Internetworking and Broadband Consulting Co Ltd

Internetworking and Broadband Consulting Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥16.14 billion, significantly exceeding its total liabilities of ¥12.32 billion, resulting in a current ratio of 1.87. The company's price-to-book ratio of 3.12 and price-to-tangible-book ratio of 3.12 suggest that the market values the company at a premium relative to its book value. The enterprise value to EBITDA ratio of 31.82 and enterprise value to revenue ratio of 8.33 indicate a relatively high valuation compared to its earnings and revenue.

The company's profitability metrics are modest, with a return on equity of 1.12% and a return on assets of 0.66%, both below the typical thresholds for high-performing software firms. The operating margin, calculated as operating income of ¥152.15 million on revenue of ¥581.07 million, is 26.18%, which is in line with the industry median for software companies. However, the net income margin of 3.43% is relatively low, indicating potential inefficiencies in cost management or high operating expenses.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of segment and geographic diversification could expose the company to higher operational and market risks. The absence of detailed segment reporting limits the ability to assess the performance of different product lines or geographic regions.

Looking ahead, the company's growth trajectory is uncertain, as no specific revenue growth projections are provided in the available data. The company's capital expenditure of -¥18.02 million suggests a reduction in investment in physical assets, which may indicate a focus on cost optimization or a shift toward software-based solutions. The operating cash flow of ¥162.78 million supports the company's liquidity position but does not provide a clear indication of future growth.

The company's risk profile is characterized by low liquidity and dilution risks, with no immediate filing-based flags detected. The debt-to-equity ratio of 0.51 indicates a conservative capital structure, with a manageable level of long-term debt relative to equity. The absence of dilution risks is supported by the fact that the number of shares outstanding remains unchanged between basic and diluted shares.

Recent events and filings do not provide specific details on the company's strategic initiatives or major business developments. The lack of recent disclosures may suggest a stable but uneventful operational environment. The company's financial performance and strategic direction will need to be closely monitored for any significant changes in the near term.

Net income surged 63.3% year-over-year to 410.7 million JPY, demonstrating strong recent earnings momentum.

Cash conversion ratio of 8.18 is best-in-class compared to the software cohort median of 0.92.

Revenue grew 10.1% year-over-year to 2.4 billion JPY, showing consistent top-line expansion.

Free cash flow increased 47.8% year-over-year to 301.7 million JPY, enhancing financial flexibility.

Debt-to-equity ratio of 0.51 is in the bottom quartile, significantly higher than the software cohort median of 0.05.

Return on equity of 1.1% lags the software cohort median of 2.8%, indicating inefficient capital utilization.

Return on assets of 0.66% remains low, suggesting limited efficiency in generating profits from total assets.

Return on invested capital of 5.7% is modest, potentially limiting long-term value creation relative to cost of capital.

Revenue ¥634.5M; Operating income ¥114.5M.

• ▍Revenue ¥634.5M
• ▍Operating income ¥114.5M
• ▍Net margin 19.4%

Revenue ¥575.9M; Operating income ¥146.5M.

• ▍Revenue ¥575.9M
• ▍Operating income ¥146.5M
• ▍Net margin 20.2%

Revenue ¥581.1M; Operating income ¥152.1M.

• ▍Revenue ¥581.1M
• ▍Operating income ¥152.1M
• ▍Net margin 3.4%

Revenue ¥2.18B, +14,9% YoY; Operating income +236,4% YoY.

• ▍Revenue ¥2.18B, +14,9% YoY
• ▍Operating income +236,4% YoY
• ▍Net income +257,5% YoY
• ▍Free cash flow +176,3% YoY
• ▍Net margin 11.5%

Revenue ¥1.90B, +26,6% YoY; Operating income +313,1% YoY.

• ▍Revenue ¥1.90B, +26,6% YoY
• ▍Operating income +313,1% YoY
• ▍Net income +501,1% YoY
• ▍Free cash flow +617,4% YoY
• ▍Net margin 3.7%

Revenue ¥1.50B, −25,4% YoY; Operating income −118,9% YoY.

• ▍Revenue ¥1.50B, −25,4% YoY
• ▍Operating income −118,9% YoY
• ▍Net income −108,9% YoY
• ▍Free cash flow −95,7% YoY
• ▍Net margin -1.2%

Revenue ¥2.01B; Operating income ¥292.4M.

• ▍Revenue ¥2.01B
• ▍Operating income ¥292.4M
• ▍Net margin 9.8%