Interspace Co., Ltd. (2122) AI Stock Analysis

• Market Cap: ¥8.66B
• Dividend Yield: 2.61%
• Average Volume (3M): 29.95K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.14
• Revenue Growth: 11.84%
• EPS Growth: 246.10%
• Country: US
• Employees: 414
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 14.25
• Shares Outstanding: 6,967,200
• 10 Day Avg. Volume: 7,440
• 30 Day Avg. Volume: 29,946
• PEG Ratio: 0.15
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 72.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥1,235.00 ▲(7.48% Upside)

The score is driven primarily by strong financial safety from a near-zero debt balance sheet, offset by volatile earnings/cash flow (especially weaker 2025 cash generation). Technical signals are neutral-to-mixed, and a relatively high P/E constrains the valuation component despite a moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple years indicates strong market demand and effective business strategies, supporting long-term stability.

Balance Sheet Health

A near-zero debt balance sheet enhances financial safety, providing resilience against economic downturns and flexibility for future investments.

High Gross Margins

Sustained high gross margins reflect strong pricing power and operational efficiency, contributing to long-term profitability potential.

Negative Factors

Earnings Volatility

Volatile earnings due to margin compression can undermine investor confidence and complicate long-term strategic planning.

Cash Flow Inconsistency

Inconsistent cash flow generation limits financial flexibility and may hinder the company's ability to invest in growth opportunities.

Profitability Challenges

Challenges in maintaining profitability despite revenue growth suggest operational inefficiencies or increased competition, impacting long-term margins.

Interspace Co., Ltd. Business Overview & Revenue Model

Company Description

Interspace Co.,Ltd. engages in the provision of internet advertising and media services in Japan, Indonesia, Thailand, Vietnam, Singapore, and Malaysia. The company offers ACCESSTRADE, an affiliate platform; and Store Front Affiliate, a real store type affiliate service. It also provides mamastadium, an information Website for Moms; and Yoga Journal Online, a yoga and beauty online news media for yoga news and lifestyle. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Interspace Co., Ltd. generates revenue through its affiliate marketing platform, where it earns commissions by connecting advertisers with publishers who promote their products or services online. The company operates a network that facilitates these transactions, taking a percentage of the sales or leads generated through its platform. Additionally, Interspace Co., Ltd. earns money through digital marketing services, where it provides clients with tailored advertising strategies and solutions to enhance their online presence and reach. Partnerships with various online platforms and media channels also contribute to its earnings, allowing the company to offer comprehensive advertising and marketing services to its clients.

Interspace Co., Ltd. Financial Statement Overview

Summary

Very conservative balance sheet with near-zero debt and stable assets/equity supports resilience, but profitability has been volatile (sharp margin compression in 2024 with only partial recovery in 2025) and cash generation is inconsistent with a notable drop in 2025.

Income Statement

Revenue has grown for three consecutive years (2023–2025), but at a slowing pace in 2025. Profitability is the main swing factor: operating and net margins were very strong in 2022–2023, then compressed sharply in 2024, and only partially recovered in 2025 (net margin still low). A key positive is the very high gross margin in recent years (over 80% in 2022–2025), but the large drop from 2023 to 2024 in operating profit and net income highlights earnings volatility.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt across the period (debt-to-equity at or near zero), which materially lowers financial risk. Equity and total assets have been stable over time, supporting resilience. The trade-off is modest shareholder returns in the most recent years, with return on equity falling meaningfully from 2022–2023 levels to low single-digits in 2024–2025, reflecting weaker profitability rather than leverage.

Cash Flow

Cash generation has been inconsistent: operating cash flow and free cash flow were strong in 2021–2022, weakened in 2023, improved in 2024, and then dropped sharply again in 2025. Free cash flow has generally covered net income at a reasonable level (roughly 0.4x–0.9x historically and ~0.63x in 2024–2025), but 2025 shows notably weaker cash conversion versus profits, signaling higher working-capital use and/or less favorable cash timing. Overall cash flow quality is acceptable, but the volatility reduces confidence.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.62B	8.85B	7.91B	7.28B	7.12B	23.14B
Gross Profit	7.06B	7.31B	6.36B	5.94B	5.95B	5.08B
EBITDA	539.12M	610.84M	618.19M	1.14B	1.29B	864.02M
Net Income	-99.45M	206.00M	59.52M	585.98M	563.46M	427.88M
Balance Sheet
Total Assets	11.11B	11.18B	11.23B	11.09B	11.07B	10.28B
Cash, Cash Equivalents and Short-Term Investments	5.70B	5.59B	5.95B	5.63B	5.76B	5.46B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.55B	5.55B	5.59B	5.31B	5.71B	4.83B
Stockholders Equity	5.56B	5.64B	5.64B	5.78B	5.36B	5.45B
Cash Flow
Free Cash Flow	0.00	106.84M	528.69M	212.71M	970.86M	1.20B
Operating Cash Flow	0.00	169.63M	836.88M	512.55M	1.18B	1.37B
Investing Cash Flow	0.00	-333.69M	-332.73M	-482.46M	-263.64M	-129.90M
Financing Cash Flow	0.00	-187.93M	-156.58M	-156.80M	-657.85M	-135.59M

Interspace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1149.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2122, the sentiment is Positive. The current price of 1149 is below the 20-day moving average (MA) of 1223.75, below the 50-day MA of 1197.16, and above the 200-day MA of 1044.16, indicating a bullish trend. The MACD of 23.66 indicates Negative momentum. The RSI at 81.06 is Negative, neither overbought nor oversold. The STOCH value of 87.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2122.

Interspace Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2491	79 Outperform	¥21.62B	4.84	―	7.85%	-3.20%	34.08%
6535	75 Outperform	¥30.12B	12.98	―	5.35%	58.08%	29.89%
2461	69 Neutral	¥32.76B	23.03	―	5.08%	3.22%	13.97%
6045	68 Neutral	¥14.52B	22.65	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥22.80B	8.52	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.66B	38.70	―	2.61%	11.84%	246.10%

Interspace Co., Ltd. Corporate Events

Interspace Co., Ltd. Reports Mixed Financial Results for FY 2025

Interspace Co., Ltd. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing an 11.8% increase in net sales to ¥8,846 million. Despite the rise in sales, the company experienced a decline in operating and ordinary profits, with a notable increase in profit attributable to owners of the parent by 246.1%. The financial results indicate a mixed performance, with improved net sales but challenges in maintaining profitability, impacting its market positioning and stakeholder confidence.