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IPS, Inc. (4390) AI Stock Analysis
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IPS, Inc.
(TSE/TYO:4390)
The score is anchored by strong profitability and improving margins, but is meaningfully constrained by persistently negative free cash flow and volatile cash conversion alongside rising debt. Technical indicators also weaken the outlook due to a clear downtrend (below key moving averages, negative MACD). Valuation is a positive offset, with a low P/E and modest dividend yield.
IPS, Inc. (4390) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 41.37B
- Dividend Yield
- 1.27%
- Average Volume (3M)
- 110.33K
- Price to Earnings (P/E)
- 9.4
- Beta (1Y)
- 0.93
- Revenue Growth
- 16.49%
- EPS Growth
- 70.51%
- Country
- Japan
- Employees
- 766
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
IPS, Inc. Business Overview & Revenue Model
Company Description
Founded in Tokyo, Japan, in 1991, IPS, Inc. delivers a comprehensive suite of information technology and telecommunication services across both Japan and the Philippines. Its primary offerings include internet access, robust data center solutions, an...
IPS, Inc. Financial Statement Overview
Summary
Profitability is strong with steady revenue growth through 2026 and meaningfully improved margins (net margin ~24.7% in 2026), supporting a solid earnings profile. However, cash generation is a major weakness: free cash flow remains negative in recent years (including -1,786M in 2026) and operating cash flow has been volatile, increasing reliance on funding while debt has risen.
Income Statement
86Very PositiveBalance Sheet
78PositiveCash Flow
42Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.51B | 17.00B | 15.26B | 14.12B | 12.35B | 10.73B |
| Gross Profit | 10.34B | 9.87B | 8.28B | 7.08B | 5.83B | 4.12B |
| EBITDA | 7.12B | 7.04B | 5.44B | 5.36B | 3.76B | 3.30B |
| Net Income | 4.38B | 4.20B | 2.54B | 2.83B | 2.29B | 1.89B |
Balance Sheet | ||||||
| Total Assets | 52.34B | 50.98B | 42.03B | 33.53B | 25.13B | 18.42B |
| Cash, Cash Equivalents and Short-Term Investments | 4.03B | 3.58B | 3.92B | 4.23B | 6.88B | 5.78B |
| Total Debt | 12.89B | 12.64B | 10.07B | 5.22B | 3.86B | 3.05B |
| Total Liabilities | 25.19B | 25.34B | 21.05B | 18.34B | 13.26B | 9.28B |
| Stockholders Equity | 20.46B | 19.12B | 15.53B | 11.57B | 9.62B | 7.50B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.79B | -551.00M | -5.20B | -2.69B | 1.05B |
| Operating Cash Flow | 0 | 4.58B | 704.00M | -574.00M | 2.64B | 3.58B |
| Investing Cash Flow | 0 | -6.92B | -2.54B | -4.74B | -5.51B | -2.66B |
| Financing Cash Flow | 0 | 1.87B | 1.38B | 2.31B | 3.58B | 1.07B |
IPS, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4390, the sentiment is Negative. The current price of 3160.00 is below the 20-day moving average (MA) of 3413.25, below the 50-day MA of 3791.36, and below the 200-day MA of 3457.58, indicating a bearish trend. The MACD of -175.05 indicates Positive momentum. The RSI at 28.78 is Positive, neither overbought nor oversold. The STOCH value of 23.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4390.
IPS, Inc. Peers Comparison
Overall Rating
JP:383476.8Outperform
JP:377672.6Outperform
JP:377471Outperform
JP:944569Neutral- JP:439064Neutral
JP:942451Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3834 | 77Outperform | JPY 15.66B | 12.80 | ― | 4.46% | 2.67% | -25.50% |
| JP:3776 | 73Outperform | JPY 14.35B | 29.16 | ― | 1.29% | -14.02% | 16.57% |
| JP:3774 | 71Outperform | JPY 638.83B | 25.32 | 16.03% | 1.16% | 13.85% | 21.44% |
| JP:9445 | 69Neutral | JPY 8.50B | 10.05 | ― | 4.73% | -2.97% | -6.79% |
| JP:4390 | 64Neutral | JPY 45.42B | 9.42 | ― | 1.27% | 16.49% | 70.51% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:9424 | 51Neutral | JPY 18.11B | 26.47 | ― | ― | 21.77% | -25.14% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4390 | IPS, Inc. | 3160.00 | 179.38 | 6.02% | |
| JP:3774 | Internet Initiative Japan | 3544.00 | 801.92 | 29.24% | |
| JP:3776 | Broadband Tower, Inc. | 233.00 | 67.40 | 40.70% | |
| JP:3834 | ASAHI Net, Inc. | 560.00 | -115.57 | -17.11% | |
| JP:9424 | Japan Communications Inc. | 108.00 | -45.00 | -29.41% | |
| JP:9445 | Forval Telecom, Inc. | 507.00 | -58.72 | -10.38% |
IPS, Inc. Corporate Events
IPS to Raise Capital via Domestic Share Offering for Submarine Cable Project
IPS, Inc. has announced a domestic public offering of up to 1,453,000 shares, comprising 1,263,500 new shares and 189,500 shares for secondary offering through over-allotment. The offering, managed by Mizuho Securities as lead manager and bookrunner,...
IPS, Inc. Confirms Strong Q1 Results and Audit Review Ahead of Share Offering
IPS, Inc., listed on the Tokyo Stock Exchange Prime Market under securities code 4390, is a Japan-based company whose operations are reflected through detailed consolidated financial reporting and active engagement with investors and auditors. The fi...
IPS to Raise Capital for Submarine Cable Expansion and Wakayama Infrastructure Project
IPS, Inc. has approved the issuance of new shares and a secondary offering to support its expanding international telecommunications operations. The capital move underpins its strategy to build out data communications infrastructure in the Philippine...
IPS Sets Up Human Capital Strategy Committee Ahead of New Management Plan
IPS, Inc. has established a Human Capital Strategy Committee as an advisory body to its monthly Management Meeting, aiming to align medium- to long-term human capital policies with a new medium-term management plan slated for release in May 2027. The...
IPS Details Candle Cable Contracts and Targets ¥10 Billion Operating Profit
IPS, Inc. has fielded investor questions following its first-quarter results, clarifying the status and implications of two large indefeasible right of use agreements tied to its Candle submarine cable project. The company said it still retains avail...
IPS Signs Major IRU and O&M Deal for New ‘Candle’ Submarine Cable
IPS, Inc. has approved an agreement to grant partial indefeasible usage rights and provide long-term operation and maintenance services for its stake in the new international submarine cable known as Candle. The deal, with an undisclosed counterparty...
IPS, Inc. Expands Asian Submarine Cable Network and Philippine Connectivity
IPS, Inc. outlined its growing role in Asia’s digital infrastructure through multiple submarine cable projects and landing facilities. The company is jointly building the Candle international cable linking Japan, the Philippines and Singapore,...
IPS, Inc. Delivers Strong Q1 FY2026 Earnings and Reaffirms Full-Year Outlook
IPS, Inc. posted strong results for the three months to June 30, 2026, with net sales rising 14.9% year on year to ¥3.93 billion and profit attributable to owners of parent climbing 27.5% to ¥831 million, lifting basic earnings per share to...
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.
Date of analysis: Oct 07, 2026