Integral Corporation (5842) AI Stock Analysis

• Market Cap: ¥106.40B
• Dividend Yield: 0.87%
• Average Volume (3M): 79.34K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.08
• Revenue Growth: 37.35%
• EPS Growth: -7.28%
• Country: JP
• Employees: 82
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 71.52
• Shares Outstanding: 34,975,000
• 10 Day Avg. Volume: 81,230
• 30 Day Avg. Volume: 79,340
• PEG Ratio: -0.28
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 12.05
• P/FCF Ratio: 8.32
• 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: 72 Outperform
• Price Target: ¥3,485.00 ▲(4.97% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily driven by strong financial quality (profitability, low leverage, and solid free cash flow), tempered by meaningful revenue and cash-conversion volatility. Technical indicators are currently weak with the stock trading below key moving averages and negative momentum, while valuation is reasonable but not deeply compelling.

Positive Factors

High Profitability

Sustained high net and operating margins across reported years implies durable pricing power and efficient cost structure. This margin profile supports internal reinvestment, resilience to revenue swings, and the capacity to fund R&D or dividends without reliance on external financing.

Conservative Balance Sheet

Very low leverage and growing equity/assets give the company financial flexibility to weather downturns, pursue strategic M&A or capex, and maintain operations during top-line volatility. Low debt reduces refinancing risk and preserves free cash flow for strategic use.

Strong Free Cash Flow in recent years

Consistent free cash flow generation supports sustainable investment in product development and recurring services, enabling the company to self-fund growth and cover working capital. Positive FCF trends also enhance ability to return capital or absorb cyclical drops.

Negative Factors

Top-line Volatility

Large swings in revenue undermine predictability of earnings and cash flow, complicating planning for R&D, staffing, and contract commitments. Persistent top-line volatility raises risk that current profitability may be cyclical rather than structural over the medium term.

Uneven Cash Conversion

Inconsistent conversion of accounting profits into cash creates variability in available funds for capex, dividends, or debt service. This volatility reduces financial predictability and increases reliance on balance-sheet buffers during periods of weak cash realization.

Variable Shareholder Returns / Earnings Durability

Fluctuating shareholder returns and signs of cyclical profitability indicate earnings may depend on episodic contract wins or market conditions. This undermines confidence in sustained dividend or buyback policies and complicates long-term investor return expectations.

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 multiple streams, primarily by selling electronic components and software solutions to manufacturers and businesses across different industries. Its core revenue model is based on direct product sales, where the company supplies its technology to clients, generating significant income from bulk orders. Additionally, Integral Corporation earns money through service contracts for system integration and maintenance, providing ongoing support and upgrades for its clients' technology infrastructure. The company also engages in strategic partnerships with leading firms in the telecommunications sector, allowing it to co-develop products and share revenues from joint ventures. Furthermore, Integral Corporation invests in research and development to innovate and expand its product lines, ensuring a steady flow of new offerings that keep it competitive in the market.

Integral Corporation Financial Statement Overview

Summary

Strong overall fundamentals supported by high profitability, a conservative/low-leverage balance sheet, and generally solid free cash flow. The main risk is volatility: revenue fell sharply in 2025 after strong prior years, and cash conversion versus earnings has been uneven across earlier periods.

Income Statement

Profitability is exceptionally strong across the period, with very high net profitability and strong operating earnings in every year provided. However, the top line is volatile: revenue surged in 2023–2024 but fell sharply in 2025 (annual revenue down ~47%), which raises questions about earnings durability and the stability of fee/investment-related income.

Balance Sheet

The balance sheet looks conservative with low leverage, as debt relative to equity improved materially from 2021–2022 to very low levels by 2024–2025. Equity and assets have grown over time, supporting financial flexibility. The main weakness is variability in shareholder returns (notably much lower in 2025 versus 2024), suggesting profitability may be more cyclical than the balance sheet implies.

Cash Flow

Cash generation is strong in most years: free cash flow closely tracks net income and turned sharply positive after a negative 2021. 2025 shows particularly strong cash inflow versus earnings and healthy free-cash-flow growth. The key risk is uneven cash conversion in earlier years (very weak cash flow versus earnings in 2022–2024), indicating that cash generation can fluctuate meaningfully year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.33B	21.82B	8.29B	4.04B	3.28B
Gross Profit	4.58B	21.82B	8.29B	4.04B	3.28B
EBITDA	9.91B	26.45B	11.19B	3.19B	1.95B
Net Income	6.08B	18.11B	7.57B	2.02B	1.17B
Balance Sheet
Total Assets	83.30B	79.05B	56.30B	34.92B	32.12B
Cash, Cash Equivalents and Short-Term Investments	19.28B	22.14B	18.94B	2.32B	2.33B
Total Debt	4.02B	3.41B	5.22B	7.01B	7.42B
Total Liabilities	20.87B	21.42B	16.43B	15.51B	14.76B
Stockholders Equity	62.42B	57.62B	39.86B	19.41B	17.36B
Cash Flow
Free Cash Flow	13.52B	5.81B	5.62B	382.37M	-1.74B
Operating Cash Flow	13.60B	5.82B	5.63B	383.05M	-1.72B
Investing Cash Flow	-84.00M	-102.00M	-5.00M	-684.00K	-21.64M
Financing Cash Flow	-1.39B	-2.50B	10.99B	-382.11M	1.96B

Integral Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3320.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5842, the sentiment is Negative. The current price of 3320 is below the 20-day moving average (MA) of 3333.00, below the 50-day MA of 3432.62, and below the 200-day MA of 3359.54, indicating a bearish trend. The MACD of -64.68 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5842.

Integral Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥64.25B	13.14	17.21%	4.27%	7.60%	7.20%
5842	72 Outperform	¥106.40B	18.28	―	0.87%	37.35%	-7.28%
8616	72 Outperform	¥201.92B	15.42	6.79%	5.60%	3.10%	17.73%
3772	69 Neutral	¥21.06B	24.68	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8595	60 Neutral	¥128.23B	20.41	5.11%	5.07%	-19.64%	-31.08%
2134	50 Neutral	¥18.62B	-11.66	―	―	-21.88%	17.12%

Integral Corporation Corporate Events

Integral to Shift to Holding Structure, Rebrand as Integral Group

Integral Corporation is a Japan-based private equity firm focused on becoming a “Trusted Investor” and driving Japanese-style corporate reform in partnership with management teams. The company manages a series of five funds, with its latest Fund V reaching JPY 250 billion in commitments, and has recently diversified into real estate investment and GlobalTech growth investment to expand its role in Japanese and global markets.

The firm’s expansion into multiple asset classes requires stronger group-wide governance to coordinate capital allocation and manage potential conflicts of interest across businesses. Its operations are listed on the Growth Market of the Tokyo Stock Exchange, and the company is now restructuring to a holding-style group management model to better support its broadened investment platform and long-term growth strategy.

Integral Corporation’s board has approved a reorganization into a group management company through two absorption-type company splits into wholly owned preparatory subsidiaries, effective October 1, 2026, subject to shareholder and regulatory approvals. Under the plan, the company will transfer parts of its business to these units, change its trade name to Integral Group Corporation, and amend its business purposes to reflect its new role as a group management entity.

By shifting to a holding company structure, Integral aims to centralize oversight of its private equity, real estate, and GlobalTech investment platforms, enabling more disciplined capital deployment and clearer management of conflicts of interest. The move is expected to sharpen strategic coordination across the group, potentially strengthening its competitive position in Japan’s evolving alternative investment market and offering greater structural transparency to investors and other stakeholders.

The most recent analyst rating on (JP:5842) stock is a Buy with a Yen4431.00 price target. To see the full list of analyst forecasts on Integral Corporation stock, see the JP:5842 Stock Forecast page.

Integral Raises FY2025 Year-End Dividend and Confirms DoE-Based Payout Policy for 2026

Integral Corporation has approved a higher year-end dividend for fiscal 2025, setting the payout at JPY 20 per share as of December 31, 2025, up from the previously forecast JPY 17, bringing the total annual dividend to JPY 37. The board also confirmed that dividends for fiscal 2026 will continue to be determined using a Dividend on Equity ratio of 2%, balancing the need to retain earnings for future investments in its private equity, real estate, and GlobalTech growth portfolios with a consistent framework for shareholder returns.

The decision reflects Integral’s emphasis on using equity-based metrics to guide capital allocation, as the 2% DoE links shareholder payouts directly to the company’s equity attributable to owners of the parent. For investors, the move signals both a modest near-term uplift in cash returns compared with the prior forecast and a commitment to a transparent and stable dividend policy that supports ongoing growth initiatives across its core investment strategies.

The most recent analyst rating on (JP:5842) stock is a Buy with a Yen4431.00 price target. To see the full list of analyst forecasts on Integral Corporation stock, see the JP:5842 Stock Forecast page.

Integral’s 2025 Profit Slumps as It Lifts Dividend and Withholds 2026 Outlook

Integral Corporation reported a sharp downturn in results for the fiscal year ended December 31, 2025, with revenue falling 56.3% to ¥13.7 billion and profit attributable to owners of the parent dropping 66.4% to ¥6.1 billion, as margins and returns on equity and assets contracted from the prior year. Despite weaker earnings, the balance sheet strengthened modestly, with total assets and equity both rising and equity attributable to owners of the parent reaching nearly 75% of total assets.

The company raised its annual dividend to ¥37 per share based on a 2% Dividend on Equity policy, increasing shareholder payouts even as profit declined and operating and financing cash flows turned negative. Management said it will not provide earnings forecasts for 2026, citing the high sensitivity of its private equity, real estate, and growth investment businesses to market conditions and the estimation-dependent nature of IFRS fair value accounting, leaving investors with limited forward visibility on performance.

The most recent analyst rating on (JP:5842) stock is a Buy with a Yen4431.00 price target. To see the full list of analyst forecasts on Integral Corporation stock, see the JP:5842 Stock Forecast page.

Integral to Book Significant Gain from Additional Fund III Carried Interest

Integral Corporation announced that its Fund III Series has exceeded its hurdle rate and, following multiple investments and exits since 2017, expects to receive additional carried interest distributions, including from the planned share transfer of all M&I Co., Ltd. shares held by Integral and the funds after a tender offer is completed. The company forecasts that this new carried interest, attributable to both past and the latest exits, will boost its consolidated results for the fiscal year ending December 31, 2026, increasing revenue by about JPY 3.6 billion, profit before income taxes by about JPY 3.4 billion, and profit for the year by about JPY 2.3 billion, underscoring the financial impact of successful fund realizations on its earnings profile.

The most recent analyst rating on (JP:5842) stock is a Buy with a Yen4431.00 price target. To see the full list of analyst forecasts on Integral Corporation stock, see the JP:5842 Stock Forecast page.