Idea Consultants,inc. (9768) AI Stock Analysis

• Market Cap: ¥30.88B
• Dividend Yield: 2.37%
• Average Volume (3M): 37.03K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.57
• Revenue Growth: 3.01%
• EPS Growth: -13.60%
• Country: JP
• Employees: 1,098
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 110.20
• Shares Outstanding: 7,499,025
• 10 Day Avg. Volume: 32,810
• 30 Day Avg. Volume: 37,033
• PEG Ratio: 55.09
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 86.02
• 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: 77 Outperform
• Price Target: ¥5,073.00 ▲(54.66% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality—especially an exceptionally conservative balance sheet and solid profitability—offset by uneven cash-flow conversion. Technicals add support via a clear uptrend with healthy (not overbought) momentum, while valuation is reasonable with a moderate dividend yield.

Positive Factors

Conservative balance sheet

Extremely low leverage and steadily rising equity provide durable financial resilience. This conservatism reduces refinancing and solvency risk across cycles, enabling the company to fund projects, absorb shocks, and maintain strategic optionality without relying on volatile capital markets.

Healthy profitability margins

Sustained gross and net margins signal pricing power and operational discipline in the engineering & construction context. These margins support internal reinvestment and dividend capacity, and give the company buffer to withstand input-cost inflation while preserving long-term cash generation potential.

Steady revenue trend

Consistent, if modest, revenue growth indicates stable project demand and backlog conversion. For a sector prone to project timing swings, steady top-line performance enhances predictability for planning and capital allocation, supporting mid-term revenue visibility and investment discipline.

Negative Factors

Volatile cash conversion

Wide swings in operating and free cash flow highlight working-capital and project-timing sensitivity typical in construction. Uneven cash conversion weakens the link between accounting profits and available funds, constraining sustainable capex, dividends, or M&A without drawing on balance-sheet buffers.

Margin pressure

Recent margin compression reduces earnings resilience and could reflect competition or rising input costs. If sustained, it will erode return on projects and limit free cash flow generation, making it harder to grow equity and fund discretionary investments over the medium term.

Moderate ROE caps upside

Mid-single-digit ROE denotes steady but modest capital efficiency. While this reduces downside risk, it also constrains long-term shareholder compounding absent higher growth or margin expansion, limiting the company's ability to deliver outsized returns compared with higher-ROE peers.

Idea Consultants,inc. Business Overview & Revenue Model

Company Description

Idea Consultants, Inc. (9768) is a strategic consulting firm specializing in innovation and business development across various sectors, including technology, healthcare, and consumer goods. The company offers a range of services such as market research, product development, and organizational strategy to help clients enhance their operational efficiency and drive growth. With a focus on leveraging data analytics and industry insights, Idea Consultants aims to empower businesses to navigate complex market challenges and capitalize on emerging opportunities.

How the Company Makes Money

Idea Consultants generates revenue primarily through its consulting services, which include project-based fees for tailored solutions, retainer agreements for ongoing advisory services, and performance-based compensation tied to client success metrics. Key revenue streams include market research projects, strategic planning engagements, and workshops aimed at fostering innovation. The company has established significant partnerships with industry leaders and academic institutions, which not only enhance its service offerings but also open additional avenues for revenue through collaborative projects and joint ventures.

Idea Consultants,inc. Financial Statement Overview

Summary

Fundamentals are supported by a very strong balance sheet (extremely low leverage and steadily rising equity) and solid profitability (healthy gross and net margins). The main constraint is cash-flow reliability, with operating and free cash flow showing meaningful volatility and a sharp drop in 2025.

Income Statement

Revenue has grown overall (2025 up ~1% after a stronger 2024 and a dip in 2023), showing generally steady demand. Profitability is solid for the industry, with 2025 gross margin ~32% and net margin ~9.7%, and operating profitability remaining healthy despite some margin compression versus 2024. Net income has been stable-to-rising since 2023, but the slower recent top-line growth and slightly weaker margins temper the outlook.

Balance Sheet

The balance sheet is very conservatively financed: leverage is extremely low (2025 debt-to-equity ~0.01) and equity has steadily increased over time. Returns on equity are consistently respectable (~7.8% in 2025; generally ~7%–10% across the period), suggesting the company is not sacrificing profitability to maintain low debt. The main weakness is that ROE is good but not exceptional, implying a more steady, lower-risk profile rather than a high-return one.

Cash Flow

Cash generation is the most volatile area. After strong cash flow in 2022 and 2024, operating cash flow dropped sharply in 2025, and free cash flow fell to a modest level. There was also a major negative cash flow year in 2023, highlighting working-capital or project-timing sensitivity typical in the sector. While profitability remains solid, the uneven conversion of earnings into cash reduces confidence in near-term cash consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.28B	24.62B	24.31B	22.70B	23.04B	20.62B
Gross Profit	7.97B	7.97B	8.23B	7.58B	7.80B	6.93B
EBITDA	3.81B	3.94B	4.20B	3.76B	4.02B	2.88B
Net Income	2.08B	2.38B	2.38B	1.99B	2.15B	2.08B
Balance Sheet
Total Assets	36.71B	37.84B	37.45B	34.50B	33.96B	27.52B
Cash, Cash Equivalents and Short-Term Investments	9.67B	2.93B	3.77B	2.29B	3.95B	1.28B
Total Debt	400.00M	321.29M	518.00M	1.42B	923.66M	134.82M
Total Liabilities	7.23B	7.13B	8.73B	7.97B	9.28B	7.12B
Stockholders Equity	29.48B	30.71B	28.73B	26.54B	24.67B	20.40B
Cash Flow
Free Cash Flow	0.00	329.91M	2.79B	-1.85B	1.85B	109.02M
Operating Cash Flow	0.00	1.20B	4.01B	-160.00M	4.22B	1.64B
Investing Cash Flow	0.00	-1.13B	-1.16B	-1.66B	-2.31B	-1.51B
Financing Cash Flow	0.00	-910.63M	-1.37B	169.48M	535.45M	-1.26B

Idea Consultants,inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3280.00
• 50DMA: Positive
• 100DMA: Positive
• 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:9768, the sentiment is Positive. The current price of 3280 is below the 20-day moving average (MA) of 4431.25, below the 50-day MA of 4209.83, and below the 200-day MA of 3423.57, indicating a bullish trend. The MACD of 42.44 indicates Positive momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9768.

Idea Consultants,inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥30.88B	12.97	―	2.37%	3.01%	-13.60%
9765	76 Outperform	¥17.81B	13.69	―	3.90%	-3.59%	-15.46%
2153	75 Outperform	¥33.65B	9.13	―	3.86%	18.41%	7.99%
9233	73 Outperform	¥22.85B	11.59	―	3.59%	3.28%	-5.52%
4642	70 Outperform	¥8.40B	16.87	―	2.03%	16.10%	-10.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%