IPS, Inc. (JP:4390)
:4390
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IPS, Inc.
(4390)
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Rating:71Outperform
Price Target:
¥3,912.00
▲(29.11% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong reported profitability and an attractive low P/E, but it is meaningfully held back by weak and inconsistent cash generation (negative free cash flow) and rising debt. Technicals are supportive due to strong trend momentum, though overbought indicators add near-term risk.
Positive Factors
Margin expansion & profitability
IPS shows materially improved profitability with gross and net margins expanding into 2026, producing durable earnings power. Higher margins support reinvestment, cover fixed costs and provide a buffer versus competition, improving long-term cash generative potential even if timing varies.
Negative Factors
Negative free cash flow
Persistent negative free cash flow despite accounting profits signals that earnings are not fully converting to cash. This raises reliance on external funding for capex or working capital, constrains flexibility for dividends or debt reduction, and elevates medium-term funding risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & profitability
IPS shows materially improved profitability with gross and net margins expanding into 2026, producing durable earnings power. Higher margins support reinvestment, cover fixed costs and provide a buffer versus competition, improving long-term cash generative potential even if timing varies.
Read all positive factors
IPS, Inc. (4390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥46.33B
Dividend Yield1.28%
Average Volume (3M)140.12K
Price to Earnings (P/E)11.0
Beta (1Y)1.11
Revenue Growth11.37%
EPS Growth63.62%
CountryJP
Employees557
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)196.79
Shares Outstanding13,087,400
10 Day Avg. Volume110,180
30 Day Avg. Volume140,120
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.95
Price to Sales (P/S)2.19
P/FCF Ratio-20.89
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)310.8
Revenue Forecast (FY)¥19.43B
IPS, Inc. Business Overview & Revenue Model
Company Description
Founded in Tokyo, Japan, in 1991, IPS, Inc. delivers a comprehensive suite of information technology and telecommunication services across both Japan and the Philippines. Its primary offerings include internet access, robust data center solutions,...
IPS, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.03B | 17.00B | 15.26B | 14.12B | 12.35B | 10.73B |
| Gross Profit | 8.26B | 9.87B | 8.28B | 7.08B | 5.83B | 4.12B |
| EBITDA | 5.81B | 6.31B | 5.44B | 5.36B | 3.76B | 3.30B |
| Net Income | 2.54B | 4.20B | 2.54B | 2.83B | 2.29B | 1.89B |
Balance Sheet | ||||||
| Total Assets | 41.42B | 50.98B | 42.03B | 33.53B | 25.13B | 18.42B |
| Cash, Cash Equivalents and Short-Term Investments | 3.81B | 3.58B | 3.92B | 4.23B | 6.88B | 5.78B |
| Total Debt | 10.41B | 12.64B | 10.07B | 5.22B | 3.86B | 3.05B |
| Total Liabilities | 21.24B | 25.34B | 21.05B | 18.34B | 13.26B | 9.28B |
| Stockholders Equity | 14.05B | 19.12B | 15.53B | 11.57B | 9.62B | 7.50B |
Cash Flow | ||||||
| Free Cash Flow | 6.50M | -1.79B | -551.00M | -5.20B | -2.69B | 1.05B |
| Operating Cash Flow | 145.50M | 4.58B | 704.00M | -574.00M | 2.64B | 3.58B |
| Investing Cash Flow | -174.00M | -6.92B | -2.54B | -4.74B | -5.51B | -2.66B |
| Financing Cash Flow | 61.50M | 1.87B | 1.38B | 2.31B | 3.58B | 1.07B |
IPS, Inc. Technical Analysis
Neutral
3030.00
Price Trends
3575.02
Negative
3320.67
Positive
3226.97
Positive
Market Momentum
-14.55
Positive
40.43
Neutral
8.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4390, the sentiment is Neutral. The current price of 3030 is below the 20-day moving average (MA) of 3895.50, below the 50-day MA of 3575.02, and below the 200-day MA of 3226.97, indicating a neutral trend. The MACD of -14.55 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 8.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4390.
IPS, Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥544.53B | 22.14 | 15.67% | 1.31% | 9.02% | 21.15% | |
73 Outperform | ¥16.97B | 12.14 | ― | 3.53% | 3.36% | -23.59% | |
71 Outperform | ¥46.33B | 11.01 | ― | 1.28% | 11.37% | 63.62% | |
66 Neutral | ¥16.57B | 49.40 | ― | 1.01% | 14.48% | -12.25% | |
65 Neutral | ¥8.80B | 8.93 | ― | 3.85% | -6.67% | 34.46% | |
63 Neutral | ¥19.02B | 25.02 | ― | ― | 25.92% | -10.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:4390
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IPS, Inc. Corporate Events
IPS, Inc. Sees Minimal Impact from Mindanao Earthquake on Philippine Network Operations
Jun 8, 2026
IPS, Inc. reported that the recent earthquake off the coast of Mindanao in the Philippines caused no injuries to its employees and only limited operational disruption. One communications network site briefly lost commercial power, leading to a tem...
IPS, Inc. Seeks Shareholder Approval to Reappoint Entire Board
May 22, 2026
IPS, Inc. has announced that its board of directors will propose a slate of director candidates for approval at the company’s 35th annual general meeting of shareholders scheduled for June 23, 2026. The proposal centers on the reappointment ...
IPS outlines back-half-weighted outlook and recurring revenue push amid new investments
May 15, 2026
IPS, Inc. has addressed investor questions following the release of its full-year results for the year ended March 2026, outlining its timeline to unveil a new mid-term management plan at its May 2027 earnings briefing and signaling that any mater...
IPS, Inc. builds out Asian submarine cable network to tap Philippine connectivity boom
May 12, 2026
IPS, Inc. is expanding its telecommunications infrastructure portfolio through major submarine cable and landing station projects that enhance connectivity between Japan, the Philippines, and Singapore. Working with global partners and Philippine ...
IPS Beats Profit Forecasts on FX Gains Despite Sales Shortfall
May 8, 2026
IPS, Inc. reported that its consolidated results for the fiscal year ended March 31, 2026, diverged from prior forecasts, with net sales falling short but profits exceeding expectations. Net sales came in at ¥16.999 billion versus a forecast ...
IPS, Inc. Builds Out Philippine Submarine Cable Network and Open-Access Strategy
May 8, 2026
IPS, Inc. highlighted key elements of its submarine cable and network strategy in Asia, centered on the Candle international submarine cable linking Japan, the Philippines, and Singapore, which it is co-building with partners including Meta and So...
IPS, Inc. Delivers Strong Profit Surge and Maintains Dividend as It Targets Further Growth
May 8, 2026
IPS, Inc. posted strong consolidated results for the fiscal year ended March 31, 2026, with net sales rising 11.4% to ¥16,999 million and operating profit climbing 21.7% to ¥5,370 million. Ordinary profit jumped 42.1% to ¥5,787 mill...
IPS unit InfiniVAN to launch Centimo Ventures for Philippine fintech push
Mar 19, 2026
IPS, Inc. is a Japan-listed telecommunications group that develops and operates physical network infrastructure, including domestic fiber-optic networks in the Philippines and international submarine cables. Through its consolidated subsidiary Inf...
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.