DB:IE7

Stock Analysis Report

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Executive Summary

INES Corporation provides information network system services to industrial corporations, financial institutions, and public entities primarily in Japan.

Rewards

PE ratio (18.9x) is below the German market (22.1x)

Pays a reliable dividend of 2.76%

Risk Analysis

No risks detected for IE7 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has INES's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IE7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

IE7

-3.6%

DE IT

2.2%

DE Market


1 Year Return

25.1%

IE7

66.7%

DE IT

12.4%

DE Market

Return vs Industry: IE7 underperformed the German IT industry which returned 66.7% over the past year.

Return vs Market: IE7 exceeded the German Market which returned 12.4% over the past year.


Shareholder returns

IE7IndustryMarket
7 Day0%-3.6%2.2%
30 Day-5.0%-0.3%0.8%
90 Day3.7%13.8%18.1%
1 Year29.0%25.1%68.1%66.7%15.0%12.4%
3 Year52.4%42.1%-18.6%-20.2%8.5%-0.3%
5 Year67.9%51.8%58.8%52.9%27.8%10.6%

Price Volatility Vs. Market

How volatile is INES's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is INES undervalued compared to its fair value and its price relative to the market?

18.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IE7 (€11.3) is trading above our estimate of fair value (€3.83)

Significantly Below Fair Value: IE7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IE7 is good value based on its PE Ratio (18.9x) compared to the DE IT industry average (27.4x).

PE vs Market: IE7 is good value based on its PE Ratio (18.9x) compared to the German market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IE7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IE7 is good value based on its PB Ratio (0.9x) compared to the DE IT industry average (3.6x).


Next Steps

Future Growth

How is INES forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as INES has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has INES performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IE7 has high quality earnings.

Growing Profit Margin: IE7's current net profit margins (4.3%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: IE7's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: IE7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IE7 had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the IT industry average (16%).


Return on Equity

High ROE: IE7's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is INES's financial position?


Financial Position Analysis

Short Term Liabilities: IE7's short term assets (¥33.4B) exceed its short term liabilities (¥8.3B).

Long Term Liabilities: IE7's short term assets (¥33.4B) exceed its long term liabilities (¥6.9B).


Debt to Equity History and Analysis

Debt Level: IE7 is debt free.

Reducing Debt: IE7 has not had any debt for past 5 years.

Debt Coverage: IE7 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IE7 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is INES current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IE7's dividend (2.76%) is higher than the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: IE7's dividend (2.76%) is low compared to the top 25% of dividend payers in the German market (3.74%).


Stability and Growth of Payments

Stable Dividend: IE7's dividends per share have been stable in the past 10 years.

Growing Dividend: IE7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.1%), IE7's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Koichi Yoshimura (55 yo)

0.58

Tenure

Mr. Koichi Yoshimura has been Managing Executive Officer since 2019 until 2020 and served as an Executive Officer at INES Corporation since April 2, 2016 until 2019. Mr. Yoshimura served as an Executive O ...


Leadership Team

NamePositionTenureCompensationOwnership
Koichi Yoshimura
President & Representative Director0.58yrno data0.086%
¥ 234.3k
Susumu Tsukahara
Managing Executive Officer & Directorno datano data0.087%
¥ 238.9k
Hirotaka Kawamura
Executive Officer0.58yrno datano data
Kazuhiro Fukuyama
Executive Officerno datano datano data
Etsuo Isobe
Executive Officer & Director1.58yrsno data0.038%
¥ 103.4k
Koichiro Nagata
Executive Officer1.58yrsno datano data
Shuji Hattori
Executive Officer1.58yrsno datano data
Koji Takada
Executive Officer0.58yrno datano data
Youji Miyahara
Executive Officerno datano datano data

1.1yrs

Average Tenure

Experienced Management: IE7's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Koichi Yoshimura
President & Representative Director0.58yrno data0.086%
¥ 234.3k
Susumu Tsukahara
Managing Executive Officer & Directorno datano data0.087%
¥ 238.9k
Etsuo Isobe
Executive Officer & Director1.58yrsno data0.038%
¥ 103.4k
Kyota Omori
Independent Outside Director2.17yrsno datano data
Hiroshi Yoshida
Outside Auditorno datano datano data
Tadahiko Fukuhara
Independent Outside Director2.17yrsno datano data
Jin Qun
Independent Outside Director0.58yrno datano data
Kazumasa Otoshi
Outside Auditor0.58yrno datano data
Kazuhiko Tomoda
Outside Auditor0.58yrno datano data

1.1yrs

Average Tenure

66yo

Average Age

Experienced Board: IE7's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

INES Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: INES Corporation
  • Ticker: IE7
  • Exchange: DB
  • Founded: 1964
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥34.448b
  • Listing Market Cap: JP¥273.431m
  • Shares outstanding: 23.81m
  • Website: https://www.ines.co.jp

Number of Employees


Location

  • INES Corporation
  • 3-10-1, Harumi
  • Chuo-ku
  • Tokyo
  • 102-0075
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9742TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
IE7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

INES Corporation provides information network system services to industrial corporations, financial institutions, and public entities primarily in Japan. It offers operation and maintenance services for in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 04:17
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.