I'LL Inc. (3854) AI Stock Analysis

• Market Cap: ¥54.98B
• Dividend Yield: 1.93%
• Average Volume (3M): 85.06K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.47
• Revenue Growth: 11.45%
• EPS Growth: 28.42%
• Country: JP
• Employees: 938
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 36.57
• Shares Outstanding: 25,042,528
• 10 Day Avg. Volume: 76,480
• 30 Day Avg. Volume: 85,063
• PEG Ratio: 0.89
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 3.61
• P/FCF Ratio: 21.04
• 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): 150
• Revenue Forecast (FY): ¥21.00B

• Rating: 84 Outperform
• Price Target: ¥3,002.00 ▲(16.99% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by strong financial quality: expanding revenue over the long term, materially improved margins, and an exceptionally low-risk balance sheet with no debt and strong ROE. Technicals are supportive in the near term (above 20/50-day averages with positive MACD), but mixed versus the 100-day average. Valuation is reasonable (P/E ~17) with a modest dividend yield (~2%), providing support but not a major catalyst.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for products, supporting long-term business expansion.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances flexibility, allowing for strategic investments and resilience.

Profitability

High and improving margins reflect efficient operations and strong pricing power, contributing to sustainable profitability.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder strategic planning and investment, posing challenges in maintaining consistent financial health.

Revenue Growth Volatility

Uneven revenue growth suggests potential demand fluctuations, which could impact long-term strategic planning and stability.

Change in Shareholder Structure

Changes in shareholder structure can introduce uncertainty, affecting governance and strategic direction over the long term.

I'LL Inc. Business Overview & Revenue Model

Company Description

I'LL inc. provides system and Web solutions in Japan. It also offers Web ordering system for B2B; multiple online shop centralized management ASP service; customer centralized management software solution; and staff management cloud system. The company was incorporated in 1991 and is headquartered in Osaka, Japan.

How the Company Makes Money

I'LL Inc. generates revenue through several streams, primarily from its IT services and consulting offerings. The company earns money by providing customized cloud solutions and system integration services, allowing clients to optimize their technology infrastructure. Additionally, IT consulting services contribute to its revenue, where strategic advice and implementation support are offered to improve client business processes. Key partnerships with technology providers and a diverse client portfolio across different industries further bolster its financial performance.

I'LL Inc. Financial Statement Overview

Summary

Strong and improving profitability with consistently high gross margins (~52–56%) and materially higher net/EBIT margins by 2025 (net ~18%, EBIT ~25%). Balance sheet is exceptionally conservative with effectively no debt (2022–2025) and strong ROE (~24–32%). Cash flow is solid and improving over time, but shows some year-to-year volatility and revenue growth has been uneven.

Income Statement

Revenue has expanded strongly over the period (up from ~¥12.7B in 2020 to ~¥19.3B in 2025), and profitability has improved materially: gross margin is consistently high (~52–56%) while net margin rose from ~9–11% (2020–2022) to ~18% in 2025. Operating profitability also strengthened, with EBIT margin reaching ~25% in 2025. The main weakness is growth volatility (a small revenue decline in 2022 and a sharp slowdown in 2024), suggesting demand can be uneven despite the strong longer-term trajectory.

Balance Sheet

The balance sheet is exceptionally conservative with effectively no debt in recent years (debt-to-equity at 0.0 from 2022–2025), reducing financial risk and interest-rate sensitivity. Equity has compounded meaningfully (from ~¥3.7B in 2020 to ~¥11.3B in 2025), and returns on equity are consistently strong (~24–32%), indicating efficient profitability relative to shareholder capital. A minor limitation is that with no leverage, future ROE expansion relies more on continued operating execution than capital structure benefits.

Cash Flow

Cash generation is solid and improving: operating cash flow increased from ~¥2.1B (2020) to ~¥3.4B (2025) and free cash flow is very strong in 2025 (~¥3.3B). Cash conversion is healthy, with operating cash flow exceeding net income in 2023–2025 and free cash flow nearly matching net income in 2025. The key weakness is volatility—2022 showed weaker cash coverage and free cash flow, and 2024 free cash flow declined year over year—so cash generation can fluctuate even when earnings are rising.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	19.29B	17.51B	15.92B	12.94B	13.20B
Gross Profit	10.66B	9.77B	8.68B	6.74B	6.14B
EBITDA	5.21B	4.46B	4.05B	2.69B	2.35B
Net Income	3.49B	2.89B	2.47B	1.38B	1.22B
Balance Sheet
Total Assets	15.77B	14.15B	12.12B	9.58B	8.45B
Cash, Cash Equivalents and Short-Term Investments	7.50B	6.66B	5.64B	3.64B	3.45B
Total Debt	0.00	0.00	0.00	0.00	15.00M
Total Liabilities	4.48B	4.47B	4.37B	3.86B	3.86B
Stockholders Equity	11.29B	9.68B	7.74B	5.72B	4.59B
Cash Flow
Free Cash Flow	3.31B	2.03B	2.53B	652.34M	1.66B
Operating Cash Flow	3.37B	2.64B	3.07B	1.13B	2.03B
Investing Cash Flow	-546.11M	-712.69M	-547.41M	-482.29M	-216.21M
Financing Cash Flow	-2.08B	-901.93M	-526.21M	-465.64M	-551.79M

I'LL Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2566.00
• 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:3854, the sentiment is Negative. The current price of 2566 is above the 20-day moving average (MA) of 2351.65, above the 50-day MA of 2443.63, and above the 200-day MA of 2553.29, indicating a bearish trend. The MACD of -35.41 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3854.

I'LL Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3854	84 Outperform	¥54.98B	16.68	―	1.93%	11.45%	28.42%
3915	68 Neutral	¥20.68B	9.96	―	―	17.93%	91.21%
3993	68 Neutral	¥97.80B	29.14	8.26%	―	28.88%	27.51%
4475	68 Neutral	¥30.88B	27.58	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥16.26B	8.71	―	―	―	―
4180	56 Neutral	¥78.59B	42.73	―	0.18%	25.88%	80.30%

I'LL Inc. Corporate Events

I’LL Inc. Reports Strong Q3 Financial Results and Dividend Increase

I’LL Inc. reported a significant increase in its consolidated financial results for the three months ending October 31, 2025, with net sales rising by 11.3% and operating profit increasing by 23.4% compared to the previous year. The company also announced a forecasted increase in annual dividends for the fiscal year ending July 31, 2026, indicating strong financial health and a commitment to returning value to shareholders.

I’LL Inc. Announces Change in Controlling Shareholder Structure

I’LL Inc. announced a change in its controlling shareholder structure, as President and Representative Director Tetsuo Iwamoto sold a portion of his shares through the Tokyo Stock Exchange’s ToSTNeT-2 system, resulting in him no longer qualifying as a controlling shareholder other than the parent company. This change, effective December 9, 2024, does not significantly impact the company’s management structure or business performance.