Ines Corporation (9742) AI Stock Analysis

• Market Cap: ¥35.22B
• Dividend Yield: 2.69%
• Average Volume (3M): 58.60K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.71
• Revenue Growth: -2.93%
• EPS Growth: -30.16%
• Country: JP
• Employees: 1,350
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.82
• Shares Outstanding: 20,900,000
• 10 Day Avg. Volume: 101,580
• 30 Day Avg. Volume: 58,600
• PEG Ratio: 0.40
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 747.53
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥1,721.00 ▼(-13.04% Downside)

The overall stock score for Ines Corporation is primarily influenced by its financial stability and low leverage, which are positive factors. However, the bearish technical indicators and high P/E ratio suggest caution. The lack of revenue growth and cash flow management issues are areas of concern that weigh down the score.

Ines Corporation Business Overview & Revenue Model

Company Description

Ines Corporation (9742) is a diversified technology company specializing in advanced solutions across various sectors, including telecommunications, information technology, and smart manufacturing. The company is known for its innovative products that enhance connectivity and operational efficiency, including software platforms, hardware devices, and integrated systems designed to support the digital transformation of businesses globally.

How the Company Makes Money

Ines Corporation generates revenue through multiple key streams, primarily by selling its proprietary software solutions and hardware products to enterprises in various sectors. The company has a subscription-based model for its software services, allowing clients to pay for access to advanced features and ongoing updates. Additionally, Ines Corporation earns income from hardware sales, including telecommunications equipment and IoT devices. Strategic partnerships with major technology firms and telecommunications providers enhance its market reach and drive sales growth. The company also benefits from consultancy services, providing expertise on digital transformation projects, which further contributes to its overall revenue.

Ines Corporation Financial Statement Overview

Summary

Ines Corporation demonstrates financial stability with low leverage and consistent profitability. However, declining revenue and cash flow management challenges present areas for improvement. The company is well-positioned in terms of capital structure, but enhancing revenue growth and cash flow efficiency could bolster its financial standing.

Income Statement

Ines Corporation's income statement shows stable profitability with a gross profit margin of approximately 24% and a net profit margin of 6% for TTM. However, the revenue growth rate is negative, indicating a decline in revenue. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also suggesting room for improvement.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.19, indicating low leverage and financial stability. The return on equity is modest at around 6.4%, suggesting efficient use of equity but with potential for higher returns. The equity ratio is healthy, showing a solid capital structure.

Cash Flow

Cash flow analysis reveals significant growth in free cash flow, but the operating cash flow to net income ratio is low, indicating potential cash flow management issues. The free cash flow to net income ratio is also low, suggesting limited cash generation relative to net income.

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: Negative
• Last Price: 1979.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 1979 is above the 20-day moving average (MA) of 1843.20, above the 50-day MA of 1913.14, and above the 200-day MA of 1730.47, indicating a neutral trend. The MACD of -60.58 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 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
9658	82 Outperform	¥41.76B	14.48	―	2.58%	16.59%	40.55%
4743	80 Outperform	¥39.91B	15.17	―	3.61%	-5.91%	-1.55%
4725	77 Outperform	¥36.67B	10.97	10.08%	4.60%	-3.66%	31.12%
4709	72 Outperform	¥32.43B	13.15	―	3.21%	12.64%	30.73%
9739	68 Neutral	¥37.34B	10.91	―	3.38%	-0.10%	-19.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	56 Neutral	¥35.22B	28.18	―	2.69%	-2.93%	-30.16%

Ines Corporation Corporate Events

INES Corporation Revises Earnings and Dividend Forecasts Amid Standardization Challenges

INES Corporation has revised its earnings forecasts for the fiscal year ending March 31, 2026, due to a decrease in net sales and increased costs associated with the standardization of local government information systems. Consequently, the company has also adjusted its dividend forecast, reducing the annual dividend by ¥5 to match the previous year’s payout, reflecting the financial adjustments.

The most recent analyst rating on (JP:9742) stock is a Hold with a Yen2137.00 price target. To see the full list of analyst forecasts on Ines Corporation stock, see the JP:9742 Stock Forecast page.

INES Corporation Reports Decline in Financial Results and Revises Forecasts

INES Corporation reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 11.5% compared to the previous year. The company revised its earnings and dividend forecasts, indicating a challenging financial environment but maintaining a stable dividend payout, which may impact investor confidence and market positioning.

The most recent analyst rating on (JP:9742) stock is a Hold with a Yen2137.00 price target. To see the full list of analyst forecasts on Ines Corporation stock, see the JP:9742 Stock Forecast page.

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.