Intelligent Wave Inc. (4847) AI Stock Analysis

• Market Cap: ¥28.65B
• Dividend Yield: 3.21%
• Average Volume (3M): 33.80K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.70
• Revenue Growth: 7.50%
• EPS Growth: 0.64%
• Country: JP
• Employees: 476
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): 15.80
• Shares Outstanding: 26,340,000
• 10 Day Avg. Volume: 21,460
• 30 Day Avg. Volume: 33,796
• PEG Ratio: -10.02
• Price to Book (P/B): 3.07
• 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: 74 Outperform
• Price Target: ¥1,207.00 ▲(11.45%Upside)

Intelligent Wave Inc. achieves a strong overall score driven primarily by its robust financial performance, highlighted by consistent revenue growth, high profitability, and a debt-free balance sheet. The valuation is fair with an attractive dividend yield. Technical analysis presents mixed signals with bearish momentum but potential for reversal. Lack of recent earnings call data and corporate events results in their exclusion from the analysis.

Intelligent Wave Inc. Business Overview & Revenue Model

Company Description

Intelligent Wave Inc. (4847) is a Japanese-based company specializing in the development and provision of information technology solutions, focusing primarily on the financial sector. The company's core offerings include payment processing systems, cybersecurity solutions, and enterprise software tailored to the needs of financial institutions. Intelligent Wave is committed to delivering innovative and reliable technology solutions that enhance the efficiency and security of financial transactions.

How the Company Makes Money

Intelligent Wave Inc. generates revenue through the sale and licensing of its proprietary software products, which are designed to meet the specific needs of the financial services industry. The company earns income by providing payment processing systems that facilitate secure and efficient transactions for banks and financial institutions. Additionally, Intelligent Wave offers cybersecurity solutions that help protect these entities from fraud and data breaches. The company also engages in consulting and support services, providing ongoing maintenance and customization of its software solutions, which constitutes another significant revenue stream. Strategic partnerships with key players in the technology and finance sectors also contribute to the company's earnings, fostering collaborative development and expansion opportunities.

Intelligent Wave Inc. Financial Statement Overview

Summary

Intelligent Wave Inc. demonstrates strong financial performance with consistent revenue growth, high profitability margins, and a robust balance sheet devoid of debt. Cash flow management is generally solid, though recent TTM data clarity could be improved. The company's financial health and operational efficiency position it well within the software infrastructure industry, with minimal financial risk and strong potential for future growth.

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

Intelligent Wave Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1083.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1083 is below the 20-day moving average (MA) of 1083.80, below the 50-day MA of 1085.08, and above the 200-day MA of 1031.55, indicating a bullish trend. The MACD of -1.81 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 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
4847	74 Outperform	¥28.65B	20.13		3.21%	7.50%	0.64%
4493	73 Outperform	¥17.63B	32.11		0.17%	24.15%	-7.80%
3741	72 Outperform	¥25.84B	19.16		2.02%	20.63%	21.52%
3694	66 Neutral	¥29.04B	24.64		―	0.14%	-21.25%
3915	64 Neutral	¥30.81B	29.19		―	23.85%	138.81%
Sector *	63 Neutral	$34.78B	5.17	-11.38%	1.67%	5.54%	-17.15%
3778	60 Neutral	¥148.92B	49.52		0.11%	43.92%	302.88%

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.