IID, Inc. (6038) AI Stock Analysis

• Market Cap: ¥4.44B
• Dividend Yield: 2.38%
• Average Volume (3M): 4.24K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.22
• Revenue Growth: -2.25%
• EPS Growth: 116.29%
• Country: JP
• Employees: 227
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 5,062,600
• 10 Day Avg. Volume: 4,150
• 30 Day Avg. Volume: 4,240
• PEG Ratio: 0.17
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 9.85
• 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: 77 Outperform
• Price Target: ¥1,157.00 ▲(17.22% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

The overall stock score of 77.4 reflects a strong technical performance and reasonable valuation, supported by a solid financial foundation. The stock's bullish momentum is a significant positive, although the high RSI suggests caution due to potential overbought conditions. Financial performance is stable but shows areas for improvement in revenue and profit consistency.

Positive Factors

Strong balance sheet

A strong equity base and low leverage materially reduce solvency risk and preserve financial flexibility. Over the next 2–6 months this supports funding for operations, selective M&A or capex without heavy reliance on external debt, and provides stability through revenue variability.

Cash conversion ability

A demonstrated ability to convert net income into cash underpins sustainable dividend funding, working capital and capex needs. Even with recent declines, robust cash conversion reduces dependence on financing and strengthens resilience to short-term revenue swings over the medium term.

Stable gross margins

Stable gross margins indicate enduring pricing power or consistent cost control in core services. This supports baseline profitability and provides room to absorb SG&A or investment spending without immediate erosion of gross economics across a 2–6 month horizon.

Negative Factors

Inconsistent revenue growth

Irregular top-line trends and a recent revenue decline weaken operating leverage and make long-term planning harder. Over months this reduces visibility for capacity decisions, pressures margins when fixed costs persist, and limits the company's ability to scale revenue-driven profitability.

Volatile free cash flow

Material volatility in free cash flow undermines the company's ability to reliably fund dividends, capex or strategic initiatives without tapping reserves. That instability raises financing risk and constrains reinvestment choices if volatility persists over the coming quarters.

Declining return on equity

A falling ROE signals diminishing efficiency in turning shareholder capital into profits. If the trend continues, it may limit long-term shareholder returns and indicate management needs to improve asset utilization or margins to restore attractive capital returns over the medium term.

IID, Inc. Business Overview & Revenue Model

IID, Inc. Financial Statement Overview

Summary

IID, Inc. demonstrates a solid financial foundation with a strong equity base and low leverage, which is favorable for long-term stability. However, the company faces challenges in maintaining consistent revenue and profit growth, as evidenced by declining margins and fluctuating cash flows. While the balance sheet remains robust, the income statement and cash flow trends suggest areas for improvement in operational efficiency and cash management.

Income Statement

The company shows a stable gross profit margin with slight fluctuations over the years. However, the net profit margin has decreased recently, indicating potential challenges in cost management or revenue generation. Revenue growth has been inconsistent, with a recent decline, which could be a concern for future profitability. The EBIT and EBITDA margins have also shown a downward trend, suggesting pressure on operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. Return on equity has decreased, which might suggest less efficient use of equity capital. The equity ratio remains healthy, supporting the company's ability to cover its liabilities with its assets.

Cash Flow

The cash flow statement reveals a volatile free cash flow growth rate, with recent periods showing significant fluctuations. The operating cash flow to net income ratio indicates a strong ability to convert net income into cash, although this has decreased recently. The free cash flow to net income ratio suggests a solid cash generation capability, but the recent decline in free cash flow growth could pose a risk.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.08B	6.13B	6.07B	5.57B	5.41B
Gross Profit	2.76B	2.75B	2.71B	2.53B	2.45B
EBITDA	612.87M	679.13M	717.21M	695.87M	525.88M
Net Income	307.99M	163.15M	280.20M	450.76M	464.63M
Balance Sheet
Total Assets	6.25B	6.27B	5.66B	5.18B	4.74B
Cash, Cash Equivalents and Short-Term Investments	3.60B	3.61B	2.84B	2.91B	2.93B
Total Debt	546.41M	819.57M	508.56M	316.13M	382.38M
Total Liabilities	1.61B	2.00B	1.49B	1.35B	1.29B
Stockholders Equity	4.56B	4.20B	4.06B	3.76B	3.39B
Cash Flow
Free Cash Flow	461.20M	805.79M	330.63M	636.10M	335.99M
Operating Cash Flow	491.56M	826.98M	353.67M	646.65M	375.82M
Investing Cash Flow	-87.30M	-292.54M	-159.46M	-514.20M	157.06M
Financing Cash Flow	-421.48M	217.72M	-266.15M	-173.00M	355.87M

IID, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 987.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6038, the sentiment is Negative. The current price of 987 is above the 20-day moving average (MA) of 932.25, above the 50-day MA of 947.90, and above the 200-day MA of 939.00, indicating a bearish trend. The MACD of -11.60 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 21.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6038.

IID, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6038	77 Outperform	¥4.44B	11.16	―	2.38%	-2.25%	116.29%
6535	75 Outperform	¥28.85B	3.66	―	5.35%	58.08%	29.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.25B	7.59	―	―	-4.44%	―
2122	59 Neutral	¥8.88B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.77B	-1.99	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥12.03B	2.40	―	―	-2.68%	91.68%