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Insource Co.,Ltd. (JP:6200)
:6200
Japanese Market

Insource Co.,Ltd. (6200) AI Stock Analysis

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JP:6200

Insource Co.,Ltd.

(6200)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥802.00
▼(-7.50% Downside)
Action:DowngradedDate:01/28/26
Strong overall score driven primarily by outstanding financial performance (elite margins, high ROE, and a debt-free balance sheet) and supported by a solid dividend with a moderate P/E. This is tempered by very weak technicals, with the stock trading well below major moving averages and negative momentum indicators.
Positive Factors
Debt-free balance sheet & compounding equity
A virtually debt-free balance sheet with steadily compounding equity materially reduces financial risk and preserves strategic optionality. This structural strength supports capital allocation for dividends, reinvestment, or M&A without the drag of interest costs, aiding long-term stability and resilience.
Elite and improving profitability margins
Sustained, high operating and net margins indicate scalable service economics and strong pricing power in training offerings. Robust margins create durable free cash flow potential, enabling reinvestment in content and delivery capacity while insulating returns if revenue growth softens.
High recent free cash flow conversion
Consistently strong operating cash flow and very high recent FCF conversion show the business converts earnings into cash reliably, supporting dividends and internal investment. This cash-generation profile strengthens long-term solvency and funds growth initiatives without external financing.
Negative Factors
Moderating revenue growth / maturing business
A deceleration to mid-single-digit revenue growth suggests the core training market may be entering a more mature phase, limiting room to expand top-line at prior rates. Persistent slower growth can pressure the company to find new markets or services to sustain high ROE over the medium term.
Historical cash-flow volatility
While recent FCF conversion is strong, past negative FCF and sharp dips show cash generation can be uneven. This variability can complicate multi-year planning, increase reliance on retained earnings for smoothing, and elevate execution risk for investments or distributions in lower-cycle periods.
Revenue sensitivity to client training budgets
Dependence on corporate and public training budgets creates structural exposure to client spending cycles and procurement priorities. Sustained constraints or shifts in buyer preferences could curb demand for fee-based programs, making long-term revenue stability contingent on service diversification and contract stickiness.

Insource Co.,Ltd. (6200) vs. iShares MSCI Japan ETF (EWJ)

Insource Co.,Ltd. Business Overview & Revenue Model

Company DescriptionInsource Co., Ltd. provides lecturer dispatch type training, open lecture, and other services in Japan. It offers on-site training; open seminars; IT services; and other businesses, such as e-learning/video production, online seminar support services, consulting services, and staffing and recruitment services. Insource Co., Ltd. was incorporated in 2002 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyInsource Co., Ltd. generates revenue primarily through the sale of its training programs and consulting services. The company provides both in-person and online training courses, which are designed to meet the specific needs of its clients. Revenue streams include fees from corporate training sessions, consulting fees for human resource development projects, and subscription fees for online learning platforms. Insource also benefits from partnerships with other organizations to expand its service offerings and reach a broader audience. Additionally, the company may engage in licensing its training materials and methodologies to third parties, contributing to its revenue.

Insource Co.,Ltd. Financial Statement Overview

Summary
Excellent fundamentals: exceptional and improving profitability (net margin up to 28.5% and operating profitability ~40.6% in 2025), very strong debt-free balance sheet with steadily compounding equity, and solid cash generation with recent high FCF conversion (2024–2025 ~92–98% of net income). Main risk is moderating revenue growth and some historical cash flow volatility.
Income Statement
93
Very Positive
Profitability is exceptional and improving: net profit margin rose from 8.7% (2020) to 28.5% (2025), while operating profitability expanded to ~40.6% in 2025. Revenue has grown strongly over the cycle (from 2020 to 2025), though the pace cooled in 2024 (~0.2%) before re-accelerating in 2025 (+4.1%). Key weakness: growth is moderating versus earlier years, suggesting the business is moving into a more mature phase even as margins remain elite.
Balance Sheet
96
Very Positive
Balance sheet strength is standout: the company operates essentially debt-free (0 debt in 2023–2025; near-zero in 2021–2022), with equity steadily compounding (¥4.5B in 2021 to ¥12.5B in 2025). Returns on equity are consistently high (~33–36%), indicating strong capital efficiency. Main watch item: the very high return profile will be harder to sustain if growth continues to decelerate, but leverage risk is minimal given the lack of debt.
Cash Flow
86
Very Positive
Cash generation is solid and generally well-aligned with earnings: operating cash flow has been consistently above net income in 2022–2025 (~1.0–1.26x), and free cash flow conversion improved materially from 2023 (~46% of net income) to 2024–2025 (~92–98%). The key weakness is historical volatility—2020 free cash flow was negative and 2023 saw a sharp dip—so while recent performance is strong, cash flow stability is not perfectly linear year-to-year.
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue14.51B12.47B10.78B9.42B7.50B
Gross Profit11.16B9.61B8.24B7.21B5.72B
EBITDA6.08B4.97B4.10B3.47B2.48B
Net Income4.13B3.36B2.68B2.23B1.57B
Balance Sheet
Total Assets16.15B13.18B10.80B8.73B6.77B
Cash, Cash Equivalents and Short-Term Investments8.19B5.71B3.52B3.83B2.62B
Total Debt0.000.000.004.00M6.00M
Total Liabilities3.66B3.24B2.87B2.60B2.27B
Stockholders Equity12.49B9.94B7.93B6.13B4.50B
Cash Flow
Free Cash Flow4.32B3.72B1.33B1.85B816.24M
Operating Cash Flow4.40B4.03B2.90B2.54B2.36B
Investing Cash Flow-231.10M-447.59M-2.30B-687.15M-1.54B
Financing Cash Flow-1.68B-1.39B-909.95M-655.07M-408.17M

Insource Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price867.00
Price Trends
50DMA
772.96
Negative
100DMA
817.85
Negative
200DMA
883.95
Negative
Market Momentum
MACD
-14.97
Negative
RSI
45.42
Neutral
STOCH
31.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6200, the sentiment is Neutral. The current price of 867 is above the 20-day moving average (MA) of 708.60, above the 50-day MA of 772.96, and below the 200-day MA of 883.95, indicating a neutral trend. The MACD of -14.97 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6200.

Insource Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥60.49B18.772.94%16.32%23.04%
74
Outperform
¥18.74B7.463.47%4.22%27.56%
74
Outperform
¥9.45B9.462.06%29.06%41.54%
63
Neutral
¥2.20B12.001.92%4.25%-6.45%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
60
Neutral
¥2.88B31.621.33%-7.47%378.86%
55
Neutral
¥2.86B6.041.68%-4.16%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6200
Insource Co.,Ltd.
725.00
-69.34
-8.73%
JP:2415
Human Holdings Co., Ltd.
1,842.00
274.82
17.54%
JP:6096
RareJob,Inc.
305.00
-79.28
-20.63%
JP:9339
COACH A Co., Ltd.
1,224.00
130.30
11.91%
JP:9345
Bizmates,Inc.
675.00
-281.67
-29.44%
JP:9560
PROGRIT, Inc.
737.00
-368.60
-33.34%

Insource Co.,Ltd. Corporate Events

Insource CEO to Buy Up to ¥100 Million of Company Shares in Market Purchase
Jan 28, 2026

Insource Co., Ltd. announced that its Representative Director, President and CEO, Takayuki Funahashi, plans to purchase up to 100 million yen of the company’s issued shares on the market as an individual transaction over a period of up to two months starting January 30, 2026. The CEO framed the move as a demonstration of his strong commitment to Insource’s business growth and an effort to align his interests with those of shareholders and other stakeholders, a step that may bolster market confidence in the company’s prospects and management’s resolve to accelerate steady expansion.

The most recent analyst rating on (JP:6200) stock is a Buy with a Yen997.00 price target. To see the full list of analyst forecasts on Insource Co.,Ltd. stock, see the JP:6200 Stock Forecast page.

Insource Issues 1Q FY25 Results With Cautionary Guidance on Forward-Looking Data
Jan 26, 2026

Insource Co., Ltd. released its consolidated financial results for the first quarter of fiscal 2025, prepared under Japanese GAAP, while emphasizing that all forward-looking figures are subject to significant risks and uncertainties. The company underscored that actual performance may differ materially from current estimates, disclaimed any obligation to update projections except as required by stock exchange disclosure rules, and clarified that the materials are informational only and should not be regarded as a solicitation to buy or trade its securities.

The most recent analyst rating on (JP:6200) stock is a Buy with a Yen997.00 price target. To see the full list of analyst forecasts on Insource Co.,Ltd. stock, see the JP:6200 Stock Forecast page.

Insource Posts Higher Q1 Sales but Lower Operating Profit, Affirms FY25 Outlook and Higher Dividend
Jan 26, 2026

Insource Co., Ltd. reported a 7.2% year-on-year increase in net sales to ¥3,764 million for the first quarter of FY25, while operating and ordinary profit both declined 4.0% to about ¥1,401 million and ¥1,403 million, respectively, as profit attributable to owners of parent edged up 3.1% to ¥962 million and earnings per share rose to ¥11.46. Despite a slight contraction in total assets and net assets compared with the previous fiscal year-end, the equity ratio improved to 79.3%, and the company maintained its FY25 guidance, projecting full-year net sales of ¥16,800 million and profit attributable to owners of parent of ¥4,630 million, alongside a planned increase in the annual dividend to ¥29.50 per share, signaling continued confidence in its growth trajectory and shareholder returns.

The most recent analyst rating on (JP:6200) stock is a Buy with a Yen997.00 price target. To see the full list of analyst forecasts on Insource Co.,Ltd. stock, see the JP:6200 Stock Forecast page.

Insource to Allocate Treasury Shares as Restricted Stock Compensation to Group Executives
Jan 9, 2026

Insource Co., Ltd. has approved the disposal of 18,100 shares of its treasury stock, valued at approximately 15.86 million yen, to be used as restricted stock compensation for four internal directors, seven executive officers, and 13 directors and executive officers of its subsidiaries. The move is part of an already approved restricted stock compensation plan designed to more closely align management’s interests with those of shareholders, incentivize the continuous enhancement of corporate value, and formalize performance- and responsibility-based equity remuneration across the group’s leadership, thereby strengthening its governance and retention framework.

The most recent analyst rating on (JP:6200) stock is a Buy with a Yen986.00 price target. To see the full list of analyst forecasts on Insource Co.,Ltd. stock, see the JP:6200 Stock Forecast page.

Insource Strengthens Board Effectiveness and Governance Through Annual Evaluation
Dec 18, 2025

Insource Co., Ltd. has completed its latest annual evaluation of the effectiveness of its Board of Directors, using questionnaires distributed via its own HR support system “Leaf” to all 12 directors and auditors, including outside members. The assessment found that the board is generally effective, particularly in ensuring shareholders’ rights, cooperating appropriately with non-shareholder stakeholders, promoting dialogue with investors, and disclosing both financial and non-financial information transparently. At the same time, the review highlighted a need for deeper board-level discussions on critical themes such as management strategy, governance structure, risk and sustainability, including social and environmental issues, noting that while governance and risk management have improved since the previous year, strategic debate still requires further strengthening. Insource plans to respond by ensuring more thorough discussions at board meetings and continuing to enhance deliberations and corporate governance, signaling to stakeholders an ongoing focus on board performance and long-term corporate value creation.

Insource Reshapes Executive Lineup and Realigns Roles to Bolster Sales and Content Operations
Dec 18, 2025

Insource Co., Ltd. has announced a series of leadership changes, appointing Noriko Shingu, Toru Ando and Ryo Sasaki as new executive officers effective December 18, 2025, reflecting internal promotions from key roles in sales management, regional branch leadership and media business operations. The company also reallocated responsibilities among existing executives, including shifting Daisuke Kanai to oversee the Group Sales Management Office, adjusting roles across the Group Content Development, Open Seminars and consulting businesses, and designating Shingu as both manager of the Group Sales Management Office and chief of Sales Department #3, changes that appear aimed at strengthening governance, optimizing its sales and content development structure, and reinforcing coordination with group subsidiaries ahead of an executive officer’s planned year-end resignation.

Insource Co., Ltd. Announces Strategic Organizational and Personnel Changes
Nov 17, 2025

Insource Co., Ltd. announced organizational and personnel changes approved by its Board of Directors to better align with market trends and strengthen its service offerings. Key changes include integrating business promotion functions into the Group Sales Management Office, establishing an AI Sales Strategy Department to meet the growing demand for AI consulting services, and renaming the Group Trainers’ Educational Department to emphasize quality control in training services. These changes are expected to enhance operational efficiency and strategic alignment with market needs.

Insource Co., Ltd. Announces Director and Auditor Candidates
Nov 17, 2025

Insource Co., Ltd. announced the election of candidates for its Board of Directors and Corporate Auditors, with the proposal set for the upcoming Ordinary General Meeting of Shareholders. This move includes the reappointment of several directors and the introduction of new candidates, which could influence the company’s strategic direction and governance, potentially impacting stakeholders’ interests.

Insource Co., Ltd. Announces Increased Dividend Payout
Nov 17, 2025

Insource Co., Ltd. announced a resolution by its Board of Directors to distribute dividends from capital surplus, with a record date of September 30, 2025. The dividend per share is set at 25 yen, marking an increase from the previous fiscal year’s 20 yen per share, reflecting the company’s commitment to shareholder returns and capital efficiency.

Insource Co., Ltd. Unveils Ambitious Three-Year Business Plan
Nov 4, 2025

Insource Co., Ltd. announced a new three-year business plan, ‘Road to Next 2028,’ aiming to significantly increase sales and profits by expanding its DX services and HR support domains. The plan includes strategic investments in generative AI, workforce expansion, and the introduction of new AI-related businesses. These initiatives are expected to enhance the company’s industry positioning and improve sales productivity, while also expanding their educational offerings to include industry-specific and international training programs.

Insource Co., Ltd. Reports Strong FY24 Financial Results and Increased Dividends
Nov 4, 2025

Insource Co., Ltd. reported a significant increase in its FY24 financial results, with net sales rising by 16.3% and operating profit increasing by 21.1% compared to the previous year. The company also announced a higher dividend payout, reflecting its strong financial performance and commitment to returning value to shareholders.

Insource Co., Ltd. Reports Strong Financial Growth in FY24
Nov 4, 2025

Insource Co., Ltd. reported a significant increase in its non-consolidated financial results for FY24 compared to FY23, with notable growth in net sales and profits driven by increased orders for DX-related training and bulk contracts. Despite higher SG&A expenses, the company achieved higher operating, ordinary, and net profits due to an increase in gross profit, reflecting a successful strategic focus on expanding its service offerings and client base.

Insource Co., Ltd. Revises FY24 Dividend Forecast
Nov 4, 2025

Insource Co., Ltd. has revised its dividend forecast for FY24, increasing the year-end dividend from 23.50 yen to 25.00 yen per share. This adjustment reflects the company’s strategy to enhance shareholder returns, achieving a dividend payout ratio of 50.8% and a dividend on equity ratio of 18.7%. The decision will be finalized at the upcoming General Meeting of Shareholders in December 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 28, 2026