IPS, Inc. (4390) AI Stock Analysis

• Market Cap: ¥38.89B
• Dividend Yield: 1.33%
• Average Volume (3M): 145.98K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.01
• Revenue Growth: -1.74%
• EPS Growth: -11.45%
• Country: JP
• Employees: 557
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 50.32
• Shares Outstanding: 12,966,800
• 10 Day Avg. Volume: 88,910
• 30 Day Avg. Volume: 145,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,130.00
• Price Target Upside: 4.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,130.00 ▲(4.37% Upside)

IPS, Inc. has a solid overall score driven by strong financial growth and stability, with reasonable valuation metrics. The stock shows strong bullish momentum but is slightly overbought, indicating potential volatility. The lack of recent earnings call or notable corporate events reduces additional insights into its future outlook.

IPS, Inc. Business Overview & Revenue Model

Company Description

IPS, Inc. (4390) is a company that specializes in providing innovative packaging solutions and services. Operating within the manufacturing and packaging sectors, IPS, Inc. offers a variety of products designed to meet the diverse needs of its clients, including sustainable and customizable packaging options.

How the Company Makes Money

IPS, Inc. generates revenue through the sale of its packaging products and services to a broad range of industries, including food and beverage, consumer goods, and pharmaceuticals. The company leverages key partnerships with suppliers and distributors to enhance its market reach and efficiency. Additionally, IPS, Inc. may engage in long-term contracts with major clients, providing recurring revenue streams and contributing to its overall financial stability.

IPS, Inc. Financial Statement Overview

Summary

IPS, Inc. shows strong revenue growth and a stable balance sheet with an improvement in equity position. However, profitability margins are under pressure, and cash flow volatility, particularly in Free Cash Flow, indicates a need for better cash management.

Income Statement

IPS, Inc. has demonstrated strong growth in revenue, with a notable increase from ¥6.5 billion in 2020 to ¥15.3 billion in 2025. The Gross Profit Margin consistently improved, reaching 54.23% in 2025, indicating efficient cost management. However, the Net Profit Margin decreased from 20.60% in 2024 to 16.67% in 2025, reflecting some pressure on profitability despite revenue growth. Overall, the company shows robust growth with room for improving net profitability.

Balance Sheet

IPS, Inc. has a solid equity position, with stockholders' equity growing from ¥3.9 billion in 2020 to ¥15.5 billion in 2025. The Debt-to-Equity Ratio is 0.65 as of 2025, indicating a balanced leverage profile. The Equity Ratio improved to 36.95% in 2025, suggesting a stable financial structure. However, the rising debt levels may pose a risk if not managed well, especially given the increase in Total Debt over the years.

Cash Flow

The Free Cash Flow has been volatile, turning negative in recent years, which is a concern despite positive Operating Cash Flow of ¥704 million in 2025. The company needs to stabilize its cash flow generation to support long-term investments and debt obligations. The Operating Cash Flow to Net Income Ratio improved, signaling better cash conversion, yet Free Cash Flow remains a challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.26B	15.26B	14.12B	12.35B	10.73B	9.52B
Gross Profit	8.28B	8.28B	7.08B	5.83B	4.12B	3.66B
EBITDA	5.44B	5.44B	5.36B	3.76B	3.30B	2.50B
Net Income	2.54B	2.54B	2.83B	2.29B	1.89B	1.49B
Balance Sheet
Total Assets	42.03B	42.03B	33.53B	25.13B	18.42B	11.76B
Cash, Cash Equivalents and Short-Term Investments	3.92B	3.92B	4.23B	6.88B	5.78B	3.63B
Total Debt	10.07B	10.07B	10.10B	6.93B	3.05B	1.96B
Total Liabilities	21.05B	21.05B	18.35B	13.27B	9.29B	5.01B
Stockholders Equity	15.53B	15.53B	11.56B	9.62B	7.50B	5.52B
Cash Flow
Free Cash Flow	13.00M	-551.00M	-5.20B	-2.69B	1.05B	-176.74M
Operating Cash Flow	291.00M	704.00M	-574.00M	2.64B	3.58B	1.64B
Investing Cash Flow	-348.00M	-2.54B	-4.74B	-5.51B	-2.66B	-1.89B
Financing Cash Flow	123.00M	1.38B	2.31B	3.58B	1.07B	1.33B

IPS, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2999.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4390, the sentiment is Positive. The current price of 2999 is above the 20-day moving average (MA) of 2844.95, above the 50-day MA of 2519.20, and above the 200-day MA of 2399.89, indicating a bullish trend. The MACD of 144.78 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 72.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4390.

IPS, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	79 Outperform	¥19.63B	11.96		3.42%	6.35%	3.10%
3934	76 Outperform	¥12.00B	12.49		1.85%	5.84%	27.86%
4390	76 Outperform	¥38.89B	15.25		1.33%	-1.74%	-11.45%
9424	73 Outperform	¥26.02B	28.60		―	27.43%	-5.71%
3776	69 Neutral	¥10.51B	43.48		1.17%	1.95%	-59.39%
9450	66 Neutral	¥14.71B	11.02		3.76%	3.62%	-15.54%
Sector *	60 Neutral	$44.01B	4.39	-12.81%	4.08%	1.86%	-42.71%

IPS, Inc. Corporate Events

IPS, Inc. Announces Major Investment in Submarine Cable to Boost Asian Connectivity

IPS, Inc. has announced a significant capital investment in a new international submarine cable, marking the largest in its history. This strategic initiative aims to broaden its telecommunications business in Asia, enhance economic security, and drive sustainable growth. The project is expected to strengthen IPS’s business foundation and corporate value by contributing to the development of data hubs and AI infrastructure in the region. Additionally, IPS has secured a large order through the provision of partial usage rights, which will help in early recovery of investment funds and continuous revenue generation post-construction.

IPS, Inc. to Receive Dividend from Subsidiary

IPS, Inc. announced it will receive a dividend of US$3.5 million from its consolidated subsidiary, ISMO Pte. Ltd. This dividend will be recorded as non-operating income in the company’s non-consolidated financial results for the fiscal year ending March 31, 2026, with no impact on its consolidated financial results.

IPS, Inc. Announces Reappointment of Directors and Auditors

IPS, Inc. has announced the reappointment of several directors and auditors, including President/CEO Koji Miyashita, at its upcoming 34th Annual General Meeting of Shareholders. This decision reflects the company’s commitment to maintaining its current leadership structure, which may provide stability and continuity in its strategic direction.

IPS, Inc. Advances Strategic Telecommunications Projects in the Philippines

IPS, Inc. has announced its first project to construct a Cable Landing Station (CLS) in Baler, Philippines, through its subsidiary InfiniVAN, Inc. This strategic initiative aims to establish a new communication route connecting Asia with the Pacific Rim, bypassing the geopolitically sensitive South China Sea. The project is expected to attract major global tech companies due to its open access policy and potential to become a hub for international telecommunications. Additionally, IPS, Inc.’s Domestic Telecommunications Business reported significant growth in operating profit for the fiscal year ending March 2025, driven by its core solution services for call center operators.

IPS, Inc. Expands Telecom Ventures in the Philippines

IPS, Inc. is expanding its telecommunications business in the Philippines, aiming to overcome industry barriers and support economic growth through innovative technology. This strategic move is expected to enhance the company’s market position and offer new opportunities for stakeholders in the region.

IPS, Inc. Reports Fiscal Year 2025 Financial Results with Optimistic Outlook

IPS, Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing an 8.1% increase in net sales to ¥15,264 million. Despite a rise in operating profit by 13.3%, ordinary profit and profit attributable to owners of the parent decreased by 8.0% and 10.3% respectively. The company also announced a dividend increase, reflecting a commitment to shareholder returns. The financial outlook for the next fiscal year is optimistic, with expected growth in net sales and profits, indicating a strategic focus on enhancing operational efficiency and market expansion.