INPEX (1605) AI Stock Analysis

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INPEX

(OTC:1605)

77Outperform

INPEX's strong financial performance, highlighted by robust income growth and profitability, drives its favorable stock score. The company's valuation is attractive due to its low P/E ratio and high dividend yield. However, technical analysis suggests potential caution due to mixed indicators, and the significant debt level should be monitored.

INPEX (1605) vs. S&P 500 (SPY)

Market Cap

$2.26T

Dividend Yield4.27%

Average Volume (3M)6.84M

Price to Earnings (P/E)5.3

Beta (1Y)0.94

Revenue Growth1.00%

EPS Growth32.18%

CountryJP

Employees3,679

SectorEnergy

Sector Strength45

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)105.46

Shares Outstanding1,259,136,100

10 Day Avg. Volume5,840,840

30 Day Avg. Volume6,835,050

Financial Highlights & Ratios

PEG Ratio0.36

Price to Book (P/B)0.45

Price to Sales (P/S)0.00

P/FCF Ratio9.45

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1,900.13

Price Target Upside0.78% Upside

Rating ConsensusHold

Number of Analyst Covering2

INPEX Business Overview & Revenue Model

Company DescriptionINPEX Corporation (1605) is a leading Japanese oil and gas exploration and production company. It operates in the energy sector, primarily focusing on the upstream activities of exploring, developing, and producing crude oil and natural gas. INPEX has a global footprint with projects spanning across Asia, Oceania, the Middle East, Africa, and the Americas, making it Japan's largest oil and gas exploration company. The company's core products include crude oil, natural gas, and liquefied natural gas (LNG), which are integral to meeting the energy demands of Japan and other markets worldwide.

How the Company Makes MoneyINPEX makes money primarily through the exploration, development, and production of crude oil and natural gas, which are then sold in both domestic and international markets. Its revenue streams are primarily derived from the sale of these hydrocarbons. The company also engages in the liquefaction and sale of natural gas as LNG, which is a significant part of its business given the global demand for cleaner energy sources. INPEX's revenue is influenced by global oil and gas prices, production volumes, and its ability to successfully manage and develop its reserves. Strategic partnerships and joint ventures with other energy companies also contribute to its earnings by expanding its operational capabilities and market reach.

INPEX Financial Statement Overview

Summary

INPEX's financial statements reflect strong revenue and profit growth, efficient cost management, and a solid capital structure. Despite concerns over significant debt levels, the company's financial health supports continued growth and profitability.

Income Statement

Very Positive

INPEX has demonstrated strong growth in its income statement, reflected by a notable increase in net income from the previous year. The company achieved robust gross and net profit margins, supported by efficient cost management and high revenue growth. The steady rise in EBIT and EBITDA margins indicates solid operational efficiency and profitability.

Balance Sheet

Positive

The balance sheet of INPEX is solid, with a favorable debt-to-equity ratio and a high equity ratio, indicating strong financial stability. The company's return on equity is impressive, showcasing effective use of shareholder capital. However, the total debt remains significant, which could pose risks if not managed properly.

Cash Flow

Positive

INPEX exhibits stable cash flow management with positive free cash flow growth and a strong operating cash flow to net income ratio. The company effectively converts its earnings into cash, although the decline in operating cash flow compared to the previous year suggests potential areas for improvement.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.27T	2.16T	2.32T	1.24T	771.05B
	Gross Profit
1.35T	1.32T	1.38T	675.45B	331.19B
	EBIT
1.27T	1.19T	1.25T	590.66B	248.47B
	EBITDA
1.53T	1.63T	1.63T	800.70B	429.33B
	Net Income Common Stockholders
427.34B	321.71B	461.07B	223.05B	-103.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
241.68B	201.15B	285.98B	201.76B	182.98B
	Total Assets
7.38T	6.74T	6.26T	5.16T	4.63T
	Total Debt
1.06T	1.06T	1.27T	1.18T	1.23T
	Net Debt
822.24B	887.74B	1.04T	978.45B	1.05T
	Total Liabilities
2.24T	2.24T	2.22T	1.81T	1.63T
	Stockholders Equity
4.82T	4.21T	3.78T	3.12T	2.74T
Cash Flow		Free Cash Flow
353.68B	536.00B	554.62B	294.49B	154.03B
	Operating Cash Flow
654.74B	788.13B	751.28B	445.46B	292.92B
	Investing Cash Flow
-290.40B	-324.35B	-525.57B	-130.73B	-417.19B
	Financing Cash Flow
-349.94B	-487.27B	-241.93B	-315.21B	126.75B

INPEX Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1885.50

Price Trends

50DMA

1907.42

Negative

100DMA

1909.67

Negative

200DMA

1960.32

Negative

Market Momentum

MACD

2.82

Negative

RSI

53.96

Neutral

STOCH

79.79

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1605, the sentiment is Neutral. The current price of 1885.5 is above the 20-day moving average (MA) of 1836.07, below the 50-day MA of 1907.42, and below the 200-day MA of 1960.32, indicating a neutral trend. The MACD of 2.82 indicates Negative momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 79.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1605.

INPEX Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6269	81 Outperform	¥333.99B	10.25	18.84%	2.03%	22.07%	39.05%
1605	77 Outperform	$2.26T	5.34	9.26%	4.27%	1.00%	32.18%
1662	76 Outperform	¥257.86B	3.20	15.52%	5.25%	8.62%	58.30%
5021	65 Neutral	¥527.69B	8.97		5.47%	1.69%	54.44%
5020	62 Neutral	$1.84T	8.52	-0.17%	3.68%	-5.09%	3.44%
5019	61 Neutral	$1.12T	11.14	5.72%	4.00%	6.32%	-49.47%
Sector *	57 Neutral	$7.18B	3.26	-3.67%	5.68%	0.47%	-50.25%

* Energy Sector Average

Performance Comparison

JP:1605

INPEX

1,885.50

-474.24

-20.10%

JP:5021

Cosmo Energy Holdings Co., Ltd.

6,036.00

-1,255.70

-17.22%

JP:6269

Modec

4,880.00

2,097.84

75.40%

JP:5019

Idemitsu Kosan Co

867.40

-139.53

-13.86%

JP:1662

Japan Petroleum Exploration Co

1,009.00

-314.23

-23.75%

JP:5020

ENEOS Holdings

681.50

-88.63

-11.51%

INPEX Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q4-2023)

% Change Since: 1.29%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted stable production and advances in renewable energy projects as significant positives. However, these were offset by asset impairments and challenges in meeting production targets, leading to a balanced sentiment.

Q4-2023 Updates

Positive Updates

Stable LNG Production at Ichthys

Achieved stable operation with 129 LNG shipments in 2023. Facility capacity enhancement allows for 9.3 million tonnes of LNG production per year, with plans to ship 11 LNG cargoes monthly in 2024.

Expansion in Net Zero and Renewable Energy Initiatives

Commenced construction of hydrogen/ammonia project in Niigata and started pre-FEED for a large-scale, low-carbon ammonia project in Texas. Acquired a 50% share in Enel Green Power Australia and partially in the Moray East Offshore wind farm in the UK.

Financial Performance and Shareholder Returns

Achieved JPY 371.5 billion in net income for 2023, marking the second highest earnings record. Planned increased DPS to JPY 76 and a total payout ratio of over 40% for 2024.

Negative Updates

Prelude Gas Asset Impairment

Registered a large impairment for the Prelude asset, impacting overall profitability negatively with a JPY 60 billion loss.

Challenges in Meeting Production Targets

Missed the target of 700,000 barrels of oil equivalent per day, with a forecast of 643,000 barrels for FY 2024 due to various factors including OPEC production cuts.

Company Guidance

In the fourth quarter 2023 earnings call for 1605.T, executives Takayuki Ueda and Daisuke Yamada discussed several key metrics and strategic initiatives for the company's future. The company aims to produce 9.3 million tonnes of LNG per year from its Ichthys asset, with net income contributions expected to be about JPY 220 billion. For the year 2024, they anticipate shipping around 11 LNG cargoes monthly without planned shutdowns. They are also projecting a net income of approximately JPY 330 billion and an operating cash flow of JPY 700 billion, maintaining a net debt/equity ratio of 30% and targeting a 7.7% ROE. The company plans to continue its focus on net-zero initiatives, including hydrogen and ammonia projects, and has committed to a total payout ratio of over 40% for shareholder returns. Additionally, the capital allocation strategy is expected to balance between fossil fuels and net-zero investments, with significant growth investments planned.

INPEX Corporate Events

INPEX Revises 2025 Financial Forecasts Amid Market Fluctuations

May 13, 2025

INPEX CORPORATION has revised its financial forecasts for the first half and full fiscal year of 2025 due to anticipated declines in crude oil prices and the appreciation of the Japanese yen against the U.S. dollar. These changes reflect a cautious outlook amidst stable operations at key projects, impacting expected revenues and profits for the period.

The most recent analyst rating on (JP:1605) stock is a Hold with a Yen2360.00 price target. To see the full list of analyst forecasts on INPEX stock, see the JP:1605 Stock Forecast page.

INPEX Reports Q1 2025 Financial Results Amid Market Volatility

May 13, 2025

INPEX CORPORATION released its financial results for the first quarter ending March 31, 2025, highlighting the challenges posed by market volatility in crude oil and natural gas prices, as well as foreign exchange rate fluctuations. These factors may significantly impact the company’s financial performance and position, affecting stakeholders and its industry standing.

The most recent analyst rating on (JP:1605) stock is a Hold with a Yen2360.00 price target. To see the full list of analyst forecasts on INPEX stock, see the JP:1605 Stock Forecast page.

INPEX Reports Q1 2025 Financial Results and Dividend Forecast

May 13, 2025

INPEX CORPORATION reported its consolidated financial results for the first quarter of 2025, showing a decline in revenue and operating profit compared to the previous year. Despite these decreases, the company experienced a rise in profit attributable to owners of the parent, indicating a potential shift in financial strategy or operational efficiency. The company also announced a forecasted increase in cash dividends for the year ending December 31, 2025, suggesting confidence in future financial performance.

The most recent analyst rating on (JP:1605) stock is a Hold with a Yen2360.00 price target. To see the full list of analyst forecasts on INPEX stock, see the JP:1605 Stock Forecast page.

INPEX Announces Corrections to 2024 Financial Results

Mar 19, 2025

INPEX Corporation announced corrections to its Consolidated Financial Results for the year ended December 31, 2024. These corrections, identified after the initial release, do not affect the company’s overall financial results. The announcement underscores INPEX’s commitment to transparency and accuracy in financial reporting, maintaining its credibility with stakeholders.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.