Ines Corporation (JP:9742)
:9742
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Ines Corporation
(9742)
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Rating:51Neutral
Price Target:
¥1,962.00
▼(-0.86% Downside)
Action:Reiterated
Date:05/11/26
The score is held back primarily by the sharp swing to losses and steep margin compression, alongside bearish technical momentum (below key moving averages with negative MACD). Support comes from low leverage and a strong rebound in free cash flow, but the high P/E reduces the valuation cushion.
Positive Factors
Conservative Balance Sheet
The company's very low leverage (debt-to-equity ~0.10) provides durable financial flexibility by keeping interest burdens low and preserving borrowing capacity. This conservative financing helps absorb earnings volatility, fund large project delivery, and support strategic investment without pressuring cash flow.
Negative Factors
Margin Compression and Net Loss
A sharp deterioration in margins and the swing to a net loss materially weakens core profitability. Gross margin compression and a negative EBIT margin reduce the firm's ability to fund R&D, reinvest in delivery capabilities, and sustain returns. Prolonged margin weakness would structurally impair capital returns and competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
The company's very low leverage (debt-to-equity ~0.10) provides durable financial flexibility by keeping interest burdens low and preserving borrowing capacity. This conservative financing helps absorb earnings volatility, fund large project delivery, and support strategic investment without pressuring cash flow.
Read all positive factors
Ines Corporation (9742) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.49B
Dividend Yield2.77%
Average Volume (3M)39.97K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-9.73%
EPS Growth-175.62%
CountryJP
Employees1,350
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-88.56
Shares Outstanding20,900,000
10 Day Avg. Volume46,390
30 Day Avg. Volume39,973
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.09
Price to Sales (P/S)1.10
P/FCF Ratio12.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ines Corporation Business Overview & Revenue Model
Company Description
INES Corporation provides information network system services to industrial corporations, financial institutions, and public entities in Japan. The company offers operation and maintenance services for information systems and communication network...
How the Company Makes Money
Ines Corporation generates revenue primarily through offering IT solutions and system integration services tailored to client needs. The company designs, develops, implements, and maintains software and IT infrastructure for organizations in diver...
Ines Corporation Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
71
Positive
Cash Flow
68
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.62B | 40.56B | 40.56B | 42.40B | 40.03B |
| Gross Profit | 5.36B | 9.72B | 9.73B | 10.10B | 8.48B |
| EBITDA | 1.20B | 5.45B | 4.87B | 5.85B | 4.91B |
| Net Income | -1.84B | 2.44B | 1.79B | 2.54B | 1.30B |
Balance Sheet | |||||
| Total Assets | 49.36B | 56.90B | 54.55B | 48.59B | 46.91B |
| Cash, Cash Equivalents and Short-Term Investments | 8.59B | 8.21B | 6.48B | 11.68B | 12.24B |
| Total Debt | 3.75B | 7.58B | 5.01B | 9.00M | 13.00M |
| Total Liabilities | 12.39B | 17.71B | 16.76B | 12.30B | 12.29B |
| Stockholders Equity | 36.97B | 39.19B | 37.79B | 36.29B | 34.62B |
Cash Flow | |||||
| Free Cash Flow | 3.16B | 46.00M | -7.48B | 1.37B | 5.69B |
| Operating Cash Flow | 3.48B | 1.48B | 2.14B | 2.33B | 6.43B |
| Investing Cash Flow | 1.78B | -288.00M | -9.99B | -2.04B | -1.42B |
| Financing Cash Flow | -4.98B | 1.54B | 3.95B | -849.00M | -5.64B |
Ines Corporation Technical Analysis
Positive
1979.00
Price Trends
2052.51
Positive
2005.56
Positive
1907.98
Positive
Market Momentum
5.60
Negative
52.82
Neutral
65.01
Neutral
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 1979 is below the 20-day moving average (MA) of 2044.85, below the 50-day MA of 2052.51, and above the 200-day MA of 1907.98, indicating a bullish trend. The MACD of 5.60 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 65.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9742.
Ines Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥29.35B | 10.08 | ― | 2.93% | 7.86% | 28.33% | |
74 Outperform | ¥74.08B | 14.12 | 17.96% | 1.83% | 10.56% | 27.45% | |
72 Outperform | ¥341.99B | 27.12 | ― | 0.22% | 23.27% | 67.12% | |
71 Outperform | ¥152.57B | 13.21 | ― | 2.30% | 12.89% | 36.13% | |
65 Neutral | ¥30.26B | 8.57 | 10.34% | 4.82% | -2.76% | 36.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | ¥41.49B | -23.77 | ― | 2.77% | -9.73% | -175.62% |
* Technology Sector Average
JP:9742
Ines Corporation
2,105.00
469.03
28.67%
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TechMatrix
1,819.00
-244.86
-11.86%
JP:4725
CAC Holdings Corporation
1,799.00
-170.18
-8.64%
JP:2317
Systena Corporation
418.00
31.08
8.03%
JP:2359
Core Corporation
2,020.00
202.06
11.11%
JP:3923
RAKUS Co., Ltd.
1,006.50
-104.47
-9.40%
Ines Corporation Corporate Events
INES Swings to Loss but Targets Earnings Rebound in Fiscal 2027
May 7, 2026
INES Corporation reported a sharp reversal in performance for the year ended March 31, 2026, with net sales falling 9.7% to ¥36.6 billion and operating profit turning to a ¥647 million loss, compared with solid profits a year earlier. Pr...
INES Corporation Announces Leadership Reshuffle and New Director Candidate
Apr 30, 2026
INES Corporation has announced a leadership reshuffle, with Representative Director and Senior Managing Executive Officer Susumu Tsukahara set to retire as Representative Director at the conclusion of the 64th Ordinary General Meeting of Sharehold...
INES Corporation Warns of Loss on Public-Sector IT Project, Cuts Dividend Forecast
Mar 23, 2026
INES Corporation has sharply revised its forecast for the fiscal year ending March 31, 2026, projecting net sales of ¥38 billion and shifting from previously expected profits to an operating loss and net loss after recording an impairment on ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.