IDOM Inc. (7599) AI Stock Analysis

• Market Cap: ¥153.82B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.47
• Revenue Growth: 11.66%
• EPS Growth: -7.47%
• Country: JP
• Employees: 3,508
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 39.06
• Shares Outstanding: 106,888,000
• 10 Day Avg. Volume: 2,056,850
• 30 Day Avg. Volume: 1,223,180
• PEG Ratio: 0.47
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -3.98
• 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): 153.45
• Revenue Forecast (FY): ¥587.72B

• Rating: 70 Outperform
• Price Target: ¥1,654.00 ▲(29.32% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is driven primarily by solid financial performance with strong growth and profitability, offset by negative operating/free cash flow and higher liabilities. Technicals support an uptrend but overbought RSI raises near-term risk, while valuation (low P/E plus dividend yield) is a supportive factor.

Positive Factors

Sustained Revenue Growth

Material year-over-year revenue expansion demonstrates consistent client wins and successful scaling of project delivery capabilities. Over the medium term this growth supports a larger backlog, strengthens pricing leverage on large public/private contracts, and funds strategic investments that reinforce competitive positioning.

Strong Margin Profile

Robust gross, EBIT and net margins signal disciplined project execution and effective cost control across contracts. Margin sustainability supports long-term cash generation potential, funds reinvestment in talent and systems, and gives the company an enduring edge in bid-intensive engineering and consulting markets.

Diversified Fee-for-Service Model

A diversified service mix across infrastructure, energy and environmental sectors and multiple contract types (fixed-price, T&M, retainers) reduces revenue concentration. Government partnerships and repeat business create durable client relationships and recurring revenue characteristics that bolster resilience to sector swings.

Negative Factors

Negative Operating and Free Cash Flow

Negative operating and free cash flow in the latest period indicates potential liquidity stress and weaker internal funding for working capital and project execution. Persisting cash deficits can force reliance on external financing, constrain capex or hiring, and limit strategic flexibility over the medium term.

Rising Liabilities / Debt Reliance

An uptick in total liabilities and dependence on debt financing raise refinancing and interest-rate vulnerability. Elevated leverage reduces balance-sheet flexibility to absorb project delays, pursue new large contracts, or weather downturns, increasing medium-term financial and operational risk if not mitigated.

Declining EPS

A near‑10% decline in EPS despite revenue growth suggests pressure on per-share profitability, potentially from higher costs, elevated interest or dilution. If persistent, EPS erosion can weaken shareholder returns and limit the company's ability to signal sustained operational improvement to investors over the coming months.

IDOM Inc. Business Overview & Revenue Model

Company Description

IDOM Inc. purchases and sells used cars in Japan and internationally. The company also sells new cars. It operates through a network of approximately 500 stores under the Gulliver brand. The company was formerly known as Gulliver International Co. Ltd. and changed its name to IDOM Inc. in July 2016. IDOM Inc. was founded in 1994 and is headquartered in Tokyo, Japan.

How the Company Makes Money

IDOM generates revenue primarily through its consulting and engineering services, which include project planning, design, and management across various sectors. The company's revenue model is based on fee-for-service contracts, where clients pay for the expertise and services rendered. Key revenue streams include fixed-price contracts for specific projects, time-and-materials contracts, and retainer agreements for ongoing consulting services. Additionally, IDOM benefits from strategic partnerships with government agencies and private companies, enhancing its project portfolio and market reach. The company's ability to leverage its technical expertise and reputation for quality further contributes to its earnings through repeat business and referrals.

IDOM Inc. Financial Statement Overview

Summary

Strong revenue growth and healthy profitability support the score, but it is tempered by rising liabilities and weak liquidity signals, including negative operating cash flow and negative current free cash flow in 2025.

Income Statement

IDOM Inc. has demonstrated strong revenue growth over the years, with a notable increase from ¥419,852 million in 2024 to ¥496,678 million in 2025. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. The EBIT and EBITDA margins further reinforce its operational efficiency, although there was a slight dip in gross profit in 2025 compared to 2022.

Balance Sheet

The company's balance sheet shows a balanced equity ratio, reflecting moderate financial leverage. The debt-to-equity ratio is manageable, although it indicates some reliance on debt financing. The return on equity is strong, showing that the company effectively uses shareholder equity to generate profits. However, the increase in total liabilities suggests a need for careful debt management.

Cash Flow

The cash flow situation presents challenges, with a negative operating cash flow in 2025, indicating potential liquidity issues. Despite this, the company had positive free cash flow growth in previous years, which is a positive sign. However, the current free cash flow is negative, impacting the overall cash flow stability.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	520.13B	496.68B	419.85B	416.51B	459.53B	380.56B
Gross Profit	88.40B	85.42B	73.33B	74.55B	86.01B	72.81B
EBITDA	20.97B	22.49B	18.91B	22.01B	19.92B	9.20B
Net Income	12.13B	13.45B	11.44B	14.21B	10.79B	1.48B
Balance Sheet
Total Assets	243.58B	220.04B	184.03B	173.29B	189.77B	177.22B
Cash, Cash Equivalents and Short-Term Investments	28.02B	15.42B	30.55B	37.47B	45.67B	43.18B
Total Debt	91.63B	79.28B	63.00B	67.14B	78.62B	80.63B
Total Liabilities	159.13B	139.21B	114.10B	110.59B	134.06B	132.21B
Stockholders Equity	82.64B	79.44B	69.02B	62.23B	54.02B	44.00B
Cash Flow
Free Cash Flow	0.00	-27.93B	1.44B	-3.57B	2.85B	17.66B
Operating Cash Flow	0.00	-20.04B	9.65B	2.27B	8.28B	19.51B
Investing Cash Flow	0.00	-8.76B	-8.37B	-166.00M	-4.50B	-1.37B
Financing Cash Flow	0.00	13.63B	-8.23B	-10.63B	-1.33B	-12.49B

IDOM Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1279.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7599, the sentiment is Positive. The current price of 1279 is below the 20-day moving average (MA) of 1483.15, below the 50-day MA of 1392.95, and above the 200-day MA of 1145.48, indicating a bullish trend. The MACD of 24.51 indicates Positive momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 49.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7599.

IDOM Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9856	82 Outperform	¥42.46B	7.58	―	5.21%	3.66%	-6.67%
8291	76 Outperform	¥28.66B	11.79	―	4.79%	-6.89%	-50.31%
7599	70 Outperform	¥153.82B	12.08	―	2.82%	11.66%	-7.47%
7593	63 Neutral	¥68.05B	11.94	―	4.49%	8.56%	-13.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	61 Neutral	¥298.91B	23.85	―	1.24%	21.79%	9.89%
9268	55 Neutral	¥27.68B	-24.29	―	5.36%	23.82%	-151.12%

IDOM Inc. Corporate Events

IDOM Launches New Shareholder Benefit Program to Boost Investment Appeal

IDOM Inc. has approved the introduction of a shareholder benefit program that awards digital gifts to shareholders based on their holding period and the number of shares owned, starting from the record date of February 28, 2026. Eligible investors holding at least 100 shares will receive digital gifts twice a year, with benefit amounts tiered across three ownership brackets and initially not subject to a minimum holding period, a structure designed to reward long-term holders from subsequent periods. The company expects the program to improve the investment appeal of its shares and strengthen shareholder loyalty, while stating that the initiative will not have a material impact on its current fiscal year financial results.

The most recent analyst rating on (JP:7599) stock is a Hold with a Yen1432.00 price target. To see the full list of analyst forecasts on IDOM Inc. stock, see the JP:7599 Stock Forecast page.

IDOM Posts Higher Sales but Lower Profits for Nine Months, Keeps Full-Year Forecast

IDOM Inc. reported a 10.8% year-on-year increase in net sales to ¥421.5 billion for the nine months ended 30 November 2025, but operating profit, ordinary profit and profit attributable to owners of the parent all declined by 3.6%, 7.5% and 7.3% respectively, with basic earnings per share slipping to ¥90.49. Total assets expanded to ¥251.9 billion and net assets rose to ¥86.8 billion, though the equity ratio softened to 33.8%, while the company maintained its full-year forecast, projecting a 10.1% rise in net sales but only marginal operating profit growth and a 7.0% decline in full-year profit, alongside a planned reduction in annual dividends compared with the previous year, signaling pressure on profitability despite top-line expansion.

The most recent analyst rating on (JP:7599) stock is a Hold with a Yen1296.00 price target. To see the full list of analyst forecasts on IDOM Inc. stock, see the JP:7599 Stock Forecast page.