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

• Market Cap: ¥7.67B
• Dividend Yield: N/A
• Average Volume (3M): 55.87K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.13
• 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: ¥308.00 ▲(14.07% Upside)

The score is primarily held back by financial performance concerns (weak/negative profitability, high leverage, and negative free cash flow). Technicals are a near-term support with a strong uptrend, but overbought signals add risk. Valuation is a headwind due to a relatively high P/E and no dividend yield data.

Positive Factors

Recurring revenue and partnerships

A recurring revenue model from cloud, maintenance and support services creates predictable multi-period cash inflows and higher customer retention. Strategic partnerships broaden solution set and market reach, supporting sustained commercial expansion and resilience over the next 2–6 months.

Stable gross profit margins

Relatively stable gross margins indicate durable pricing power or consistent cost of goods delivered for core services. That stability provides a foundation for margin recovery at the EBIT/EBITDA level if operating expenses are managed, aiding medium-term profitability turnaround.

Improving operating cash flow

Rising operating cash flow shows core operations are generating more cash even as free cash flow remains negative. Improved cash conversion reduces liquidity risk, gives management flexibility for working capital and investment, and supports deleveraging or strategic initiatives.

Negative Factors

High financial leverage

Significant leverage increases fixed interest obligations and reduces financial flexibility. High debt-to-equity raises refinancing and covenant risks, constrains investment capacity, and magnifies earnings volatility—weakening resilience to adverse demand or margin pressure over months.

Negative free cash flow

Persistently negative free cash flow implies the business consumes cash after capex and is reliant on financing or working capital adjustments. This undermines self-funded growth and elevates dependence on debt or equity, complicating deleveraging and long-term stability.

Deteriorating profitability margins

A move to negative net margins and falling EBIT/EBITDA signals underlying operational or pricing stress. Without margin restoration, profitability weakness will persist, limiting retained earnings for reinvestment and making recovery dependent on structural cost cuts or higher-margin revenue mix.

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: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 276.85, above the 50-day MA of 260.96, and above the 200-day MA of 265.25, indicating a bullish trend. The MACD of 15.31 indicates Negative momentum. The RSI at 80.64 is Negative, neither overbought nor oversold. The STOCH value of 97.84 is Negative, 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	¥8.54B	11.81	―	3.16%	14.02%	2.74%
3799	78 Outperform	¥10.33B	9.87	―	4.16%	4.52%	51.81%
3940	75 Outperform	¥6.26B	15.68	―	2.43%	2.92%	-0.94%
2488	73 Outperform	¥7.82B	12.52	―	2.78%	13.58%	20.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	60 Neutral	¥7.67B	35.06	―	―	2.32%	126.46%