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IPS, Inc.
(4390)
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Rating:74Outperform
Price Target:
¥4,530.00
▲(49.50% Upside)
Action:Reiterated
Date:08/17/26
Overall score is driven by strong profitability and improving margins, plus bullish technical trend and momentum. The main offset is weak earnings quality from inconsistent operating cash flow and persistently negative free cash flow, which raises funding and flexibility risk despite a reasonable valuation.
Positive Factors
Steady Revenue Growth
Revenue rose steadily to 16,999M in 2026, indicating durable demand and expanding scale. Sustained top-line growth provides a foundation for operating leverage and supports continued investment in the telecommunications business.
Negative Factors
Persistent Negative Free Cash Flow
Persistently negative free cash flow means reported profits are not yet translating into distributable cash. Continued investment or working-capital demands could constrain reinvestment flexibility and increase dependence on external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Revenue rose steadily to 16,999M in 2026, indicating durable demand and expanding scale. Sustained top-line growth provides a foundation for operating leverage and supports continued investment in the telecommunications business.
Read all positive factors
IPS, Inc. (4390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥53.19B
Dividend Yield0.99%
Average Volume (3M)90.85K
Price to Earnings (P/E)12.1
Beta (1Y)0.89
Revenue Growth16.49%
EPS Growth70.51%
CountryJP
Employees766
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)335.55
Shares Outstanding13,102,400
10 Day Avg. Volume82,200
30 Day Avg. Volume90,846
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.95
Price to Sales (P/S)2.19
P/FCF Ratio-20.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)328.4
Revenue Forecast (FY)¥20.40B
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,...
IPS, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
42
Neutral
| 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 | 7.11B | 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 | 0.00 | -1.79B | -551.00M | -5.20B | -2.69B | 1.05B |
| Operating Cash Flow | 0.00 | 4.58B | 704.00M | -574.00M | 2.64B | 3.58B |
| Investing Cash Flow | 0.00 | -6.92B | -2.54B | -4.74B | -5.51B | -2.66B |
| Financing Cash Flow | 0.00 | 1.87B | 1.38B | 2.31B | 3.58B | 1.07B |
IPS, Inc. Technical Analysis
Positive
3030.00
Price Trends
3684.80
Positive
3648.70
Positive
3377.50
Positive
Market Momentum
113.36
Positive
56.66
Neutral
37.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4390, the sentiment is Positive. The current price of 3030 is below the 20-day moving average (MA) of 3966.00, below the 50-day MA of 3684.80, and below the 200-day MA of 3377.50, indicating a bullish trend. The MACD of 113.36 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4390.
IPS, Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥53.19B | 12.10 | ― | 0.99% | 16.49% | 70.51% | |
71 Outperform | ¥17.22B | 14.08 | ― | 4.06% | 2.67% | -25.50% | |
70 Outperform | ¥593.05B | 23.51 | 16.03% | 1.19% | 13.85% | 21.44% | |
69 Neutral | ¥8.97B | 10.60 | ― | 4.30% | -2.97% | -6.79% | |
66 Neutral | ¥15.46B | 30.06 | ― | 1.20% | 14.33% | 112.44% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | ¥19.96B | 29.17 | ― | ― | 21.77% | -25.14% |
* Communication Services Sector Average
JP:4390
IPS, Inc.
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IPS, Inc. Corporate Events
IPS Details Candle Cable Contracts and Targets ¥10 Billion Operating Profit
Aug 13, 2026
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 av...
IPS Signs Major IRU and O&M Deal for New ‘Candle’ Submarine Cable
Aug 7, 2026
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 counterpa...
IPS, Inc. Expands Asian Submarine Cable Network and Philippine Connectivity
Aug 7, 2026
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 Singapor...
IPS, Inc. Delivers Strong Q1 FY2026 Earnings and Reaffirms Full-Year Outlook
Aug 7, 2026
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...
IPS Plans ¥23 Billion Wakayama Cable Landing Station to Boost Network Resilience
Jul 2, 2026
IPS, Inc. has approved full-scale evaluation and development planning for a new international cable landing station in Wakayama Prefecture, along with a branch connection to Candle, the Asia-Pacific submarine cable system in which it participates....
IPS, Inc. Sees Minimal Impact from Mindanao Earthquake on Philippine Network Operations
Jun 8, 2026
IPS, Inc. reported that the recent earthquake off the coast of Mindanao in the Philippines caused no injuries to its employees and only limited operational disruption. One communications network site briefly lost commercial power, leading to a tem...
IPS, Inc. Seeks Shareholder Approval to Reappoint Entire Board
May 22, 2026
IPS, Inc. has announced that its board of directors will propose a slate of director candidates for approval at the company’s 35th annual general meeting of shareholders scheduled for June 23, 2026. The proposal centers on the reappointment ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.