ITbook Holdings Co., Ltd. (1447) AI Stock Analysis

• Market Cap: ¥6.28B
• Dividend Yield: N/A
• Average Volume (3M): 55.87K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.10
• Revenue Growth: 2.32%
• EPS Growth: 126.46%
• Country: JP
• Employees: 2,384
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.45
• Shares Outstanding: 24,446,959
• 10 Day Avg. Volume: 57,770
• 30 Day Avg. Volume: 55,870
• PEG Ratio: 0.38
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -200.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥280.00 ▲(3.70% Upside)

The overall stock score reflects a mix of positive technical momentum and significant financial challenges. While the stock shows short-term bullish trends, the company's financial health is concerning due to profitability issues and high leverage. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Recurring Revenue Model

A recurring revenue model provides a stable income stream, enhancing predictability and reducing volatility in financial performance.

Strategic Partnerships

Partnerships expand service capabilities and market reach, potentially leading to increased customer acquisition and retention.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, supporting long-term profitability.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Inconsistent Cash Flows

Negative free cash flow can constrain operational flexibility and investment capacity, impacting long-term growth prospects.

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and competitive positioning, potentially affecting future profitability.

ITbook Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

ITbook Holdings Co.,Ltd., through its subsidiaries, provides IT consulting services in Japan. It offers consulting services related to ICT, and system development and maintenance operations; sells software and hardware; and provision of introduction/dispatch of human resources to public and private enterprises, such as government agencies, independent administrative agencies, local governments, and others. The company also engages in ground survey and improvement work; and the provision of guarantee services for safety of houses, as well as implements ground and inspection systems for enhancing the value of housing properties. In addition, it manufactures and sells construction related meteorological observation systems, noise and vibration measurement equipment, and other products to general contractors; and engages in temporary staffing services. Further, the company provides ground improvement projects and ground guarantees through diagnosis of existing structures; and disaster prevention services. ITbook Holdings Co., Ltd. was founded in 2018 and is based in Tokyo, Japan.

How the Company Makes Money

ITbook Holdings generates revenue through multiple streams, primarily by providing IT consulting services, selling enterprise software licenses, and offering cloud-based solutions. The company charges clients for implementation, maintenance, and support services, creating a recurring revenue model. Additionally, strategic partnerships with technology providers and system integrators enable ITbook to enhance its service offerings and reach a broader client base. The combination of these revenue models, along with a focus on innovation and customer satisfaction, contributes significantly to the company's earnings.

ITbook Holdings Co., Ltd. Financial Statement Overview

Summary

ITbook Holdings Co., Ltd. faces operational and financial challenges, with mixed performance across its financial statements. The company shows strengths in revenue scale but struggles with profitability and high leverage. Cash flow inconsistencies further complicate its financial health, suggesting a need for strategic financial management to improve stability and growth prospects.

Income Statement

The income statement shows mixed performance. The gross profit margin has been relatively stable over the years, but the company has experienced fluctuations in net income, moving from a positive to a negative net profit margin in the latest period. Revenue growth has been inconsistent, with a decline in recent years. The EBIT and EBITDA margins indicate operational challenges, as they have decreased alongside revenues. Overall, while there are strengths in revenue scale, profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The return on equity is volatile due to fluctuating net income. The equity ratio has been stable but remains low, suggesting limited asset backing by equity. These factors point to financial stability concerns, despite some positive movements in shareholder equity in recent periods.

Cash Flow

Cash flow analysis shows challenges with free cash flow, which has been negative in recent years, although improvements are noted in operating cash flow. The operating cash flow to net income ratio suggests that cash flows are more stable than net income figures, yet free cash flow growth remains weak, highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.05B	28.86B	29.27B	30.53B	26.29B	22.83B
Gross Profit	7.31B	7.16B	7.57B	7.81B	6.65B	6.51B
EBITDA	1.19B	1.02B	1.33B	1.39B	393.32M	579.65M
Net Income	-42.19M	-129.00M	183.14M	162.49M	-766.06M	-358.00M
Balance Sheet
Total Assets	18.92B	17.00B	18.05B	16.77B	18.23B	15.29B
Cash, Cash Equivalents and Short-Term Investments	6.73B	3.11B	4.99B	3.79B	5.78B	3.89B
Total Debt	11.46B	9.48B	10.07B	8.86B	11.14B	8.20B
Total Liabilities	16.18B	14.15B	14.93B	13.79B	15.80B	12.28B
Stockholders Equity	2.60B	2.65B	2.90B	2.63B	1.87B	2.87B
Cash Flow
Free Cash Flow	21.05M	-41.00M	123.27M	-427.94M	-231.57M	-1.51B
Operating Cash Flow	116.07M	305.00M	572.27M	369.40M	129.30M	-795.55M
Investing Cash Flow	-168.60M	-1.65B	-5.13M	-498.71M	-601.40M	-1.12B
Financing Cash Flow	-315.11M	-405.00M	925.15M	-1.84B	2.11B	2.54B

ITbook Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1447, the sentiment is Positive. The current price of 270 is above the 20-day moving average (MA) of 251.45, above the 50-day MA of 247.78, and above the 200-day MA of 268.94, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1447.

ITbook Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥8.11B	11.22	―	3.16%	14.02%	2.74%
3847	76 Outperform	―	―	―	2.02%	5.24%	-3.32%
3799	73 Outperform	¥9.48B	9.06	―	4.16%	4.52%	51.81%
3940	72 Outperform	¥6.26B	15.68	―	2.43%	2.92%	-0.94%
2488	69 Neutral	¥8.02B	12.84	―	2.78%	13.58%	20.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	60 Neutral	¥6.28B	29.86	―	―	2.32%	126.46%

ITbook Holdings Co., Ltd. Corporate Events

SAAF Holdings Forms Strategic Alliance with Jibannet Holdings

SAAF Holdings Co., Ltd. has announced a comprehensive business alliance with Jibannet Holdings Co., Ltd. to enhance digital twin and spatial information technology capabilities. This partnership aims to expand the use of 3D surveying services and digital twin solutions across various industries, including construction, urban planning, and cultural heritage preservation, thereby strengthening both companies’ market positions and operational capabilities.

The most recent analyst rating on (JP:1447) stock is a Hold with a Yen288.00 price target. To see the full list of analyst forecasts on ITbook Holdings Co., Ltd. stock, see the JP:1447 Stock Forecast page.