ISB CORP (Japan) (9702) AI Stock Analysis

• Market Cap: ¥19.49B
• Dividend Yield: 3.18%
• Average Volume (3M): 31.18K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.55
• Revenue Growth: 9.84%
• EPS Growth: -19.96%
• Country: JP
• Employees: 2,125
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 14.40
• Shares Outstanding: 11,463,141
• 10 Day Avg. Volume: 22,450
• 30 Day Avg. Volume: 31,176
• PEG Ratio: 0.20
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 10.38
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥2,042.00 ▲(11.46% Upside)

ISB CORP's strong financial performance and attractive valuation are the most significant factors contributing to its overall score. The positive technical indicators further support a favorable outlook. The absence of earnings call data and corporate events does not impact the score due to their exclusion.

Positive Factors

Revenue Growth

Consistent revenue growth highlights ISB CORP's ability to expand its market reach and enhance product adoption, ensuring long-term business sustainability.

Balance Sheet Health

A low Debt-to-Equity Ratio indicates financial stability and flexibility, allowing ISB CORP to invest in growth opportunities without significant leverage risk.

Profitability Margins

Strong profitability margins reflect efficient operations and effective cost management, supporting ISB CORP's long-term financial health and competitive positioning.

Negative Factors

Earnings Per Share Decline

A decline in EPS growth indicates potential challenges in profitability or increased costs, which could impact investor confidence and future earnings potential.

Free Cash Flow Variability

Inconsistent free cash flow growth suggests potential challenges in managing capital expenditures, which could affect ISB CORP's ability to fund future growth initiatives.

Earnings Call Data Absence

The absence of earnings call data limits transparency and insight into management's strategic direction, potentially affecting stakeholder confidence and decision-making.

ISB CORP (Japan) Business Overview & Revenue Model

Company Description

ISB CORP (Japan) (9702) is a prominent player in the Japanese information technology sector, specializing in providing comprehensive IT solutions and services. The company operates primarily in software development, system integration, and IT consulting, catering to a diverse range of industries including finance, healthcare, and manufacturing. ISB CORP is known for its innovative approach to digital transformation, offering cutting-edge technologies that enhance operational efficiency and drive business growth for its clients.

How the Company Makes Money

ISB CORP generates revenue through multiple streams, primarily from its IT services and solutions. The company earns money by charging clients for software development projects, system integration services, and ongoing IT support and maintenance contracts. Additionally, ISB CORP monetizes its proprietary software products through licensing agreements and subscription models. Key revenue streams also include consulting services aimed at helping organizations optimize their IT infrastructure and navigate digital transformation initiatives. Strategic partnerships with technology providers further bolster its offerings, enabling ISB CORP to deliver comprehensive solutions that attract a wider client base and enhance its competitive edge in the market.

ISB CORP (Japan) Financial Statement Overview

Summary

ISB CORP demonstrates strong financial performance with consistent revenue and profit growth, robust profitability margins, a solid balance sheet with low leverage, and healthy cash flows. However, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.72B	33.95B	32.39B	28.95B	26.18B	24.43B
Gross Profit	8.60B	8.24B	7.80B	6.96B	6.30B	5.84B
EBITDA	3.04B	3.05B	2.86B	2.88B	2.50B	2.30B
Net Income	1.69B	2.03B	1.47B	1.42B	1.11B	994.44M
Balance Sheet
Total Assets	20.47B	19.80B	17.99B	16.46B	14.36B	13.51B
Cash, Cash Equivalents and Short-Term Investments	8.59B	8.98B	8.88B	7.63B	6.07B	5.20B
Total Debt	120.00M	120.00M	120.00M	120.00M	120.00M	140.00M
Total Liabilities	6.77B	6.30B	6.17B	5.78B	4.80B	4.75B
Stockholders Equity	13.70B	13.50B	11.82B	10.68B	9.56B	8.76B
Cash Flow
Free Cash Flow	0.00	1.50B	1.82B	1.80B	1.31B	1.74B
Operating Cash Flow	0.00	1.88B	1.95B	1.93B	1.46B	1.86B
Investing Cash Flow	0.00	-1.35B	-270.09M	-73.18M	-202.94M	-132.21M
Financing Cash Flow	0.00	-480.65M	-454.86M	-341.20M	-402.86M	-185.29M

ISB CORP (Japan) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1832.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1832 is above the 20-day moving average (MA) of 1697.45, above the 50-day MA of 1733.26, and above the 200-day MA of 1524.42, indicating a bullish trend. The MACD of 4.60 indicates Negative momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 86.45 is Negative, 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	¥16.78B	11.35	―	2.99%	12.78%	90.80%
9702	78 Outperform	¥19.49B	14.68	―	3.18%	9.84%	-19.96%
3648	76 Outperform	¥22.88B	11.30	―	2.40%	21.57%	129.44%
2307	70 Outperform	¥15.83B	10.55	―	3.14%	3.58%	0.23%
3800	68 Neutral	¥13.96B	18.98	―	3.62%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4192	41 Neutral	¥10.63B	-26.77	―	―	22.18%	28.27%

ISB CORP (Japan) Corporate Events

ISB Corporation Announces Subsidiary Rebranding and Relocation

ISB Corporation announced changes to the trade names and head office locations of its subsidiaries, SSS Corporation and Computer House Corporation, to Hokkaido ISB Corporation and Kyushu ISB Corporation, respectively. These changes aim to improve business management efficiency, enhance brand visibility, and strengthen cooperation with local communities, ultimately boosting the company’s regional presence and value.

ISB Corporation Reports Increased Sales but Declining Profits for 2025

ISB Corporation reported its consolidated financial results for the nine months ending September 30, 2025, showing a 10.7% increase in net sales compared to the previous year. However, the company faced a decline in operating and ordinary profits by 20.1% and 20.5%, respectively, with profit attributable to owners dropping by 38.9%. Despite the challenges, ISB Corporation maintains a stable financial position with a slight increase in total assets and net assets. The company forecasts a modest growth in net sales for the fiscal year ending December 31, 2025, but anticipates a decrease in profits.