IPS Co., Ltd. (4335) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: 3.32%
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.30
• Revenue Growth: 9.68%
• EPS Growth: 25.15%
• Country: JP
• Employees: 147
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 15.03
• Shares Outstanding: 2,466,000
• 10 Day Avg. Volume: 1,630
• 30 Day Avg. Volume: 1,666
• PEG Ratio: 0.51
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 5.91
• 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: 69 Neutral
• Price Target: ―

IPS Co., Ltd. demonstrates strong financial performance with impressive revenue growth and profitability, supported by a solid balance sheet. However, challenges in cash flow management and weak technical indicators slightly offset these strengths. The stock is fairly valued, with an attractive dividend yield, but the lack of positive technical momentum suggests a cautious outlook.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Strength

A strong balance sheet with no debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability Metrics

Healthy profitability metrics demonstrate efficient operations and pricing power, which are crucial for sustaining long-term financial health and shareholder value.

Negative Factors

Cash Flow Management

Challenges in cash flow management can limit the company's ability to fund operations and growth initiatives, potentially impacting long-term financial stability.

Operational Cash Management Issues

Negative operating cash flow relative to net income suggests inefficiencies in converting earnings into cash, which may hinder investment and operational flexibility.

Cash Flow Volatility

Volatile cash flow patterns can create uncertainty in financial planning and investment, potentially affecting the company's ability to sustain growth and meet obligations.

IPS Co., Ltd. Business Overview & Revenue Model

Company Description

IPS Co., Ltd. (4335) is a Japanese company that specializes in providing information technology services and solutions. The company is primarily involved in the development and implementation of systems for various industries, including telecommunications, finance, and manufacturing. IPS Co., Ltd. offers a range of services, including software development, IT consulting, and system integration, helping businesses optimize their operations through innovative technology solutions.

How the Company Makes Money

IPS Co., Ltd. generates revenue through its diverse portfolio of IT services and solutions. The company earns money by offering software development services tailored to the specific needs of its clients across different sectors. Additionally, it provides IT consulting services, guiding businesses in implementing effective technology strategies. System integration services also contribute to the company's earnings, as it helps clients integrate and streamline their IT infrastructure. IPS Co., Ltd. may also engage in strategic partnerships with technology providers to enhance its service offerings and expand its market reach.

IPS Co., Ltd. Financial Statement Overview

Summary

IPS Co., Ltd. shows strong revenue growth with a 28.4% increase and healthy profitability metrics, including a 29.8% gross profit margin and a 7.0% net profit margin. The balance sheet is strong, with zero debt and a high equity ratio of 62.1%. However, cash flow management is a concern, with inconsistent free cash flow generation and a negative operating cash flow to net income ratio.

Income Statement

The income statement reflects strong revenue growth of 28.4% from 2023 to TTM, indicating a positive trajectory. Gross profit margin stands at 29.8% and net profit margin at 7.0% for TTM, demonstrating healthy profitability. EBIT and EBITDA margins of 10.2% and 9.8% respectively further highlight operational efficiency. Overall, the company shows robust growth and solid profitability metrics.

Balance Sheet

IPS Co., Ltd. maintains a strong balance sheet with zero debt and a high equity ratio of 62.1% for TTM, showcasing financial stability. Return on equity at 16.4% indicates effective utilization of equity to generate profits. The company's balance sheet is characterized by a strong liquidity position, supporting its growth ambitions.

Cash Flow

Cash flow analysis reveals challenges with generating consistent free cash flow, as TTM figures are unavailable. Past periods show volatility, with significant free cash flow in 2023 but a decline in 2022. The operating cash flow to net income ratio was negative in the last reported annual period, suggesting potential operational cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	3.73B	3.13B	2.83B	2.73B	2.50B
Gross Profit	1.16B	1.11B	952.58M	919.55M	757.03M	777.66M
EBITDA	416.04M	378.06M	314.19M	312.72M	266.13M	294.13M
Net Income	294.28M	271.97M	226.46M	212.85M	177.59M	185.77M
Balance Sheet
Total Assets	2.67B	2.91B	2.59B	2.28B	1.90B	1.91B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.23B	1.03B	1.19B	795.40M	1.17B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.09B	1.23B	1.10B	951.08M	720.31M	798.38M
Stockholders Equity	1.58B	1.68B	1.48B	1.33B	1.18B	1.11B
Cash Flow
Free Cash Flow	0.00	467.69M	-79.92M	490.50M	-259.07M	872.94M
Operating Cash Flow	0.00	538.81M	-76.37M	492.78M	-257.87M	872.94M
Investing Cash Flow	0.00	-250.92M	-12.38M	-10.55M	8.29M	-171.00K
Financing Cash Flow	0.00	-88.24M	-73.62M	-87.93M	-121.53M	-13.65M

IPS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1154.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4335, the sentiment is Positive. The current price of 1154 is above the 20-day moving average (MA) of 1147.95, above the 50-day MA of 1150.80, and below the 200-day MA of 1164.22, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4335.

IPS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4421	72 Outperform	¥2.75B	10.20	―	3.00%	5.74%	5.97%
4335	69 Neutral	¥2.77B	9.13	―	3.32%	9.68%	25.15%
5868	68 Neutral	¥3.34B	8.15	―	1.16%	14.35%	105.59%
7072	66 Neutral	¥3.97B	26.87	―	―	12.30%	173.54%
3970	66 Neutral	¥2.61B	―	―	4.13%	15.64%	-268.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5618	46 Neutral	¥3.17B	―	―	―	23.63%	64.65%