infoNet Inc. (4444) AI Stock Analysis

• Market Cap: ¥1.82B
• Dividend Yield: N/A
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.44
• Revenue Growth: 5.17%
• EPS Growth: -148.66%
• Country: JP
• Employees: 129
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 8.20
• Shares Outstanding: 2,048,043
• 10 Day Avg. Volume: 3,370
• 30 Day Avg. Volume: 5,913
• PEG Ratio: -4.82
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 8.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥948.00 ▲(7.24% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily supported by solid financial performance (strong recent growth and improved free cash flow), tempered by rising leverage and some margin slippage. Technicals are a meaningful drag due to trading below major moving averages with negative MACD, while valuation provides only modest support given the ~26.7 P/E and no dividend yield data.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and ensuring operational resilience.

Balance Sheet Health

A solid balance sheet with moderate leverage indicates financial stability, providing a strong foundation for future growth and risk management.

Negative Factors

Profit Margin Pressure

Declining profit margins may signal challenges in cost management or pricing power, potentially impacting long-term profitability if not addressed.

Earnings Volatility

Significant volatility in earnings per share can indicate instability in earnings quality, affecting investor confidence and long-term valuation.

Profitability Margins

Pressure on profitability margins could limit the company's ability to invest in growth and innovation, affecting competitive positioning over time.

infoNet Inc. Business Overview & Revenue Model

Company Description

infoNet inc. engages in the website and CMS site construction activities in Japan. It is also involved in the system development Hosting and ASP service activities; and advertisement design/printing video production activities. infoNet inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

infoNet Inc. Financial Statement Overview

Summary

Fundamentals are constructive: strong recent revenue growth (FY2025 ~17%, FY2024 ~19%) with healthy gross margin (~43%) and improved free cash flow (~¥202m). Offsetting factors include a dip in net/operating margins in FY2025 versus FY2024, higher leverage (debt-to-equity ~0.44 vs ~0.20 prior year), and historically choppy cash-flow consistency.

Income Statement

Revenue has expanded steadily over the last few years (about 17% growth in FY2025 and ~19% in FY2024), and profitability is solid with FY2025 gross margin ~43% and EBITDA margin ~15%. However, net margin dipped to ~4.8% in FY2025 (from ~5.6% in FY2024) and operating margin also eased, showing some cost pressure versus last year. The business has recovered well from the FY2022 loss year, but margins still look somewhat volatile across the cycle.

Balance Sheet

The balance sheet remains reasonably supported by equity (FY2025 debt-to-equity ~0.44), but leverage increased meaningfully in FY2025 versus FY2024 (~0.20), signaling higher balance-sheet risk and potentially higher interest burden going forward. Returns on equity are positive and fairly healthy (~8–10% in recent years), yet not consistently improving, and the prior downturn (FY2022 negative return on equity) highlights sensitivity if profitability weakens again.

Cash Flow

Cash generation improved notably in FY2025, with operating cash flow of ~¥220m and free cash flow of ~¥202m, and free cash flow covering most of net income (~0.91x), which supports earnings quality. That said, operating cash flow remains modest relative to the balance-sheet debt level (coverage ratio ~0.44 in FY2025), and cash flow has been choppy historically (including negative operating/free cash flow in FY2020 and a sharp drop in FY2022), so consistency is still a watch item.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.00B	2.01B	1.77B	1.70B	1.74B	980.42M
Gross Profit	835.26M	862.26M	772.63M	717.24M	575.11M	463.07M
EBITDA	255.58M	300.63M	268.19M	224.11M	46.35M	101.41M
Net Income	24.63M	96.29M	99.58M	82.25M	-89.98M	59.78M
Balance Sheet
Total Assets	1.88B	2.06B	1.63B	1.61B	1.73B	1.23B
Cash, Cash Equivalents and Short-Term Investments	571.67M	595.26M	509.22M	625.43M	577.10M	775.56M
Total Debt	455.58M	500.21M	209.31M	339.82M	493.64M	142.19M
Total Liabilities	833.88M	920.79M	588.47M	682.22M	906.78M	335.37M
Stockholders Equity	1.05B	1.14B	1.04B	930.63M	826.45M	898.35M
Cash Flow
Free Cash Flow	0.00	201.57M	120.28M	223.17M	14.14M	107.19M
Operating Cash Flow	0.00	220.45M	123.53M	226.13M	23.57M	114.88M
Investing Cash Flow	0.00	-426.59M	-118.18M	-45.97M	-550.20M	-22.92M
Financing Cash Flow	0.00	292.18M	-121.56M	-131.82M	328.17M	67.34M

infoNet Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 884.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4444, the sentiment is Negative. The current price of 884 is below the 20-day moving average (MA) of 912.80, below the 50-day MA of 916.50, and below the 200-day MA of 983.04, indicating a bearish trend. The MACD of -2.63 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 70.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4444.

infoNet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3908	68 Neutral	¥2.02B	33.06	―	―	-10.98%	―
4444	63 Neutral	¥1.82B	26.68	―	―	5.17%	-148.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	61 Neutral	¥1.90B	10.36	―	―	8.27%	-295.89%
9240	51 Neutral	¥2.16B	10.77	―	―	6.61%	12.06%
9250	50 Neutral	¥1.49B	-2.58	―	―	5.17%	―
5247	48 Neutral	¥1.80B	60.02	―	―	15.55%	-114.56%