Intelligent Wave Inc. (4847) AI Stock Analysis

• Market Cap: ¥25.10B
• Dividend Yield: 3.7%
• Average Volume (3M): 74.86K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.80
• Revenue Growth: 6.02%
• EPS Growth: -11.83%
• Country: JP
• Employees: 476
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 5.34
• Shares Outstanding: 26,340,000
• 10 Day Avg. Volume: 41,000
• 30 Day Avg. Volume: 74,856
• PEG Ratio: -4.44
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 7.40
• 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): 11,976.33
• Revenue Forecast (FY): ¥2.77T

• Rating: 65 Neutral
• Price Target: ¥1,040.00 ▲(1.96% Upside)

Intelligent Wave Inc. has a strong financial foundation with consistent growth and effective cash management, which is the most significant factor supporting its stock score. However, technical indicators suggest bearish momentum, which weighs down the overall score. The valuation is reasonable but not compelling enough to offset the technical weaknesses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling Intelligent Wave Inc. to invest in growth opportunities and withstand economic fluctuations.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and provides a stable foundation for sustainable growth and investment.

Negative Factors

Earnings Growth Decline

A decline in earnings growth can signal potential challenges in maintaining profitability, affecting future financial performance and investor confidence.

Gross Profit Margin Pressure

Decreasing gross profit margins may indicate rising costs or pricing pressures, which could impact profitability if not managed effectively.

Free Cash Flow Volatility

Volatility in free cash flow can affect the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Intelligent Wave Inc. Business Overview & Revenue Model

Company Description

Intelligent Wave Inc. provides system development services and system products in Japan and internationally. The company's technology is used primarily in online transaction processing systems for credit cards. It offers financial system solutions, including NET+1, a software product for handling online transactions over networks; ACEPlus system that detects fraudulent card payments in real time and minimizes the risk of fraudulent transactions; and EoM, an IP flow monitoring solution for broadcasting industry. It also provides security products, such as CWAT, a multidimensional information security software platform combating information leaks and preventing critical data extrusion by centrally monitoring and controlling network and terminal operations within a company. In addition, the company sells hardware products. The company was incorporated in 1984 and is headquartered in Tokyo, Japan. Intelligent Wave Inc. is a subsidiary of Dai Nippon Printing Co., Ltd.

How the Company Makes Money

Intelligent Wave Inc. generates revenue through multiple streams. Primarily, the company earns money by selling its network solutions and cybersecurity products to enterprise clients, which include software licenses, hardware sales, and subscription services. Additionally, the company provides consulting and integration services, helping organizations implement and optimize their network infrastructures. Key partnerships with telecommunication firms and technology providers enhance its market reach and enable the company to offer comprehensive solutions. Furthermore, recurring revenue from ongoing maintenance and support contracts contributes significantly to its earnings, ensuring a stable income flow.

Intelligent Wave Inc. Financial Statement Overview

Summary

Intelligent Wave Inc. exhibits strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company demonstrates effective cash flow management, although some fluctuations in free cash flow growth require attention. The low leverage and strong equity position provide a stable financial foundation.

Income Statement

Intelligent Wave Inc. has demonstrated consistent revenue growth over the years, with a recent growth rate of 3.201%. The company maintains strong profitability metrics, including a healthy gross profit margin and net profit margin. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the slight decline in gross profit from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is strong, showcasing effective utilization of shareholder funds. The equity ratio is healthy, suggesting a stable capital structure. However, the slight increase in total debt warrants monitoring.

Cash Flow

The cash flow statement shows impressive free cash flow growth, highlighting the company's ability to generate cash. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. The free cash flow to net income ratio is also favorable, suggesting good cash management. However, the previous year's negative free cash flow growth indicates potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.60B	15.60B	14.52B	13.37B	11.49B	11.19B
Gross Profit	4.67B	4.67B	4.71B	4.27B	3.70B	3.16B
EBITDA	3.00B	3.33B	3.17B	2.53B	2.35B	1.92B
Net Income	1.35B	1.35B	1.42B	1.17B	1.06B	840.97M
Balance Sheet
Total Assets	18.69B	18.69B	16.85B	13.68B	12.74B	11.14B
Cash, Cash Equivalents and Short-Term Investments	6.43B	6.43B	4.82B	4.69B	4.23B	4.31B
Total Debt	8.83M	8.83M	2.21M	3.42M	6.06M	15.85M
Total Liabilities	9.22B	9.22B	7.62B	4.88B	4.70B	3.57B
Stockholders Equity	9.48B	9.48B	9.22B	8.80B	8.04B	7.57B
Cash Flow
Free Cash Flow	0.00	3.94B	1.21B	1.13B	-52.04M	961.30M
Operating Cash Flow	0.00	4.26B	3.82B	3.12B	1.49B	1.70B
Investing Cash Flow	0.00	-1.60B	-2.68B	-1.91B	-1.52B	-742.98M
Financing Cash Flow	0.00	-1.05B	-1.02B	-448.99M	-350.92M	-292.12M

Intelligent Wave Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1020.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4847, the sentiment is Negative. The current price of 1020 is above the 20-day moving average (MA) of 952.50, above the 50-day MA of 994.72, and below the 200-day MA of 1042.54, indicating a neutral trend. The MACD of -9.70 indicates Negative momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 68.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4847.

Intelligent Wave Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥17.35B	25.17	―	0.18%	31.39%	13.12%
3741	76 Outperform	¥29.53B	21.01	―	1.83%	21.97%	15.89%
3915	68 Neutral	¥26.14B	24.69	―	―	17.93%	91.21%
3694	66 Neutral	¥27.28B	20.45	―	―	6.33%	14.82%
4847	65 Neutral	¥25.10B	19.52	―	3.70%	6.02%	-11.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	52 Neutral	¥119.58B	74.74	―	0.13%	36.42%	28.23%

Intelligent Wave Inc. Corporate Events

Intelligent Wave Inc. Reports Decline in Quarterly Profits but Anticipates Growth

Intelligent Wave Inc. reported a decrease in profits for the three months ending September 30, 2025, despite an increase in net sales. The company’s operating profit, ordinary profit, and net profit all saw significant declines compared to the previous year, indicating potential challenges in managing operational costs or market conditions. However, the company maintains a positive outlook for the fiscal year ending June 30, 2026, with forecasts predicting growth in net sales and profits, suggesting strategic initiatives are in place to improve financial performance.

Intelligent Wave Inc. Strengthens Independence While Collaborating with Parent Company

Intelligent Wave Inc. has announced its relationship with its parent company, Dai Nippon Printing Co., Ltd., which holds a 50.77% voting rights stake. The company emphasizes its independence by appointing outside directors and auditors while maintaining collaborative ties for technological and sales advancements. Measures are in place to ensure fair transactions with the parent company, protecting minority shareholders’ interests.