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

• Market Cap: ¥2.83B
• Dividend Yield: 3.24%
• Average Volume (3M): 2.75K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.33
• Revenue Growth: 19.29%
• EPS Growth: 19.76%
• Country: JP
• Employees: 147
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): 42.86
• Shares Outstanding: 2,466,000
• 10 Day Avg. Volume: 3,560
• 30 Day Avg. Volume: 2,746
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• 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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.13B	2.83B	2.73B	2.50B	2.67B
Gross Profit	952.58M	919.55M	757.03M	777.66M	613.48M
EBITDA	314.19M	312.72M	266.13M	294.13M	93.74M
Net Income	226.46M	212.85M	177.59M	185.77M	30.57M
Balance Sheet
Total Assets	2.59B	2.28B	1.90B	1.91B	1.61B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.19B	795.40M	1.17B	307.39M
Total Debt	0.00	0.00	0.00	0.00	1.94M
Total Liabilities	1.10B	951.08M	720.31M	798.38M	680.33M
Stockholders Equity	1.48B	1.33B	1.18B	1.11B	933.01M
Cash Flow
Free Cash Flow	-79.92M	490.50M	-259.07M	872.94M	-48.41M
Operating Cash Flow	-76.37M	492.78M	-257.87M	872.94M	-30.36M
Investing Cash Flow	-12.38M	-10.55M	8.29M	-171.00K	-29.97M
Financing Cash Flow	-73.62M	-87.93M	-121.53M	-13.65M	-28.31M

IPS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1178.00
• 50DMA: Negative
• 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:4335, the sentiment is Positive. The current price of 1178 is above the 20-day moving average (MA) of 1166.85, below the 50-day MA of 1199.71, and above the 200-day MA of 1116.83, indicating a neutral trend. The MACD of -3.20 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 90.28 is Negative, 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
3923	76 Outperform	¥434.24B	46.03		0.19%	25.22%	70.77%
4307	69 Neutral	$3.46T	35.70	23.37%	1.04%	3.28%	16.48%
4335	69 Neutral	¥2.83B	9.89		3.24%	19.29%	19.76%
Sector *	68 Neutral	¥241.22B	15.24	6.62%	2.44%	9.24%	1.58%
4845	57 Neutral	¥7.73B	―		3.79%	-15.71%	65.07%
3994	56 Neutral	€349.55B	―	-18.26%	―	20.96%	-6.20%
4755	56 Neutral	$1.81T	―	-25.86%	―	11.07%	23.91%