ibis inc. (9343) AI Stock Analysis

• Market Cap: ¥10.79B
• Dividend Yield: 5.82%
• Average Volume (3M): 60.91K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.04
• Revenue Growth: 0.96%
• EPS Growth: 19.02%
• Country: JP
• Employees: 313
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 15.46
• Shares Outstanding: 18,419,030
• 10 Day Avg. Volume: 52,450
• 30 Day Avg. Volume: 60,910
• PEG Ratio: -0.19
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 0.00
• 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): 50.3
• Revenue Forecast (FY): ¥5.50B

• Rating: 69 Neutral
• Price Target: ¥707.00 ▼(-0.84% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by strong financial performance (high profitability and a much stronger, low-debt balance sheet), partially offset by weaker cash-flow consistency. Technicals are a major drag as the stock trades below key moving averages with negative momentum indicators, while valuation appears reasonable (P/E ~13.35 with a ~1.55% yield).

Positive Factors

High margins & profitability

Sustained high gross margins (60%+) and current operating (~24%) and net (~17%) margins indicate durable pricing power and efficient delivery. This margin profile supports reinvestment in product development and sales, underpinning long-term competitiveness and returns even if growth slows.

Low leverage, stronger equity base

A materially de-risked capital structure with minimal debt and a larger equity base gives the company financial flexibility. Lower interest burden and higher solvency improve resilience to downturns and enable strategic investments, M&A, or temporary support for clients without refinancing pressure.

Improved operating cash generation

Meaningful operating cash flow and strong 2024 free cash flow demonstrate the business can convert profits to cash, enabling funding for capex, R&D, and shareholder returns without heavy external financing. This underpins sustainable operations and strategic optionality.

Negative Factors

Free cash flow inconsistency

A drop to zero reported free cash flow in 2025 and OCF below net income suggests cash conversion volatility driven by working-capital swings or elevated reinvestment. Persistent inconsistency could constrain capital allocation, limit dividends, or force reliance on external funding over time.

Volatile revenue growth

Uneven revenue growth, including an extreme 2025 figure, implies demand or recognition timing variability and potential customer concentration. This complicates forecasting, budgeting, and scaling sales capacity, raising execution risk for sustaining investment-driven growth over the medium term.

Historical leverage volatility

Past episodes of materially higher leverage indicate management and capital strategy can shift under stress. While recent deleveraging is positive, historical volatility in capital structure raises the risk that leverage could re-emerge during downturns or aggressive expansion, reducing long-term predictability.

ibis inc. Business Overview & Revenue Model

Company Description

Ibis Inc. operates as a mobile-savvy engineering company worldwide. It develops ibisPaint, a mobile painting application; and provides IT engineer dispatch and entrusted development services. The company was incorporated in 2000 and is based in Nagoya, Japan.

How the Company Makes Money

Ibis Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and licensing their proprietary technology solutions. A significant portion of their earnings comes from long-term contracts with enterprise clients who utilize their cloud-based platforms for data management and analytics. Additionally, Ibis Inc. engages in consulting services, providing expert guidance and implementation support, which contributes to its revenue. Partnerships with major cloud service providers further enhance their offerings and expand their market reach, driving additional income through collaborative projects and integrations.

ibis inc. Financial Statement Overview

Summary

Strong profitability and a clear earnings turnaround, supported by high gross margins and a materially strengthened, low-leverage balance sheet with high ROE. The key offset is cash-flow consistency, highlighted by 2025 free cash flow reported as zero and weaker cash conversion versus net income.

Income Statement

Profitability and scale have improved materially over time, with 2025 annual revenue at ~¥5.0B and strong operating profitability (about 24% operating margin and ~17% net margin). The business has shown a clear multi-year rebound from 2020 losses to robust earnings in 2024–2025, supported by consistently high gross margins (~60%+ recently). The main weakness is volatility in the reported revenue growth rate (including an extreme 2025 growth figure), and some margin compression versus the very high gross margin levels seen in 2021–2022.

Balance Sheet

The balance sheet looks very strong and significantly de-risked versus earlier years: debt is minimal in 2024–2025 (debt-to-equity roughly ~2–3%), while equity has expanded substantially (to ~¥2.9B in 2025). Returns on equity are high across recent years (roughly ~29% in 2025 and ~39% in 2024), indicating efficient capital use. The key watch-out is that earlier periods (2020–2021) showed much higher leverage, highlighting that the company’s capital structure has improved meaningfully but has historically been more volatile.

Cash Flow

Cash generation improved dramatically versus 2020–2021, with healthy operating cash flow in 2024–2025 (about ¥1.2B and ¥1.0B, respectively). In 2024, free cash flow was strong (~¥1.07B) and closely supported earnings. The main weakness is consistency: 2025 shows free cash flow reported as zero and operating cash flow covering less than net income (below 1x), which raises questions about working-capital movement and/or reinvestment needs driving a temporary cash conversion dip.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.38B	5.01B	4.63B	4.09B	3.40B	2.74B
Gross Profit	1.45B	3.05B	2.79B	2.59B	2.37B	1.88B
EBITDA	639.05M	1.36B	1.26B	494.28M	286.38M	134.43M
Net Income	376.70M	848.97M	839.29M	288.57M	168.69M	72.31M
Balance Sheet
Total Assets	3.34B	4.19B	3.20B	2.11B	1.29B	952.33M
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.08B	2.23B	1.23B	594.76M	305.57M
Total Debt	29.20M	69.22M	43.65M	74.74M	109.12M	243.50M
Total Liabilities	958.42M	1.29B	1.07B	819.69M	857.93M	689.66M
Stockholders Equity	2.38B	2.90B	2.13B	1.29B	431.36M	262.67M
Cash Flow
Free Cash Flow	0.00	0.00	1.07B	193.79M	466.28M	-4.69M
Operating Cash Flow	0.00	961.40M	1.20B	307.59M	553.49M	43.87M
Investing Cash Flow	0.00	-977.56M	-144.88M	-192.83M	-129.91M	-58.80M
Financing Cash Flow	0.00	-133.71M	-62.43M	520.29M	-134.38M	-135.38M

ibis inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 713.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9343, the sentiment is Negative. The current price of 713 is above the 20-day moving average (MA) of 650.20, above the 50-day MA of 690.26, and above the 200-day MA of 681.83, indicating a bearish trend. The MACD of -22.71 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9343.

ibis inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	¥11.79B	15.39	―	1.16%	23.67%	24.95%
4412	75 Outperform	¥16.34B	69.50	―	―	39.66%	―
9343	69 Neutral	¥10.79B	15.37	―	5.82%	0.96%	19.02%
4168	67 Neutral	¥9.10B	11.67	―	0.70%	9.78%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5591	61 Neutral	¥5.81B	46.46	―	―	35.46%	59.47%
5572	59 Neutral	¥9.47B	68.30	―	―	60.41%	-27.67%

ibis inc. Corporate Events

Ibis Inc. Q4 Results Showcase Surging Subscriptions and Profit Growth

Ibis Inc. reported strong fiscal 2025 fourth-quarter consolidated results, highlighted by a 71.6% year-on-year jump in subscription billing sales to 360 million yen and a 34.1% increase in ibisPaint subscriptions to 46,200 contracts. Net sales rose 20.5% to 1.36 billion yen, while operating profit climbed 17.4% to 350 million yen, with mobile segment gains offsetting higher M&A-related and customer acquisition costs.

The company’s non-consolidated operating profit margin improved by 2.3 percentage points to 28.9%, underlining the profitability of its core operations despite the added expenses of integrating Techno-Speech and preparing for the consolidation of Zeroichi Start. Management emphasized that subscription growth reached all-time highs in both contract volume and quarterly billing, reinforcing ibis’s shift into a harvest phase where recurring revenues are becoming a key driver of earnings and supporting a stronger competitive position in the mobile creative app market.

The most recent analyst rating on (JP:9343) stock is a Buy with a Yen778.00 price target. To see the full list of analyst forecasts on ibis inc. stock, see the JP:9343 Stock Forecast page.

ibis inc. Leverages No. 1 Mobile Art App to Drive Global Growth

ibis inc. is positioning itself as a global creative technology player by leveraging its top-ranked mobile painting app and expanding its business across mobile, solutions, and AI singing voice synthesis segments. With 356 employees, most of them IT engineers, and a rising share of international sales in its mobile segment, the company is signaling plans to harvest growth momentum both in Japan and overseas, underscoring its ambition to turn global creativity into sustained revenue expansion.

The most recent analyst rating on (JP:9343) stock is a Buy with a Yen778.00 price target. To see the full list of analyst forecasts on ibis inc. stock, see the JP:9343 Stock Forecast page.

ibis inc. App Tops Global Graphics & Design Category for Seventh Year

ibis inc. reports that one of its apps in the App Store’s Graphics & Design category has achieved the number one position worldwide in terms of active users for seven consecutive years through November 2025, according to data.ai by Sensor Tower. This sustained top ranking underscores the company’s strong user engagement and solidifies its competitive standing in the global digital design tools market, potentially enhancing its attractiveness to investors and partners.

The most recent analyst rating on (JP:9343) stock is a Buy with a Yen778.00 price target. To see the full list of analyst forecasts on ibis inc. stock, see the JP:9343 Stock Forecast page.

Ibis Inc. Delivers Strong First Consolidated Earnings for Fiscal 2025

Ibis Inc., a Tokyo Stock Exchange-listed company, reported its first set of consolidated financial results under Japanese GAAP for the fiscal year ended December 31, 2025. The company’s move to consolidated reporting signals an evolution in its corporate structure and a broader scope of operations that now require group-level financial disclosure.

For 2025, Ibis posted net sales of ¥5,005 million, operating profit of ¥1,201 million, ordinary profit of ¥1,215 million, and profit attributable to owners of parent of ¥848 million, with earnings per share of ¥46.37 and a high equity-to-asset ratio of 67.8%. These figures, combined with robust profitability ratios such as a 24.0% operating margin and 29.9% return on equity, highlight a solid financial position that may strengthen investor confidence despite the absence of prior-year consolidated comparatives.

The most recent analyst rating on (JP:9343) stock is a Buy with a Yen778.00 price target. To see the full list of analyst forecasts on ibis inc. stock, see the JP:9343 Stock Forecast page.