IPS, Inc. (4390) AI Stock Analysis

• Market Cap: ¥29.51B
• Dividend Yield: 1.76%
• Average Volume (3M): 27.92K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.07
• Revenue Growth: 8.12%
• EPS Growth: -11.60%
• Country: JP
• Employees: 557
• Sector: Communication Services
• Sector Strength: 71
• Industry: Telecommunications Services
• EPS (TTM): 9.08
• Shares Outstanding: 12,965,800
• 10 Day Avg. Volume: 19,120
• 30 Day Avg. Volume: 27,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: ¥2,576.00
• Price Target Upside: 13.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥2,550.00 ▲(12.04%Upside)

The overall stock score of 72 reflects IPS, Inc.'s strong financial performance with robust revenue growth and a stable balance sheet. However, challenges in profitability margins and cash flow stability, along with neutral technical indicators, moderate the score. Valuation metrics are favorable, providing some support to the overall assessment.

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. Despite robust revenue increases, profitability margins are under pressure, and cash flow volatility, particularly in Free Cash Flow, needs addressing for improved financial flexibility.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

IPS, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2276.00
• 50DMA: Negative
• 100DMA: Positive
• 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:4390, the sentiment is Negative. The current price of 2276 is above the 20-day moving average (MA) of 2259.25, below the 50-day MA of 2303.74, and below the 200-day MA of 2342.22, indicating a bearish trend. The MACD of -11.67 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥19.07B	10.50		3.52%	6.35%	54.17%
3934	79 Outperform	¥10.30B	12.15		2.16%	-2.46%	13.80%
4390	72 Outperform	¥29.51B	11.55		1.76%	8.12%	-11.60%
9424	69 Neutral	¥27.03B	31.61		―	24.84%	-38.06%
3776	66 Neutral	¥9.34B	24.49		1.32%	4.70%	35.62%
9450	64 Neutral	¥14.08B	10.43		3.93%	-8.55%	-14.28%
Sector *	55 Neutral	HK$68.54B	-1.86	-3.62%	5.63%	-4.09%	-17.08%

IPS, Inc. Corporate Events

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.