Why is I-NET Corp. ?
1
High Management Efficiency with a high ROCE of 10.62%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 54.34
3
Poor long term growth as Operating profit has grown by an annual rate 1.09% of over the last 5 years
4
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 4,890.7
- INTEREST(Q) Highest at JPY 21.44 MM
5
With ROCE of 10.95%, it has a very attractive valuation with a 1.44 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 52.92%, its profits have risen by 1.9% ; the PEG ratio of the company is 7.1
6
Market Beating performance in long term as well as near term
- Along with generating 52.92% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to I-NET Corp. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is I-NET Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
I-NET Corp.
52.92%
0.30
45.62%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
4.63%
EBIT Growth (5y)
1.09%
EBIT to Interest (avg)
54.34
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
1.38
Tax Ratio
32.02%
Dividend Payout Ratio
38.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.62%
ROE (avg)
10.12%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.55
EV to EBIT
13.17
EV to EBITDA
7.07
EV to Capital Employed
1.44
EV to Sales
0.89
PEG Ratio
7.14
Dividend Yield
NA
ROCE (Latest)
10.95%
ROE (Latest)
11.70%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
ROCE(HY)
Highest at 12.95%
RAW MATERIAL COST(Y)
Fallen by -12.37% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.71%
PRE-TAX PROFIT(Q)
At JPY 436.9 MM has Grown at 68.86%
NET PROFIT(Q)
At JPY 222.56 MM has Grown at 130.03%
-13What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 4,890.7
INTEREST(Q)
Highest at JPY 21.44 MM
Here's what is working for I-NET Corp.
Pre-Tax Profit
At JPY 436.9 MM has Grown at 68.86%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 222.56 MM has Grown at 130.03%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 6.71%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -12.37% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for I-NET Corp.
Interest
At JPY 21.44 MM has Grown at 22.82%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,890.7
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 21.44 MM
in the last five periods and Increased by 22.82% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






