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Ines Corporation (JP:9742)
:9742
Japanese Market
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Ines Corporation (9742) AI Stock Analysis

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JP:9742

Ines Corporation

(9742)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
¥2,182.00
▲(10.26% Upside)
Action:Reiterated
Date:05/11/26
The score is held back primarily by the sharp swing to losses and steep margin compression, alongside bearish technical momentum (below key moving averages with negative MACD). Support comes from low leverage and a strong rebound in free cash flow, but the high P/E reduces the valuation cushion.
Positive Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (~0.10) and a sizable equity base provide durable financial flexibility. This strengthens capacity to fund working capital, absorb earnings shocks, pursue strategic investments or M&A, and maintain credibility with lenders over the next several quarters.
Negative Factors
Sharp margin compression and swing to loss
Rapid deterioration from positive margins to a net loss and much lower gross margin signals structural pricing or cost issues. Persisting margin erosion reduces reinvestment capacity and ROE, requiring sustained operational fixes to restore profitability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (~0.10) and a sizable equity base provide durable financial flexibility. This strengthens capacity to fund working capital, absorb earnings shocks, pursue strategic investments or M&A, and maintain credibility with lenders over the next several quarters.
Read all positive factors

Ines Corporation (9742) vs. iShares MSCI Japan ETF (EWJ)

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
Mixed fundamentals: the company swung to a net loss in the latest year with sharp margin compression (net margin from ~+6% to ~-5%, gross margin ~24% to ~15%, EBIT margin ~-1.8%). Offsetting this, the balance sheet remains conservatively financed (debt-to-equity ~0.10) and free cash flow rebounded strongly to ~¥3.16B in 2026.
Income Statement
42
Neutral
Balance Sheet
71
Positive
Cash Flow
68
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue36.62B40.56B40.56B42.40B40.03B
Gross Profit5.36B9.72B9.73B10.10B8.48B
EBITDA1.20B5.45B4.87B5.85B4.91B
Net Income-1.84B2.44B1.79B2.54B1.30B
Balance Sheet
Total Assets49.36B56.90B54.55B48.59B46.91B
Cash, Cash Equivalents and Short-Term Investments8.59B8.21B6.48B11.68B12.24B
Total Debt3.75B7.58B5.01B9.00M13.00M
Total Liabilities12.39B17.71B16.76B12.30B12.29B
Stockholders Equity36.97B39.19B37.79B36.29B34.62B
Cash Flow
Free Cash Flow3.16B46.00M-7.48B1.37B5.69B
Operating Cash Flow3.48B1.48B2.14B2.33B6.43B
Investing Cash Flow1.78B-288.00M-9.99B-2.04B-1.42B
Financing Cash Flow-4.98B1.54B3.95B-849.00M-5.64B

Ines Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1979.00
Price Trends
50DMA
2076.80
Positive
100DMA
2056.18
Positive
200DMA
1964.03
Positive
Market Momentum
MACD
17.89
Negative
RSI
59.49
Neutral
STOCH
72.93
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 2102.65, below the 50-day MA of 2076.80, and above the 200-day MA of 1964.03, indicating a bullish trend. The MACD of 17.89 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥27.66B9.732.93%7.86%28.33%
74
Outperform
¥72.09B13.7817.96%1.83%10.56%27.45%
72
Outperform
¥363.25B27.260.22%23.27%67.12%
71
Outperform
¥149.67B12.832.30%12.89%36.13%
65
Neutral
¥29.95B8.3810.34%4.82%-2.76%36.33%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥43.07B-24.512.77%-9.73%-175.62%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9742
Ines Corporation
2,151.00
546.25
34.04%
JP:3762
TechMatrix
1,814.00
-261.55
-12.60%
JP:4725
CAC Holdings Corporation
1,774.00
-84.17
-4.53%
JP:2317
Systena Corporation
413.00
26.08
6.74%
JP:2359
Core Corporation
1,941.00
86.06
4.64%
JP:3923
RAKUS Co., Ltd.
1,025.00
-81.24
-7.34%

Ines Corporation Corporate Events

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...
INES Corrects Prior-Year Dividend Figure While Confirming ¥25 Payout for FY 2026
May 22, 2026
INES Corporation has issued a correction to its recently announced notice concerning dividends of surplus, clarifying an error in the stated dividend per share for the previous fiscal year ended March 31, 2025. The company confirmed that last year...
INES Corporation Confirms Year-End Dividend, Sets Annual Payout at ¥50
May 19, 2026
INES Corporation’s board has approved a year-end dividend of ¥25 per share for the fiscal year ended March 31, 2026, matching its earlier forecast and bringing the total annual dividend to ¥50 per share. The payout, sourced from re...
INES swings to loss but signals profit rebound and steady dividends
May 19, 2026
INES Corporation, a Tokyo-listed IT services and system integration provider, reported a sharp downturn for the fiscal year ended March 31, 2026, with net sales falling 9.7% to ¥36.6 billion and a swing to an operating loss of ¥647 milli...
INES Swings to Loss but Targets Earnings Rebound in Fiscal 2027
May 7, 2026
INES Corporation reported a sharp reversal in performance for the year ended March 31, 2026, with net sales falling 9.7% to ¥36.6 billion and operating profit turning to a ¥647 million loss, compared with solid profits a year earlier. Pr...
INES Corporation Announces Leadership Reshuffle and New Director Candidate
Apr 30, 2026
INES Corporation has announced a leadership reshuffle, with Representative Director and Senior Managing Executive Officer Susumu Tsukahara set to retire as Representative Director at the conclusion of the 64th Ordinary General Meeting of Sharehold...
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: May 11, 2026