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Business Brain Showaota Inc. (9658) AI Stock Analysis

JP:9658

Business Brain Showaota Inc.

(TSE/TYO:9658)

Select Model
Rating:78Outperform
Price Target:JPY 1,498.00â–²(14.00% Upside)
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 BaseLow 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 FlowAlthough 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.

Business Brain Showaota Inc. (9658) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:9658+14.61%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 42.65B
Dividend Yield
3.53%
Average Volume (3M)
105.67K
Price to Earnings (P/E)
16.1
Beta (1Y)
0.44
Revenue Growth
6.10%
EPS Growth
-1.37%
Country
Japan
Employees
2,495
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

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 te...

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, and...

Business Brain Showaota Inc. Financial Statement Overview

Summary

Above-average fundamentals supported by a strong balance sheet (low leverage, improving equity base). Income statement is generally healthy with re-accelerating revenue growth, but confidence is tempered by a large, likely non-recurring profitability spike in 2024 and uneven cash flow history (including prior negative/declining FCF before the latest rebound).

Income Statement

74Positive

Balance Sheet

86Very Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue42.56B42.10B38.80B34.22B37.06B32.35B
Gross Profit9.47B9.49B8.59B7.87B9.03B8.03B
EBITDA4.62B4.86B4.31B21.28B4.29B3.74B
Net Income2.65B2.99B2.47B14.15B1.84B1.78B
Balance Sheet
Total Assets48.42B48.46B45.32B44.80B30.39B28.30B
Cash, Cash Equivalents and Short-Term Investments11.40B11.73B9.91B9.91B11.33B9.04B
Total Debt3.60B3.30B2.73B2.84B3.38B4.13B
Total Liabilities17.67B17.24B15.71B15.41B14.20B14.25B
Stockholders Equity30.25B30.72B29.14B28.96B14.96B13.22B
Cash Flow
Free Cash Flow04.27B2.54B2.74B3.09B-121.11M
Operating Cash Flow04.49B2.75B3.15B3.31B682.47M
Investing Cash Flow0104.12M552.24M-2.07B-1.32B-844.81M
Financing Cash Flow0-2.77B-3.29B-1.40B-414.84M535.09M

Business Brain Showaota Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price1314.00

Price Trends

50DMA1134.23Positive
100DMA1068.39Positive
200DMA1026.80Positive

Market Momentum

MACD44.50Negative
RSI69.68Neutral
STOCH47.71Neutral

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 1314.00 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:9658 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9746JP:974689OutperformJPY 209.90B15.18―2.62%14.36%32.93%
JP:4396JP:439681OutperformJPY 31.32B16.64―2.12%15.42%27.83%
JP:3923JP:392381OutperformJPY 394.08B16.25―0.63%16.71%161.67%
JP:9658JP:965878OutperformJPY 45.79B16.10―3.53%6.10%-1.37%
JP:4725JP:472573OutperformJPY 33.35B9.3310.39%5.06%3.46%6.90%
JP:3844JP:384471OutperformJPY 39.65B18.0611.26%4.10%5.91%-31.97%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

-40%-20%0%20%JP:9658JP:3844JP:4725JP:3923JP:4396JP:9746Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9658 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9658Business Brain Showaota Inc.1314.00331.7133.77%
JP:3844Comture Corporation1244.00-286.81-18.74%
JP:4725CAC Holdings Corporation1975.00-52.01-2.57%
JP:3923RAKUS Co., Ltd.1112.00-129.38-10.42%
JP:4396System Support, Inc.1507.0024.621.66%
JP:9746TKC Corporation4310.00402.4310.30%

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 GS...

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 go...

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 holdings...

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 topics...

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 61.3%...

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 to &...

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: Aug 17, 2026