Ines Corporation (9742) AI Stock Analysis

• Market Cap: ¥33.12B
• Dividend Yield: 3.63%
• Average Volume (3M): 32.25K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.71
• Revenue Growth: 0.01%
• EPS Growth: 35.73%
• Country: JP
• Employees: 1,350
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 69.13
• Shares Outstanding: 20,900,000
• 10 Day Avg. Volume: 40,350
• 30 Day Avg. Volume: 32,253
• PEG Ratio: 0.10
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.76
• 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: ¥1,836.00
• Price Target Upside: 11.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,831.00 ▲(11.31%Upside)

The overall stock score of 71 reflects Ines Corporation's strong financial stability and fair valuation, offset by technical indicators showing mixed momentum and challenges in cash flow management. The company's solid equity position and attractive dividend yield are key strengths, but stagnant revenue growth and cash flow issues need addressing to enhance future performance.

Ines Corporation Business Overview & Revenue Model

Company Description

Ines Corporation (9742) is a Japanese IT service provider specializing in offering a wide range of digital solutions, including systems integration, software development, and IT infrastructure management. The company serves various sectors, such as finance, manufacturing, and public services, providing tailored solutions to enhance operational efficiency and drive digital transformation for its clients.

How the Company Makes Money

Ines Corporation generates revenue through multiple streams, primarily from its systems integration services, which involve designing and implementing comprehensive IT solutions for businesses. Additionally, the company earns money through ongoing IT infrastructure management and maintenance contracts, ensuring clients' systems operate smoothly and securely. Software development projects for custom applications also contribute significantly to its earnings. Ines Corporation often collaborates with technology partners to incorporate cutting-edge technologies into its offerings, enhancing its service portfolio and attracting a diverse customer base.

Ines Corporation Financial Statement Overview

Summary

Ines Corporation shows strong profitability with stable margins and a robust balance sheet, marked by low leverage and solid equity. However, stagnating revenue growth and cash flow challenges highlight areas of concern, potentially impacting long-term financial health.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.56B	40.56B	42.40B	40.03B	41.57B
Gross Profit	9.72B	9.73B	10.10B	8.48B	8.58B
EBITDA	5.47B	4.68B	5.85B	4.91B	5.01B
Net Income	2.44B	1.79B	2.54B	1.30B	1.43B
Balance Sheet
Total Assets	56.73B	54.43B	48.52B	46.83B	51.26B
Cash, Cash Equivalents and Short-Term Investments	8.21B	6.48B	11.68B	12.24B	12.90B
Total Debt	7.58B	5.00B	20.00M	29.00M	40.00M
Total Liabilities	17.53B	16.64B	12.24B	12.21B	12.46B
Stockholders Equity	39.19B	37.79B	36.29B	34.62B	38.80B
Cash Flow
Free Cash Flow	46.00M	-8.53B	700.00M	4.79B	542.00M
Operating Cash Flow	1.48B	2.14B	2.33B	6.43B	1.92B
Investing Cash Flow	-288.00M	-9.99B	-2.04B	-1.42B	-11.59B
Financing Cash Flow	1.54B	3.95B	-849.00M	-5.64B	-971.00M

Ines Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1645.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9742, the sentiment is Negative. The current price of 1645 is below the 20-day moving average (MA) of 1656.15, below the 50-day MA of 1657.02, and below the 200-day MA of 1675.38, indicating a bearish trend. The MACD of -3.82 indicates Positive momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9742.

Ines Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	80 Outperform	¥38.53B	13.72		3.37%	1.34%	-3.93%
4709	78 Outperform	¥36.49B	16.10		3.22%	11.00%	33.93%
9658	72 Outperform	¥21.58B	11.76		3.25%	13.40%	-82.54%
9742	71 Outperform	¥33.12B	14.12		3.63%	0.01%	35.73%
Sector *	69 Neutral	¥229.66B	14.25	7.50%	2.73%	9.14%	8.34%
9739	68 Neutral	¥39.10B	10.68		3.43%	4.53%	-6.57%
4725	67 Neutral	€33.08B	12.70	7.79%	5.10%	2.87%	4.34%

Ines Corporation Corporate Events

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.

INES Corporation Reports Strong Profit Growth and Increased Dividends

INES Corporation reported stable net sales for the fiscal year ended March 31, 2025, with significant improvements in operating and ordinary profits, reflecting a positive turnaround from the previous year. The company also announced an increase in dividends per share and forecasts further growth in financial metrics for the next fiscal year, indicating a strong outlook and potential benefits for shareholders.