Innovation, Inc. (JP:3970)
:3970
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Innovation, Inc.
(3970)
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Rating:48Neutral
Price Target:
¥926.00
▼(-1.38% Downside)
Action:ReiteratedDate:03/24/26
The score is primarily held back by deteriorating financial quality in the latest year (sharp margin compression, higher leverage, and weaker operating cash flow). Technicals also lean weak with the stock below major moving averages and a negative MACD. A high dividend yield provides some support, but a negative P/E tempers valuation confidence.
Positive Factors
Revenue Growth Momentum
Sustained revenue rebound indicates durable demand or successful go-to-market execution. Strong top-line growth provides a base to scale fixed-cost leverage, fund product investment and customer acquisition, and supports medium-term recovery in profitability if cost discipline follows.
Negative Factors
Margin Compression
Sharp net margin decline signals weaker pricing power or rising costs, eroding the firm's ability to convert revenue into sustainable profits. Persistently low margins reduce reinvestment capacity, depress returns on equity and make the business more vulnerable to cost inflation or demand softness.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Sustained revenue rebound indicates durable demand or successful go-to-market execution. Strong top-line growth provides a base to scale fixed-cost leverage, fund product investment and customer acquisition, and supports medium-term recovery in profitability if cost discipline follows.
Read all positive factors
Innovation, Inc. (3970) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.48B
Dividend Yield4.29%
Average Volume (3M)4.07K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth15.64%
EPS Growth-268.60%
CountryJP
Employees157
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-62.92
Shares Outstanding2,762,100
10 Day Avg. Volume4,390
30 Day Avg. Volume4,070
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)0.88
Price to Sales (P/S)0.56
P/FCF Ratio29.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Innovation, Inc. Business Overview & Revenue Model
Company Description
Innovation Inc. provides B2B sales and marketing support services in Japan. It offers online media services; and manages sales materials on cloud. The company also provides IT trends, IT TREND EXPO, bizplay, list finder, Match UP, sales doc., cocr...
Innovation, Inc. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.72B | 5.34B | 4.81B | 4.57B | 4.38B | 3.08B |
| Gross Profit | 2.63B | 2.31B | 2.07B | 2.01B | 2.23B | 1.55B |
| EBITDA | 249.62M | 381.94M | 492.07M | 254.95M | 804.53M | 521.75M |
| Net Income | -105.79M | 67.48M | 244.52M | 62.79M | 448.08M | 293.36M |
Balance Sheet | ||||||
| Total Assets | 7.80B | 8.32B | 4.68B | 3.80B | 3.77B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 3.53B | 3.74B | 3.45B | 2.37B | 2.18B | 2.00B |
| Total Debt | 2.53B | 2.60B | 300.00M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 4.02B | 4.25B | 1.11B | 614.63M | 747.64M | 605.78M |
| Stockholders Equity | 3.10B | 3.39B | 3.53B | 3.16B | 2.98B | 2.51B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 102.65M | 275.36M | -758.00K | 337.81M | 353.62M |
| Operating Cash Flow | 0.00 | 73.06M | 345.30M | 113.19M | 466.46M | 422.79M |
| Investing Cash Flow | 0.00 | -1.70B | 236.38M | -191.93M | -283.61M | -349.17M |
| Financing Cash Flow | 0.00 | 1.92B | 403.47M | 131.49M | -17.00K | 1.25B |
Innovation, Inc. Technical Analysis
Positive
939.00
Price Trends
902.78
Positive
908.31
Positive
936.33
Negative
Market Momentum
2.67
Negative
57.34
Neutral
21.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3970, the sentiment is Positive. The current price of 939 is above the 20-day moving average (MA) of 902.28, above the 50-day MA of 902.78, and above the 200-day MA of 936.33, indicating a neutral trend. The MACD of 2.67 indicates Negative momentum. The RSI at 57.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3970.
Innovation, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥2.84B | 22.68 | ― | 2.86% | 5.74% | 5.97% | |
67 Neutral | ¥2.15B | 7.72 | ― | 2.76% | -9.03% | 53.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥2.14B | 268.52 | ― | ― | 5.05% | -50.80% | |
48 Neutral | ¥2.48B | -3.74 | ― | 4.29% | 15.64% | -268.60% | |
46 Neutral | ¥1.53B | 23.14 | ― | 0.42% | 6.81% | 62.28% | |
44 Neutral | ¥2.29B | -13.32 | ― | ― | -4.07% | 53.47% |
* Technology Sector Average
JP:3970
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180.00
43.00
31.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.