ITmedia Inc. (2148) AI Stock Analysis

• Market Cap: ¥32.01B
• Dividend Yield: 6.28%
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.93
• Revenue Growth: 1.24%
• EPS Growth: 0.17%
• Country: JP
• Employees: 339
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): 26.66
• Shares Outstanding: 21,063,200
• 10 Day Avg. Volume: 28,690
• 30 Day Avg. Volume: 34,073
• PEG Ratio: 4.37
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.87
• 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: ¥1,804.00
• Price Target Upside: 13.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,804.00 ▲(13.25%Upside)

ITmedia Inc. scores well due to its robust financial performance characterized by strong profitability, a solid balance sheet, and excellent cash flow management. Technical analysis supports a positive outlook with favorable moving averages and momentum indicators. Valuation is reasonable, with an attractive dividend yield, enhancing the stock's appeal. The absence of earnings call and corporate event data does not impact the overall score significantly.

ITmedia Inc. Business Overview & Revenue Model

Company Description

ITmedia Inc. (2148) is a leading digital media company based in Japan, specializing in providing IT-related news, analysis, and information services. The company operates across various sectors, including technology, business, and lifestyle, delivering a wide range of content through its websites, online platforms, and publications. ITmedia's core products and services include news articles, expert analyses, and industry reports that cater to IT professionals, businesses, and technology enthusiasts.

How the Company Makes Money

ITmedia Inc. generates revenue primarily through advertising and subscription services. The company earns advertising revenue by offering digital ad placements and sponsorship opportunities across its various online platforms and websites. These advertisements are targeted towards businesses and brands aiming to reach IT professionals and tech-savvy audiences. Additionally, ITmedia offers premium content and reports, accessible through subscription models, which provide in-depth industry insights and analyses to paying subscribers. Partnerships with technology firms and event hosting also contribute to the company's earnings, as these collaborations often include sponsored content and marketing initiatives.

ITmedia Inc. Financial Statement Overview

Summary

ITmedia Inc. exhibits solid financial health with strong profitability, a robust balance sheet, and excellent cash flow management. Despite a slight dip in revenue and operational profitability, the company's low leverage and high equity ratio provide a stable foundation. The strong cash flow metrics further underline its financial resilience.

Income Statement

The income statement shows a stable performance with a slight decline in revenue and profitability in the most recent year. The gross profit margin is robust at 62.2%, and the net profit margin is solid at 18.5%. However, there is a noticeable decline in the EBIT and EBITDA margins, indicating some pressure on operational profitability. The revenue growth rate is slightly negative at -1.25%, suggesting a need for improved growth strategies.

Balance Sheet

The balance sheet is strong with a high equity ratio of 85.3%, indicating financial stability and low leverage. The debt-to-equity ratio is remarkably low at 0.005, reflecting minimal reliance on debt financing. Return on equity stands at 15.95%, showing efficient use of equity to generate profits. The company's cash reserves are substantial, providing a strong liquidity position.

Cash Flow

The cash flow statement reveals a healthy cash position, with a consistent operating cash flow to net income ratio of 1.23, indicating strong cash generation relative to net profits. Free cash flow growth rate is 41.96%, showcasing excellent cash management and capital allocation. The free cash flow to net income ratio is high at 1.11, reflecting robust cash flow generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.10B	8.00B	8.75B	8.09B	6.89B
Gross Profit	5.04B	5.02B	5.72B	5.34B	4.54B
EBITDA	2.24B	2.44B	3.22B	2.97B	2.37B
Net Income	1.50B	1.50B	1.97B	1.80B	1.26B
Balance Sheet
Total Assets	11.00B	11.38B	11.16B	10.05B	9.07B
Cash, Cash Equivalents and Short-Term Investments	6.56B	8.44B	8.48B	7.32B	6.38B
Total Debt	44.15M	132.31M	2.40M	165.07M	7.37M
Total Liabilities	1.62B	1.57B	1.73B	2.12B	1.96B
Stockholders Equity	9.38B	9.80B	9.43B	7.93B	7.12B
Cash Flow
Free Cash Flow	1.66B	1.17B	1.82B	1.93B	2.13B
Operating Cash Flow	1.84B	1.37B	1.88B	1.99B	2.21B
Investing Cash Flow	-1.18B	-164.86M	-53.15M	152.49M	-161.29M
Financing Cash Flow	-2.04B	-1.25B	-660.38M	-1.20B	-475.60M

ITmedia Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1593.00
• 50DMA: Negative
• 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:2148, the sentiment is Neutral. The current price of 1593 is below the 20-day moving average (MA) of 1615.65, below the 50-day MA of 1603.96, and above the 200-day MA of 1526.05, indicating a neutral trend. The MACD of 1.47 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2148.

ITmedia Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	81 Outperform	¥36.82B	13.52		3.45%	14.35%	-5.35%
2148	80 Outperform	¥32.01B	20.64		6.28%	1.24%	0.17%
7095	73 Outperform	¥38.22B	13.32		1.38%	41.10%	-18.83%
2491	67 Neutral	¥25.79B	5.92		6.28%	5.36%	32.46%
2461	63 Neutral	¥30.54B	23.61		3.47%	-5.88%	15.11%
Sector *	62 Neutral	$41.14B	-1.94	-12.05%	3.98%	2.10%	-69.66%
2389	61 Neutral	¥18.28B	8.15		3.70%	-9.56%	127.51%

ITmedia Inc. Corporate Events

ITmedia Inc. Details SoftBank’s Controlling Influence

ITmedia Inc. has announced details regarding its controlling shareholder, SoftBank Group Corp., which holds 53.4% of the company’s voting rights, making it the effective parent company. The company emphasizes that transactions with the SoftBank Group are conducted based on business plans and fair market prices to protect minority shareholders.

ITmedia Inc. Announces Consistent Year-End Dividend Amid Strategic Growth Focus

ITmedia Inc. announced a dividend of ¥100 per share for the fiscal year ended March 31, 2025, maintaining the same dividend as the previous year. This decision aligns with their policy to balance profit distribution with internal reserves, aiming for a consolidated dividend payout ratio of 70% or higher over the medium to long term. The company’s approach reflects a commitment to increasing capital efficiency and corporate value, with a focus on strategic investments and maintaining a sound financial structure.

ITmedia Inc. Reports Fiscal Year 2025 Financial Results

ITmedia Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in revenue to 8,100 million yen, a 1.2% rise from the previous year. However, there was a decline in operating income and profit before income taxes, reflecting challenges in maintaining profitability. The company’s financial position remains strong with a high equity ratio, but cash flows from investing and financing activities were negative. The annual dividend per share was reduced, indicating a cautious approach to shareholder returns amidst the financial performance challenges.