Idea Consultants,inc. (9768) AI Stock Analysis

• Market Cap: ¥27.45B
• Dividend Yield: 2.36%
• Average Volume (3M): 35.71K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.51
• Revenue Growth: 3.01%
• EPS Growth: -13.60%
• Country: JP
• Employees: 1,098
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 19.76
• Shares Outstanding: 7,499,025
• 10 Day Avg. Volume: 35,240
• 30 Day Avg. Volume: 35,706
• PEG Ratio: 0.37
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 6.12
• 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: 80 Outperform
• Price Target: ¥4,301.00 ▲(31.13% Upside)

Idea Consultants, Inc. scores highly due to its strong financial performance, characterized by robust revenue growth, profitability, and a solid balance sheet. The technical analysis indicates positive momentum, although caution is advised as the stock approaches overbought levels. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield, making it an attractive investment option.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Cash Flow Management

Improved free cash flow generation reflects efficient cash management, enabling the company to fund operations and growth initiatives without relying on external financing.

Negative Factors

EPS Decline

A decline in EPS growth can indicate challenges in maintaining profitability, potentially affecting investor confidence and long-term financial performance.

Profit Margin Pressure

While net profit margins have improved, the negative EPS growth suggests underlying cost pressures or inefficiencies that could impact future profitability.

Earnings Volatility

Volatility in earnings can create uncertainty about future performance, potentially affecting strategic planning and investor sentiment.

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

Idea Consultants, Inc. demonstrates strong financial health with impressive revenue growth, solid profitability, and a robust balance sheet. The company effectively manages its cash flows, with significant improvements in free cash flow generation. Low leverage and high equity ratio provide financial stability, positioning the company well for future growth.

Income Statement

The company has shown strong revenue growth with a 7.1% increase from 2023 to 2024. Gross profit margin stands at 33.8%, indicating efficient cost management. Net profit margin improved to 9.8%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 13.4% and 17.3%, respectively, showcasing strong operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.02, indicating minimal leverage. Return on equity is strong at 8.3%, suggesting efficient use of equity. The equity ratio of 76.7% highlights a solid capital structure with a high proportion of equity financing.

Cash Flow

The company has significantly improved its free cash flow, turning positive in 2024 with a growth rate of 251.1% from 2023. Operating cash flow to net income ratio is strong at 1.7, indicating good cash generation relative to earnings. Free cash flow to net income ratio is 1.2, reflecting healthy cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.28B	24.31B	22.70B	23.04B	20.62B	20.01B
Gross Profit	7.97B	8.23B	7.58B	7.80B	6.93B	6.21B
EBITDA	3.81B	4.20B	3.76B	4.02B	2.88B	2.93B
Net Income	2.08B	2.38B	1.99B	2.15B	2.08B	1.35B
Balance Sheet
Total Assets	36.71B	37.45B	34.50B	33.96B	27.52B	26.76B
Cash, Cash Equivalents and Short-Term Investments	9.67B	3.77B	2.29B	3.95B	1.28B	2.40B
Total Debt	400.00M	518.00M	1.42B	923.66M	134.82M	1.18B
Total Liabilities	7.23B	8.73B	7.97B	9.28B	7.12B	8.42B
Stockholders Equity	29.48B	28.73B	26.54B	24.67B	20.40B	18.34B
Cash Flow
Free Cash Flow	0.00	2.79B	-1.85B	1.85B	109.02M	2.31B
Operating Cash Flow	0.00	4.01B	-160.00M	4.22B	1.64B	3.10B
Investing Cash Flow	0.00	-1.16B	-1.66B	-2.31B	-1.51B	-674.09M
Financing Cash Flow	0.00	-1.37B	169.48M	535.45M	-1.26B	-1.19B

Idea Consultants,inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3280.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3837.25, below the 50-day MA of 3546.80, and above the 200-day MA of 3097.64, indicating a neutral trend. The MACD of 104.59 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 6.37 is Positive, 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	80 Outperform	¥27.45B	13.61	―	2.36%	3.01%	-13.60%
6542	79 Outperform	¥8.77B	12.21	―	3.20%	1.85%	8.25%
9765	76 Outperform	¥16.69B	14.02	―	3.98%	-3.59%	-15.46%
2153	75 Outperform	¥29.62B	8.47	―	4.00%	18.41%	7.99%
4642	74 Outperform	¥8.70B	17.28	―	2.01%	16.10%	-10.63%
9233	68 Neutral	¥20.89B	15.51	―	3.74%	3.28%	-5.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%