Inpex Corp

Inpex Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.26 and a current ratio of 1.32, indicating adequate short-term liquidity despite a medium liquidity risk rating. The company holds JPY 157.7 billion in cash and equivalents against JPY 1.24 trillion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Operating cash flow stands at JPY 693.9 billion, which comfortably covers capital expenditures of JPY 294.0 billion, generating free cash flow of JPY 375.0 billion. This strong cash generation supports the company’s ability to service debt and fund ongoing operations without immediate external financing pressure.

Profitability metrics show a return on equity of 7.94% and a return on assets of 4.87%, reflecting efficient use of its JPY 7.74 trillion asset base. The company reports a net income of JPY 393.8 billion on revenue of JPY 2.01 trillion, yielding a net margin of approximately 19.6%. Operating income is JPY 1.14 trillion, demonstrating strong operational leverage. While specific cohort medians are not provided for direct comparison, the valuation multiples suggest the market prices the company at a discount, with a price-to-book ratio of 0.79 and an EV/EBITDA of 4.45, which are typically attractive for integrated energy firms with stable cash flows.

Revenue concentration and geographic exposure details are not explicitly broken down in the available data, but the classification as an integrated oil and gas company implies a diversified mix of upstream exploration and downstream refining activities. The company’s total assets of JPY 7.74 trillion suggest significant infrastructure investments, likely spread across multiple regions. Without specific segment data, the revenue mix is assumed to be balanced between exploration and production, refining, and marketing, consistent with industry peers.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current financial snapshot shows robust profitability and cash generation, which are key drivers of future growth. The company’s ability to maintain high operating cash flow relative to capital expenditures suggests a sustainable model for reinvestment and shareholder returns. The lack of historical trend data prevents a detailed assessment of revenue growth rates, but the current financial health indicates stability.

Risk factors include a medium liquidity risk and a key flag noting that net cash is negative after subtracting total debt. The dilution risk is assessed as low, with no recent share issuances indicated by the equal basic and diluted share counts of 1.16 billion. The company’s exposure to commodity price volatility is inherent to the integrated oil and gas sector, but the diversified business model helps mitigate this risk. The negative net cash position requires monitoring to ensure that debt levels remain manageable in the event of a prolonged downturn in oil prices.

Recent events include a new relationship with Shell (SHEL.L), identified through news observations regarding Vivo Energy’s acquisition of TotalEnergies Jordan. This partnership may indicate strategic collaborations or joint ventures in international markets. Analyst estimates show a mean price target of JPY 4,059, with a median of JPY 4,200, suggesting upside potential from the current market price of JPY 3,242. The mean recommendation of 2.36 indicates a moderate buy sentiment among analysts, with seven buy ratings and four hold ratings.

Analysts project 17.3% upside to the mean price target of 4,094 JPY from the current 3,490 JPY.

Net income CAGR of 15.3% over four years demonstrates strong historical earnings growth momentum.

Cash conversion ratio of 1.15 exceeds the cohort median of 1.03, reflecting efficient cash generation.

Revenue declined 11.2% year-over-year to 2.01 trillion JPY, signaling weakening top-line performance.

Debt-to-equity ratio of 0.25 is below the cohort median of 0.14, indicating higher relative leverage.

Medium liquidity risk flags suggest potential challenges in meeting short-term financial obligations.

Medium credit risk flags indicate potential concerns regarding the company's debt repayment capacity.

Revenue ¥501.80B, −6,5% YoY; Operating income −14,1% YoY.

• ▍Revenue ¥501.80B, −6,5% YoY
• ▍Operating income −14,1% YoY
• ▍Net income −13,4% YoY
• ▍Net margin 21.8%

Revenue ¥490.70B, −5,3% YoY; Operating income +3,5% YoY.

• ▍Revenue ¥490.70B, −5,3% YoY
• ▍Operating income +3,5% YoY
• ▍Net income −27,2% YoY
• ▍Net margin 20.5%

Revenue ¥471.78B, −15,2% YoY; Operating income −19,5% YoY.

• ▍Revenue ¥471.78B, −15,2% YoY
• ▍Operating income −19,5% YoY
• ▍Net income −9,1% YoY
• ▍Net margin 14.8%

Revenue ¥511.97B, −13,8% YoY; Operating income −8,4% YoY.

• ▍Revenue ¥511.97B, −13,8% YoY
• ▍Operating income −8,4% YoY
• ▍Net income +7,1% YoY
• ▍Net margin 19.0%

Revenue ¥536.90B; Operating income ¥323.87B.

• ▍Revenue ¥536.90B
• ▍Operating income ¥323.87B
• ▍Net margin 23.5%

Revenue ¥518.28B; Operating income ¥253.71B.

• ▍Revenue ¥518.28B
• ▍Operating income ¥253.71B
• ▍Net margin 26.6%

Revenue ¥556.70B; Operating income ¥318.01B.

• ▍Revenue ¥556.70B
• ▍Operating income ¥318.01B
• ▍Net margin 13.8%

Revenue ¥594.06B; Operating income ¥319.97B.

• ▍Revenue ¥594.06B
• ▍Operating income ¥319.97B
• ▍Net margin 15.3%

Revenue ¥2.01T, −11,2% YoY; Operating income −9,4% YoY.

• ▍Revenue ¥2.01T, −11,2% YoY
• ▍Operating income −9,4% YoY
• ▍Net income −7,8% YoY
• ▍Free cash flow −4,6% YoY
• ▍Net margin 19.6%

Revenue ¥2.27T, +4,7% YoY; Operating income +12,6% YoY.

• ▍Revenue ¥2.27T, +4,7% YoY
• ▍Operating income +12,6% YoY
• ▍Net income +32,8% YoY
• ▍Free cash flow +28,4% YoY
• ▍Net margin 18.9%

Revenue ¥2.16T, −6,5% YoY; Operating income −25,9% YoY.

• ▍Revenue ¥2.16T, −6,5% YoY
• ▍Operating income −25,9% YoY
• ▍Net income −35,5% YoY
• ▍Free cash flow −34,6% YoY
• ▍Net margin 14.9%

Revenue ¥2.32T, +86,1% YoY; Operating income +163,6% YoY.

• ▍Revenue ¥2.32T, +86,1% YoY
• ▍Operating income +163,6% YoY
• ▍Net income +123,5% YoY
• ▍Free cash flow +100,0% YoY
• ▍Net margin 21.5%