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

• Market Cap: ¥6.36B
• Dividend Yield: 3.2%
• Average Volume (3M): 2.81K
• Price to Earnings (P/E): 73.8
• Beta (1Y): 0.23
• Revenue Growth: 11.85%
• EPS Growth: -80.65%
• Country: JP
• Employees: 414
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): 7.08
• Shares Outstanding: 6,967,200
• 10 Day Avg. Volume: 4,820
• 30 Day Avg. Volume: 2,806
• PEG Ratio: 0.29
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.02
• 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

• Rating: 57 Neutral
• Price Target: ―

Interspace Co., Ltd. benefits from strong financial health, marked by consistent revenue growth and a debt-free balance sheet. However, the stock's technical indicators point to a potential downward trend, and the high P/E ratio indicates overvaluation. While the company is fundamentally sound, these factors may pose challenges in the short term.

Interspace Co., Ltd. Business Overview & Revenue Model

Company Description

Interspace Co., Ltd. (2122) is a Japanese company primarily engaged in the internet advertising business, operating within the broader information technology sector. The company offers a range of services, including affiliate marketing, media operations, and digital marketing solutions. Interspace Co., Ltd. leverages its expertise in internet advertising to connect advertisers with online audiences effectively.

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

Interspace Co., Ltd. shows strong financial health with consistent revenue growth and a solid balance sheet with no debt. Effective cash flow management supports this positive view. However, declining net profit margins and return on equity suggest areas for improvement in operational efficiency and profitability.

Income Statement

Interspace Co., Ltd. has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin remains strong, highlighting efficient cost management. However, the net profit margin has decreased significantly, indicating increased expenses or lower operational efficiency. While EBIT and EBITDA margins are healthy, the decline in EBIT suggests potential operational challenges.

Balance Sheet

The company's balance sheet reveals a strong equity position with no debt, resulting in a solid debt-to-equity ratio of zero. The equity ratio is high, indicating financial stability. However, the return on equity has decreased, suggesting less effective use of equity to generate profits recently. Overall, the company maintains a robust financial position.

Cash Flow

Interspace Co., Ltd. has demonstrated strong free cash flow growth from 2023 to 2024, indicating effective management of operational cash. The operating cash flow to net income ratio is favorable, showing good cash generation relative to reported profits. However, the free cash flow to net income ratio suggests that cash generation could be more aligned with net income.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
7.70B	7.91B	7.28B	7.12B	23.14B	24.88B
	Gross Profit
6.19B	6.36B	5.94B	5.95B	5.08B	4.76B
	EBIT
633.88M	555.75M	791.99M	1.07B	483.95M	452.10M
	EBITDA
829.82M	834.00M	1.14B	1.29B	864.02M	688.67M
	Net Income Common Stockholders
383.87M	59.52M	585.98M	563.46M	427.88M	258.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.91B	5.95B	5.63B	5.76B	5.46B	4.35B
	Total Assets
11.39B	11.23B	11.09B	11.07B	10.28B	9.24B
	Total Debt
0.00	0.00	0.00	0.00	0.00	181.00K
	Net Debt
-5.91B	-5.95B	-5.63B	-5.76B	-5.46B	-4.35B
	Total Liabilities
5.51B	5.59B	5.31B	5.71B	4.83B	4.12B
	Stockholders Equity
5.88B	5.64B	5.78B	5.36B	5.45B	5.12B
Cash Flow		Free Cash Flow
0.00	528.69M	212.71M	970.86M	1.20B	353.24M
	Operating Cash Flow
0.00	836.88M	512.55M	1.18B	1.37B	604.19M
	Investing Cash Flow
0.00	-332.73M	-482.46M	-263.64M	-129.90M	-506.79M
	Financing Cash Flow
0.00	-156.58M	-156.80M	-657.85M	-135.59M	-120.73M

Interspace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 938.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2122, the sentiment is Neutral. The current price of 938 is above the 20-day moving average (MA) of 931.25, above the 50-day MA of 933.32, and above the 200-day MA of 908.88, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 39.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2122.

Interspace Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4751	76 Outperform	¥759.38B	33.41	14.25%	1.07%	6.67%	114.29%
6098	67 Neutral	$12.03T	30.58	22.31%	0.29%	4.13%	20.34%
2433	67 Neutral	$417.77B	38.82	2.71%	2.81%	0.69%	-56.83%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
2120	58 Neutral	$23.88B	―	-27.78%	0.54%	-9.24%	―
2122	57 Neutral	¥6.36B	73.82		3.20%	11.85%	-80.65%
4755	54 Neutral	$1.77T	―	-22.97%	―	10.38%	38.09%

Interspace Co., Ltd. Corporate Events

Interspace Co., Ltd. Reports Mixed Financial Performance for Q4 2024

Interspace Co., Ltd. reported a mixed performance for the three months ended December 31, 2024, with net sales rising by 13.2% year-on-year to ¥2,076 million. Despite this increase, operating profit saw a decline of 22.7%, while ordinary profit rose by 25.4%. Profit attributable to owners of the parent increased by 31.4%, indicating improved profitability. The company’s equity-to-asset ratio slightly decreased to 49.4%, highlighting a stable financial position. The announcement suggests a cautious yet optimistic outlook for the fiscal year ending September 30, 2025, with forecasts indicating an expected increase in profits and net sales.