ITFOR Inc. (4743) AI Stock Analysis

• Market Cap: ¥37.91B
• Dividend Yield: 3.43%
• Average Volume (3M): 46.48K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.59
• Revenue Growth: 1.34%
• EPS Growth: -3.93%
• Country: JP
• Employees: 592
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 45.80
• Shares Outstanding: 27,911,900
• 10 Day Avg. Volume: 50,660
• 30 Day Avg. Volume: 46,483
• PEG Ratio: -4.78
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 80 Outperform
• Price Target: ―

ITFOR Inc. shows a strong financial foundation with notable revenue growth, profitability, and an excellent balance sheet free of debt. While recent cash flow data is missing, historical performance has been solid. The technical analysis suggests moderate strength, and the stock's valuation is attractive with a reasonable P/E and solid dividend yield.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
20.55B	20.65B	18.32B	17.02B	16.29B	15.24B
	Gross Profit
7.68B	7.75B	6.73B	6.16B	5.39B	4.84B
	EBIT
3.43B	3.74B	3.22B	3.03B	2.19B	1.73B
	EBITDA
3.88B	4.12B	3.63B	3.39B	2.53B	2.03B
	Net Income Common Stockholders
2.55B	2.77B	2.29B	2.11B	1.68B	1.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.96B	13.96B	13.10B	12.74B	10.67B	8.85B
	Total Assets
24.35B	24.00B	21.67B	20.01B	18.69B	16.29B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-11.51B	-4.36B	-3.60B	-3.64B	-2.97B	-3.25B
	Total Liabilities
5.52B	5.16B	4.50B	4.40B	4.59B	3.73B
	Stockholders Equity
18.84B	18.84B	17.17B	15.61B	14.09B	12.55B
Cash Flow		Free Cash Flow
0.00	2.43B	1.17B	2.45B	2.42B	1.46B
	Operating Cash Flow
0.00	2.84B	1.71B	2.81B	2.73B	1.88B
	Investing Cash Flow
0.00	-504.35M	-758.78M	-353.47M	-429.13M	-714.65M
	Financing Cash Flow
0.00	-1.62B	-744.37M	-544.86M	-526.60M	-694.13M

ITFOR Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1472.00
• 50DMA: Negative
• 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 1472 is below the 20-day moving average (MA) of 1477.35, above the 50-day MA of 1460.99, and above the 200-day MA of 1381.91, indicating a neutral trend. The MACD of -6.83 indicates Positive momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 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	80 Outperform	¥37.91B	13.50		3.43%	1.34%	-3.93%
9742	71 Outperform	¥33.76B	14.40		3.22%	0.01%	35.72%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
CB4		€212.00M	13.09	7.79%	4.44%	―	―
9739	68 Neutral	¥37.99B	10.38		3.31%	4.53%	-6.57%
3916	67 Neutral	¥39.04B	17.93		2.07%	18.56%	43.88%
8275	66 Neutral	¥32.81B	15.41		2.38%	9.59%	-8.16%

ITFOR Inc. Corporate Events

ITFOR Inc. Announces Share Cancellation to Boost Capital Efficiency

ITFOR Inc. announced the cancellation of 700,000 of its own shares, representing 2.58% of the total issued shares, to improve capital efficiency and strengthen shareholder returns. This strategic move, set to take effect on March 31, 2025, reflects ITFOR’s commitment to optimizing its capital structure in response to its business performance and market conditions.

ITFOR Inc. Completes Share Buyback to Enhance Shareholder Value

ITFOR Inc. has completed the acquisition of its own shares, purchasing a total of 147,400 common shares for approximately ¥208.8 million. This move, conducted through open-market transactions on the Tokyo Stock Exchange, is part of a strategic decision by the company’s Board of Directors to enhance shareholder value.

ITFOR Inc. Announces Share Buyback to Enhance Capital Efficiency

ITFOR Inc. announced a decision by its Board of Directors to acquire 180,000 of its own shares, representing 0.68% of the total issued shares, with the aim of implementing flexible capital policies and improving capital efficiency. This strategic move is expected to enhance the company’s financial management and respond effectively to market changes, potentially impacting shareholder value positively.

ITFOR Inc. Completes Strategic Share Buyback

ITFOR Inc. has completed the acquisition of its own shares, purchasing a total of 523,500 common shares at a cost of ¥722,861,700. This move, executed through open-market transactions on the Tokyo Stock Exchange, reflects the company’s strategic initiative to manage its capital structure and enhance shareholder value.

ITFOR Invests in AI Startup Vacan to Enhance Community Living

ITFOR Inc. has announced an investment in Vacan, Inc., a startup specializing in AI-driven congestion management solutions. This investment aligns with ITFOR’s vision of improving quality of life by reducing waiting times, and it plans to integrate Vacan’s platform into its offerings to regional governments, enhancing community living standards.

ITFOR Inc. Launches Employee Stock Compensation Plan

ITFOR Inc. has announced the implementation of a Restricted Stock Trust (RS Trust) as a part of its stock compensation plan for employees. This initiative is aimed at enhancing employee engagement and aligning their interests with the company’s growth objectives. The plan involves the acquisition of common stock worth approximately 429.9 million yen through treasury stock disposal, with the stock acquisition scheduled for March 4, 2025. This strategic move is expected to solidify ITFOR’s market positioning by fostering a more committed workforce and promoting long-term value creation for stakeholders.

ITFOR Inc. Introduces Stock Compensation Plan to Drive Growth

ITFOR Inc. has announced the disposal of treasury stock to introduce a stock compensation plan for employees, aiming to enhance employee retention and corporate value. The plan is designed to foster a sense of ownership among employees and support sustainable growth, with the disposal expected to have a minor impact on the secondary market.

ITFOR Inc. Reports Financial Results with Stable Outlook Amid Market Challenges

ITFOR Inc. reported its consolidated financial results for the nine months ended December 31, 2024, experiencing a slight decline in net sales and operating income compared to the previous year. Despite the decrease, the company maintains a strong equity-to-total assets ratio, reflecting financial stability, and anticipates moderate growth in net sales and operating income for the full fiscal year. This financial performance indicates ITFOR’s resilience in a challenging market environment, with implications for investors and stakeholders interested in the company’s strategic direction and operational efficacy.