BROTHER INDUSTRIES, LTD. BRTHY

Information TechnologyOffice EquipmentJapan

Last close 59.84 USD on Nov 1, 2026, +52.2% year to date

Quant rating

Quant rating A Rank 4 of 200 in Information Technology

Growth C 104 of 200
Valuation B 35 of 200
Quality B 32 of 200
Revisions A 16 of 200
Momentum A 8 of 200

Wall Street consensus Buy (2.33)Average target 30.75 USD −48.6%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 7.3B
Enterprise value: 5.8B
52-week range: 31.75 – 60.20
3-year range: 28.75 – 60.20
Dividend yield: 2.11%
Beta (5 years): 0.33
Shares outstanding: 250M
Next earnings: Nov 9, 2026

About the company

Brother Industries Ltd is a Japan-based company mainly engaged in the manufacture and sale of office equipment and supplies. The Company operates in six business segments. The Printing and Solutions segment manufactures and sells communication and printing equipment like printers, multifunction devices and electronic stationery, among others. The Personal and Home segment is engaged in the manufacture and sale of household sewing machines. The Machinery segment manufactures and sells industrial sewing machines, garment printer, machine tools, reducers and gears, among others. The Network and Contents segment is involved in the manufacture, sale and service of commercial karaoke equipment, as well as the provision of contents delivery services. The Domino segment is engaged in the manufacture and sale of industrial printing equipment. The Others segment is involved in the real estate business.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	5,630	5,846	5,439	6,140	5,844	–
Revenue growth	−3.7%	7.5%	−11.4%	5.1%	2.4%	−0.3%
EPS (basic, normalized)	1.71	1.47	0.80	1.13	1.81	–
EPS growth	16.1%	85.1%	−29.5%	−37.5%	–	–
Gross margin	42.5%	43.5%	43.2%	39.2%	43.2%	42.3%
Net margin	7.0%	6.2%	3.8%	4.8%	8.6%	6.1%
ROE	8.6%	8.1%	5.0%	6.8%	11.7%	8.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	1,501
Current ratio	3.46x
Long-term debt (mil)	1.2
Net debt (mil)	−1,496
Total equity (mil)	4,968
Net debt / equity	−0.30x
Net debt / EBITDA	−1.81x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	5,630	−3.7%	1.0x	825	−4.1%	7.0x	1.71	+16.1%	35.0x
2027	6,219	+10.5%	0.9x	1,089	+31.9%	5.3x	2.41	+40.5%	24.9x
2028	6,347	+2.1%	0.9x	1,047	−3.9%	5.5x	2.05	−14.9%	29.2x
2029	6,560	+3.4%	0.9x	1,093	+4.4%	5.3x	2.20	+7.3%	27.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	6,219	+1.1%	+5.1%	+7.7%	2.41	+6.9%	+26.6%	+39.2%
2028	6,347	+1.2%	+4.3%	+7.9%	2.05	+3.8%	+10.7%	+18.2%
2029	6,560	+1.2%	+5.1%	+5.7%	2.20	+4.5%	+13.3%	+9.8%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	210,164	214,718	212,510	231,531	217,799	213,070	224,707	223,235	232,452	253,344
Sales mean (mil)	204,117	207,633	208,950	221,600	220,080	210,400	214,350	236,100	217,962	222,700
Surprise	+3.0%	+3.4%	+1.7%	+4.5%	−1.0%	+1.3%	+4.8%	−5.4%	+6.6%	+13.8%
EPS reported	−58.57	64.62	45.48	87.07	17.09	45.98	65.40	94.14	62.89	201.34
EPS mean	22.00	–	–	69.60	32.60	61.90	61.10	69.60	47.00	58.00
Surprise	−366.2%	–	–	+25.1%	−47.6%	−25.7%	+7.0%	+35.3%	+33.8%	+247.1%

Peer comparison Office Equipment

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
BRTHY BROTHER INDUSTRIES, LTD.	7.3B	−1.81x	7.0%	1.42x	24.9x	29.2x	5.3x	5.5x
SHMXY Shimadzu Corporation	8.4B	−1.48x	10.8%	2.25x	10.7x	9.9x	11.3x	10.2x
RICOY Ricoh Company, Ltd.	6.5B	1.06x	2.1%	0.91x	–	–	–	–
TCGGY Tecan Group AG	3.8B	–	−12.5%	2.72x	6.5x	5.5x	21.8x	19.2x
PBI Pitney Bowes Inc.	2.2B	2.80x	7.6%	−2.65x	9.9x	9.7x	6.8x	7.0x
KNCAY KONICA MINOLTA, INC.	2.1B	–	3.0%	0.60x	–	–	–	–
Mean		0.14x	3.0%	0.87x	13.0x	13.6x	11.3x	10.5x
Median		−0.21x	5.0%	1.16x	10.3x	9.8x	9.0x	8.6x

Technical analysis

1M−0.6%
3M+22.5%
1Y+73.9%
3Y+114.4%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, BROTHER INDUSTRIES, LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	5,630	5,846	5,439	6,140	5,844	5,707
Cost of revenue	3,235	3,301	3,090	3,733	3,318	3,118
Gross profit	2,394	2,545	2,348	2,407	2,526	2,589
Selling, general & administrative expenses	1,719	1,863	1,702	1,801	1,679	1,728
Research & development	–	–	–	–	–	–
Depreciation/amortization	148	164	147	151	152	155
Interest expense (income), operating	8.5	11.8	−18.4	−13.9	−0.2	2.1
Unusual expense (income)	28.4	37.4	177	27.0	−21.9	307
Other operating expenses	−0.6	2.8	−1.1	−3.7	−7.3	−0.2
Operating income	491	466	342	445	724	396
Net interest income (expense)	27.3	34.1	7.4	−14.6	−12.2	−5.6
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−1.4	−2.0	−2.4	−1.9	−1.7	−2.4
Net income before taxes	516	498	347	429	710	388
Provision for taxes	122	133	138	135	205	165
Minority interest	−0.1	−0.1	−0.1	0	−4.0	−1.2
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	394	365	209	294	502	222
Extraordinary items	31.7	–	–	–	–	–
Net income	426	365	209	294	502	222
EBIT, normalized	528	515	501	459	702	706
EBITDA, normalized	846	865	812	776	1,017	1,047
Basic EPS, normalized	1.71	1.47	0.80	1.13	1.81	–

Balance sheet in millions of USD, fiscal years

Balance sheet, BROTHER INDUSTRIES, LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	1,299	1,186	1,146	968	1,466	1,799
Receivables	1,025	1,029	968	1,005	931	900
Total inventory	1,474	1,513	1,374	1,673	1,394	1,086
Prepaid expenses	110	83.4	79.4	83.9	71.1	68.8
Other current assets	172	16.9	13.8	124	56.9	19.7
Total current assets	4,079	3,828	3,581	3,854	3,919	3,873
Property, plant & equipment	1,125	1,188	1,192	1,156	1,136	1,161
Goodwill	382	358	350	533	652	685
Intangibles	234	281	293	327	348	383
Long-term investments	209	230	223	249	323	386
Note receivable	–	–	–	–	–	–
Other long-term assets	389	334	283	285	289	232
Total assets	6,419	6,220	5,922	6,405	6,667	6,720
Liabilities
Accounts payable	371	401	324	435	405	307
Payable/accrued	–	–	–	–	–	–
Accrued expenses	370	375	365	379	407	424
Short-term debt	2.5	0	0	117	0	0
Current portion of long-term debt	52.1	61.0	60.8	224	230	241
Other current liabilities	473	386	352	360	434	397
Total current liabilities	1,268	1,223	1,102	1,516	1,475	1,368
Long-term debt	129	161	188	163	321	516
Minority interest	25.7	0.5	0.5	0.5	0.5	150
Other liabilities	188	225	216	233	258	321
Total liabilities	1,610	1,609	1,507	1,912	2,055	2,356
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	121	128	127	145	158	174
Additional paid-in capital	114	120	118	134	147	159
Retained earnings (accumulated deficit)	4,146	4,085	3,862	4,278	4,561	4,604
Treasury stock	−137	−22.6	−22.8	−26.6	−44.6	−22.4
Other equity	565	300	331	−37.4	−209	−551
Total equity	4,809	4,611	4,415	4,493	4,612	4,364
Total liabilities & shareholders' equity	6,419	6,220	5,922	6,405	6,667	6,720

Cash flow statement in millions of USD, fiscal years

Cash flow statement, BROTHER INDUSTRIES, LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	516	498	347	429	710	388
Depreciation, depletion & amortization	324	351	314	321	318	346
Deferred taxes	–	–	–	–	–	–
Non-cash items	−9.0	−10.7	151	37.5	15.3	284
Changes in working capital	−138	−238	120	−678	−450	−30.4
Cash from operations	694	600	932	109	594	987
Investing activities
Capital expenditures	−277	−314	−314	−320	−295	−249
Other investing cash flows	6.5	−6.9	35.8	77.4	−40.6	22.0
Cash from investing	−271	−321	−278	−242	−335	−227
Financing activities
Financing cash flow items	−12.2	−0.1	0	−0.1	−139	−2.3
Cash dividends paid	−160	−171	−115	−132	−135	−134
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−172	−59.9	−292	−144	−262	−533
Cash from financing	−344	−231	−407	−276	−536	−669
Foreign exchange effects	78.3	−4.2	64.3	41.7	87.4	112
Net change in cash	157	44.2	311	−368	−190	204
Free cash flow	416	286	618	−211	299	738

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.