INEST,Inc. (7111) AI Stock Analysis

• Market Cap: ¥7.01B
• Dividend Yield: N/A
• Average Volume (3M): 6.20M
• Price to Earnings (P/E): 161.8
• Beta (1Y): 1.30
• Revenue Growth: 80.33%
• EPS Growth: N/A
• Country: JP
• Employees: 588
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 1.19
• Shares Outstanding: 109,596,480
• 10 Day Avg. Volume: 1,926,800
• 30 Day Avg. Volume: 6,203,923
• PEG Ratio: -0.01
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.63
• 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: ¥48.00
• Price Target Upside: -22.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥67.00 ▲(8.06%Upside)

INEST, Inc. demonstrates strong technical performance, driving a bullish outlook. However, the high P/E ratio suggests overvaluation, which is a significant risk. The company's solid financial performance supports a positive trajectory, but high debt levels warrant caution.

INEST,Inc. Business Overview & Revenue Model

Company Description

INEST, Inc. is a Japan-based company primarily engaged in the information and communication technology (ICT) sector. The company provides a range of services including the development and operation of web-based systems, management of internet media, and the provision of solutions for digital transformation. INEST, Inc. aims to support businesses in optimizing their operations through innovative technology solutions.

How the Company Makes Money

INEST, Inc. generates revenue through a combination of product sales, service fees, and subscription models. The company earns money by developing and selling web-based systems tailored to client needs, offering ongoing support and maintenance services, and managing internet media platforms that attract advertising revenue. Additionally, INEST, Inc. engages in strategic partnerships with other technology firms, which can lead to joint ventures and shared revenue streams. Their diverse revenue model is bolstered by the increasing demand for digital transformation solutions, providing a stable foundation for growth.

INEST,Inc. Financial Statement Overview

Summary

INEST, Inc. demonstrates strong financial health with significant revenue growth and improving profitability. The balance sheet is solid, though increasing leverage should be watched. Cash flow generation is on a positive trajectory, showcasing effective cash management. The company is well-positioned in its industry, with strong operational metrics and improving financial performance, though vigilance on leverage and operational efficiency is advised.

Income Statement

INEST, Inc. has shown a robust growth trajectory with total revenue increasing significantly over the past few years. The company exhibits strong gross profit margins, consistently above 80%, which underscores efficient cost management. The net profit margin has improved from a negative figure to a positive one in the latest year, indicating a turnaround in profitability. The EBIT and EBITDA margins demonstrate a stable operational performance, although a decline in EBIT margin in the latest year suggests some operational challenges.

Balance Sheet

The balance sheet of INEST, Inc. reflects a stable equity position with a healthy equity ratio hovering around 36%. The debt-to-equity ratio has increased slightly, which could indicate rising leverage, but it remains manageable. Return on equity has been volatile but is trending upwards, which may indicate improving shareholder value. Overall, the balance sheet portrays financial stability with a slight caution on increasing leverage.

Cash Flow

The company's cash flow statements reveal a substantial improvement in free cash flow, transitioning from negative to positive figures, highlighting better cash management. The operating cash flow to net income ratio is strong, indicating good conversion of profits to cash. However, fluctuations in investing and financing cash flows suggest potential volatility in capital allocation strategies. Overall, the cash flow outlook is positive with some areas requiring close monitoring.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.96B	10.52B	7.94B	6.63B	4.89B
Gross Profit	16.17B	9.33B	7.50B	6.16B	4.29B
EBITDA	693.00M	527.00M	402.00M	265.00M	183.00M
Net Income	42.00M	-149.00M	450.00M	-58.00M	202.00M
Balance Sheet
Total Assets	13.67B	13.23B	8.07B	6.82B	6.65B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.71B	2.79B	1.37B	1.67B
Total Debt	5.44B	5.14B	2.52B	2.59B	2.28B
Total Liabilities	8.72B	8.31B	4.50B	4.38B	4.47B
Stockholders Equity	4.93B	4.88B	3.58B	2.44B	2.17B
Cash Flow
Free Cash Flow	814.00M	-15.00M	181.00M	-720.00M	288.00M
Operating Cash Flow	924.00M	21.00M	231.00M	-523.00M	302.00M
Investing Cash Flow	-212.00M	-2.35B	-61.00M	-316.00M	828.00M
Financing Cash Flow	-624.00M	2.28B	85.00M	544.00M	-28.00M

INEST,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7111, the sentiment is Positive. The current price of 62 is above the 20-day moving average (MA) of 60.05, above the 50-day MA of 51.62, and above the 200-day MA of 50.20, indicating a bullish trend. The MACD of 2.85 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7111.

INEST,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2304	81 Outperform	¥4.62B	11.20		3.80%	11.22%	16.11%
2480	80 Outperform	¥5.19B	15.70		2.58%	-4.29%	-11.53%
7111	71 Outperform	¥7.01B	161.80		―	80.33%	―
7883	70 Outperform	¥5.39B	16.23		1.44%	-1.18%	29.19%
7812	70 Outperform	¥5.11B	5.03		4.58%	-0.27%	36.59%
6092	68 Neutral	¥5.26B	11.54		1.40%	11.41%	-37.29%
Sector *	58 Neutral	HK$15.00B	4.65	-2.78%	5.84%	3.80%	-54.57%