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ISB CORP (Japan) (JP:9702)
:9702
Japanese Market

ISB CORP (Japan) (9702) AI Stock Analysis

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ISB CORP (Japan)

(9702)

Rating:78Outperform
Price Target:
¥1,563.00
▲(14.00%Upside)
ISB CORP's strong financial performance, characterized by robust revenue growth and solid profitability, is the primary driver of its high score. Technical analysis supports a positive outlook, although the variability in free cash flow growth warrants attention. The favorable valuation further strengthens the investment case.

ISB CORP (Japan) (9702) vs. iShares MSCI Japan ETF (EWJ)

ISB CORP (Japan) Business Overview & Revenue Model

Company DescriptionISB CORP (Japan) (9702) is a technology and software services company specializing in providing IT solutions and system integration services. Based in Japan, the company caters to various industries, including telecommunications, finance, and manufacturing, offering a range of services such as application development, IT infrastructure management, and technical support. ISB CORP is known for its ability to deliver customized solutions that enhance operational efficiency and drive digital transformation for its clients.
How the Company Makes MoneyISB CORP makes money primarily through its IT services and solutions offerings. The company's revenue streams include fees from software development projects, system integration services, and IT infrastructure management contracts. Additionally, ISB CORP generates income from providing technical support and maintenance services, which are often bundled with their software solutions. The company may also engage in strategic partnerships and collaborations with other technology firms to expand its service offerings and client base, further contributing to its revenue. Key factors influencing its earnings include the demand for digital transformation in various industries and the company's ability to adapt to emerging technologies and client needs.

ISB CORP (Japan) Financial Statement Overview

Summary
ISB CORP presents a robust financial profile with strong revenue growth, efficient profitability, and a solid balance sheet. The company has maintained low leverage and high equity, contributing to financial stability. While cash flows are strong, some variability in free cash flow growth suggests careful monitoring of capital investments is necessary.
Income Statement
85
Very Positive
ISB CORP demonstrates strong revenue and profit growth, with a consistent increase in total revenue from 24.4 billion in 2020 to 33.9 billion in 2024. The company has maintained robust profitability margins with a Gross Profit Margin averaging around 24% and a Net Profit Margin improving from 4.1% in 2020 to 6.0% in 2024. These metrics reflect efficient operations and a successful growth strategy.
Balance Sheet
80
Positive
The balance sheet is solid, showcasing a strong equity position with a Debt-to-Equity Ratio remaining low at approximately 0.01 over recent years, indicating low leverage. Return on Equity improved from 11.4% in 2020 to 15.0% in 2024, signifying efficient utilization of shareholders' equity. The Equity Ratio has consistently been above 60%, reflecting a stable financial structure.
Cash Flow
78
Positive
Cash flows remain healthy, with Free Cash Flow consistently positive and strong from 1.3 billion in 2021 to 1.5 billion in 2024. The Operating Cash Flow to Net Income Ratio remained above 1, indicating efficient cash generation relative to net income. However, the Free Cash Flow growth has been somewhat inconsistent, reflecting potential variability in capital expenditures.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
33.95B32.39B28.95B26.18B24.43B
Gross Profit
8.24B7.44B6.96B6.30B5.84B
EBIT
2.80B2.73B2.32B1.87B1.64B
EBITDA
3.05B2.86B2.88B2.50B2.30B
Net Income Common Stockholders
2.03B1.47B1.42B1.11B994.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.98B8.88B7.63B6.07B5.20B
Total Assets
19.80B17.99B16.46B14.36B13.51B
Total Debt
120.00M120.00M120.00M120.00M140.00M
Net Debt
-8.86B-8.76B-7.51B-5.95B-5.06B
Total Liabilities
6.30B6.17B5.78B4.80B4.75B
Stockholders Equity
13.50B11.82B10.68B9.56B8.76B
Cash FlowFree Cash Flow
1.50B1.82B1.80B1.31B1.74B
Operating Cash Flow
1.88B1.95B1.93B1.46B1.86B
Investing Cash Flow
-1.35B-270.09M-73.18M-202.94M-132.21M
Financing Cash Flow
-480.65M-454.86M-341.20M-402.86M-185.29M

ISB CORP (Japan) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1371.00
Price Trends
50DMA
1327.48
Positive
100DMA
1327.12
Positive
200DMA
1352.80
Positive
Market Momentum
MACD
7.16
Positive
RSI
57.36
Neutral
STOCH
48.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9702, the sentiment is Positive. The current price of 1371 is above the 20-day moving average (MA) of 1363.35, above the 50-day MA of 1327.48, and above the 200-day MA of 1352.80, indicating a bullish trend. The MACD of 7.16 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9702.

ISB CORP (Japan) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥13.48B9.56
3.82%10.04%99.20%
82
Outperform
¥15.78B11.23
2.61%12.54%52.02%
78
Outperform
¥15.91B11.16
3.17%8.46%3.01%
78
Outperform
¥15.72B7.85
3.94%7.93%20.67%
68
Neutral
¥13.74B20.27
3.65%-2.98%-31.07%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
45
Neutral
¥17.44B
26.31%-56.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9702
ISB CORP (Japan)
1,371.00
9.24
0.68%
JP:2307
Cross Cat Co., Ltd.
1,040.00
-253.77
-19.61%
JP:3648
AGS Corporation
920.00
-87.49
-8.68%
JP:3800
UNIRITA, Inc.
1,917.00
1.38
0.07%
JP:4192
SpiderPlus & Co.
494.00
-4.00
-0.80%
JP:9651
Japan Process Development Co., Ltd.
1,413.00
407.53
40.53%

ISB CORP (Japan) Corporate Events

ISB Corporation Reports Q1 2025 Financial Results with Increased Sales but Lower Profit
May 8, 2025

ISB Corporation reported its consolidated financial results for the first quarter of 2025, showing a 13.8% increase in net sales to ¥9,712 million compared to the same period last year. Despite the rise in sales, the company’s profit attributable to owners of the parent decreased by 4.5% to ¥726 million, indicating challenges in maintaining profitability. The equity-to-asset ratio slightly decreased to 66.7% from 68.2% at the end of 2024, reflecting changes in the company’s financial structure. The company has maintained its dividend forecast for the fiscal year ending December 31, 2025, with no revisions announced.

ISB Corporation Corrects Head Office Relocation Notice
Apr 10, 2025

ISB Corporation, listed on the Prime Market of the Tokyo Stock Exchange, announced a correction to a previously published notice regarding the relocation of its head office and amendments to its articles of incorporation. The correction involves an error in the address of the new head office location, which has been updated to reflect the accurate address.

ISB Corporation Reports Increased Sales and Profits Amidst Future Profitability Challenges
Mar 31, 2025

ISB Corporation reported a 4.8% increase in net sales for the year ended December 31, 2024, reaching 33,954 million yen. Despite a modest rise in operating and ordinary profits, the company achieved a substantial 38% increase in profit attributable to owners of the parent, amounting to 2,032 million yen. The company’s financial position strengthened with an increase in total assets and net assets, and a higher equity ratio. However, the forecast for 2025 indicates a decline in profits despite an expected increase in net sales, suggesting potential challenges in maintaining profitability.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.