Internetworking & Broadband Consulting Co., Ltd. (3920) AI Stock Analysis

• Market Cap: ¥5.44B
• Dividend Yield: 1.21%
• Average Volume (3M): 11.81K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.57
• Revenue Growth: 10.06%
• EPS Growth: 62.77%
• Country: JP
• Employees: 81
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -4.56
• Shares Outstanding: 5,751,600
• 10 Day Avg. Volume: 9,980
• 30 Day Avg. Volume: 11,813
• PEG Ratio: 0.22
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 8.01
• 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: ¥1,120.00 ▲(11.89% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial performance, with high profitability and solid cash flow supporting the business. Valuation is supportive with a reasonable P/E and modest dividend yield. Technicals are mixed: the stock remains above major moving averages, but negative MACD signals weakening near-term momentum.

Positive Factors

High margins and improved profitability

Sustained gross margin near 77% and a stronger net margin (~17%) indicate durable pricing power and efficient cost structure in services. These margins underpin persistent cash generation, support reinvestment and cushioning against pricing pressure over the medium term.

Strong cash generation and FCF conversion

Operating cash flow materially exceeds reported earnings and FCF conversion is roughly one-to-one with net income, evidencing reliable cash generation. This reduces financing dependence and supports capex, M&A or shareholder returns over multiple years.

Improving balance sheet and solid ROE

Low and declining leverage with a strong equity base and ~18% ROE signals prudent capital management and effective use of equity. This resilience lowers solvency risk and preserves capacity for strategic investments without materially increasing financial risk.

Negative Factors

Modest revenue growth

Top-line expansion in the low single-digits may limit long-term scalability in a competitive IT services market. Modest organic growth requires either higher-margin product launches, service diversification, or larger contract wins to materially accelerate earnings growth.

Small employee base limits scale

A workforce of ~81 suggests limited scale to expand sales coverage, R&D and delivery simultaneously. Smaller headcount increases key-person risk and can restrict the firm's ability to compete for large enterprise deals or rapidly scale service offerings.

Limited forward guidance / investor visibility

Persistent absence of formal guidance or substantive public updates reduces visibility into future performance and can mask execution risks. For longer-term investors, limited disclosure can hinder planning and raise governance or strategic clarity concerns.

Internetworking & Broadband Consulting Co., Ltd. Business Overview & Revenue Model

Company Description

Internetworking & Broadband Consulting Co., Ltd. (3920) specializes in providing comprehensive consulting services focused on the development and optimization of broadband and networking solutions. The company operates in the telecommunications sector, offering expertise in network architecture, broadband deployment strategies, and digital transformation initiatives. Their core products and services include network design consulting, performance optimization, and strategic planning for businesses looking to enhance their connectivity solutions.

How the Company Makes Money

The company generates revenue primarily through consulting fees charged for its expert services in network design and broadband solutions. Key revenue streams include project-based consulting contracts, retainer agreements with ongoing clients, and revenue from strategic partnerships with technology providers and telecom operators. Additionally, Internetworking & Broadband Consulting Co., Ltd. may earn income through workshops, training programs, and seminars designed to educate clients on best practices in networking and broadband technologies. The firm’s reputation and expertise in the industry help attract clients from various sectors, contributing to its overall earnings.

Internetworking & Broadband Consulting Co., Ltd. Financial Statement Overview

Summary

Strong income statement quality (high gross margin ~77% and improved net margin ~17%) with healthy EBIT/EBITDA margins supports profitability. Balance sheet leverage is moderate and improved (debt-to-equity ~0.35) with solid ROE (~18%). Cash flow conversion is strong (operating cash flow to net income ~1.71) and free cash flow remains supportive.

Income Statement

The company has shown strong revenue growth with a 5.03% increase in the latest year. Gross profit margin is robust at 76.94%, indicating efficient cost management. Net profit margin improved significantly to 17.08%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 24.24% and 25.79%, respectively, showcasing operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 0.35, indicating a solid reduction in leverage. The equity ratio stands at 60.79%, reflecting a strong equity base. Return on equity is commendable at 18.06%, highlighting effective use of shareholder funds. Overall, the balance sheet shows a stable financial position with reduced financial risk.

Cash Flow

Operating cash flow to net income ratio is strong at 1.71, indicating good cash generation relative to earnings. Free cash flow to net income ratio is nearly 1, showing efficient conversion of earnings to cash. The company has demonstrated consistent free cash flow growth, enhancing its financial flexibility.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.40B	2.18B	1.90B	1.50B	2.01B
Gross Profit	1.85B	1.59B	1.34B	1.02B	1.27B
EBITDA	620.09M	352.43M	200.80M	27.82M	358.46M
Net Income	410.71M	251.57M	70.37M	-17.55M	197.05M
Balance Sheet
Total Assets	3.74B	3.33B	3.26B	3.26B	3.26B
Cash, Cash Equivalents and Short-Term Investments	2.41B	1.97B	1.62B	1.41B	1.31B
Total Debt	801.49M	852.44M	963.35M	1.08B	1.12B
Total Liabilities	1.47B	1.34B	1.44B	1.42B	1.51B
Stockholders Equity	2.27B	1.99B	1.83B	1.83B	1.75B
Cash Flow
Free Cash Flow	696.33M	306.84M	399.62M	317.01M	420.84M
Operating Cash Flow	701.47M	354.42M	431.64M	342.79M	446.44M
Investing Cash Flow	-125.50M	164.52M	-76.36M	-199.38M	-319.74M
Financing Cash Flow	-88.05M	-165.96M	-139.86M	-42.20M	-50.66M

Internetworking & Broadband Consulting Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1001.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3920, the sentiment is Positive. The current price of 1001 is above the 20-day moving average (MA) of 926.30, above the 50-day MA of 964.38, and above the 200-day MA of 961.39, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3920.

Internetworking & Broadband Consulting Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4076	80 Outperform	¥4.97B	9.22	―	4.35%	8.71%	23.46%
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.26B	27.15	―	1.61%	7.03%	1.01%
3920	74 Outperform	¥5.44B	14.34	―	1.21%	10.06%	62.77%
3625	65 Neutral	¥4.79B	9.99	―	1.20%	26.70%	93.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4398	60 Neutral	¥5.91B	31.61	―	1.04%	-3.46%	-59.98%

Internetworking & Broadband Consulting Co., Ltd. Corporate Events

Internetworking & Broadband Consulting Highlights Q1 FY2026 Results and IT Reliability Focus

Internetworking & Broadband Consulting Co., Ltd. released presentation materials for its first-quarter financial results for the fiscal year ending September 2026, dated 13 February 2026. The disclosure emphasizes its mission of reducing IT障害, or IT failures, to zero, underscoring a strategic focus on reliability and continuity in IT operations for customers.

While detailed financial figures are not disclosed in the provided text, the timing and structure of the materials suggest a routine quarterly update to investors and stakeholders. The reiterated mission around eliminating IT disruptions indicates that the company continues to position itself as a specialist in IT stability, which is likely central to its value proposition in an increasingly digital and always-on business environment.

The most recent analyst rating on (JP:3920) stock is a Buy with a Yen877.00 price target. To see the full list of analyst forecasts on Internetworking & Broadband Consulting Co., Ltd. stock, see the JP:3920 Stock Forecast page.

IBC posts Q1 loss but maintains forecast and plans higher dividend

Internetworking & Broadband Consulting reported non-consolidated first-quarter results for the fiscal year ending September 2026, with net sales down 11.3% year on year to 371 million yen and a swing to an operating loss of 39 million yen, resulting in a net loss of 25 million yen. Despite the weaker start and a slight decline in total assets and net assets, the equity ratio improved to 65.4%, and the company kept its full-year forecast unchanged, projecting modest sales growth but lower profits while planning to nearly double its annual dividend to 22 yen per share, signaling a continued commitment to shareholder returns.

For the full fiscal year, the company forecasts net sales of 2.7 billion yen, up 12.3%, with operating profit of 610 million yen and profit of 418 million yen, though both are expected to grow at single-digit rates amid profit margin pressure. Management also anticipates a decline in profits at the interim stage compared with the previous year, reflecting cost or investment burdens, but the unchanged guidance and higher dividend outlook suggest confidence in medium-term earnings strength and stable financial footing for stakeholders.

The most recent analyst rating on (JP:3920) stock is a Buy with a Yen1060.00 price target. To see the full list of analyst forecasts on Internetworking & Broadband Consulting Co., Ltd. stock, see the JP:3920 Stock Forecast page.

Internetworking & Broadband Consulting Co., Ltd. Reports Robust Financial Growth

Internetworking & Broadband Consulting Co., Ltd. has reported significant financial growth, with its stock price almost doubling and market capitalization increasing by 86.1% in the fiscal year ending September 2025. The company’s return on equity and return on invested capital have both exceeded industry averages, indicating strong profitability and effective capital management.

The most recent analyst rating on (JP:3920) stock is a Buy with a Yen1210.00 price target. To see the full list of analyst forecasts on Internetworking & Broadband Consulting Co., Ltd. stock, see the JP:3920 Stock Forecast page.

Internetworking & Broadband Consulting Co., Ltd. Reports Strong Financial Growth for FY 2025

Internetworking & Broadband Consulting Co., Ltd. reported significant financial growth for the fiscal year ending September 2025, with a 15% increase in net sales and a notable rise in profit margins. The company’s decision to exclude its subsidiary from consolidation has led to a more streamlined financial reporting process, potentially impacting its operational focus and stakeholder interests.

The most recent analyst rating on (JP:3920) stock is a Buy with a Yen1210.00 price target. To see the full list of analyst forecasts on Internetworking & Broadband Consulting Co., Ltd. stock, see the JP:3920 Stock Forecast page.