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

• Market Cap: ¥10.16B
• Dividend Yield: N/A
• Average Volume (3M): 55.87K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.04
• Revenue Growth: 2.32%
• EPS Growth: 126.46%
• Country: JP
• Employees: 2,384
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 7.06
• 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: ¥428.00 ▲(58.52% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

Overall score is held back primarily by mixed financial performance (profitability deterioration, high leverage, and negative recent free cash flow). Technicals are supportive due to strong trend and momentum, but overbought signals raise near-term risk. Valuation is a notable headwind given the high P/E and no dividend yield data.

Positive Factors

Diversified omnichannel retail brands

Owning established retail formats (B2S, OfficeMate) and selling via both physical stores and digital channels provides durable revenue diversification. This omnichannel model supports customer retention, cross-selling, and resilience to shifts in consumer buying patterns over months.

Stable gross margin

A relatively stable gross margin implies consistent product sourcing, pricing discipline and some pricing power in core categories. That stability cushions earnings against revenue swings and supports long‑term margin recovery if top line stabilizes.

Improving operating cash flow

Improving operating cash flow indicates core retail operations are generating more cash than before, enhancing the company's ability to fund working capital and service obligations. If sustained, this trend can underpin liquidity even while investment and FCF remain strained.

Negative Factors

High financial leverage

Significant leverage reduces financial flexibility and increases vulnerability to interest rate rises or weaker sales. High debt burdens can force prioritization of debt service over reinvestment, constraining strategic initiatives and raising default risk in adverse conditions.

Negative free cash flow

Persistent negative free cash flow undermines the firm's ability to self‑fund inventory, capex and debt reduction. Over multiple quarters this forces reliance on external financing or asset sales, which can dilute returns and increase refinancing risk during stress periods.

Profitability deterioration and volatile revenue

A shift to negative net margin and falling EBIT/EBITDA margins signal structural pressure on profitability. Coupled with inconsistent revenue growth, this reduces predictability of earnings, weakens return on capital, and complicates long‑term planning and investment decisions.

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

Mixed fundamentals: relatively stable gross margin, but profitability deteriorated to a negative net margin in the latest period, with inconsistent revenue growth and weakening EBIT/EBITDA margins. Balance sheet leverage is high (elevated debt-to-equity) and equity backing is low, increasing risk. Cash flow shows some operating improvement, but recent negative free cash flow remains a concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 270 is below the 20-day moving average (MA) of 426.10, below the 50-day MA of 353.96, and below the 200-day MA of 282.15, indicating a neutral trend. The MACD of 15.32 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 28.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥8.98B	12.48	―	3.16%	14.02%	2.74%
4396	76 Outperform	¥26.23B	16.07	―	1.70%	22.25%	31.88%
4442	73 Outperform	¥9.66B	16.05	―	0.95%	9.36%	-1.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	60 Neutral	¥10.16B	16.22	―	―	2.32%	126.46%
3657	50 Neutral	¥11.32B	-16.09	―	5.03%	3.97%	63.06%
5255	41 Neutral	¥7.31B	-13.85	―	―	-29.41%	79.74%