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Interspace Co., Ltd. (JP:2122)
:2122
Japanese Market

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

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JP

Interspace Co., Ltd.

(2122)

Rating:57Neutral
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. (2122) vs. iShares MSCI Japan ETF (EWJ)

Interspace Co., Ltd. Business Overview & Revenue Model

Company DescriptionInterspace 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 MoneyInterspace 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
67
Positive
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
75
Positive
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
70
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
7.70B7.91B7.28B7.12B23.14B24.88B
Gross Profit
6.19B6.36B5.94B5.95B5.08B4.76B
EBIT
633.88M555.75M791.99M1.07B483.95M452.10M
EBITDA
829.82M834.00M1.14B1.29B864.02M688.67M
Net Income Common Stockholders
383.87M59.52M585.98M563.46M427.88M258.83M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.91B5.95B5.63B5.76B5.46B4.35B
Total Assets
11.39B11.23B11.09B11.07B10.28B9.24B
Total Debt
0.000.000.000.000.00181.00K
Net Debt
-5.91B-5.95B-5.63B-5.76B-5.46B-4.35B
Total Liabilities
5.51B5.59B5.31B5.71B4.83B4.12B
Stockholders Equity
5.88B5.64B5.78B5.36B5.45B5.12B
Cash FlowFree Cash Flow
0.00528.69M212.71M970.86M1.20B353.24M
Operating Cash Flow
0.00836.88M512.55M1.18B1.37B604.19M
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 Price938.00
Price Trends
50DMA
933.32
Negative
100DMA
931.41
Positive
200DMA
908.88
Positive
Market Momentum
MACD
-0.13
Negative
RSI
49.44
Neutral
STOCH
39.38
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥759.38B33.4114.25%1.07%6.67%114.29%
67
Neutral
$12.03T30.5822.31%0.29%4.13%20.34%
67
Neutral
$417.77B38.822.71%2.81%0.69%-56.83%
61
Neutral
$14.75B5.86-3.99%6.11%2.67%-30.24%
58
Neutral
$23.88B-27.78%0.54%-9.24%
57
Neutral
¥6.36B73.82
3.20%11.85%-80.65%
54
Neutral
$1.77T-22.97%10.38%38.09%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2122
Interspace Co., Ltd.
932.00
27.65
3.06%
JP:2120
LIFULL Co
183.00
17.80
10.78%
JP:4755
Rakuten
820.60
7.00
0.86%
JP:4751
CyberAgent
1,485.50
544.40
57.85%
JP:2433
Hakuhodo Dy Holdings
1,154.00
66.56
6.12%
JP:6098
Recruit Holdings Co
8,226.00
353.52
4.49%

Interspace Co., Ltd. Corporate Events

Interspace Co., Ltd. Reports Mixed Financial Performance for Q4 2024
Feb 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.