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Business Brain Showaota Inc.
(9658)
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Rating:78Outperform
Price Target:
¥1,498.00
▼(-57.92% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial strength (especially low leverage and a strong equity base) and favorable valuation (moderate P/E with a high dividend yield). Technicals are supportive with price above key moving averages and positive MACD, though momentum is getting somewhat extended, and historical cash flow/profit volatility remains the main risk factor.
Positive Factors
Low Leverage and Strong Equity Base
Low leverage and a substantially expanded equity base provide financial resilience and reduce dependence on debt financing. This gives the company greater flexibility to fund technology investment, maintain operations through weaker periods, and pursue customer-related growth without excessive balance-sheet strain.
Negative Factors
Uneven Historical Cash Flow
Although current cash generation is strong, the history of negative and declining free cash flow shows that accounting profits have not translated consistently into cash. This variability can make investment planning, shareholder distributions, and funding of growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage and Strong Equity Base
Low leverage and a substantially expanded equity base provide financial resilience and reduce dependence on debt financing. This gives the company greater flexibility to fund technology investment, maintain operations through weaker periods, and pursue customer-related growth without excessive balance-sheet strain.
Read all positive factors
Business Brain Showaota Inc. (9658) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥45.79B
Dividend Yield3.53%
Average Volume (3M)99.95K
Price to Earnings (P/E)16.1
Beta (1Y)0.44
Revenue Growth6.10%
EPS Growth-1.37%
CountryJP
Employees2,495
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)81.61
Shares Outstanding34,845,600
10 Day Avg. Volume130,760
30 Day Avg. Volume99,949
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)0.98
Price to Sales (P/S)0.72
P/FCF Ratio7.09
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Business Brain Showaota Inc. Business Overview & Revenue Model
Company Description
Business Brain Showa-Ota Inc. provides consulting and systems development, and business management services in Japan. The company offers accounting package, enterprise solutions, digital transformation (DX), business-specific and industry-specific...
How the Company Makes Money
Business Brain Showa-Ota Inc. makes money primarily by providing IT services to clients on a project and contract basis. Key revenue streams typically include (1) systems integration and software development fees earned from designing, building, a...
Business Brain Showaota Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.56B | 42.10B | 38.80B | 34.22B | 37.06B | 32.35B |
| Gross Profit | 9.47B | 9.49B | 8.59B | 7.87B | 9.03B | 8.03B |
| EBITDA | 4.62B | 4.86B | 4.31B | 21.28B | 4.29B | 3.74B |
| Net Income | 2.65B | 2.99B | 2.47B | 14.15B | 1.84B | 1.78B |
Balance Sheet | ||||||
| Total Assets | 48.42B | 48.46B | 45.32B | 44.80B | 30.39B | 28.30B |
| Cash, Cash Equivalents and Short-Term Investments | 11.40B | 11.73B | 9.91B | 9.91B | 11.33B | 9.04B |
| Total Debt | 3.60B | 3.30B | 2.73B | 2.84B | 3.38B | 4.13B |
| Total Liabilities | 17.67B | 17.24B | 15.71B | 15.41B | 14.20B | 14.25B |
| Stockholders Equity | 30.25B | 30.72B | 29.14B | 28.96B | 14.96B | 13.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.27B | 2.54B | 2.74B | 3.09B | -121.11M |
| Operating Cash Flow | 0.00 | 4.49B | 2.75B | 3.15B | 3.31B | 682.47M |
| Investing Cash Flow | 0.00 | 104.12M | 552.24M | -2.07B | -1.32B | -844.81M |
| Financing Cash Flow | 0.00 | -2.77B | -3.29B | -1.40B | -414.84M | 535.09M |
Business Brain Showaota Inc. Technical Analysis
Positive
3560.00
Price Trends
1134.23
Positive
1068.39
Positive
1026.80
Positive
Market Momentum
44.50
Negative
69.68
Neutral
47.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9658, the sentiment is Positive. The current price of 3560 is above the 20-day moving average (MA) of 1224.65, above the 50-day MA of 1134.23, and above the 200-day MA of 1026.80, indicating a bullish trend. The MACD of 44.50 indicates Negative momentum. The RSI at 69.68 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9658.
Business Brain Showaota Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥394.08B | 16.25 | ― | 0.63% | 16.71% | 161.67% | |
79 Outperform | ¥209.90B | 15.18 | ― | 2.62% | 14.36% | 32.93% | |
78 Outperform | ¥45.79B | 16.10 | ― | 3.53% | 6.10% | -1.37% | |
75 Outperform | ¥33.35B | 9.33 | 10.39% | 5.06% | 3.46% | 6.90% | |
71 Outperform | ¥39.65B | 18.06 | 11.26% | 4.10% | 5.91% | -31.97% | |
71 Outperform | ¥31.32B | 16.64 | ― | 2.12% | 15.42% | 27.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:9658
Business Brain Showaota Inc.
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Business Brain Showaota Inc. Corporate Events
Business Brain Showa-ota to Exit GSX Stake via Share Buyback, Booking Large Gain
Oct 30, 2026
Business Brain Showa-ota Inc. has approved a transaction agreement with Accenture Japan Ltd. under which it will refrain from tendering its shares in Global Security Experts Inc. into Accenture’s planned takeover bid and instead sell all its...
Business Brain Showa-ota Deepens Ties With Nihon Knowledge Through Capital Alliance
Sep 25, 2026
Business Brain Showa-ota Inc. has agreed a capital alliance with Nihon Knowledge Co., Ltd., deepening an existing business partnership that combines consulting and BPO services with software testing, quality assurance, AI quality assurance, and AI...
Business Brain Showa-Ota Expands and Restructures Shareholder Benefit Program
Aug 28, 2026
Business Brain Showa-Ota Inc. has approved a significant overhaul of its shareholder benefit program to broaden eligibility and increase rewards for longer-term, higher-volume investors. The company will shift from QUO card benefits tied to holdin...
Business Brain Showa-Ota Opens FY2027 With 1Q Results Briefing
Aug 13, 2026
Business Brain Showa-Ota Inc. has released materials for its first-quarter financial results briefing for the fiscal year ending March 2027. The briefing, dated August 13, 2026, outlines company introductions, key financial highlights, current top...
Business Brain Showa-Ota Posts Profit Drop Amid Modest Sales Growth and Trims Outlook
Aug 13, 2026
Business Brain Showa-Ota Inc. reported consolidated sales of ¥10.5 billion for the quarter ended June 30, 2026, up 4.6% year on year, but business profit fell 54.2% to ¥299 million and profit attributable to owners of parent declined 61....
Business Brain Showa-ota Cuts Interim Profit Forecast but Keeps Full-Year Outlook Intact
Aug 13, 2026
Business Brain Showa-ota Inc. has revised its consolidated earnings forecast for the six months ending September 30, 2026, keeping revenue unchanged at ¥20.9 billion but cutting business and operating profit projections by ¥250 million t...
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.