Info-Tech Systems Ltd (ITS) AI Stock Analysis

• Market Cap: S$252.84M
• Dividend Yield: 1.99%
• Average Volume (3M): 159.59K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: 509
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 258,000,000
• 10 Day Avg. Volume: 200,960
• 30 Day Avg. Volume: 159,593
• PEG Ratio: 1.07
• Price to Book (P/B): 158.42
• Price to Sales (P/S): 5.37
• P/FCF Ratio: 13.32
• 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: S$1.10
• Price Target Upside: 34.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: S$0.89 ▲(8.54% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is driven primarily by strong financial performance—high margins, solid revenue growth, and strong free cash flow—tempered by balance-sheet leverage risk (high debt-to-equity). Technical signals are mixed to slightly weak (below the 100DMA and slightly negative MACD), while valuation is moderate with a modest dividend yield.

Positive Factors

High profit margins

Sustained high gross and net margins point to strong pricing power and efficient cost structure across services. Durable margins support reinvestment in product development and client delivery, improving resilience and cash generation over the next several months.

Consistent revenue growth with strong operating margins

Double-digit organic revenue growth combined with high EBIT/EBITDA margins indicates a scalable services model that converts top-line expansion into operating profit. This structural efficiency supports ongoing investment, margin durability, and stronger free cash flow generation.

Robust free cash flow generation

Near-parity of free cash flow to net income and strong FCF growth show efficient conversion of earnings into liquidity. This durable cash generation bolsters ability to service debt, fund subscriptions/maintenance, and finance strategic initiatives over the medium term.

Negative Factors

High leverage

Elevated debt-to-equity raises interest and refinancing risk, reducing financial flexibility. Over 2–6 months higher leverage can constrain capital deployment, increase vulnerability to rate moves, and pressure liquidity if operating volatility emerges.

Low equity ratio / reliance on debt financing

A low equity ratio reduces the balance-sheet cushion available to absorb shocks and limits capacity for opportunistic investments or M&A. Structurally, this elevates solvency concerns and could raise borrowing costs or restrict strategic options in stressed scenarios.

Project-based revenue concentration

Dependence on project-based contracts makes revenue lumpy and timing-dependent, increasing forecast uncertainty and working-capital swings. While subscriptions exist, primary project reliance can amplify volatility in orders and cash flow over the medium term.

Info-Tech Systems Ltd Business Overview & Revenue Model

Company Description

Info-Tech Systems Ltd (ITS) is a leading provider of information technology solutions, specializing in software development, IT consulting, and system integration services. With a focus on various sectors including healthcare, finance, and education, ITS delivers innovative solutions that enhance operational efficiency and drive digital transformation for its clients. The company prides itself on its commitment to quality, customer satisfaction, and continuous improvement, offering a range of products such as custom software applications, cloud-based solutions, and enterprise resource planning (ERP) systems.

How the Company Makes Money

Info-Tech Systems Ltd generates revenue through multiple streams, including software licensing fees, consulting service charges, and maintenance contracts. The primary revenue model is based on project-based contracts where clients pay for customized software solutions and IT services. Additionally, ITS offers subscription-based services for its cloud solutions, ensuring a steady revenue stream. The company also benefits from strategic partnerships with major technology providers, which enhance its service offerings and expand its market reach. By leveraging these partnerships and maintaining long-term client relationships, ITS is able to secure repeat business and referrals, contributing significantly to its overall earnings.

Info-Tech Systems Ltd Financial Statement Overview

Summary

Strong profitability and growth (revenue up 14.84%, high gross margin 85.59%, net margin 28.23%, solid EBIT/EBITDA margins) and robust cash generation (free cash flow growth 33.65%, FCF-to-net income 0.98). Offsetting this is elevated leverage (debt-to-equity 2.39 and low equity ratio), which increases financial risk.

Income Statement

Info-Tech Systems Ltd has demonstrated strong revenue growth with a 14.84% increase in the latest year, supported by robust profit margins. The company maintains a high gross profit margin of 85.59% and a solid net profit margin of 28.23%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also strong at 34.53% and 39.35%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.39, indicating significant leverage, which could pose financial risks. However, the company has a reasonable return on equity of 8.33%, suggesting effective use of equity to generate profits. The equity ratio is relatively low, pointing to a higher reliance on debt financing.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 33.65%, highlighting the company's ability to generate cash. The operating cash flow to net income ratio is 0.58, suggesting a healthy conversion of income into cash. The free cash flow to net income ratio is high at 0.98, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	44.71M	43.71M	38.06M	30.84M
Gross Profit	36.07M	37.42M	33.13M	26.52M
EBITDA	15.39M	17.20M	15.05M	10.62M
Net Income	10.84M	12.34M	10.49M	7.18M
Balance Sheet
Total Assets	42.52M	37.17M	36.09M	28.96M
Cash, Cash Equivalents and Short-Term Investments	19.66M	29.18M	17.64M	11.60M
Total Debt	3.48M	3.54M	2.75M	2.84M
Total Liabilities	35.88M	35.69M	31.73M	28.16M
Stockholders Equity	6.65M	1.48M	4.36M	802.00K
Cash Flow
Free Cash Flow	14.90M	17.63M	13.19M	9.93M
Operating Cash Flow	15.39M	18.03M	14.55M	10.69M
Investing Cash Flow	-3.54M	-3.07M	-7.57M	-10.98M
Financing Cash Flow	-4.39M	-3.32M	-1.07M	-7.75M

Info-Tech Systems Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITS	67 Neutral	S$252.84M	23.33	―	1.99%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CYW	47 Neutral	S$4.75M	-10.34	-4.27%	―	5.95%	64.63%

Info-Tech Systems Ltd Corporate Events

Info-Tech Unveils Integrated Cloud CRM to Deepen SME Digital Suite

Info-Tech Systems Ltd has launched a new integrated cloud-based Customer Relationship Management software programme aimed at SMEs, scheduled for official roll-out on 2 February 2026. The CRM solution is designed to complement the company’s existing HRMS and accounting platforms, addressing common SME challenges such as lead follow-up inefficiencies and fragmented sales processes while enhancing customer engagement, sales pipelines and overall operational efficiency. This expansion of its product suite underscores Info-Tech’s continued investment in research and development, strengthens platform integration and value for customers, and supports its strategic positioning as a trusted provider of productivity-boosting digital solutions for SMEs undergoing digital transformation.

The most recent analyst rating on (SG:ITS) stock is a Hold with a S$0.88 price target. To see the full list of analyst forecasts on Info-Tech Systems Ltd stock, see the SG:ITS Stock Forecast page.