IBOKIN Co., Ltd. (5699) AI Stock Analysis

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IBOKIN Co., Ltd.

(TSE/TYO:5699)

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Rating:68Neutral

Price Target:JPY 1,477.00▲(9.00% Upside)

Action:reiterated

Date:09/11/26

IBOKIN's overall score of 68 is driven by a highly attractive valuation and solid technical momentum, but it is heavily constrained by underlying financial risks. The most significant factor is the company's current aggressive expansion phase, which has led to substantial cash burn and a rapid accumulation of debt despite record top-line growth. While the low P/E ratio offers an appealing entry valuation, investors should closely monitor the company's operating cash flow to ensure it stabilizes in upcoming quarters.

Positive Factors

Circular-economy business modelIBOKIN operates across collection, processing, and resale of recovered resources, giving it multiple ways to monetize waste while supporting circular-economy demand. This integrated model can create durable relevance as industrial and demolition materials are increasingly redirected toward recovery and reuse.

Negative Factors

Sharp cash-flow deteriorationThe 2025 collapse in operating cash flow and deeply negative free cash flow materially weakens internal funding capacity. If sustained, weaker cash conversion could constrain investment, increase reliance on external financing, and make reported earnings less dependable as a measure of available liquidity.

IBOKIN Co., Ltd. (5699) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.45B
Dividend Yield: 2.20%
Average Volume (3M): 4,833
Price to Earnings (P/E): 6.3
Beta (1Y): 0.36
Revenue Growth: 10.72%
EPS Growth: 73.57%
Country: Japan
Employees: 189
Sector: General
Sector Strength: 55
Industry: Waste Management

IBOKIN Co., Ltd. Business Overview & Revenue Model

Company Description

IBOKIN Co.,Ltd. operates as a Japanese recycling enterprise, with services spanning demolition, environmental protection, metal recovery, and transportation-related recycling across Japan. The firm is actively involved in processing both ferrous and...

How the Company Makes Money

IBOKIN makes money primarily by monetizing recyclable resources and by providing waste-processing services. Key revenue streams typically include: (1) Sales of recovered materials: the company acquires or receives scrap and recyclable inputs (often f...

IBOKIN Co., Ltd. Financial Statement Overview

Summary

IBOKIN presents a mixed financial profile amid an aggressive expansion phase. While net income reached multi-year highs and revenue grew, negative free cash flow, plummeting operating cash flow, and a sharp increase in debt highlight significant near-term funding pressures and increased financial risk.

Income Statement

76Positive

Balance Sheet

65Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.29B	10.01B	9.66B	8.66B	7.96B	8.43B
Gross Profit	2.11B	1.79B	1.85B	1.51B	1.35B	1.60B
EBITDA	1.37B	1.15B	1.11B	840.54M	743.46M	997.02M
Net Income	706.48M	598.47M	520.40M	396.38M	346.50M	509.53M
Balance Sheet
Total Assets	8.40B	8.11B	6.34B	5.76B	5.35B	5.76B
Cash, Cash Equivalents and Short-Term Investments	2.28B	1.67B	2.26B	1.73B	1.89B	1.97B
Total Debt	1.24B	1.51B	245.39M	293.81M	394.37M	559.03M
Total Liabilities	3.00B	2.96B	1.80B	1.73B	1.54B	2.14B
Stockholders Equity	5.36B	5.12B	4.53B	4.03B	3.81B	3.62B
Cash Flow
Free Cash Flow	0	-1.37B	710.83M	95.64M	179.13M	710.74M
Operating Cash Flow	0	71.73M	932.38M	603.82M	338.66M	795.97M
Investing Cash Flow	0	-1.44B	-239.70M	-494.25M	-200.28M	-100.48M
Financing Cash Flow	0	718.20M	-165.34M	-222.89M	-300.02M	-241.91M

IBOKIN Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1355.00

Price Trends

50DMA1523.60Negative

100DMA1509.97Negative

200DMA1583.23Negative

Market Momentum

MACD-34.72Positive

RSI35.68Neutral

STOCH57.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5699, the sentiment is Negative. The current price of 1355.00 is below the 20-day moving average (MA) of 1438.65, below the 50-day MA of 1523.60, and below the 200-day MA of 1583.23, indicating a bearish trend. The MACD of -34.72 indicates Positive momentum. The RSI at 35.68 is Neutral, neither overbought nor oversold. The STOCH value of 57.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5699.

IBOKIN Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5699 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5698	80Outperform	JPY 19.58B	6.63	―	3.81%	-2.39%	103.87%
JP:9793	72Outperform	JPY 167.68B	16.22	12.40%	2.36%	3.67%	13.39%
JP:5699	68Neutral	JPY 4.93B	6.30	―	2.20%	10.72%	73.57%
JP:9336	67Neutral	JPY 401.07B	24.59	―	1.34%	18.14%	21.27%
JP:4245	62Neutral	JPY 9.46B	11.50	―	3.29%	6.08%	346.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2195	52Neutral	JPY 6.33B	19.86	―	1.57%	1.45%	-9.41%

* General Sector Average

Performance Comparison

JP:5699 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5699	IBOKIN Co., Ltd.	1355.00	0.50	0.04%
JP:9793	Daiseki Co	3515.00	192.92	5.81%
JP:2195	Amita Holdings Co., Ltd.	319.00	8.38	2.70%
JP:4245	Daiki Axis Co., Ltd.	729.00	62.95	9.45%
JP:5698	Envipro Holdings, Inc.	656.00	150.74	29.83%
JP:9336	Daiei Kankyo Co., Ltd.	4185.00	730.82	21.16%

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.

Date of analysis: Sep 11, 2026

IBOKIN Co., Ltd. AI Stock Analysis