IBOKIN Co., Ltd. (5699) AI Stock Analysis

• Market Cap: ¥5.13B
• Dividend Yield: 1.8%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.53
• Revenue Growth: -0.27%
• EPS Growth: 0.09%
• Country: JP
• Employees: 163
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 76.11
• Shares Outstanding: 3,427,200
• 10 Day Avg. Volume: 3,360
• 30 Day Avg. Volume: 3,253
• PEG Ratio: 0.26
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 6.09
• 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: 83 Outperform
• Price Target: ¥1,960.00 ▲(38.81% Upside)

The score is driven primarily by strong financial performance (growth, profitability improvement, low leverage, and very strong cash flow). Valuation is supportive with a low P/E and a moderate dividend yield. Technicals are positive but capped by overbought readings that increase short-term downside risk.

Positive Factors

Very strong cash generation

A 726% jump in free cash flow and OCF/net income of 1.79 indicate durable internal funding capacity. Strong cash generation supports capex, R&D and working capital needs without heavy external financing, enhancing long-term operational resilience.

Very low leverage and robust equity base

A debt-to-equity of 0.05 and high equity ratio signal minimal financial risk and substantial balance-sheet flexibility. Low leverage reduces refinancing pressure and interest burden, enabling stable investment and strategic choices over multiple quarters.

Diversified industrial end-market exposure and R&D focus

Serving multiple sectors (consumer electronics, automotive, industrial) and emphasizing R&D provides durable demand channels and product pipeline potential. Cross-market exposure helps smooth cyclical swings and supports sustained product-driven growth.

Negative Factors

Modest net profitability

Net margin of 5.4%, while improving, is modest for a technology supplier and limits retained earnings for reinvestment. Sustaining R&D and capital intensity with narrow margins may constrain long-term margin expansion and competitive reinvestment.

Limited operational scale

A small workforce (163 employees) suggests limited manufacturing/R&D scale versus larger competitors. This can restrict ability to fulfil very large OEM contracts, achieve cost synergies, and scale production rapidly as demand grows over quarters.

Conflicting growth signals / revenue volatility

Discrepant growth metrics (reported ~11.5% YoY elsewhere vs fundamentals revenueGrowth -26.7%) imply volatile or inconsistent revenue reporting or recent swings. Such uncertainty complicates forecasting and weakens confidence in sustainable top-line trends.

IBOKIN Co., Ltd. Business Overview & Revenue Model

Company Description

IBOKIN Co.,Ltd., a recycling company, provides demolition, environment, metal, and transportation recycling services in Japan. The company also engages in ferrous and non-ferrous materials recycling; and industrial waste disposal business. In addition, it offers dismantling, removal, collection, transportation, intermediate treatment, and final disposal services. Further, the company is also engaged in the building demotion work; automotive recycling; and buying, selling, and lending of highly managed medical equipment. The company was incorporated in 1984 and is headquartered in Tatsuno, Japan.

How the Company Makes Money

IBOKIN generates revenue through the sale of its electronic components and materials to a diverse range of industries, including consumer electronics, automotive, and industrial applications. The company's revenue model is primarily based on direct sales to manufacturers and OEMs (Original Equipment Manufacturers), who integrate IBOKIN's products into their own devices. Key revenue streams include bulk orders of semiconductor materials, display technologies, and specialized electronic components. Additionally, IBOKIN may engage in strategic partnerships with technology firms and research institutions to co-develop cutting-edge technologies, further enhancing its market reach and revenue potential.

IBOKIN Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by consistent revenue growth (~11.5% YoY), improving profitability (net margin up to 5.4%), very low leverage (debt-to-equity 0.05), and excellent cash generation (free cash flow up ~726% with OCF/net income at 1.79).

Income Statement

IBOKIN Co., Ltd. has demonstrated consistent revenue growth with a notable increase of approximately 11.5% from 2023 to 2024. The gross profit margin stands strong at 19.2%, while the net profit margin improved to 5.4% from 4.6% in the previous year. EBIT and EBITDA margins also reflect healthy operational efficiency, with EBIT margin at 8.3% and EBITDA margin at 11.2%. These figures highlight the company's strong profitability and growth trajectory.

Balance Sheet

The company exhibits strong financial stability with a low debt-to-equity ratio of 0.05, indicating minimal reliance on debt. The equity ratio is at a robust 71.6%, showcasing a solid financial foundation. Return on equity improved to 11.5%, reflecting effective utilization of shareholder funds. The balance sheet indicates a healthy financial position with significant equity backing and low leverage risk.

Cash Flow

IBOKIN showed remarkable improvement in free cash flow, which increased significantly by 726% from 2023 to 2024. The operating cash flow to net income ratio stands at 1.79, indicating strong cash generation relative to net income. The free cash flow to net income ratio also improved substantially, demonstrating enhanced cash efficiency and liquidity. Overall, the cash flow metrics are indicative of a strong cash position and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.29B	9.66B	8.66B	7.96B	8.43B	5.45B
Gross Profit	1.65B	1.85B	1.51B	1.35B	1.60B	1.12B
EBITDA	934.33M	1.11B	840.54M	743.46M	997.02M	637.67M
Net Income	408.23M	520.40M	396.38M	346.50M	509.53M	286.46M
Balance Sheet
Total Assets	6.49B	6.34B	5.74B	5.32B	5.76B	5.17B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.26B	1.73B	1.89B	1.97B	1.53B
Total Debt	395.19M	245.39M	293.81M	394.37M	559.03M	749.51M
Total Liabilities	1.84B	1.80B	1.71B	1.52B	2.14B	2.17B
Stockholders Equity	4.64B	4.53B	4.03B	3.81B	3.62B	3.00B
Cash Flow
Free Cash Flow	0.00	701.90M	85.92M	169.49M	690.73M	82.68M
Operating Cash Flow	0.00	932.38M	603.82M	338.66M	795.97M	402.11M
Investing Cash Flow	0.00	-239.70M	-494.25M	-200.28M	-100.48M	-192.40M
Financing Cash Flow	0.00	-165.34M	-222.89M	-300.02M	-241.91M	90.15M

IBOKIN Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1412.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5699, the sentiment is Neutral. The current price of 1412 is below the 20-day moving average (MA) of 1552.20, below the 50-day MA of 1438.05, and above the 200-day MA of 1354.01, indicating a neutral trend. The MACD of 26.88 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 2.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5699.

IBOKIN Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5699	83 Outperform	¥5.13B	9.15	―	1.80%	-0.27%	0.09%
4125	76 Outperform	¥11.38B	15.39	―	1.87%	7.54%	-0.55%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
2195	71 Outperform	¥6.85B	20.66	―	1.36%	3.68%	-24.83%
4245	67 Neutral	¥9.12B	38.56	―	3.34%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.11B	77.00	―	1.93%	-1.19%	-89.91%