Intelligent Wave Inc. (4847) AI Stock Analysis

• Market Cap: ¥25.05B
• Dividend Yield: 3.62%
• Average Volume (3M): 64.84K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.78
• Revenue Growth: 6.02%
• EPS Growth: -11.83%
• Country: JP
• Employees: 476
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 26,340,000
• 10 Day Avg. Volume: 62,460
• 30 Day Avg. Volume: 64,836
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,040.00 ▲(1.96% Upside)
• Action: Downgraded Date: 11/07/25
• Date: Action: Downgraded 11/07/25

The overall score of 65 for JP:4847 is primarily driven by strong financial performance, with consistent revenue growth, solid margins, and a low-risk balance sheet being key strengths. However, bearish technical indicators, with the stock trading below key moving averages and showing negative momentum, significantly weigh down the score. Valuation remains reasonable with an attractive dividend yield, contributing moderately to the result.

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. demonstrates strong financial health with consistent revenue growth (3.2% annually), solid profitability margins (e.g., Gross Profit Margin of 32.4%), and a near-zero Debt-to-Equity Ratio (0.0002). Cash flow is robust with significant Free Cash Flow growth, though net income saw a slight decline and cash conversion efficiency could improve. This score reflects a stable, low-risk profile with minor areas for enhancement.

Income Statement

Intelligent Wave Inc. shows consistent revenue growth, with a 3.2% increase in the latest annual report and a strong historical trend, including an 8.5% rise in 2024. Profitability metrics are solid, with a Gross Profit Margin of 32.4% and a Net Profit Margin of 9.8% in 2024, alongside an EBIT Margin of 14.0% and EBITDA Margin of 21.9%. However, there is a slight decline in Net Income from 2024 to 2025, which tempers the score. Overall, the company demonstrates stable profitability with room for improvement in sustaining net income growth.

Balance Sheet

The balance sheet reflects a very strong financial position with an extremely low Debt-to-Equity Ratio of 0.0002 in 2024, indicating minimal leverage and low financial risk. Return on Equity stands at a respectable 15.4%, showing efficient use of equity to generate profits. The Equity Ratio is also healthy at approximately 54.8% in 2024, reflecting a solid capital structure. While total assets and equity have grown over the years, the score is slightly moderated by the need for continued asset growth to support long-term expansion.

Cash Flow

Cash flow performance is robust, with a significant jump in Free Cash Flow from 2024 to 2025, reaching 3.94 billion, and a historical growth trend including a 6.9% increase in 2024. Operating Cash Flow to Net Income Ratio is strong at 0.56 in 2024, indicating good cash generation from earnings. However, the Free Cash Flow to Net Income Ratio of 0.32 in 2024 suggests that not all earnings are converted to free cash, which slightly limits the score. Overall, cash flow stability is a strength, though conversion efficiency could be enhanced.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	15.60B	14.52B	13.37B	11.49B	11.19B
Gross Profit	4.62B	4.65B	4.23B	3.66B	3.12B
EBITDA	3.29B	3.17B	2.53B	2.35B	1.88B
Net Income	1.35B	1.42B	1.17B	1.06B	840.97M
Balance Sheet
Total Assets	18.92B	17.08B	13.91B	12.95B	11.40B
Cash, Cash Equivalents and Short-Term Investments	6.43B	4.82B	4.69B	4.23B	4.31B
Total Debt	8.83M	2.21M	3.42M	6.06M	15.85M
Total Liabilities	9.45B	7.86B	5.11B	4.91B	3.83B
Stockholders Equity	9.48B	9.22B	8.80B	8.04B	7.57B
Cash Flow
Free Cash Flow	3.94B	3.24B	2.54B	1.24B	1.43B
Operating Cash Flow	4.26B	3.82B	3.12B	1.49B	1.70B
Investing Cash Flow	-1.60B	-2.68B	-1.91B	-1.52B	-742.98M
Financing Cash Flow	-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: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 994.15, above the 50-day MA of 980.72, and above the 200-day MA of 1011.80, indicating a bearish trend. The MACD of 5.85 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, 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
3741	75 Outperform	¥32.14B	19.37	―	1.74%	21.97%	15.89%
3040	73 Outperform	¥32.04B	16.59	19.71%	3.09%	3.44%	79.35%
3915	68 Neutral	¥19.68B	9.96	―	―	17.93%	91.21%
4475	68 Neutral	¥30.32B	27.58	―	0.39%	30.59%	65.14%
4847	65 Neutral	¥25.05B	13.43	―	3.62%	6.02%	-11.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.36B	8.71	―	―	―	―

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.

The most recent analyst rating on (JP:4847) stock is a Buy with a Yen1186.00 price target. To see the full list of analyst forecasts on Intelligent Wave Inc. stock, see the JP:4847 Stock Forecast page.