ISB CORP (Japan) (9702) AI Stock Analysis

• Market Cap: ¥15.72B
• Dividend Yield: 3.94%
• Average Volume (3M): 16.66K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.65
• Revenue Growth: 7.93%
• EPS Growth: 20.67%
• Country: JP
• Employees: 2,125
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 63.49
• Shares Outstanding: 11,463,141
• 10 Day Avg. Volume: 12,440
• 30 Day Avg. Volume: 16,656
• PEG Ratio: 0.56
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• 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

• Rating: 78 Outperform
• 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) Business Overview & Revenue Model

Company Description

ISB 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 Money

ISB 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.95B	32.39B	28.95B	26.18B	24.43B
	Gross Profit
8.24B	7.44B	6.96B	6.30B	5.84B
	EBIT
2.80B	2.73B	2.32B	1.87B	1.64B
	EBITDA
3.05B	2.86B	2.88B	2.50B	2.30B
	Net Income Common Stockholders
2.03B	1.47B	1.42B	1.11B	994.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.98B	8.88B	7.63B	6.07B	5.20B
	Total Assets
19.80B	17.99B	16.46B	14.36B	13.51B
	Total Debt
120.00M	120.00M	120.00M	120.00M	140.00M
	Net Debt
-8.86B	-8.76B	-7.51B	-5.95B	-5.06B
	Total Liabilities
6.30B	6.17B	5.78B	4.80B	4.75B
	Stockholders Equity
13.50B	11.82B	10.68B	9.56B	8.76B
Cash Flow		Free Cash Flow
1.50B	1.82B	1.80B	1.31B	1.74B
	Operating Cash Flow
1.88B	1.95B	1.93B	1.46B	1.86B
	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 Price: 1371.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9651	84 Outperform	¥13.48B	9.56		3.82%	10.04%	99.20%
3648	82 Outperform	¥15.78B	11.23		2.61%	12.54%	52.02%
2307	78 Outperform	¥15.91B	11.16		3.17%	8.46%	3.01%
9702	78 Outperform	¥15.72B	7.85		3.94%	7.93%	20.67%
3800	68 Neutral	¥13.74B	20.27		3.65%	-2.98%	-31.07%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
4192	45 Neutral	¥17.44B	―		―	26.31%	-56.42%

ISB CORP (Japan) Corporate Events

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

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

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

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.