IPS, Inc. (JP:4390)
:4390
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IPS, Inc.
(4390)
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Rating:59Neutral
Price Target:
¥3,068.00
▲(1.25% Upside)
Action:DowngradedDate:03/24/26
The score is held back primarily by weak cash generation (persistently negative and worsening free cash flow) alongside higher leverage and a recent revenue decline. Technicals are also subdued with the stock trading below key moving averages. These risks are partially offset by an attractive valuation (low P/E) and a modest dividend yield.
Positive Factors
Strong profitability and margins
Consistently healthy gross and operating margins with positive net income provide durable earnings power. This margin profile supports reinvestment, dividend capacity and a buffer against cyclicality, helping the business sustain operations and strategic initiatives over months.
Negative Factors
Persistent negative and worsening free cash flow
Chronically negative free cash flow and weak cash conversion mean earnings do not reliably convert to cash, limiting self-funding for capex, dividends, or debt repayment. This structural cash shortfall increases financing dependence and constrains strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Consistently healthy gross and operating margins with positive net income provide durable earnings power. This margin profile supports reinvestment, dividend capacity and a buffer against cyclicality, helping the business sustain operations and strategic initiatives over months.
Read all positive factors
IPS, Inc. (4390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥40.08B
Dividend Yield1.28%
Average Volume (3M)140.12K
Price to Earnings (P/E)8.8
Beta (1Y)1.10
Revenue Growth-7.46%
EPS Growth11.57%
CountryJP
Employees557
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)85.99
Shares Outstanding13,077,900
10 Day Avg. Volume110,180
30 Day Avg. Volume140,120
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)1.78
Price to Sales (P/S)1.81
P/FCF Ratio-50.06
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)294.35
Revenue Forecast (FY)¥20.38B
IPS, Inc. Business Overview & Revenue Model
Company Description
IPS, Inc. provides IT and telecommunications services in Japan and the Philippines. The company provides internet connection services; data center services; domestic telecommunications services comprising toll free services, service for MVNO busin...
IPS, Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.03B | 15.26B | 14.12B | 12.35B | 10.73B | 9.52B |
| Gross Profit | 8.26B | 8.28B | 7.08B | 5.83B | 4.12B | 3.66B |
| EBITDA | 5.81B | 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 | 41.42B | 42.03B | 33.53B | 25.13B | 18.42B | 11.76B |
| Cash, Cash Equivalents and Short-Term Investments | 3.81B | 3.92B | 4.23B | 6.88B | 5.78B | 3.63B |
| Total Debt | 10.41B | 10.07B | 5.22B | 3.86B | 3.05B | 1.96B |
| Total Liabilities | 21.24B | 21.05B | 18.34B | 13.26B | 9.28B | 5.01B |
| Stockholders Equity | 14.05B | 15.53B | 11.57B | 9.62B | 7.50B | 5.52B |
Cash Flow | ||||||
| Free Cash Flow | 6.50M | -551.00M | -5.20B | -2.69B | 1.05B | -176.74M |
| Operating Cash Flow | 145.50M | 704.00M | -574.00M | 2.64B | 3.58B | 1.64B |
| Investing Cash Flow | -174.00M | -2.54B | -4.74B | -5.51B | -2.66B | -1.89B |
| Financing Cash Flow | 61.50M | 1.38B | 2.31B | 3.58B | 1.07B | 1.33B |
IPS, Inc. Technical Analysis
Positive
3030.00
Price Trends
3063.66
Positive
3106.44
Positive
2944.54
Positive
Market Momentum
-43.82
Positive
54.00
Neutral
47.02
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 3030 is below the 20-day moving average (MA) of 3056.08, below the 50-day MA of 3063.66, and above the 200-day MA of 2944.54, indicating a bullish trend. The MACD of -43.82 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.02 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥18.26B | 13.52 | ― | 3.53% | 5.03% | -9.55% | |
75 Outperform | ¥9.42B | 12.83 | ― | 3.85% | 1.75% | 24.87% | |
66 Neutral | ¥21.52B | 23.11 | ― | ― | 30.15% | 31.28% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥464.99B | 19.63 | 15.67% | 1.31% | 12.48% | 18.38% | |
59 Neutral | ¥40.08B | 8.81 | ― | 1.28% | -7.46% | 11.57% | |
59 Neutral | ¥14.63B | 37.44 | ― | 1.01% | 17.19% | -43.91% |
* Communication Services Sector Average
JP:4390
IPS, Inc.
3,065.00
1,031.03
50.69%
JP:3774
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2,580.00
-80.84
-3.04%
JP:3776
Broadband Tower, Inc.
238.00
105.62
79.79%
JP:3834
ASAHI Net, Inc.
653.00
-24.87
-3.67%
JP:9424
Japan Communications Inc.
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-12.00
-8.51%
JP:9445
Forval Telecom, Inc.
562.00
141.52
33.66%
IPS, Inc. Corporate Events
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...
IPS Unit InfiniVAN Leases Key Philippine Cable Assets to Build East–West Digital Corridor
Mar 11, 2026
IPS, Inc.’s Philippine subsidiary InfiniVAN has signed a 15‑year, renewable long-term lease with the Bases Conversion and Development Authority for the Poro Point submarine cable landing station and the Luzon Bypass Infrastructure, sec...
IPS Expands Philippine Submarine Cable Footprint Ahead of Open-Access Telecom Reforms
Feb 6, 2026
IPS, Inc. outlined its expanding role in Asia-Pacific digital infrastructure, highlighting participation in the 8,000 km Candle international submarine cable connecting Japan, the Philippines, and Singapore, scheduled to start commercial service i...
IPS Posts Higher Nine-Month Earnings and Confirms Full-Year Forecast, Stable Dividend
Feb 6, 2026
IPS, Inc. reported consolidated net sales of ¥11.7 billion for the nine months ended December 31, 2025, up 4.4% year on year, with operating profit rising 15.0% to ¥3.7 billion and profit attributable to owners of parent increasing 12.5%...
IPS Completes Corrective Measures After Unauthorized IP Phone Number Use, Strengthens Governance at Subsidiary
Jan 13, 2026
IPS, Inc. announced that it has submitted a report to Japan’s National Police Agency and the Ministry of Internal Affairs and Communications detailing preventive measures following an incident of unauthorized use of an IP phone number suppli...
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.