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Ines Corporation (9742) AI Stock Analysis

JP:9742

Ines Corporation

(TSE/TYO:9742)

Select Model
Rating:62Neutral
Price Target:JPY 2,511.00â–²(5.99% Upside)
Action:reiterated
Date:11/01/26

The stock achieves a moderate overall score, driven primarily by exceptionally strong technical momentum and a highly conservative balance sheet. However, significant profitability challenges, highlighted by a negative P/E ratio and trailing net losses, remain the primary fundamental risks limiting the stock's upside.

Positive Factors
Revenue GrowthPositive TTM revenue growth indicates that customer demand and the company’s systems-integration and IT-services activity are still expanding. Although the pace is moderate, continued top-line growth can support operating leverage and provide a foundation for restoring stronger profitability over time.
Negative Factors
Weak ProfitabilityThe company remains loss-making and operating close to breakeven, limiting current earnings power. Thin operating profitability leaves little cushion against cost pressure or weaker demand, while the negative net margin reduces the capacity to fund growth and enhance shareholder returns internally.

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

-10%0%10%20%30%40%50%60%JP:9742+44.72%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 49.33B
Dividend Yield
2.11%
Average Volume (3M)
33.49K
Price to Earnings (P/E)
-37.8
Beta (1Y)
0.61
Revenue Growth
1.81%
EPS Growth
-175.99%
Country
Japan
Employees
1,204
Sector
General
Sector Strength
55
Industry
Information Technology Services

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 informat...

Ines Corporation Financial Statement Overview

Summary

A robust balance sheet with minimal debt and consistent positive free cash flow highlights financial stability, though this is notably offset by compressing margins and ongoing net losses.

Income Statement

35Negative

Balance Sheet

75Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue39.11B36.62B40.56B40.56B42.40B40.03B
Gross Profit6.75B5.36B9.72B9.73B10.10B8.48B
EBITDA3.52B1.20B5.45B4.87B5.85B4.91B
Net Income-987.00M-1.84B2.44B1.79B2.54B1.30B
Balance Sheet
Total Assets48.16B49.36B56.90B54.55B48.59B46.91B
Cash, Cash Equivalents and Short-Term Investments14.09B8.59B8.21B6.48B11.68B12.24B
Total Debt3.33B3.75B7.58B5.01B9.00M13.00M
Total Liabilities11.21B12.39B17.71B16.76B12.30B12.29B
Stockholders Equity36.95B36.97B39.19B37.79B36.29B34.62B
Cash Flow
Free Cash Flow1.62B3.16B46.00M-7.48B1.37B5.69B
Operating Cash Flow1.96B3.48B1.48B2.14B2.33B6.43B
Investing Cash Flow2.48B1.78B-288.00M-9.99B-2.04B-1.42B
Financing Cash Flow-1.88B-4.98B1.54B3.95B-849.00M-5.64B

Ines Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2369.00

Price Trends

50DMA2260.89Positive
100DMA2199.56Positive
200DMA2096.24Positive

Market Momentum

MACD31.12Positive
RSI56.64Neutral
STOCH34.54Neutral

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 2369.00 is above the 20-day moving average (MA) of 2319.95, above the 50-day MA of 2260.89, and above the 200-day MA of 2096.24, indicating a bullish trend. The MACD of 31.12 indicates Positive momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.54 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

JP:9742 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2317JP:231783OutperformJPY 152.93B13.52―4.03%6.46%8.76%
JP:3923JP:392381OutperformJPY 394.08B16.25―0.63%16.71%161.67%
JP:3762JP:376274OutperformJPY 131.94B24.7820.65%1.66%14.74%22.22%
JP:4725JP:472573OutperformJPY 33.35B9.3310.39%5.06%3.46%6.90%
JP:2359JP:235972OutperformJPY 28.54B9.69―3.00%10.18%22.45%
JP:9742JP:974262NeutralJPY 47.44B-37.78―2.11%1.81%-175.99%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-25%0%25%50%JP:9742JP:3762JP:4725JP:2317JP:2359JP:3923Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9742 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9742Ines Corporation2369.00702.7942.18%
JP:3762TechMatrix Corporation3320.001192.8656.08%
JP:4725CAC Holdings Corporation1975.00-52.01-2.57%
JP:2317Systena Corporation422.00-88.08-17.27%
JP:2359Core Corporation2003.00-4.16-0.21%
JP:3923RAKUS Co., Ltd.1112.00-129.38-10.42%

Ines Corporation Corporate Events

INES Corporation Raises Full-Year Dividend Forecast After Approving Interim Payout

Oct 30, 2026

INES Corporation’s board has approved an interim dividend of ¥25 per share for the six months ended September 30, 2026, matching the previous fiscal year’s interim payout and totaling ¥520 million funded from retained earnings....

INES Corporation Returns to Profit and Confirms Dividend as Earnings Recover

Oct 30, 2026

INES Corporation reported a strong turnaround in its first-half results for the six months ended Sept. 30, 2026, with net sales rising 15.1% year on year to ¥18.98 billion and a return to profitability, posting ¥449 million in operating pro...

INES Corporation Reports Increase in Stake by Major Foreign Shareholder

Oct 14, 2026

INES Corporation has disclosed a change in its major shareholder following a large shareholding report filed with Japanese financial authorities. The company, listed on the TSE Prime Market, continues to be an established IT and business services pro...

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 investments...

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 ¥...

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: Nov 01, 2026