Intelligent Wave Inc. (4847) AI Stock Analysis

• Market Cap: ¥29.21B
• Dividend Yield: 2.7%
• Average Volume (3M): 49.18K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.70
• Revenue Growth: 7.50%
• EPS Growth: 0.64%
• Country: JP
• Employees: 476
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 15.80
• Shares Outstanding: 26,340,000
• 10 Day Avg. Volume: 42,130
• 30 Day Avg. Volume: 49,183
• PEG Ratio: 1.66
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.83
• 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: 75 Outperform
• Price Target: ―

Intelligent Wave Inc. has a strong financial foundation with no debt and consistent revenue growth, making it a resilient player in the software infrastructure sector. The technical analysis indicates potential short-term resistance, with the stock trading below key moving averages and showing overbought conditions. The valuation is fair, with a reasonable P/E ratio and an appealing dividend yield. Overall, the company's financial strength and reasonable valuation support an above-average stock score, though technical indicators suggest caution in the short term.

Intelligent Wave Inc. Business Overview & Revenue Model

Company Description

Intelligent Wave Inc. (4847) is a Japanese company operating primarily in the technology sector, specializing in providing software solutions and IT services. The company focuses on developing and delivering financial transaction systems, cybersecurity solutions, and network systems. Its core products and services cater to financial institutions, retail companies, and other enterprises requiring robust IT infrastructure and security solutions.

How the Company Makes Money

Intelligent Wave Inc. makes money through the development and sale of its proprietary software solutions and IT services, primarily targeting the financial sector. The company's revenue streams include licensing fees from its software products, service fees for IT consulting and support, and subscription fees for its cybersecurity solutions. Additionally, Intelligent Wave Inc. engages in strategic partnerships and collaborations with other technology firms to enhance its product offerings and expand its market reach, which also contributes to its revenue.

Intelligent Wave Inc. Financial Statement Overview

Summary

Intelligent Wave Inc. demonstrates strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with no debt. Cash flow management is generally solid, though recent TTM data clarity could be improved. The company is well-positioned in the software infrastructure industry with minimal financial risk.

Income Statement

Intelligent Wave Inc. shows strong profitability with a high gross profit margin of 31.3% and a net profit margin of 9.6% for TTM. Revenue growth is robust, rising from JPY 11,187 million in 2021 to JPY 15,112 million in 2024 TTM, reflecting a consistent upward trajectory. The EBIT margin of 13.5% and EBITDA margin of 17.3% for TTM indicate efficient operational management. These metrics highlight the company's competitive edge in the software infrastructure industry.

Balance Sheet

The balance sheet is solid with no debt, resulting in a zero debt-to-equity ratio, which minimizes financial risk. The equity ratio stands at 54.0%, indicating a strong equity base relative to total assets. Return on equity is healthy at 15.9% for TTM, suggesting effective use of shareholders' investments to generate profit. The company's financial stability is further supported by substantial cash reserves.

Cash Flow

Cash flow analysis reveals positive trends with free cash flow showing significant recovery from negative in 2022 to positive in 2024. The operating cash flow to net income ratio is robust, reflecting strong cash generation relative to profit. However, the absence of reported operating and free cash flow figures in TTM limits comprehensive analysis. Overall, the company maintains a healthy cash flow position, supporting its operational needs and potential growth investments.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
15.11B	14.52B	13.37B	11.49B	11.19B	10.92B
	Gross Profit
4.74B	4.71B	4.27B	3.70B	3.16B	2.98B
	EBIT
2.04B	2.03B	1.56B	1.52B	1.13B	1.04B
	EBITDA
2.91B	3.17B	2.53B	2.35B	1.88B	1.64B
	Net Income Common Stockholders
1.45B	1.42B	1.17B	1.06B	840.97M	762.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.67B	4.82B	4.69B	4.23B	4.31B	3.64B
	Total Assets
16.87B	16.85B	13.68B	12.74B	11.14B	10.55B
	Total Debt
0.00	2.21M	3.42M	6.06M	15.85M	39.29M
	Net Debt
-4.67B	-4.82B	-4.69B	-3.93B	-4.29B	-3.60B
	Total Liabilities
7.75B	7.62B	4.88B	4.70B	3.57B	3.57B
	Stockholders Equity
9.12B	9.22B	8.80B	8.04B	7.57B	6.98B
Cash Flow		Free Cash Flow
0.00	1.21B	1.13B	-52.04M	961.30M	785.86M
	Operating Cash Flow
0.00	3.82B	3.12B	1.49B	1.70B	1.55B
	Investing Cash Flow
0.00	-2.68B	-1.91B	-1.52B	-742.98M	-752.57M
	Financing Cash Flow
0.00	-1.02B	-448.99M	-350.92M	-292.12M	-407.53M

Intelligent Wave Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1112.00
• 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:4847, the sentiment is Positive. The current price of 1112 is above the 20-day moving average (MA) of 1092.85, above the 50-day MA of 1049.22, and above the 200-day MA of 1019.73, indicating a bullish trend. The MACD of 15.24 indicates Positive momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥19.64B	35.77		0.15%	24.15%	-7.80%
3915	75 Outperform	¥39.84B	39.73		―	29.12%	238.06%
4847	75 Outperform	¥29.21B	20.51		2.70%	7.50%	0.64%
3741	71 Outperform	¥26.40B	19.58		1.98%	20.63%	21.52%
3694	66 Neutral	¥30.37B	26.27		―	0.14%	-21.25%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
3778	61 Neutral	¥155.92B	51.84		0.10%	43.92%	305.36%

Intelligent Wave Inc. Corporate Events

Intelligent Wave Inc. Reports Deferred Tax Benefit in Q3

Intelligent Wave Inc. announced a significant recording of income taxes – deferred benefit amounting to 591 million yen for the nine months ending March 31, 2025. This adjustment, due to an increase in deferred tax assets, has been incorporated into their financial results, reflecting a strategic financial maneuver that could impact their fiscal positioning.

Intelligent Wave Inc. Reports Mixed Financial Results with Positive Outlook

Intelligent Wave Inc. reported its non-consolidated financial results for the nine months ending March 31, 2025, showing a 7.2% increase in net sales compared to the previous year. However, operating and ordinary profits decreased by 3.4% and 2.9%, respectively. The company maintains a stable equity-to-asset ratio and has announced a forecast for increased net sales and profits for the fiscal year ending June 30, 2025, indicating a positive outlook despite recent profit declines.