Internet Initiative Japan (IIJIY) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 1.22%
• Average Volume (3M): 6.00
• Price to Earnings (P/E): 19.3
• Beta (1Y): -0.01
• Revenue Growth: 11.79%
• EPS Growth: 2.96%
• Country: US
• Employees: 5,206
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.45
• Shares Outstanding: 91,724,430
• 10 Day Avg. Volume: 20
• 30 Day Avg. Volume: 6
• PEG Ratio: 28.28
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 52.13
• Enterprise Value/Market Cap: 168.92
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 7.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): $2.42B

• Rating: 61 Neutral
• Price Target: $34.00 ▼(-3.74% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong recent operating results and improving free cash flow, tempered by higher leverage and some margin pressure. Technicals materially reduce the score due to a pronounced downtrend and very weak momentum, while valuation appears reasonable but not compelling.

Positive Factors

Diversified recurring revenue streams

IIJ's business mixes recurring network, cloud, security and mobile service fees with systems-integration projects. This recurring-heavy model supports predictable revenue and cash flow, enables multi-year contracts and upsell of managed services, and aligns with long-term outsourcing trends.

Negative Factors

Rising leverage reduces financial flexibility

Debt-to-equity jumping to ~0.75 from ~0.17–0.24 materially raises refinancing, interest and covenant risk. Higher leverage limits strategic optionality, increases sensitivity to margin or revenue shocks, and may constrain investment or M&A flexibility over the medium term.

Internet Initiative Japan Business Overview & Revenue Model

Company Description

Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and A...

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Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and A...

How the Company Makes Money

IIJ primarily makes money by charging recurring fees for communications and IT services, supplemented by project-based systems integration and the resale of related equipment and licenses. Key revenue streams include: (1) Network and connectivity ...

Read more

IIJ primarily makes money by charging recurring fees for communications and IT services, supplemented by project-based systems integration and the resale of related equipment and licenses. Key revenue streams include: (1) Network and connectivity ...

Internet Initiative Japan Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2020
Income Statement
Total Revenue	338.43B	316.83B	276.08B	252.71B	213.00B	204.47B
Gross Profit	74.02B	68.40B	63.87B	57.91B	40.28B	32.59B
EBITDA	67.64B	61.64B	58.88B	55.84B	42.59B	36.29B
Net Income	22.53B	19.93B	19.83B	18.85B	9.71B	4.01B
Balance Sheet
Total Assets	329.26B	312.44B	273.71B	246.19B	220.78B	206.52B
Cash, Cash Equivalents and Short-Term Investments	41.11B	34.78B	47.01B	44.39B	44.44B	41.34B
Total Debt	35.59B	33.62B	30.18B	20.43B	25.56B	27.75B
Total Liabilities	179.54B	170.35B	146.68B	126.89B	129.81B	126.47B
Stockholders Equity	148.38B	140.68B	125.75B	118.12B	89.96B	79.08B
Cash Flow
Free Cash Flow	27.29B	8.41B	21.84B	21.27B	29.54B	21.55B
Operating Cash Flow	49.97B	28.53B	40.78B	38.53B	40.54B	33.39B
Investing Cash Flow	-22.01B	-21.75B	-17.93B	-18.39B	-13.22B	-7.26B
Financing Cash Flow	-22.41B	-19.67B	-20.80B	-25.73B	-23.62B	-19.35B

Internet Initiative Japan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIJIY, the sentiment is Neutral. The current price of 35.32 is above the 20-day moving average (MA) of 31.02, above the 50-day MA of 29.89, and above the 200-day MA of 34.86, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 74.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IIJIY.

Internet Initiative Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	72 Outperform	$5.73B	10.60	7.24%	5.57%	19.02%	9.26%
PHI	64 Neutral	$4.65B	9.02	24.66%	7.78%	0.59%	8.86%
VEON	62 Neutral	$3.49B	6.97	40.63%	―	6.42%	―
IIJIY	61 Neutral	$2.86B	19.32	15.34%	1.22%	11.79%	2.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEO	60 Neutral	$5.26B	-36.64	-2.67%	0.40%	15.38%	-292.52%
AD	52 Neutral	$4.27B	15.83	8.13%	42.91%	-25.64%	―