Want to see JP:4390 full AI Analyst Report?
Top Page
IPS, Inc.
(4390)
Select Model
Select Model
Rating:64Neutral
Price Target:
¥3,836.00
▲(26.60% Upside)
Action:Reiterated
Date:10/07/26
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.
Positive Factors
Steady revenue growth
Sustained revenue expansion indicates continuing demand and broadening business activity rather than reliance on a single period. A larger revenue base can support operating leverage, strengthen market position, and provide resources for further investment over the next several quarters.
Negative Factors
Persistently negative free cash flow
Negative free cash flow means reported earnings are not currently converting into cash available for debt reduction, dividends, or discretionary investment. If this persists, the company may need continued balance-sheet funding to sustain its investment and growth requirements.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Sustained revenue expansion indicates continuing demand and broadening business activity rather than reliance on a single period. A larger revenue base can support operating leverage, strengthen market position, and provide resources for further investment over the next several quarters.
Read all positive factors
IPS, Inc. (4390) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥51.98B
Dividend Yield1.12%
Average Volume (3M)55.18K
Price to Earnings (P/E)10.7
Beta (1Y)0.91
Revenue Growth16.49%
EPS Growth70.51%
CountryJP
Employees766
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)335.55
Shares Outstanding13,108,900
10 Day Avg. Volume38,600
30 Day Avg. Volume55,183
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)328.95
Revenue Forecast (FY)¥19.95B
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
Negative
3030.00
Price Trends
3876.12
Negative
3774.70
Negative
3431.43
Positive
Market Momentum
-17.62
Positive
31.20
Neutral
15.43
Positive
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 3030 is below the 20-day moving average (MA) of 4032.83, below the 50-day MA of 3876.12, and below the 200-day MA of 3431.43, indicating a neutral trend. The MACD of -17.62 indicates Positive momentum. The RSI at 31.20 is Neutral, neither overbought nor oversold. The STOCH value of 15.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥16.25B | 13.37 | ― | 4.27% | 2.67% | -25.50% | |
71 Outperform | ¥625.31B | 25.02 | 16.03% | 1.17% | 13.85% | 21.44% | |
69 Neutral | ¥8.98B | 10.56 | ― | 4.50% | -2.97% | -6.79% | |
64 Neutral | ¥51.98B | 10.68 | ― | 1.12% | 16.49% | 70.51% | |
63 Neutral | ¥16.69B | 31.74 | ― | 1.13% | 14.33% | 112.44% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | ¥19.96B | 29.66 | ― | ― | 21.77% | -25.14% |
* Communication Services Sector Average
JP:4390
IPS, Inc.
3,585.00
307.80
9.39%
JP:3774
Internet Initiative Japan
3,501.00
929.96
36.17%
JP:3776
Broadband Tower, Inc.
265.00
100.39
60.98%
JP:3834
ASAHI Net, Inc.
585.00
-97.29
-14.26%
JP:9424
Japan Communications Inc.
122.00
-28.00
-18.67%
JP:9445
Forval Telecom, Inc.
533.00
-22.18
-4.00%
IPS, Inc. Corporate Events
IPS to Raise Capital via Domestic Share Offering for Submarine Cable Project
Oct 5, 2026
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 bookrunn...
IPS, Inc. Confirms Strong Q1 Results and Audit Review Ahead of Share Offering
Oct 5, 2026
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...
IPS to Raise Capital for Submarine Cable Expansion and Wakayama Infrastructure Project
Oct 5, 2026
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 Philipp...
IPS Sets Up Human Capital Strategy Committee Ahead of New Management Plan
Sep 18, 2026
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. ...
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...
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.