Idea Consultants,inc. (9768) AI Stock Analysis

• Market Cap: ¥23.77B
• Dividend Yield: 2.7%
• Average Volume (3M): 24.50K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.47
• Revenue Growth: 2.09%
• EPS Growth: -13.85%
• Country: JP
• Employees: 1,098
• Sector: Industrials
• Sector Strength: 71
• Industry: Engineering & Construction
• EPS (TTM): 90.43
• Shares Outstanding: 7,499,025
• 10 Day Avg. Volume: 18,700
• 30 Day Avg. Volume: 24,500
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,418.00
• Price Target Upside: 2.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,418.00 ▲(2.64% Upside)

The company's strong financial performance is the primary driver of its stock score, supported by solid revenue growth and profitability. Technical analysis presents mixed signals, with short-term bearish trends but longer-term bullish momentum. The valuation is attractive, with a low P/E ratio and a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective client engagement, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth.

Cash Flow Management

Improved cash flow management ensures liquidity and supports operational needs, enabling sustained investment in growth initiatives.

Negative Factors

EPS Decline

A decline in EPS suggests challenges in maintaining profitability, which could impact investor confidence and future earnings potential.

Employee Efficiency

High employee count without corresponding revenue growth may indicate inefficiencies, potentially affecting margins and profitability.

Industry Challenges

Operating in the engineering and construction sector may expose the company to cyclical risks and regulatory challenges, impacting stability.

Idea Consultants,inc. Business Overview & Revenue Model

Company Description

Idea Consultants, Inc. (9768) is a strategic consulting firm specializing in providing innovative solutions and expert advisory services to businesses across various sectors, including technology, healthcare, and finance. The company offers a comprehensive range of services, such as business strategy development, market analysis, operational improvement, and organizational change management, aimed at helping clients achieve sustainable growth and competitive advantage.

How the Company Makes Money

Idea Consultants, Inc. generates revenue primarily through consulting fees charged for its advisory services. The company engages with clients on both short-term and long-term projects, offering tailored solutions to meet specific business needs. Revenue streams include hourly billing, fixed project fees, and retainer agreements. Additionally, Idea Consultants may partner with other firms to expand its service offerings, contributing to its earnings by leveraging shared resources and expertise. Client success and satisfaction play a significant role in securing repeat business and referrals, further driving the company's profitability.

Idea Consultants,inc. Financial Statement Overview

Summary

The company demonstrates strong financial health with impressive revenue growth, solid profitability, and a robust balance sheet. 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	24.35B	24.31B	22.70B	23.04B	20.62B	20.01B
Gross Profit	8.19B	8.23B	7.58B	7.80B	6.93B	6.21B
EBITDA	4.13B	4.20B	3.76B	4.02B	2.88B	2.93B
Net Income	2.29B	2.38B	1.99B	2.15B	2.08B	1.35B
Balance Sheet
Total Assets	39.03B	37.45B	34.50B	33.96B	27.52B	26.76B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.77B	2.29B	3.95B	1.28B	2.40B
Total Debt	2.50B	518.00M	1.42B	923.66M	134.82M	1.18B
Total Liabilities	10.23B	8.73B	7.97B	9.28B	7.12B	8.42B
Stockholders Equity	28.80B	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: 3330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3330 is above the 20-day moving average (MA) of 3232.50, above the 50-day MA of 3206.50, and above the 200-day MA of 2760.82, indicating a bullish trend. The MACD of 50.51 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 79.07 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
6542	79 Outperform	¥8.77B	12.22		3.19%	0.05%	10.29%
2153	78 Outperform	¥32.07B	8.73		3.79%	14.78%	5.49%
9768	76 Outperform	¥23.77B	11.44		2.70%	2.09%	-13.85%
9233	76 Outperform	¥23.12B	17.16		4.09%	6.32%	-26.18%
9765	76 Outperform	¥16.88B	13.49		3.72%	9.77%	0.11%
4642	73 Outperform	¥11.60B	22.72		1.55%	13.21%	-11.58%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%