Information Strategy and Technology Co.,Ltd. (155A) AI Stock Analysis

• Market Cap: ¥12.98B
• Dividend Yield: N/A
• Average Volume (3M): 471.65K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 0.90
• Revenue Growth: 30.13%
• EPS Growth: 9.94%
• Country: JP
• Employees: 321
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 11.78
• Shares Outstanding: 10,508,989
• 10 Day Avg. Volume: 231,500
• 30 Day Avg. Volume: 471,653
• PEG Ratio: -4.27
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 29.68
• 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: 73 Outperform
• Price Target: ¥1,658.00 ▲(79.83% Upside)

The overall stock score of 73 reflects strong financial performance and positive technical indicators, which are somewhat offset by a high valuation. The company's robust financial health and operational efficiency are significant strengths, while the high P/E ratio suggests caution regarding valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, ensuring long-term competitiveness.

Balance Sheet Health

A low Debt-to-Equity Ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities without excessive leverage.

Cash Generation

Strong cash generation supports ongoing operations, strategic investments, and potential debt reduction, enhancing long-term financial health.

Negative Factors

Operating Cash Flow Decline

A decline in Operating Cash Flow may indicate challenges in converting revenue into cash, potentially impacting liquidity and investment capacity.

High Valuation Concerns

A high valuation may limit upside potential and attract scrutiny, potentially impacting investor sentiment and future capital raising efforts.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and investor insight into management's strategic direction and business performance.

Information Strategy and Technology Co.,Ltd. Business Overview & Revenue Model

Company Description

Information Strategy and Technology Co., Ltd. (155A) is a technology firm that specializes in providing innovative IT solutions and strategic consulting services. Operating primarily in the information technology sector, the company focuses on software development, system integration, and data analytics services aimed at enhancing business efficiency and decision-making processes for its clients. With a commitment to leveraging cutting-edge technologies, 155A serves a diverse range of industries, including finance, healthcare, and logistics.

How the Company Makes Money

The company generates revenue through a multi-faceted business model that includes service contracts, project-based income, and recurring subscription fees for its software solutions. Key revenue streams consist of custom software development projects, where clients pay for tailored solutions to meet specific business needs, and system integration services that streamline existing processes. Additionally, Information Strategy and Technology Co., Ltd. offers maintenance and support services on a subscription basis, providing a steady income stream. Strategic partnerships with other technology providers enhance its service offerings and expand its market reach, contributing further to its earnings.

Information Strategy and Technology Co.,Ltd. Financial Statement Overview

Summary

The company demonstrates strong financial performance with impressive revenue growth, solid profit margins, a stable balance sheet with low leverage, and consistent cash flow generation. These factors indicate effective operational management and a strong position in the competitive technology sector.

Income Statement

The company has demonstrated strong revenue growth with a Revenue Growth Rate of 10.38% from 2023 to 2024. The Gross Profit Margin is healthy at 28.63%, and the Net Profit Margin remains robust at 4.67%. EBIT and EBITDA margins are solid at 7.06% and 7.17%, respectively, indicating efficient operations. The company is consistently growing and maintaining profitability, which is impressive given the competitive landscape of the technology sector.

Balance Sheet

The balance sheet is strong with a Debt-to-Equity Ratio of 0.18, reflecting prudent financial management. The Return on Equity has improved significantly to 15.59%, showcasing effective use of equity capital. The Equity Ratio is 62.23%, indicating a well-capitalized structure. However, the company has reduced its total debt, which positively affects its risk profile.

Cash Flow

The company has a solid Free Cash Flow to Net Income Ratio of 0.63, showing efficient cash conversion. Although Operating Cash Flow decreased compared to the previous year, the company managed a Free Cash Flow Growth Rate of 17.47%, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 0.71 suggests stable cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.64B	5.85B	5.30B	4.94B	3.86B
Gross Profit	989.55M	1.67B	1.55B	1.36B	1.05B
EBITDA	176.15M	418.95M	395.79M	325.33M	95.00M
Net Income	80.44M	273.17M	275.45M	285.31M	25.50M
Balance Sheet
Total Assets	4.15B	2.82B	1.84B	1.74B	1.74B
Cash, Cash Equivalents and Short-Term Investments	2.23B	1.84B	1.18B	1.09B	1.22B
Total Debt	1.48B	323.77M	505.17M	701.77M	929.94M
Total Liabilities	2.31B	1.06B	1.12B	1.30B	1.58B
Stockholders Equity	1.84B	1.75B	713.88M	438.43M	155.62M
Cash Flow
Free Cash Flow	0.00	172.07M	285.13M	77.98M	88.79M
Operating Cash Flow	0.00	193.79M	292.20M	92.32M	124.67M
Investing Cash Flow	0.00	-100.77M	-7.33M	30.99M	-14.22M
Financing Cash Flow	0.00	567.96M	-196.60M	-228.16M	-11.09M

Information Strategy and Technology Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 922.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:155A, the sentiment is Neutral. The current price of 922 is below the 20-day moving average (MA) of 1399.10, below the 50-day MA of 1221.38, and above the 200-day MA of 754.23, indicating a neutral trend. The MACD of -4.07 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:155A.

Information Strategy and Technology Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
155A	73 Outperform	¥12.98B	43.44	―	―	30.13%	9.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3908	60 Neutral	¥1.39B	9.67	―	―	-10.98%	―
3803	56 Neutral	¥1.05B	-5.36	―	―	39.34%	-765.51%
3634	54 Neutral	¥1.77B	-37.39	―	0.42%	6.81%	62.28%
4316	54 Neutral	¥4.48B	-20.74	―	―	11.96%	-453.36%