ITmedia Inc. (2148) AI Stock Analysis

• Market Cap: ¥36.75B
• Dividend Yield: 6.44%
• Average Volume (3M): 59.52K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.70
• Revenue Growth: 2.09%
• EPS Growth: -2.15%
• Country: JP
• Employees: 339
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 13.76
• Shares Outstanding: 21,077,300
• 10 Day Avg. Volume: 55,120
• 30 Day Avg. Volume: 59,520
• PEG Ratio: 74.20
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 3.56
• P/FCF Ratio: 17.33
• 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): 64.9
• Revenue Forecast (FY): ¥8.29B

• Rating: 80 Outperform
• Price Target: ¥1,972.00 ▲(22.11% Upside)
• Action: Upgraded Date: 02/08/26
• Date: Action: Upgraded 02/08/26

The score is driven primarily by strong financial quality (rapid TTM revenue growth and an exceptionally low-debt balance sheet), supported by a clear uptrend in the price/indicators. Valuation is mixed: the high dividend yield is attractive, but a mid-to-high P/E and recent margin/FCF softening temper the overall outlook.

Positive Factors

Revenue Growth

22% TTM revenue growth signals sustained demand for ITmedia's content and services. For a digital media company, consistent top-line expansion reflects successful audience acquisition and advertiser monetization, supporting durable revenue scale and the ability to reinvest in products and sales over the coming months.

Focused B2B Media Model

ITmedia's business model targets a specialized IT and business readership and sells advertising, sponsored content, and lead-generation to enterprise clients. A focused, high-value audience supports premium ad rates, repeat campaigns, and stickier advertiser relationships that are structurally favorable for medium-term revenue resilience.

Conservative Balance Sheet

Very low leverage provides meaningful financial flexibility: minimal interest burden, stronger ability to sustain dividends or weather ad-market slowdowns, and capacity to make opportunistic investments or acquisitions without stressing cash flows, which is durable across economic cycles.

Negative Factors

Margin Compression

Net margin decline to ~16% from historical 18–23% suggests structural cost pressure or weaker monetization. Persistent margin erosion reduces earnings resilience and cash generation, limiting the company's ability to fund growth or maintain payouts unless efficiency or pricing power is restored over subsequent quarters.

Weaker Free Cash Flow Conversion

An 18% drop in TTM FCF and conversion at ~81% of net income indicate weaker and more volatile cash conversion. That constrains reinvestment capacity, dividend sustainability, and increases sensitivity to working-capital swings, reducing internal funding reliability over the medium term.

Concentration on Advertising Revenue

Heavy reliance on digital advertising and sponsored programs ties revenue to advertiser budgets, traffic trends, and campaign volumes. This concentration exposes ITmedia to cyclicality, changing marketer strategies, and platform competition, posing a structural risk to revenue stability absent product or client diversification.

ITmedia Inc. Business Overview & Revenue Model

Company Description

ITmedia Inc. engages in the development and operation of Internet-only media providing information on various topics in Japan. It provides information on information technology, digital gadget, business, engineering, and social/culture. The company also offers digital advertising services, such as tie-up/ advertorial, recruitment tie-ups, reader behavioral data utilization advertisement, e-mail newsletter, seminar customer attraction support service, and online advertising; lead acquisition services, including lead acquisition and utilization service; and virtual events/webinar services. It serves technology/software as service product companies and manufacturing industries. The company was formerly known as Softbank ITmedia, Inc. and changed its name to ITmedia Inc. in March 2005. ITmedia Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan. ITmedia Inc. is a subsidiary of SB Media Holdings Corp.

How the Company Makes Money

ITmedia Inc. generates revenue through several key streams, including advertising sales on its digital platforms, subscription fees for premium content, and partnerships with technology firms for sponsored content and events. The company also monetizes its audience through affiliate marketing and strategic collaborations with industry leaders to offer specialized services and solutions. Additionally, ITmedia may leverage data analytics and insights to provide targeted advertising, thereby enhancing its revenue potential. The combination of these revenue streams allows ITmedia to maintain a strong financial position within the competitive media landscape.

ITmedia Inc. Financial Statement Overview

Summary

Strong TTM revenue growth (+22%) and solid profitability (~61% gross margin, ~16% net margin) supported by a very conservative balance sheet (debt-to-equity ~0.04). Offsetting factors are margin compression versus prior years and softer/volatile free cash flow (TTM FCF down ~18% and ~81% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew a strong 22%, and profitability remains solid with ~61% gross margin and ~16% net margin. That said, margins have stepped down versus prior annual periods (net margin ~18–23% historically), and net income in TTM is below the last few annual peaks—suggesting some normalization or cost pressure despite good top-line momentum.

Balance Sheet

Balance sheet is very conservative: debt is low (debt-to-equity ~0.04 in TTM) with a large equity base, which supports financial flexibility. Returns on equity are healthy (~16% TTM) though below the stronger levels seen in earlier years (~21–23%), indicating profitability has moderated even as leverage remains minimal.

Cash Flow

Cash generation is positive with TTM operating cash flow (~1.43B) and free cash flow (~1.16B), and cash flow slightly exceeds accounting earnings (cash flow to net income just over 1.0). The key weakness is volatility: TTM free cash flow is down ~18% versus the prior period and free cash flow is running at ~81% of net income, pointing to some working-capital or investment-driven drag versus earlier years when conversion was closer to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.19B	8.10B	8.00B	8.75B	8.09B	6.89B
Gross Profit	5.01B	5.04B	5.02B	5.72B	5.34B	4.54B
EBITDA	2.06B	2.24B	2.44B	3.22B	2.97B	2.37B
Net Income	1.31B	1.50B	1.50B	1.97B	1.80B	1.26B
Balance Sheet
Total Assets	9.77B	11.00B	11.38B	11.16B	10.05B	9.07B
Cash, Cash Equivalents and Short-Term Investments	5.07B	6.56B	8.44B	8.48B	7.32B	6.38B
Total Debt	296.78M	44.15M	251.31M	2.40M	165.07M	7.37M
Total Liabilities	1.54B	1.62B	1.57B	1.73B	2.12B	1.96B
Stockholders Equity	8.24B	9.38B	9.80B	9.43B	7.93B	7.12B
Cash Flow
Free Cash Flow	1.16B	1.66B	1.17B	1.82B	1.93B	2.13B
Operating Cash Flow	1.43B	1.84B	1.37B	1.88B	1.99B	2.21B
Investing Cash Flow	-1.18B	-1.18B	-164.86M	-53.15M	152.49M	-161.29M
Financing Cash Flow	-2.06B	-2.04B	-1.25B	-660.38M	-1.20B	-475.60M

ITmedia Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1615.00
• 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:2148, the sentiment is Positive. The current price of 1615 is below the 20-day moving average (MA) of 1763.85, below the 50-day MA of 1683.98, and below the 200-day MA of 1627.92, indicating a bullish trend. The MACD of 41.66 indicates Negative momentum. The RSI at 78.05 is Negative, neither overbought nor oversold. The STOCH value of 87.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2148.

ITmedia Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2148	80 Outperform	¥36.75B	27.15	―	6.44%	2.09%	-2.15%
2389	63 Neutral	¥32.22B	19.78	―	2.14%	-22.10%	-16.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.91B	31.54	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥14.12B	19.45	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥12.76B	16.48	―	―	-2.68%	91.68%
4499	43 Neutral	¥26.12B	-22.76	―	―	4.53%	-464.41%

ITmedia Inc. Corporate Events

ITmedia Issues Supplementary Briefing Materials and Clarifies Reporting Framework

ITmedia Inc. has released supplementary briefing materials for the nine-month period ended December 31, 2025, outlining its financial reporting framework and risk disclosure practices. The company emphasizes that its earnings outlooks are subject to uncertainties and business risks detailed in its securities filings, notes that certain past operations have been classified as discontinued following divestiture, and reiterates that the materials are for informational use only and not a solicitation for investment, underscoring its adherence to IFRS and careful, though non-guaranteed, preparation of disclosed data.

The most recent analyst rating on (JP:2148) stock is a Hold with a Yen1803.00 price target. To see the full list of analyst forecasts on ITmedia Inc. stock, see the JP:2148 Stock Forecast page.

ITmedia Posts Modest Revenue Growth but Lower Profits, Keeps Dividend Outlook Intact

ITmedia Inc. reported consolidated revenue of ¥5.91 billion for the nine months ended December 31, 2025, up 1.6% year on year, but saw operating income fall 16.3% to ¥1.13 billion and net income attributable to owners of the parent decline 19.4% to ¥789 million, resulting in a drop in basic earnings per share to ¥40.67. Despite the profit contraction and a slight decrease in total assets and equity ratios, the company maintained a robust equity-to-asset ratio of 84.3%, confirmed its full-year forecast calling for modest revenue and profit growth, kept its dividend outlook unchanged at ¥100 per share for the year ending March 31, 2026, and expanded its consolidation scope with the addition of P.P. Communications Inc., signaling ongoing efforts to reinforce its business portfolio while sustaining shareholder returns.

The most recent analyst rating on (JP:2148) stock is a Hold with a Yen1803.00 price target. To see the full list of analyst forecasts on ITmedia Inc. stock, see the JP:2148 Stock Forecast page.

ITmedia to Acquire Webinar Marketer Majisemi, Expanding Digital Event Lead-Generation Business

ITmedia Inc. has resolved to acquire all shares of Majisemi Co., Ltd., a fast-growing B2B marketing support firm specializing in technology-related webinars and lead generation, making it a subsidiary following Majisemi’s merger with Open Source Innovation Labs Ltd. By integrating Majisemi’s large webinar operation, subscription-based “Webinar as a Service” platform, and 200,000-strong membership base with ITmedia’s technology media platform and digital event capabilities, ITmedia aims to significantly expand its digital event-led lead generation business, enhance the value and frequency of webinars for its combined user base, and accelerate progress toward its medium-term earnings targets through expected growth synergies.

The most recent analyst rating on (JP:2148) stock is a Hold with a Yen1819.00 price target. To see the full list of analyst forecasts on ITmedia Inc. stock, see the JP:2148 Stock Forecast page.