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Ines Corporation (JP:9742)
:9742
Japanese Market

Ines Corporation (9742) AI Stock Analysis

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JP

Ines Corporation

(9742)

Rating:71Outperform
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 (9742) vs. iShares MSCI Japan ETF (EWJ)

Ines Corporation Business Overview & Revenue Model

Company DescriptionInes 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 MoneyInes 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
75
Positive
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
82
Very Positive
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
68
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue40.56B40.56B42.40B40.03B41.57B
Gross Profit9.72B9.73B10.10B8.48B8.58B
EBITDA5.47B4.68B5.85B4.91B5.01B
Net Income2.44B1.79B2.54B1.30B1.43B
Balance Sheet
Total Assets56.73B54.43B48.52B46.83B51.26B
Cash, Cash Equivalents and Short-Term Investments8.21B6.48B11.68B12.24B12.90B
Total Debt7.58B5.00B20.00M29.00M40.00M
Total Liabilities17.53B16.64B12.24B12.21B12.46B
Stockholders Equity39.19B37.79B36.29B34.62B38.80B
Cash Flow
Free Cash Flow46.00M-8.53B700.00M4.79B542.00M
Operating Cash Flow1.48B2.14B2.33B6.43B1.92B
Investing Cash Flow-288.00M-9.99B-2.04B-1.42B-11.59B
Financing Cash Flow1.54B3.95B-849.00M-5.64B-971.00M

Ines Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1645.00
Price Trends
50DMA
1657.02
Negative
100DMA
1675.25
Negative
200DMA
1675.38
Negative
Market Momentum
MACD
-3.82
Positive
RSI
44.58
Neutral
STOCH
30.68
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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥38.53B13.72
3.37%1.34%-3.93%
78
Outperform
¥36.49B16.10
3.22%11.00%33.93%
72
Outperform
¥21.58B11.76
3.25%13.40%-82.54%
71
Outperform
¥33.12B14.12
3.63%0.01%35.73%
69
Neutral
¥229.66B14.257.50%2.73%9.14%8.34%
68
Neutral
¥39.10B10.68
3.43%4.53%-6.57%
67
Neutral
€33.08B12.707.79%5.10%2.87%4.34%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9742
Ines Corporation
1,645.00
-84.33
-4.88%
JP:4709
ID Holdings Corporation
2,316.00
938.03
68.07%
JP:4743
ITFOR Inc.
1,499.00
47.22
3.25%
JP:9658
Business Brain Showaota Inc.
2,528.00
372.16
17.26%
JP:9739
NSW Inc.
2,613.00
-543.02
-17.21%
JP:4725
CAC Holdings Corporation
1,954.00
115.57
6.29%

Ines Corporation Corporate Events

INES Corporation Announces Strategic Alliance with Mitsubishi Research Institute
Jun 25, 2025

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
Jun 24, 2025

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
May 22, 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
May 19, 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
Apr 30, 2025

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.

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.Date of analysis: Jul 02, 2025