IBC's ROE, ROIC Exceed Cost of Capital as Profit Growth Lifts Valuation Metrics

MT Newswires Live12-04

Internetworking and Broadband Consulting (TYO:3920) said its return on equity (ROE) and return on invested capital (ROIC) have exceeded its cost of capital for two consecutive years, supported by a sharp rise in profit and stock price gains, according to a Thursday filing on the Tokyo Stock Exchange.

IBC said ROE climbed to 18% in the year ended September, well above its estimated 7.1% cost of equity, while ROIC rose to 13%, outpacing its 5.4% weighted average cost of capital.

Net sales reached a record 2.40 billion yen, up from 2.09 billion yen a year earlier, helped by post-pandemic business expansion.

The company's price-to-book ratio improved to 2.58 from 1.65, and market capitalization nearly doubled to 5.79 billion yen.

Price-to-earnings expanded to 14.09 as shares rose in line with profit growth.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment