IPS Inc. /Japan/ (4390) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

U-NEXT HOLDINGS Co., Ltd.

Benefit Japan Co., Ltd.

Fibergate, Inc.

Accrete, Inc.

AI CROSS, Inc.

IPS Inc. /Japan/

Techfirm Holdings, Inc.

SoftBank Group Corp.

JTOWER, Inc.

Kanda Tsushinki Co., Ltd.

Giga Prize Co., Ltd.

Why is IPS Inc. /Japan/ ?

The company declared negative results in Mar'25 after positive results in Dec'24

INTEREST(HY) At JPY 347 MM has Grown at 65.24%

With ROCE of 20.36%, it has a very attractive valuation with a 1.65 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 36.45%, its profits have fallen by -2%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is IPS Inc. /Japan/ for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IPS Inc. /Japan/

36.45%

0.86

47.04%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.59%

EBIT Growth (5y)

32.76%

EBIT to Interest (avg)

55.59

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.63

Tax Ratio

14.97%

Dividend Payout Ratio

20.29%

Pledged Shares

Institutional Holding

ROCE (avg)

35.67%

ROE (avg)

27.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.91

EV to EBIT

8.11

EV to EBITDA

6.63

EV to Capital Employed

1.65

EV to Sales

2.35

PEG Ratio

Dividend Yield

ROCE (Latest)

20.36%

ROE (Latest)

22.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.05% (YoY

NET PROFIT(9M)

Higher at JPY 2,722.45 MM

CASH AND EQV(HY)

Highest at JPY 19,227 MM

DEBT-EQUITY RATIO (HY)

Lowest at 13.27 %

OPERATING PROFIT(Q)

Highest at JPY 1,623 MM

OPERATING PROFIT MARGIN(Q)

Highest at 41.93 %

-8What is not working for the Company

INTEREST(HY)

At JPY 347 MM has Grown at 65.24%

Here's what is working for IPS Inc. /Japan/

Operating Profit

Highest at JPY 1,623 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 41.93 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 19,227 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 13.27 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit

Higher at JPY 2,722.45 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -10.05% (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

Depreciation

Highest at JPY 279 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 279 MM has Grown at 31.6%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for IPS Inc. /Japan/

Interest

At JPY 347 MM has Grown at 65.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)