IFIS Japan (7833) AI Stock Analysis

• Market Cap: ¥6.73B
• Dividend Yield: 2.71%
• Average Volume (3M): 15.87K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.28
• Revenue Growth: 22.77%
• EPS Growth: -10.68%
• Country: JP
• Employees: 293
• Sector: Financial
• Sector Strength: 70
• Industry: Specialty Business Services
• EPS (TTM): 17.96
• Shares Outstanding: 10,242,000
• 10 Day Avg. Volume: 13,960
• 30 Day Avg. Volume: 15,870
• PEG Ratio: 0.37
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 13.03
• 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: 81 Outperform
• Price Target: ¥810.00 ▲(14.57% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (steady growth and very low leverage), supported by attractive valuation (moderate P/E with a high dividend yield). Technicals are positive with price above key moving averages and healthy momentum, while cash conversion and cash-flow volatility temper the overall rating.

Positive Factors

Conservative balance sheet

IFIS Japan's near-zero debt and very low leverage materially reduce financial risk and interest burden, preserving capital allocation optionality. This balance-sheet conservatism supports stability across cycles, enabling steady dividends, opportunistic M&A, or buybacks without refinancing pressure.

Steady accelerating revenue

Consistent top-line growth from 2023 to 2025, with acceleration into 2025, signals durable demand for IFIS Japan's data and analytics offerings. Sustained revenue expansion underpins operating profit gains and indicates product-market fit and resilience of the subscription/digital delivery business model.

Positive free cash flow

Consistent positive free cash flow, and FCF roughly matching net income in 2025, shows the business converts accounting earnings into real cash. Reliable cash generation supports dividends and reinvestment, improving long-term financial flexibility despite some year-to-year variability.

Negative Factors

Margin compression vs 2022

Margins have weakened from their 2022 peak, with net margin notably lower. Persistent margin erosion can indicate rising operating costs, pricing pressure, or a less profitable product mix, which may constrain return on invested capital and limit the firm's ability to sustainably expand profitability.

Weak cash conversion & FCF volatility

Operating cash flow has covered net income by less than 1x in recent years, and FCF has been volatile (notably 2023). This weak cash conversion and variability increase funding uncertainty for growth initiatives and dividends, and point to working-capital or timing pressures in the business.

Declining returns on equity

ROE and profitability on equity have trended lower since 2022 even as assets and equity grew, implying diminishing returns on incremental capital. If this trend persists, it could reflect competitive pressures or scaling inefficiencies that weaken long-term shareholder value creation.

IFIS Japan Business Overview & Revenue Model

Company Description

IFIS Japan Ltd. provides document processing and information transmission solutions in Japan. The company offers financial information services, including data feed services; and marketing support services comprising of planning, production, printing, and distribution of financial documents; design of advertising and sales promotional materials; planning and production of sales promotion tool for video and novelty items; and online content and app development. It also provides document solutions, such as system development, content management, logistics, and business support services to investment trust management companies, securities companies, banks, trust banks, DC providers, insurance companies, and other business corporations. IFIS Japan Ltd. was founded in 1995 and is based in Tokyo, Japan.

How the Company Makes Money

IFIS Japan generates revenue primarily through the sale of financial information services and solutions. Its key revenue streams include subscription fees from clients who access their financial data platforms and analytical tools. The company also earns money by providing customized research reports and consulting services tailored to specific client needs. Significant partnerships with financial institutions and corporations also play a role in its earnings, as these collaborations often lead to long-term service contracts and data-sharing agreements that enhance its product offerings and market reach.

IFIS Japan Financial Statement Overview

Summary

Strong overall fundamentals supported by steady 2023–2025 revenue growth and solid profitability, plus an exceptionally conservative balance sheet with near-zero debt. The main offsets are margin/return compression versus the 2022 peak and weaker cash conversion (operating cash flow covering net income by less than 1x recently) with some free-cash-flow volatility.

Income Statement

Revenue has grown steadily from 2023–2025 (accelerating into 2025), supporting improving operating profit and net income. Profitability is solid for the sector, with gross margin broadly stable around the low-40% range and operating margin in the low-teens. The main weakness is margin compression versus the 2022 peak (notably lower net margin), suggesting higher costs or a less favorable mix despite good top-line momentum.

Balance Sheet

The balance sheet is very conservatively financed, with near-zero debt and an extremely low debt-to-equity ratio across periods, which materially reduces financial risk. Equity and assets have increased over time, indicating balance-sheet strengthening. A watch item is that profitability on equity has trended down from 2022 levels (where available), implying returns have softened even as the company has grown.

Cash Flow

Free cash flow is consistently positive and generally tracks net income well (free cash flow close to net income in 2025). However, operating cash flow has covered net income by less than 1x in most recent years (including 2024–2025), pointing to working-capital or timing headwinds. Free cash flow has also been somewhat volatile year-to-year (notably the 2023 decline), which lowers overall cash-flow quality despite solid absolute generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.47B	6.96B	5.86B	5.55B	5.38B	5.28B
Gross Profit	2.70B	2.89B	2.44B	2.35B	2.31B	2.16B
EBITDA	870.94M	1.04B	802.79M	796.81M	917.14M	837.48M
Net Income	446.75M	556.29M	422.04M	448.64M	587.31M	484.88M
Balance Sheet
Total Assets	6.86B	7.16B	6.87B	6.19B	5.97B	5.48B
Cash, Cash Equivalents and Short-Term Investments	4.81B	5.04B	4.90B	5.09B	4.91B	4.34B
Total Debt	170.28M	4.50M	6.81M	0.00	0.00	0.00
Total Liabilities	1.11B	1.22B	1.20B	772.04M	806.84M	767.27M
Stockholders Equity	5.75B	5.95B	5.67B	5.42B	5.16B	4.71B
Cash Flow
Free Cash Flow	0.00	496.33M	476.37M	444.60M	692.18M	523.34M
Operating Cash Flow	0.00	508.29M	582.28M	606.40M	760.79M	573.21M
Investing Cash Flow	0.00	-84.56M	-1.04B	-233.13M	-49.65M	-49.52M
Financing Cash Flow	0.00	-285.53M	-178.89M	-193.33M	-144.90M	-130.41M

IFIS Japan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 707.00
• 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:7833, the sentiment is Positive. The current price of 707 is above the 20-day moving average (MA) of 696.15, above the 50-day MA of 689.31, and above the 200-day MA of 639.76, indicating a bullish trend. The MACD of 1.58 indicates Positive momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7833.

IFIS Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7833	81 Outperform	¥6.73B	12.09	7.49%	2.71%	22.77%	-10.68%
6580	73 Outperform	¥9.10B	11.00	―	0.61%	32.31%	105.04%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7893	65 Neutral	¥30.15B	-61.03	―	3.97%	4.10%	-121.49%
9225	63 Neutral	¥2.63B	16.26	―	―	10.98%	-13.20%
4384	62 Neutral	¥115.72B	35.71	19.59%	0.16%	18.08%	136.77%