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

• Market Cap: ¥8.96B
• Dividend Yield: 2.61%
• Average Volume (3M): 29.95K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.19
• Revenue Growth: 11.84%
• EPS Growth: 246.10%
• Country: JP
• Employees: 414
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 23.25
• 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: ¥1,380.00 ▲(20.10% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Conservative balance sheet

Near-zero debt and stable assets provide durable financial flexibility. This reduces bankruptcy and refinancing risk, supports investment or M&A optionality, and gives the company time to manage cyclical weakness without relying on external financing over the next several months.

Very high gross margins

Consistently >80% gross margins reflect a scalable, asset-light affiliate and media model where incremental revenue largely drops to the operating line, supporting long-term profitability potential and resilience to modest revenue swings once operating cost discipline is maintained.

Multi-year revenue growth

Sustained top-line growth across several years signals continued demand for performance marketing and media services. Persistent revenue expansion supports longer-term market positioning and gives management runway to rebuild margins and cash conversion over the coming quarters.

Negative Factors

Earnings volatility and margin compression

Sharp margin swings reduce predictability of profits and make planning and capital allocation harder. Persistent volatility suggests exposure to variable costs, client concentration, or pricing pressure that can suppress sustainable profitability over the next several quarters.

Inconsistent cash generation

Irregular operating and free cash flows, with a sharp drop in 2025, undermine confidence in funding operations, dividends, or buybacks from internal cash. Higher working capital or timing issues may force reliance on reserves and constrain strategic spending.

Declining return on equity

ROE deterioration indicates the business now generates much lower returns from shareholder capital. Even with low financial risk, muted capital efficiency can limit long-term shareholder value creation and reduce levers for rewarding investors.

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’s primary monetization is performance-based digital advertising (affiliate marketing). It earns revenue by connecting advertisers (who want customer acquisition such as e-commerce purchases, service sign-ups, or app installs) with media operators/publishers (who place ads/links on websites, blogs, and other online properties). When a user completes a predefined action after clicking an affiliate link (e.g., purchase or registration), the advertiser pays a commission to Interspace; Interspace then shares a portion with the publisher and retains the margin as its net revenue. In addition to affiliate network commissions, the company also generates revenue from operating its own consumer web media (such as comparison/review or information sites) by placing affiliate links and advertisements on those properties, capturing performance fees directly as the media owner. Other potential revenue sources—such as fixed-fee digital marketing support, ad operations, or related services—are not available from the provided prompt; null.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	8.85B	7.91B	7.28B	7.12B	23.14B
Gross Profit	7.31B	6.36B	5.94B	5.95B	5.08B
EBITDA	618.77M	834.48M	1.02B	1.29B	713.89M
Net Income	206.00M	59.52M	585.98M	563.46M	427.88M
Balance Sheet
Total Assets	11.18B	11.23B	11.09B	11.08B	10.31B
Cash, Cash Equivalents and Short-Term Investments	5.59B	5.95B	5.63B	5.76B	5.46B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.55B	5.59B	5.31B	5.72B	4.85B
Stockholders Equity	5.64B	5.64B	5.78B	5.36B	5.45B
Cash Flow
Free Cash Flow	106.84M	528.69M	411.14M	1.16B	1.34B
Operating Cash Flow	169.63M	836.88M	512.55M	1.18B	1.37B
Investing Cash Flow	-333.69M	-332.73M	-482.46M	-263.64M	-129.90M
Financing Cash Flow	-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: Positive
• 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 Positive. The current price of 1149 is below the 20-day moving average (MA) of 1314.10, below the 50-day MA of 1273.20, and above the 200-day MA of 1116.29, indicating a bullish trend. The MACD of 16.40 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 54.67 is Neutral, 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
6535	75 Outperform	¥28.09B	3.66	―	5.35%	58.08%	29.89%
6045	68 Neutral	¥13.15B	22.31	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%

Interspace Co., Ltd. Corporate Events

Interspace Posts Strong Quarterly Profit Growth and Projects Sharp Earnings Rise for Fiscal 2026

Interspace Co., Ltd. reported consolidated net sales of ¥2,323 million for the three months ended December 31, 2025, up 11.9% year on year, with operating profit rising 32.9% to ¥139 million and profit attributable to owners of parent jumping 61.3% to ¥145 million. Earnings per share improved to ¥23.25, while total assets edged down slightly to ¥11,035 million and the equity ratio stayed flat at 50.4%, indicating a stable financial base.

The company maintained its dividend policy, paying ¥30 per share in the prior fiscal year and forecasting the same total payout for the year ending September 30, 2026, with no revisions to its dividend outlook. For fiscal 2026, Interspace projects net sales of ¥9,800 million, up 10.8% year on year, and expects operating profit to nearly double to ¥700 million and profit attributable to owners of parent to more than double to ¥420 million, signaling confidence in earnings growth and improved profitability.

The most recent analyst rating on (JP:2122) stock is a Hold with a Yen1318.00 price target. To see the full list of analyst forecasts on Interspace Co., Ltd. stock, see the JP:2122 Stock Forecast page.