ISB CORP (Japan) (9702) AI Stock Analysis

• Market Cap: ¥17.61B
• Dividend Yield: 3.47%
• Average Volume (3M): 26.15K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.61
• Revenue Growth: 7.78%
• EPS Growth: -7.61%
• Country: JP
• Employees: 2,125
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 4.80
• Shares Outstanding: 11,463,141
• 10 Day Avg. Volume: 31,940
• 30 Day Avg. Volume: 26,150
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,732.00
• Price Target Upside: 12.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,732.00 ▲(12.76% Upside)

ISB CORP presents a strong investment opportunity, led by its robust financial performance and attractive valuation. The company's solid financial health and efficient profitability are complemented by a low P/E ratio and high dividend yield. However, technical indicators suggest potential overbought conditions, warranting attention to possible short-term price corrections.

ISB CORP (Japan) Business Overview & Revenue Model

Company Description

ISB CORP (Japan) (9702) is a Japanese company engaged in the information technology and services sector. It provides comprehensive IT solutions, focusing on system integration, software development, and IT infrastructure services. The company caters to a diverse range of industries, including telecommunications, finance, manufacturing, and public sectors, offering tailored IT solutions to meet the specific needs of its clients.

How the Company Makes Money

ISB CORP generates revenue primarily through its system integration services, where it designs and implements complex IT systems for corporations and government entities. Another significant revenue stream is software development, where the company creates custom software applications and solutions. Additionally, ISB CORP earns from IT infrastructure services, including the maintenance and management of IT systems. The company often engages in long-term contracts with its clients, ensuring a steady stream of income. Collaborative partnerships with technology providers and vendors also play a crucial role in ISB CORP's business model, enabling it to offer a wide range of IT products and services.

ISB CORP (Japan) Financial Statement Overview

Summary

ISB CORP demonstrates strong financial performance with consistent revenue and profit growth. The company has maintained solid profitability margins and a stable balance sheet with low leverage. Cash flows are healthy, though there is some variability in free cash flow growth, indicating the need for careful monitoring of capital expenditures.

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
EBITDA	3.05B	2.86B	2.88B	2.50B	2.30B
Net Income	2.03B	1.47B	1.42B	1.11B	994.44M
Balance Sheet
Total Assets	19.80B	17.99B	16.46B	14.36B	13.51B
Cash, Cash Equivalents and Short-Term Investments	8.98B	8.88B	7.63B	6.07B	5.20B
Total Debt	120.00M	120.00M	120.00M	120.00M	140.00M
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: 1536.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1536 is above the 20-day moving average (MA) of 1467.40, above the 50-day MA of 1406.34, and above the 200-day MA of 1348.82, indicating a bullish trend. The MACD of 39.66 indicates Negative momentum. The RSI at 69.45 is Neutral, neither overbought nor oversold. The STOCH value of 91.35 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	¥14.00B	9.60		3.68%	10.61%	102.16%
9702	80 Outperform	¥17.61B	10.37		3.47%	7.78%	-7.61%
3648	79 Outperform	¥22.02B	13.44		1.93%	15.41%	87.89%
2307	75 Outperform	¥17.56B	11.58		2.98%	5.98%	5.12%
3800	68 Neutral	¥13.67B	19.01		3.67%	-1.03%	-3.19%
Sector *	68 Neutral	¥244.50B	15.64	6.62%	2.44%	9.08%	2.46%
4192	41 Neutral	¥17.27B	―		―	24.80%	12.00%

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.