infoNet Inc. (4444) AI Stock Analysis

• Market Cap: ¥1.82B
• Dividend Yield: N/A
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 5.17%
• EPS Growth: -148.66%
• Country: JP
• Employees: 129
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -24.50
• Shares Outstanding: 2,047,343
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥916.00 ▲(3.27% Upside)

infoNet Inc.'s strong financial performance is a key strength, supported by robust revenue growth and efficient cash flow management. However, the stock faces significant challenges in technical analysis, with bearish momentum and oversold indicators. Additionally, the negative P/E ratio and lack of dividend yield present valuation concerns. These factors collectively result in a moderate overall stock score.

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. (4444) is a leading technology company specializing in information management solutions and data analytics. Operating primarily within the IT services and software development sectors, infoNet provides a range of products including cloud-based data storage systems, cybersecurity services, and customized software applications tailored to meet the needs of various industries such as healthcare, finance, and retail. With a focus on innovation and customer-centric solutions, infoNet aims to empower businesses to harness the power of their data for better decision-making and operational efficiency.

How the Company Makes Money

infoNet Inc. generates revenue through a diverse range of streams. Its primary source of income comes from subscription fees for its cloud-based services, which provide clients with scalable data storage and analytics capabilities. Additionally, the company earns revenue from consulting services, where experts assist organizations in optimizing their information management systems. Custom software development projects contribute another significant revenue stream, as clients commission tailored solutions to address specific operational challenges. infoNet has established strategic partnerships with major cloud service providers, enhancing its service offerings and expanding its market reach, further driving its earnings potential. Furthermore, the company benefits from ongoing maintenance and support contracts, which provide recurring revenue and foster long-term client relationships.

infoNet Inc. Financial Statement Overview

Summary

infoNet Inc. exhibits strong financial health with impressive revenue growth and efficient cash flow management. The company maintains a solid balance sheet with moderate leverage and effective equity utilization. While profitability margins show some pressure, the overall financial position is stable and supports future growth prospects.

Income Statement

infoNet Inc. has demonstrated strong revenue growth, with a 13.75% increase from 2024 to 2025. The gross profit margin is robust at 42.88%, indicating effective cost management. However, the net profit margin slightly declined to 4.79%, suggesting some pressure on profitability. The EBIT margin of 8.40% and EBITDA margin of 13.62% are healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 55.25%, indicating financial stability. The debt-to-equity ratio is 0.44, showing moderate leverage. Return on equity is 8.47%, suggesting effective use of equity to generate profits. Overall, the balance sheet reflects a solid financial foundation with manageable debt levels.

Cash Flow

infoNet Inc. has shown significant improvement in free cash flow, with a growth rate of 266.45% from 2024 to 2025. The operating cash flow to net income ratio is 2.29, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 2.09, further highlighting efficient cash management. These metrics suggest a strong cash flow position supporting business operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	2.01B	1.77B	1.70B	1.74B	980.42M
Gross Profit	834.69M	862.26M	772.63M	733.37M	592.35M	468.20M
EBITDA	221.86M	273.86M	250.36M	225.19M	33.84M	106.83M
Net Income	25.30M	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	571.00M	595.26M	509.22M	625.43M	577.10M	775.56M
Total Debt	454.00M	500.21M	209.31M	339.82M	493.64M	142.19M
Total Liabilities	834.00M	920.79M	588.47M	682.22M	906.79M	335.20M
Stockholders Equity	1.05B	1.14B	1.04B	930.63M	826.45M	898.35M
Cash Flow
Free Cash Flow	0.00	201.57M	54.99M	178.62M	2.56M	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: 887.00
• 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 887 is below the 20-day moving average (MA) of 913.60, below the 50-day MA of 974.72, and below the 200-day MA of 953.08, indicating a bearish trend. The MACD of -29.78 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 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
3670	65 Neutral	¥2.30B	9.99	―	2.71%	-9.03%	53.70%
9250	63 Neutral	¥1.35B	22.31	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3908	60 Neutral	¥1.36B	9.57	―	―	-10.98%	―
4444	56 Neutral	¥1.82B	-34.29	―	―	5.17%	-148.66%
9240	51 Neutral	¥2.88B	81.75	―	―	1.37%	-78.02%
6555	46 Neutral	¥1.80B	-7.81	―	―	8.27%	-295.89%