Inbound Tech, Inc. (7031) AI Stock Analysis

• Market Cap: ¥2.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.82K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.22
• Revenue Growth: -23.31%
• EPS Growth: -309.90%
• Country: JP
• Employees: 106
• Sector: Industrials
• Sector Strength: 92
• Industry: Specialty Business Services
• EPS (TTM): -1.44
• Shares Outstanding: 2,492,275
• 10 Day Avg. Volume: 750
• 30 Day Avg. Volume: 1,823
• PEG Ratio: 0.38
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.57
• 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: ¥888.00
• Price Target Upside: 5.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥844.00 ▲(0.36%Upside)

Inbound Tech, Inc. is facing significant financial and technical challenges, which are the primary drivers of the overall stock score. The company's declining revenue and profitability, coupled with weak technical indicators and a negative P/E ratio, highlight the need for strategic improvements. Without earnings call insights or notable corporate events, the score is heavily influenced by the existing financial and technical data.

Inbound Tech, Inc. Business Overview & Revenue Model

Company Description

Inbound Tech, Inc. (7031) is a technology company specializing in developing and providing advanced software solutions for the telecommunications and IT sectors. The company focuses on creating innovative products that enhance communication infrastructure, improve data management, and streamline operational processes for its clients. Inbound Tech, Inc. is committed to delivering cutting-edge technology solutions that cater to the evolving needs of businesses in a dynamic digital landscape.

How the Company Makes Money

Inbound Tech, Inc. generates revenue through the sale and licensing of its proprietary software solutions to telecommunications companies and IT service providers. The company offers a range of products that include communication management systems, data analytics tools, and cloud-based platforms, which help clients optimize their operations and reduce costs. Additionally, Inbound Tech, Inc. may engage in strategic partnerships with industry leaders to enhance its product offerings and expand its market reach. These collaborations often involve joint ventures or co-development agreements that contribute to the company's earnings. Revenue is further supplemented by providing maintenance, support services, and custom solutions tailored to specific client requirements.

Inbound Tech, Inc. Financial Statement Overview

Summary

Inbound Tech, Inc. faces challenges with declining revenues and profitability, as highlighted by a significant revenue contraction and a net loss. Despite a robust balance sheet with a strong equity base, profitability and cash flow generation have been negatively impacted, indicating a need for improved revenue growth and operational efficiency.

Income Statement

Inbound Tech, Inc. displayed a significant decline in revenue from the prior year, dropping from 3.32 billion to 2.54 billion, indicating a revenue contraction of approximately 23.3%. The net profit margin turned negative as the company incurred a net loss of 399.67 million, compared to a profit of 208.29 million previously. Additionally, both the EBIT and EBITDA margins were negatively affected, with the EBITDA margin falling into negative territory. Despite the gross profit margin being relatively stable, the overall profitability and growth metrics suggest challenges in maintaining revenue and controlling costs.

Balance Sheet

The balance sheet of Inbound Tech, Inc. shows a strong equity base with a stockholders' equity of 1.67 billion against total assets of 2.88 billion, resulting in a healthy equity ratio. However, the debt-to-equity ratio increased slightly, with total debt of 652 million. The return on equity declined due to the net loss, indicating reduced efficiency in generating returns from shareholders' investments. Overall, the company maintains a strong asset base and equity position, but profitability challenges have impacted return metrics.

Cash Flow

Inbound Tech, Inc. experienced a decrease in operating cash flow, dropping from 186.54 million to 74.80 million. Despite the decline in operating cash flow, the company managed to maintain a positive free cash flow, aided by reduced capital expenditures. However, both the operating cash flow and free cash flow to net income ratios were impacted by the net loss, highlighting challenges in converting income into cash. The company needs to address cash flow generation to support future operations and investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.80B	2.54B	3.32B	3.29B	2.77B	2.00B
Gross Profit	638.53M	482.13M	890.96M	961.32M	669.15M	532.60M
EBITDA	263.58M	-319.47M	519.64M	570.27M	358.40M	280.63M
Net Income	55.63M	-399.67M	208.29M	254.48M	182.88M	179.45M
Balance Sheet
Total Assets	3.55B	2.88B	3.78B	3.98B	3.83B	2.05B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.41B	1.70B	2.04B	1.66B	1.57B
Total Debt	696.00M	652.00M	696.00M	840.00M	984.00M	130.80M
Total Liabilities	916.00M	870.85M	1.10B	1.35B	1.48B	415.28M
Stockholders Equity	2.08B	1.67B	2.13B	2.10B	1.84B	1.64B
Cash Flow
Free Cash Flow	0.00	62.34M	37.39M	560.78M	178.99M	180.64M
Operating Cash Flow	0.00	74.80M	186.54M	652.49M	234.18M	229.83M
Investing Cash Flow	0.00	-143.60M	-207.72M	-129.35M	-1.02B	-94.41M
Financing Cash Flow	0.00	-225.59M	-321.88M	-136.17M	872.27M	917.76M

Inbound Tech, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 841.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7031, the sentiment is Positive. The current price of 841 is below the 20-day moving average (MA) of 846.00, below the 50-day MA of 861.72, and below the 200-day MA of 876.68, indicating a neutral trend. The MACD of -5.13 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7031.

Inbound Tech, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4664	80 Outperform	¥1.70B	9.03		5.75%	9.24%	-23.24%
5587	79 Outperform	¥3.13B	18.54		―	15.67%	-18.07%
9225	78 Outperform	¥2.71B	15.59		―	18.94%	61.02%
Sector *	64 Neutral	kr60.89B	13.58	1.88%	7.60%	0.71%	-4.20%
3802	59 Neutral	¥2.24B	52.02		2.72%	-7.85%	-89.50%
7376	53 Neutral	¥2.05B	―		―	7.11%	-222.15%
7031	52 Neutral	¥2.12B	37.42		―	-23.31%	-309.90%