129.91B	179.33B	199.39B
Total Debt	600.00M	600.00M	37.71B	66.88B	66.96B	83.81B
Total Liabilities	219.68B	241.18B	227.99B	253.81B	249.94B	244.19B
Stockholders Equity	685.45B	691.39B	668.05B	596.62B	561.15B	483.05B
Cash Flow
Free Cash Flow	39.30B	54.24B	93.54B	-28.05B	36.41B	81.75B
Operating Cash Flow	74.83B	90.02B	141.03B	14.43B	72.25B	109.27B
Investing Cash Flow	-49.49B	-48.15B	-42.07B	-32.20B	-40.78B	-25.08B
Financing Cash Flow	-41.51B	-34.61B	-61.58B	-36.64B	-65.19B	-74.04B

Brother Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2604.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6448, the sentiment is Negative. The current price of 2604.5 is above the 20-day moving average (MA) of 2575.10, above the 50-day MA of 2553.21, and above the 200-day MA of 2559.93, indicating a bearish trend. The MACD of 14.61 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 15.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6448.

Brother Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4901	78 Outperform	4.37T	16.88	7.79%	1.65%	4.83%	1.58%
8060	76 Outperform	664.73B	17.66	9.67%	2.31%	6.92%	16.87%
6448	73 Outperform	$665.67B	12.98	7.32%	3.84%	4.50%	56.65%
7984	73 Outperform	413.07B	20.99	7.62%	2.31%	3.27%	-12.28%
7752	69 Neutral	774.51B	16.07	4.44%	2.79%	6.09%	16.14%
4902	52 Neutral	268.44B	-7.32	-10.33%	―	-7.37%	-653.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%