Integral Corporation (5842) AI Stock Analysis

• Market Cap: ¥114.19B
• Dividend Yield: 0.83%
• Average Volume (3M): 71.72K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.11
• Revenue Growth: 138.38%
• EPS Growth: 57.56%
• Country: JP
• Employees: 82
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): -8.08
• Shares Outstanding: 34,975,000
• 10 Day Avg. Volume: 57,980
• 30 Day Avg. Volume: 71,716
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: ¥3,297.00
• Price Target Upside: -4.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥3,863.00 ▲(12.13%Upside)

Integral Corporation's strong financial performance, characterized by robust revenue growth and profitability, is the most significant factor in its high stock score. The technical analysis supports the positive outlook with bullish indicators, although caution is advised due to near overbought conditions. The low P/E ratio suggests that the stock may be undervalued, enhancing its attractiveness. The absence of earnings call data and notable corporate events did not impact the score.

Integral Corporation Business Overview & Revenue Model

Company Description

Integral Corporation is a private equity firm which specializes in management buyouts, turnaround, leveraged buyouts, mezzanine, and other minority investments. The firm seeks to invest in both listed and unlisted mid-cap companies based in Japan. It does not have a specific list of industries to which it prefers to invest in. The firm is also into management and financial consulting related to equity investment activities. Integral Corporation was established on September 1, 2007 and is based in Tokyo, Japan.

How the Company Makes Money

Integral Corporation generates revenue through a combination of software licensing, subscription services, and consulting fees. The company offers proprietary software solutions that are licensed to businesses on a per-user or enterprise basis. Additionally, Integral provides subscription-based services for cloud computing and data management, offering scalable solutions for businesses of all sizes. Consulting services also contribute to revenue, as the company offers expertise in system integration, IT strategy, and digital transformation. Key partnerships with technology providers and enterprises enhance its market reach and client base, further driving revenue growth.

Integral Corporation Financial Statement Overview

Summary

Integral Corporation shows strong financial performance with remarkable revenue and profit growth, a low debt-to-equity ratio, and effective cash flow management. The company's robust balance sheet and high profitability metrics position it well for future growth.

Income Statement

Integral Corporation has demonstrated exceptional growth in revenue and profitability. The revenue growth rate from 2023 to 2024 was a remarkable 276.5%, indicating a strong upward trajectory. The gross profit margin remains consistently high at 100%, and the net profit margin increased significantly from 91.3% in 2023 to 58.0% in 2024, showcasing improved cost management and operational efficiency. EBIT and EBITDA margins are also strong, contributing to the high score.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.06, indicating low leverage and financial stability. The return on equity (ROE) is impressive at 31.4%, reflecting efficient use of shareholders' equity to generate profit. The equity ratio stands at 72.9%, highlighting a strong equity position relative to total assets, reducing financial risk.

Cash Flow

The cash flow statement shows effective cash management with a free cash flow growth rate of 3.3% from 2023 to 2024. The operating cash flow to net income ratio is 0.32, indicating a healthy conversion of net income into operating cash flow. The free cash flow to net income ratio is 0.32, supporting the company's ability to generate cash from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.61B	31.23B	8.30B	4.04B	3.28B
Gross Profit	23.14B	20.02B	8.21B	3.51B	2.88B
EBITDA	22.69B	26.22B	11.18B	3.19B	1.95B
Net Income	15.31B	18.11B	7.57B	2.02B	1.17B
Balance Sheet
Total Assets	73.52B	79.05B	56.30B	34.92B	32.12B
Cash, Cash Equivalents and Short-Term Investments	16.91B	22.14B	18.94B	2.32B	2.33B
Total Debt	2.57B	3.41B	5.22B	7.01B	7.42B
Total Liabilities	16.87B	21.42B	16.43B	15.51B	14.76B
Stockholders Equity	56.64B	57.62B	39.86B	19.41B	17.36B
Cash Flow
Free Cash Flow	13.99B	5.81B	5.62B	382.37M	-1.74B
Operating Cash Flow	14.05B	5.82B	5.63B	383.05M	-1.72B
Investing Cash Flow	-151.00M	-102.00M	-5.91M	-684.00K	-21.64M
Financing Cash Flow	-5.93B	-2.50B	10.99B	-382.11M	1.96B

Integral Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3445.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5842, the sentiment is Positive. The current price of 3445 is above the 20-day moving average (MA) of 3232.65, above the 50-day MA of 2977.51, and above the 200-day MA of 3408.01, indicating a bullish trend. The MACD of 135.62 indicates Negative momentum. The RSI at 67.93 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5842.

Integral Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5842	82 Outperform	¥114.19B	7.48		0.83%	138.38%	57.56%
Sector *	68 Neutral	$17.10B	11.19	9.70%	3.58%	11.11%	-4.55%
JAF	―	€779.59M	12.00	8.05%	3.72%	―	―
SRXXF	―	$318.55M	11.48	15.96%	0.59%	―	―
TO91	―	€764.65M	11.14	6.04%	5.78%	―	―
7347	68 Neutral	¥15.61B	31.72		2.74%	-4.73%	-51.89%
4310	33 Underperform	¥23.00B	126.07		17.40%	24.41%	-108.84%

Integral Corporation Corporate Events

Integral Corporation Announces Interim Dividend for 2025

Integral Corporation’s Board of Directors has approved an interim dividend of JPY 17 per share for the fiscal year ending December 31, 2025, aligning with their forecast. This decision reflects the company’s strategy to maintain a Dividend on Equity Ratio of 2%, balancing shareholder returns with the need for internal reserves for future investments.

Integral Corporation to Boost Profits with Additional Carried Interest from Fund III Series

Integral Corporation has announced that it will receive additional carried interest from its Fund III Series, following successful investments and exits that have exceeded the hurdle rate. This development is expected to significantly boost the company’s financial results for the fiscal year ending December 31, 2025, with notable increases in revenue and profit.

Integral Corporation Supports Primo Global Holdings’ Tokyo Stock Exchange Listing

Integral Corporation announced the listing of Primo Global Holdings on the Standard Market of the Tokyo Stock Exchange, as part of its capital policy to support the company’s growth. The financial impact of this offering on Integral’s fiscal year 2025 results is expected to be insignificant, highlighting a strategic move to enhance market presence without major financial fluctuations.

Integral Corporation Reports Significant Q1 2025 Financial Decline Amid Market Challenges

Integral Corporation reported a significant decline in its financial performance for the first quarter of 2025, with revenue dropping by 80% and operating income plummeting by 99.3% compared to the previous year. The company posted a loss of 273 million yen, highlighting the challenges faced in the current market environment. Despite these setbacks, the company’s equity ratio improved to 77%, indicating a stronger financial position relative to its total assets. The company has not revised its cash dividend forecast for the fiscal year ending December 31, 2025, maintaining a total dividend of 34 yen per share.