6448:TSEBrother Industries, Ltd. Analysis
Data as of 2026-06-13 - not real-time
¥3,772.00
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
Brother Industries is trading at ¥3,772, comfortably above its 20‑day (¥3,682), 50‑day (¥3,332) and 200‑day (¥3,004) moving averages, indicating a bullish price trend, while the RSI of 63.6 suggests momentum is still healthy but approaching overbought levels. Technical indicators are mixed: the MACD histogram is negative and the signal line is bearish, hinting at a possible short‑term pullback as the stock nears its 52‑week resistance of ¥3,924. Fundamentally, the company boasts a low PE of 15.2 versus an industry average of 30.6, a solid dividend yield of 2.65% with a 40% payout ratio, and an exceptionally strong balance sheet highlighted by ¥197 B in cash against ¥0.99 B of debt. Revenue is growing at 6.7% YoY, margins are respectable, and the low beta of 0.43 points to limited market volatility, supporting a view of stable, long‑term value.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price approaching 52‑week resistance
- Bearish MACD signal
- Elevated RSI indicating potential short‑term overbought condition
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Attractive PE relative to industry peers
- Strong cash position and low leverage
- Sustainable dividend yield supporting total return
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Consistent revenue growth and diversified product segments
- Low beta and modest volatility
- Robust balance sheet enabling continued dividend payments
Key Metrics & Analysis
Financial Health
Revenue Growth6.70%
Profit Margin7.57%
P/E Ratio15.2
ROE8.58%
ROA4.99%
Debt/Equity0.13
P/B Ratio1.2
Op. Cash Flow¥111.0B
Free Cash Flow¥20.6B
Industry P/E30.6
Technical Analysis
TrendBullish
RSI63.6
Support¥3,450.00
Resistance¥3,924.00
MA 20¥3,682.85
MA 50¥3,332.33
MA 200¥3,004.07
MACDBearish
VolumeStable
Fear & Greed Index89.86
Valuation
Fair Value¥2,257.11
Target Price¥3,580.00
Upside/Downside-5.09%
GradeFair
TypeBlend
Dividend Yield2.65%
Risk Assessment
Beta0.43
Volatility33.08%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.