INTLOOP, Inc. (9556) AI Stock Analysis

• Market Cap: ¥26.08B
• Dividend Yield: N/A
• Average Volume (3M): 120.60K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.15
• Revenue Growth: 16.77%
• EPS Growth: 39.98%
• Country: JP
• Employees: 1,159
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 39.94
• Shares Outstanding: 9,414,540
• 10 Day Avg. Volume: 93,360
• 30 Day Avg. Volume: 120,603
• PEG Ratio: 0.50
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 27.68
• 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): 229.59
• Revenue Forecast (FY): ¥42.41B

• Rating: 67 Neutral
• Price Target: ¥2,952.00 ▼(-24.79% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial performance (growth, low leverage, and solid cash conversion), but it is meaningfully offset by a weak technical setup with the stock well below key moving averages and negative MACD. Valuation is neither clearly cheap nor supported by a stated dividend yield, keeping the overall score in the mid-range.

Positive Factors

Strong cash conversion

The company consistently converts accounting profits into cash (OCF/net income 1.27; FCF/net income 0.92), supporting durable internal funding for capex, working capital and debt service. Strong cash conversion improves financial resilience across business cycles and funds strategic investments without heavy external financing.

Low leverage and strong ROE

A low debt-to-equity ratio and a solid equity ratio indicate conservative leverage and capital structure, while ROE of 22% shows effective profit generation on shareholder capital. This combination gives sustained financial flexibility, capacity to withstand downturns, and optionality for M&A or reinvestment.

Healthy margins with revenue growth

Sustained revenue growth alongside a healthy gross margin (~27%) and solid operating margins reflects an efficient service model and pricing ability. These durable margin characteristics support persistent profitability and operating leverage, enabling reinvestment in capabilities and maintaining competitive position over time.

Negative Factors

Thin net profit margin

A net margin near 4% leaves limited buffer against rising costs or pricing pressure inherent in services. Even with strong gross margins and cash conversion, low bottom-line profitability constrains retained earnings, reduces capacity to absorb shocks, and limits scope for sustained margin expansion without structural changes.

No stated dividend policy

The absence of a stated dividend reduces direct shareholder income and may narrow the investor base seeking yield. Over the medium term, lack of regular cash returns could pressure management to prioritize reinvestment over distributions, potentially limiting appeal to income-focused investors and reducing market support in low-growth periods.

Exposure to consulting cyclicality

As a consulting-services firm, revenue and pricing are tied to client budgets and macro corporate spend cycles. Structural cyclicality and intense competition can compress utilization and rates during slowdowns, creating revenue volatility and margin risk that persist over multi-quarter horizons absent diversification or long-term contracted revenue.

INTLOOP, Inc. Business Overview & Revenue Model

Company Description

INTLOOP Inc. provides consulting and system development support services using it professional freelancers in Japan. It offers consulting, digital transformation, human resources solution, and overseas expansion support services; and project introduction and career change support services for consultants and engineers, as well as operates QEEE, a business portal site for spot consulting, documents, solution magazines, etc. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

INTLOOP, Inc. generates revenue primarily through the sale of software licenses, subscription services, and professional consulting. The company offers tiered subscription models for its cloud-based applications, allowing clients to choose plans based on their usage and feature requirements. Additionally, INTLOOP provides customized solutions and consulting services to assist clients in integrating and optimizing their software environments, which contributes a significant portion of its revenue. The company has established partnerships with major cloud service providers and industry leaders, enhancing its product offerings and market reach, which further bolsters its revenue streams.

INTLOOP, Inc. Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew 7.08% with healthy gross margin (~27.37%) and solid operating efficiency. Balance sheet risk is low (debt-to-equity 0.29) with strong ROE (22.21%). Cash generation is robust (operating cash flow to net income 1.27; free cash flow to net income 0.92).

Income Statement

INTLOOP, Inc. has demonstrated strong revenue growth with a 7.08% increase in the latest year. The company maintains healthy margins with a gross profit margin of approximately 27.37% and a net profit margin of 4.08%. EBIT and EBITDA margins are also solid, indicating efficient operations. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet shows a favorable debt-to-equity ratio of 0.29, indicating low leverage and financial stability. The return on equity is strong at 22.21%, reflecting effective use of equity to generate profits. The equity ratio of 45.17% suggests a solid capital structure. Overall, the balance sheet is strong with low risk.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is 1.27, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 0.92, showing efficient cash conversion. Overall, cash flow is robust with positive growth trends.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	33.55B	27.08B	17.82B	13.12B	9.25B
Gross Profit	9.18B	6.66B	4.07B	3.06B	2.07B
EBITDA	2.40B	1.55B	1.12B	788.78M	480.17M
Net Income	1.37B	902.01M	794.51M	517.34M	341.95M
Balance Sheet
Total Assets	13.63B	12.14B	6.62B	5.98B	3.00B
Cash, Cash Equivalents and Short-Term Investments	4.07B	5.71B	4.03B	4.00B	1.49B
Total Debt	1.81B	2.93B	602.76M	764.29M	823.19M
Total Liabilities	7.03B	7.06B	2.75B	2.92B	2.39B
Stockholders Equity	6.16B	4.78B	3.87B	3.07B	608.33M
Cash Flow
Free Cash Flow	1.26B	1.01B	293.36M	659.66M	543.05M
Operating Cash Flow	1.74B	1.23B	297.14M	667.74M	551.39M
Investing Cash Flow	-2.25B	-806.64M	-115.76M	-11.23M	-7.76M
Financing Cash Flow	-1.13B	1.26B	-152.75M	1.85B	-44.51M

INTLOOP, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3925.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9556, the sentiment is Negative. The current price of 3925 is above the 20-day moving average (MA) of 3003.80, above the 50-day MA of 3384.72, and above the 200-day MA of 3672.26, indicating a bearish trend. The MACD of -186.21 indicates Positive momentum. The RSI at 31.70 is Neutral, neither overbought nor oversold. The STOCH value of 17.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9556.

INTLOOP, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9644	72 Outperform	¥24.43B	16.33	―	3.50%	15.91%	36.39%
7033	71 Outperform	¥23.92B	8.70	―	2.18%	17.87%	5.31%
9168	68 Neutral	¥12.44B	20.71	―	1.04%	23.25%	14.29%
9556	67 Neutral	¥26.08B	26.38	―	―	16.77%	39.98%
4763	66 Neutral	¥32.05B	8.57	―	2.71%	4.27%	27.62%
4792	64 Neutral	¥32.06B	31.60	―	4.39%	2.46%	-31.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%