Ines Corporation (9742) AI Stock Analysis

• Market Cap: ¥34.72B
• Dividend Yield: 3.11%
• Average Volume (3M): 49.72K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.71
• Revenue Growth: 2.06%
• EPS Growth: 83.15%
• Country: JP
• Employees: 1,350
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): -29.74
• Shares Outstanding: 20,900,000
• 10 Day Avg. Volume: 43,340
• 30 Day Avg. Volume: 49,723
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,828.00
• Price Target Upside: 3.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,828.00 ▲(3.51% Upside)

Ines Corporation's overall stock score is driven by strong financial performance and a fair valuation, offset by technical indicators suggesting neutral momentum. The lack of revenue growth and cash flow issues are notable risks that could impact future performance.

Ines Corporation Business Overview & Revenue Model

Company Description

Ines Corporation (9742) is a Japanese company operating in the information technology sector. It specializes in providing a wide range of IT services and solutions, including systems integration, software development, cloud services, and IT consulting. The company serves various industries, including finance, manufacturing, and government, helping organizations enhance their operational efficiency through innovative technology solutions.

How the Company Makes Money

Ines Corporation generates revenue primarily through its IT services and solutions. Key revenue streams include fees from systems integration projects, software development contracts, and ongoing support and maintenance services. The company also earns income from its cloud services, which provide scalable and flexible IT infrastructure solutions to its clients. Additionally, consulting services offer another revenue avenue by advising clients on technology strategy and implementation. Partnerships with major technology providers enhance its service offerings and contribute to revenue by expanding its reach and capabilities in delivering comprehensive IT solutions.

Ines Corporation Financial Statement Overview

Summary

Ines Corporation demonstrates solid profitability with stable margins and a robust balance sheet, characterized by low leverage and strong equity. However, stagnant revenue growth and cash flow challenges present potential risks that need addressing.

Income Statement

Ines Corporation demonstrates solid profitability with a stable gross profit margin of approximately 24% and a notable net profit margin improvement from 4.4% to 6% over the last fiscal year. The EBIT and EBITDA margins are healthy, reflecting efficient operational management. However, revenue growth has been stagnant, indicating a need for strategic initiatives to drive top-line growth.

Balance Sheet

The balance sheet highlights a strong equity position with an equity ratio of 69%, indicating financial stability. The company has a low debt-to-equity ratio of approximately 0.19, showcasing prudent leverage management. Return on equity has improved to 6.2%, reflecting enhanced profitability. However, the declining cash reserves over the years could be a concern if not addressed.

Cash Flow

Cash flow analysis reveals a concerning trend with a significant decline in operating cash flow and fluctuating free cash flow. The free cash flow growth rate is negative, and the operating cash flow to net income ratio has decreased, which could impact liquidity. Strategic improvements in cash flow management are necessary for sustained financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.84B	40.56B	40.56B	42.40B	40.03B	41.57B
Gross Profit	9.25B	9.72B	9.73B	10.10B	8.48B	8.58B
EBITDA	4.91B	5.47B	4.68B	5.75B	4.88B	4.38B
Net Income	2.09B	2.44B	1.79B	2.54B	1.30B	1.43B
Balance Sheet
Total Assets	51.67B	56.73B	54.43B	48.52B	46.83B	51.26B
Cash, Cash Equivalents and Short-Term Investments	14.34B	8.21B	6.48B	11.68B	12.24B	12.90B
Total Debt	4.37B	7.58B	5.00B	20.00M	29.00M	40.00M
Total Liabilities	13.67B	17.53B	16.64B	12.24B	12.21B	12.46B
Stockholders Equity	38.00B	39.19B	37.79B	36.29B	34.62B	38.80B
Cash Flow
Free Cash Flow	4.68B	46.00M	-8.53B	700.00M	4.79B	542.00M
Operating Cash Flow	5.44B	1.48B	2.14B	2.33B	6.43B	1.92B
Investing Cash Flow	90.00M	-288.00M	-9.99B	-2.04B	-1.42B	-11.59B
Financing Cash Flow	-1.77B	1.54B	3.95B	-849.00M	-5.64B	-971.00M

Ines Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1766.00
• 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:9742, the sentiment is Positive. The current price of 1766 is above the 20-day moving average (MA) of 1675.35, above the 50-day MA of 1678.92, and above the 200-day MA of 1699.41, indicating a bullish trend. The MACD of 20.43 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 93.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9742.

Ines Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9742	71 Outperform	¥34.72B	17.23		3.11%	2.06%	83.15%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
CB4	―	€207.08M	9.97	10.08%	―	―	―
4743	80 Outperform	¥37.75B	14.35		3.45%	-5.91%	-1.55%
4709	76 Outperform	¥37.49B	15.45		2.67%	12.33%	48.96%
9658	74 Outperform	¥24.75B	11.63		2.70%	16.54%	69.97%
9739	68 Neutral	¥39.07B	10.84		3.26%	<0.01%	-17.60%

Ines Corporation Corporate Events

INES Corporation Reports Q1 Financial Decline but Projects Future Growth

INES Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 8.6% compared to the previous year. Despite the current downturn, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, expecting a 6% increase in net sales and improvements in operating and ordinary profits.

INES Corporation Reports Q1 Financial Decline but Anticipates Recovery

INES Corporation reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 8.6% compared to the previous year. Despite the current downturn, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits, indicating potential recovery and strategic improvements.

INES Corporation Announces Strategic Alliance with Mitsubishi Research Institute

INES Corporation has announced a strategic capital and business alliance with Mitsubishi Research Institute, Inc. (MRI) to enhance sales, competitiveness, and market development. Despite MRI holding a 19.5% voting stake, INES maintains operational independence, with no significant constraints imposed by MRI, and no material transactions requiring disclosure.

INES Corporation Announces Change in Major Shareholder

INES Corporation has announced a change in its major shareholder as of June 16, 2025. Effissimo Capital Management Pte Ltd has increased its voting rights from 9.31% to 10.35%, making it a significant stakeholder in the company. This change is based on a large shareholding report, and the company states that there will be no particular impact on its future outlook.

INES Corporation Announces Increased Dividend Payout for Fiscal Year 2025

INES Corporation has announced a resolution to distribute dividends of surplus, with a record date of March 31, 2025, and an effective date of June 26, 2025. The company will pay a year-end dividend of ¥30 per share, resulting in an annual dividend of ¥55 per share, up from ¥50 the previous fiscal year. This decision reflects INES Corporation’s policy of offering stable dividends and strengthening its financial base, considering business results and the market environment.

INES Corporation Reports Strong Financial Growth for Fiscal Year 2025

INES Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a stable net sales figure of ¥40,563 million. The company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 22.9%, 32.0%, and 35.7% respectively. This performance highlights a strong recovery from the previous fiscal year, positioning INES Corporation favorably in the market. The company also announced an increase in annual dividends, reflecting its commitment to shareholder returns.