Ines Corporation (9742) AI Stock Analysis

• Market Cap: ¥35.42B
• Dividend Yield: 3.18%
• Average Volume (3M): 36.32K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.71
• Revenue Growth: 2.06%
• EPS Growth: 83.15%
• Country: JP
• Employees: 1,350
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): -29.70
• Shares Outstanding: 20,900,000
• 10 Day Avg. Volume: 26,430
• 30 Day Avg. Volume: 36,320
• PEG Ratio: 0.87
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 775.94
• 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: 3.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,810.00 ▲(2.32%Upside)

Ines Corporation's overall stock score is influenced primarily by its strong financial performance, characterized by solid profitability and a robust balance sheet. However, the stagnation in revenue growth and cash flow challenges, combined with neutral technical indicators, temper the overall attractiveness. The valuation is fair, offering reasonable prospects for income and earnings.

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 networks, including IT outsourcing and iDC services; and information system analysis and design, program development, testing, and conversion services, such as software development for the financial, distribution, and service industries, as well as for the public sector. In addition, it provides system integration services for software and hardware systems comprising construction of Web-based networks, client/server networks, local area networks, and wide-area networks; and sells mobile PCs, automatic printing device systems, and other equipment. Further, the company offers other system related services, including data input, help desk, and security services, as well as machine-room, and network operation and management, systems maintenance, and training in PC systems; and hardware procurement, staff training and education, ERP consulting, and outsourcing services. The company was formerly known as Kyoei Computer Center and changed its name to INES Corporation in August 1984. INES Corporation was incorporated in 1964 and is headquartered in Tokyo, Japan.

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 a stable gross profit margin and improved net profit margin. The balance sheet is strong with low leverage, but revenue growth stagnation and cash flow challenges present potential risks.

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: 1769.00
• 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 1769 is above the 20-day moving average (MA) of 1696.95, above the 50-day MA of 1681.02, and above the 200-day MA of 1688.25, indicating a bearish trend. The MACD of 9.23 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 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
9742	69 Neutral	¥35.42B	17.58		3.18%	2.06%	83.15%
Sector *	57 Neutral	$815.27M	11.36	-16.80%	2.65%	10.29%	-42.67%
CB4	―	€199.56M	12.45	7.79%	5.00%	―	―
4743	80 Outperform	¥39.75B	14.16		3.26%	1.34%	-3.93%
4709	76 Outperform	¥40.46B	16.68		2.56%	12.33%	48.96%
9658	74 Outperform	¥23.44B	12.77		2.93%	13.40%	-82.54%
9739	68 Neutral	¥38.66B	10.56		3.23%	4.53%	-6.57%

Ines Corporation Corporate Events

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.