ITFOR Inc. (4743) AI Stock Analysis

• Market Cap: ¥45.10B
• Dividend Yield: 3.28%
• Average Volume (3M): 76.46K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.61
• Revenue Growth: -3.21%
• EPS Growth: 8.89%
• Country: JP
• Employees: 592
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.95
• Shares Outstanding: 27,911,900
• 10 Day Avg. Volume: 57,510
• 30 Day Avg. Volume: 76,460
• PEG Ratio: 2.21
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 17.16
• 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: 81 Outperform
• Price Target: ¥1,991.00 ▲(15.49% Upside)

The score is driven primarily by strong financial quality (high and improving margins, rising ROE, and zero debt), supported by constructive technical momentum. Valuation is reasonable with a solid dividend yield, while the main watch items are the slight FY2025 revenue dip and weaker cash conversion versus net income.

Positive Factors

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances financial stability, allowing the company to invest in growth opportunities without the burden of interest payments.

Profitability and Margins

Improving margins indicate better cost management and pricing power, which can lead to sustained profitability and competitive advantage in the long term.

Strategic Acquisitions

Acquiring new subsidiaries can enhance market position and diversify revenue streams, supporting long-term growth and resilience against market fluctuations.

Negative Factors

Revenue Decline

A decline in revenue, even if slight, can indicate potential challenges in market demand or competitive pressures, affecting future growth prospects.

Cash Flow Weakness

Weak cash conversion relative to net income suggests potential issues with working capital management, which could impact liquidity and investment capacity.

Operating Income Decline

A significant drop in operating income may indicate operational inefficiencies or increased costs, which could hinder profitability and strategic initiatives.

ITFOR Inc. Business Overview & Revenue Model

Company Description

ITFOR Inc. provides support services for the implementation of information technology in Japan. It develops solutions comprising consulting, system configuration, customer specific solution development, operation, and management for network security. The company also offers financial solution systems, such as credit collection, loan assessment management, scoring, collecting, tele-marketing, and local governments systems; CTI systems that offer call-center productivity enhancements; consultation and installation of open platform for retail service customers; and e-commerce systems. In addition, it provides network systems, including corporate infrastructure network, backbone network consultation and design, IP services, edge solutions for telecom carriers, network security solutions, and personal information management; and professional and consultation services, as well as customer services. The company was formerly known as CJK Co. Ltd. and changed its name to ITFOR Inc. in 2000. ITFOR Inc. was founded in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ITFOR Inc. generates revenue through multiple streams, primarily focusing on software development and system integration services. The company earns money by developing custom software solutions tailored to the specific needs of their clients across various industries. Additionally, ITFOR Inc. provides system integration services, where they design and implement IT systems that integrate different software and hardware components to work seamlessly together. Consulting services also contribute to their revenue, as they offer expert advice and strategic planning to help organizations optimize their IT infrastructure. Key partnerships with technology providers and industry leaders further enhance their ability to deliver comprehensive solutions, thereby bolstering their revenue model.

ITFOR Inc. Financial Statement Overview

Summary

ITFOR Inc. demonstrates robust financial health with significant revenue growth and strong profitability metrics. The company boasts an impressive balance sheet with no debt, enhancing financial stability. However, the absence of recent cash flow data slightly tempers this positive outlook, though past cash flow performance is solid.

Income Statement

ITFOR Inc. demonstrates strong financial performance with consistent revenue growth, achieving a 20.59% increase in revenue from 2022 to 2023 and maintaining a healthy gross profit margin of approximately 37.4% in TTM (Trailing-Twelve-Months). The EBIT margin stands at 16.67%, reflecting effective cost management, and the net profit margin of 12.40% indicates solid profitability. Consistent growth in revenue and profitability metrics signals a robust financial health.

Balance Sheet

The company exhibits exceptional balance sheet strength with no debt, resulting in a Debt-to-Equity Ratio of 0, which minimizes financial risk. The Return on Equity (ROE) is an impressive 13.75%, showcasing effective utilization of equity to generate profits. An equity ratio of 83.42% further highlights a strong capital structure and financial stability.

Cash Flow

Cash flow analysis reveals a stable free cash flow position, although the lack of reported figures for the TTM period hinders a comprehensive analysis. The previous year's operating cash flow to net income ratio was reasonable at 1.02, indicating effective conversion of income into cash. However, the absence of TTM cash flow data presents a limitation in evaluating recent cash flow performance.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.87B	20.55B	20.65B	18.32B	17.02B	16.29B
Gross Profit	7.62B	7.87B	7.75B	6.73B	6.16B	5.39B
EBITDA	3.69B	4.02B	4.12B	3.63B	3.39B	2.53B
Net Income	2.72B	2.91B	2.77B	2.29B	2.11B	1.68B
Balance Sheet
Total Assets	23.06B	23.95B	24.00B	21.67B	20.01B	18.69B
Cash, Cash Equivalents and Short-Term Investments	13.71B	12.73B	13.96B	13.10B	12.74B	10.67B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.39B	4.91B	5.16B	4.50B	4.40B	4.59B
Stockholders Equity	18.67B	19.04B	18.84B	17.17B	15.61B	14.09B
Cash Flow
Free Cash Flow	0.00	2.33B	2.43B	1.17B	2.45B	2.42B
Operating Cash Flow	0.00	2.61B	2.84B	1.71B	2.81B	2.73B
Investing Cash Flow	0.00	-2.51B	-504.35M	-758.78M	-353.47M	-429.13M
Financing Cash Flow	0.00	-2.67B	-1.62B	-744.37M	-544.86M	-526.60M

ITFOR Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1724.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4743, the sentiment is Positive. The current price of 1724 is above the 20-day moving average (MA) of 1704.40, above the 50-day MA of 1657.90, and above the 200-day MA of 1512.72, indicating a bullish trend. The MACD of 21.19 indicates Positive momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4743.

ITFOR Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	81 Outperform	¥45.10B	16.32	―	3.28%	-3.21%	8.89%
9739	76 Outperform	¥37.96B	11.09	―	3.38%	-0.10%	-19.50%
3916	72 Outperform	¥41.11B	17.64	―	2.45%	19.04%	30.67%
8275	68 Neutral	¥30.56B	15.92	―	2.51%	8.88%	2.72%
9742	66 Neutral	¥39.65B	31.73	―	2.77%	-2.93%	-30.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ITFOR Inc. Corporate Events

ITFOR Inc. Announces Interim Dividend and Revises Year-End Forecast

ITFOR Inc. has announced an interim dividend of ¥30 per share, with a record date of September 30, 2025, and has revised its year-end dividend forecast to ¥50 per share, resulting in a total annual dividend of ¥80 per share. This decision aligns with the company’s policy of maintaining a consolidated dividend payout ratio of 50% and a total return ratio of at least 70%, reflecting a positive outlook on its financial performance and commitment to shareholder returns.

ITFOR Inc. Reports Decline in Half-Year Financials but Projects Future Growth

ITFOR Inc. reported a decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 4.1% and operating income dropping by 23.6% compared to the previous year. Despite the downturn, the company remains optimistic about its future, forecasting a 13.9% increase in net sales and a 16.1% rise in operating income for the fiscal year ending March 31, 2026, indicating potential recovery and growth.