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Ines Corporation
(9742)
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Rating:52Neutral
Price Target:
¥2,552.00
▲(28.95% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by the TTM earnings downturn (net loss and significant margin compression) and uneven free-cash-flow trends. Support comes from a low-leverage balance sheet and currently positive operating/free cash flow, while technicals are mixed (weak near-term vs 20-day but still above longer-term averages) and valuation is constrained by a negative P/E despite a ~2.34% dividend yield.
Positive Factors
Conservative Balance Sheet
Low leverage and reduced debt provide financial flexibility during an earnings downturn. This should limit interest burdens, support continued investment in IT capabilities, and improve resilience if client demand or project profitability remains pressured.
Negative Factors
Material Profitability Deterioration
The shift from prior operating profits to a net loss indicates that current revenue is not converting efficiently into earnings. Sustained margin pressure from costs, pricing, or project mix could weaken reinvestment capacity and delay a durable recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and reduced debt provide financial flexibility during an earnings downturn. This should limit interest burdens, support continued investment in IT capabilities, and improve resilience if client demand or project profitability remains pressured.
Read all positive factors
Ines Corporation (9742) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥47.26B
Dividend Yield2.15%
Average Volume (3M)39.97K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-5.63%
EPS Growth-162.31%
CountryJP
Employees1,204
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-62.70
Shares Outstanding20,900,000
10 Day Avg. Volume46,390
30 Day Avg. Volume39,973
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.09
Price to Sales (P/S)1.10
P/FCF Ratio12.73
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)N/A
Revenue Forecast (FY)N/A
Ines Corporation Business Overview & Revenue Model
Company Description
INES Corporation, a Japanese company, delivers a wide array of information network system services to industrial enterprises, financial institutions, and public sector clients across Japan. The firm's expertise covers the entire lifecycle of infor...
How the Company Makes Money
Ines Corporation primarily makes money by charging clients for IT services delivered across the lifecycle of information systems. Key revenue streams typically include: (1) system integration and development fees for designing and building applica...
Ines Corporation Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.60B | 36.62B | 40.56B | 40.56B | 42.40B | 40.03B |
| Gross Profit | 6.13B | 5.36B | 9.72B | 9.73B | 10.10B | 8.48B |
| EBITDA | 2.30B | 1.20B | 5.45B | 4.87B | 5.85B | 4.91B |
| Net Income | -1.30B | -1.84B | 2.44B | 1.79B | 2.54B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 48.74B | 49.36B | 56.90B | 54.55B | 48.59B | 46.91B |
| Cash, Cash Equivalents and Short-Term Investments | 16.14B | 8.59B | 8.21B | 6.48B | 11.68B | 12.24B |
| Total Debt | 3.54B | 3.75B | 7.58B | 5.01B | 9.00M | 13.00M |
| Total Liabilities | 12.20B | 12.39B | 17.71B | 16.76B | 12.30B | 12.29B |
| Stockholders Equity | 36.54B | 36.97B | 39.19B | 37.79B | 36.29B | 34.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 3.16B | 46.00M | -7.48B | 1.37B | 5.69B |
| Operating Cash Flow | 1.72B | 3.48B | 1.48B | 2.14B | 2.33B | 6.43B |
| Investing Cash Flow | 2.17B | 1.78B | -288.00M | -9.99B | -2.04B | -1.42B |
| Financing Cash Flow | -1.89B | -4.98B | 1.54B | 3.95B | -849.00M | -5.64B |
Ines Corporation Technical Analysis
Positive
1979.00
Price Trends
2201.50
Positive
2132.69
Positive
2017.08
Positive
Market Momentum
60.54
Negative
53.40
Neutral
51.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9742, the sentiment is Positive. The current price of 1979 is below the 20-day moving average (MA) of 2295.10, below the 50-day MA of 2201.50, and below the 200-day MA of 2017.08, indicating a bullish trend. The MACD of 60.54 indicates Negative momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9742.
Ines Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥94.03B | 17.57 | 20.18% | 2.76% | 11.61% | 28.41% | |
79 Outperform | ¥390.18B | 15.90 | ― | 0.22% | 16.71% | 161.67% | |
76 Outperform | ¥160.90B | 13.93 | ― | 3.30% | 10.67% | 23.70% | |
75 Outperform | ¥32.60B | 9.21 | 10.38% | 4.82% | 3.46% | 6.90% | |
72 Outperform | ¥30.05B | 10.24 | ― | 2.93% | 10.22% | 30.07% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ¥47.26B | -37.13 | ― | 2.77% | -5.63% | -162.31% |
* General Sector Average
JP:9742
Ines Corporation
2,328.00
605.21
35.13%
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393.43
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1,949.00
-41.97
-2.11%
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-6.98%
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8.37%
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-16.52%
Ines Corporation Corporate Events
Ines Corporation Narrows Losses as Local Government IT Standardization Drives Sales
Aug 13, 2026
Ines Corporation reported that net sales rose 12.7% year on year to ¥8,692 million for the three months ended June 30, 2026, driven by steady progress in the standardization of local government information systems. Despite continued investmen...
Ines Corporation Narrows Quarterly Loss and Targets Robust Profit Recovery in FY2027
Aug 13, 2026
Ines Corporation reported consolidated net sales of ¥8.69 billion for the quarter ended June 30, 2026, up 12.7% year on year, while still posting an operating loss of ¥78 million and a net loss attributable to owners of the parent of ...
INES Corporation Strengthens Governance With New Co-Representative Director and Executive Promotions
Jul 31, 2026
INES Corporation has announced a leadership restructuring aimed at reinforcing corporate governance and accelerating decision-making. The company will adopt a two-member representative director structure, adding Satoshi Numazaki as Representative ...
INES Corporation Narrows Quarterly Loss and Lifts Dividend Outlook
Jul 31, 2026
INES Corporation reported consolidated net sales of ¥8.69 billion for the three months ended June 30, 2026, up 12.7% year on year, while posting a small operating loss of ¥78 million and a net loss attributable to owners of the parent of...
INES Reaffirms Independence Despite Strategic Alliance with Mitsubishi Research Institute
Jun 23, 2026
INES Corporation detailed its relationship with Mitsubishi Research Institute, Inc., which holds 19.5% of its voting rights and is classified as an other affiliated company. The alliance includes both capital and business components, with one INES...
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.