Information Planning Co., Ltd. (3712) AI Stock Analysis

• Market Cap: ¥18.59B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.68K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.37
• Revenue Growth: 6.39%
• EPS Growth: 6.38%
• Country: JP
• Employees: 142
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 127.22
• Shares Outstanding: 4,090,000
• 10 Day Avg. Volume: 1,110
• 30 Day Avg. Volume: 1,680
• PEG Ratio: 2.79
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 42.78
• 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: 74 Outperform
• Price Target: ¥6,048.00 ▼(-4.76% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily supported by strong financial performance, especially exceptional margins and a fortress balance sheet with minimal leverage. This is tempered by inconsistent cash flow conversion and a mixed-to-weak near-term technical picture (below key short-term moving averages). Valuation appears reasonable but not notably cheap based on the P/E and dividend yield.

Positive Factors

High profitability

Sustained, very high gross and operating margins reflect strong pricing power and a scalable software model. Durable margins support reinvestment, dividend capacity and allow the firm to absorb demand swings while maintaining strong cash generation potential over the medium term.

Conservative balance sheet

Near-zero leverage and steadily growing equity create a financial fortress that reduces bankruptcy risk and preserves strategic optionality. Low debt supports flexibility for M&A, R&D or dividend policy and improves resilience through industry cycles over the next several quarters.

Steady revenue scale

Consistent top-line expansion indicates product-market fit in enterprise software and a growing customer base. Revenue scale underpins fixed-cost leverage that helps sustain high margins and supports long-term investments in product development and customer support.

Negative Factors

Volatile cash conversion

Periodic weakness in converting earnings to operating cash suggests working-capital swings or timing differences that reduce cash reliability. This variability can limit the company’s ability to consistently fund buybacks, dividends or opportunistic investments without drawing on reserves.

Weaker free cash flow share

FCF representing a modest share of net income implies higher reinvestment needs or cash tied up in operations. Over time this constrains discretionary spending and reduces the cushion available for debt repayment, acquisitions, or shareholder distributions.

Uneven growth

Inconsistent annual growth patterns suggest sensitivity to contract timing, project cycles or concentrated customers. This makes revenue forecasting and resource planning harder, increasing execution risk for scaling initiatives and potentially amplifying margin volatility in coming quarters.

Information Planning Co., Ltd. Business Overview & Revenue Model

Company Description

Information Planning CO., LTD. provides system consulting services primarily for financial institutions. It offers credit risk solutions, including comprehensive financial statement reading, financial analysis/loan decision support, collateral real estate evaluation management, corporate rating, sole proprietor rating, self-assessment support, credit risk qualification and asset calculation systems, as well as bad debt record rate calculation and receivable write-off reserve management systems. The company also provides loan-related and customer management solutions, such as loan approval support, contract create support, electronic contract, business evaluation support, management plan formulation support, sale support, sales branch support, and general approval support systems; and general affairs/accounting related solutions comprising fixed asset management, financial settlement support, investment management, expense payment administrative support systems. In addition, it engages in the real estate leasing and management activities; and provision of development, planning, and system data input agency services. Information Planning CO., LTD. was incorporated in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Information Planning Co., Ltd. makes money primarily through its IT services and solutions. The company's revenue model includes income from contracts for custom software development and system integration projects, where businesses pay for tailored IT solutions. Additionally, the company generates revenue through long-term outsourcing agreements, providing ongoing IT support and services to clients. Consulting services also contribute to its earnings, with fees charged for expertise in IT strategy and implementation. Partnerships with technology vendors may also enhance the company's offerings, potentially leading to additional revenue streams.

Information Planning Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by excellent profitability (high gross margin ~65% and EBIT margin ~40%) and a very conservative balance sheet with near-zero leverage and steadily growing equity. The main constraint is cash flow quality: free cash flow is positive but volatile, and operating cash flow fell below net income in the latest year, indicating uneven cash conversion.

Income Statement

Revenue has grown steadily over time (from 3.04B in 2020 to 3.84B in 2025), with the latest annual growth accelerating versus 2024. Profitability is a key strength: gross margin remains very high (~65%) and operating profitability is exceptional with EBIT margin around ~40% and EBITDA margin ~43% in 2025, alongside a strong net margin (~28%). The main weakness is that growth has been uneven year-to-year (notably modest in 2024), even though margins stayed resilient.

Balance Sheet

The balance sheet is very conservative with effectively no debt in most years (and a very small amount in 2022), resulting in near-zero leverage and low financial risk. Equity has expanded meaningfully (about 4.49B in 2020 to 6.95B in 2025), supporting asset growth. Returns on equity are consistently solid (~15–18%), though slightly lower in 2025 versus prior peaks, suggesting profitability is strong but not accelerating at the same pace as equity growth.

Cash Flow

Operating cash flow is consistently positive and generally tracks earnings, but conversion is not uniform: operating cash flow was below net income in 2023 and 2025 (coverage under 1.0), indicating periods of weaker cash realization. Free cash flow is positive each year but volatile (e.g., very strong in 2021–2022, then materially lower in 2024–2025), and free cash flow as a share of net income is modest in the latest year (~39%), pointing to higher reinvestment needs or working-capital swings.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.84B	3.61B	3.53B	3.23B	3.15B
Gross Profit	2.51B	2.41B	2.33B	2.02B	1.95B
EBITDA	1.66B	1.55B	1.49B	1.31B	1.32B
Net Income	1.08B	1.01B	964.22M	862.12M	868.67M
Balance Sheet
Total Assets	8.42B	7.52B	6.72B	7.14B	6.42B
Cash, Cash Equivalents and Short-Term Investments	2.85B	2.72B	2.66B	3.26B	2.46B
Total Debt	0.00	0.00	0.00	78.23M	0.00
Total Liabilities	1.46B	1.31B	1.23B	1.48B	1.33B
Stockholders Equity	6.95B	6.21B	5.50B	5.66B	5.09B
Cash Flow
Free Cash Flow	448.31M	340.56M	626.82M	1.15B	771.65M
Operating Cash Flow	1.15B	1.21B	680.53M	1.18B	806.18M
Investing Cash Flow	-684.34M	-839.94M	-92.81M	-73.02M	-98.22M
Financing Cash Flow	-332.91M	-302.43M	-1.21B	-301.83M	-267.66M

Information Planning Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3712, the sentiment is Negative. The current price of 6350 is above the 20-day moving average (MA) of 5759.50, above the 50-day MA of 6133.20, and above the 200-day MA of 5732.99, indicating a bearish trend. The MACD of -305.25 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 33.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3712.

Information Planning Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥21.88B	16.24	―	3.86%	0.50%	17.15%
3835	75 Outperform	¥19.44B	17.06	―	3.14%	0.50%	-2.92%
3712	74 Outperform	¥18.59B	14.08	―	1.81%	6.39%	6.38%
3648	74 Outperform	¥21.15B	10.37	―	2.40%	21.57%	129.44%
3853	70 Outperform	¥20.58B	19.00	―	0.82%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥12.34B	56.91	―	―	14.63%	-760.87%

Information Planning Co., Ltd. Corporate Events

Information Planning Posts Strong Q1 Profit Growth and Boosts Dividend Forecast

Information Planning Co., Ltd. reported strong growth for the first quarter of the fiscal year ending September 30, 2026, with net sales rising 15.5% year-on-year to ¥1,138 million and operating profit increasing 19.0% to ¥516 million. Ordinary profit climbed 19.1% to ¥517 million, while profit attributable to owners of parent jumped 27.4% to ¥384 million, driving basic earnings per share up to ¥127.22. Despite a slight decrease in total assets to ¥8,202 million from ¥8,416 million at the previous fiscal year-end, net assets increased to ¥7,155 million and the capital adequacy ratio improved to a robust 87.2%, indicating a stronger financial base. The company maintained a dividend of ¥55.00 per share for the second quarter of the previous fiscal year and is forecasting an increased second-quarter dividend of ¥60.00 per share for the current fiscal year, signaling confidence in its earnings strength and commitment to shareholder returns.

The most recent analyst rating on (JP:3712) stock is a Buy with a Yen7225.00 price target. To see the full list of analyst forecasts on Information Planning Co., Ltd. stock, see the JP:3712 Stock Forecast page.