ITmedia Inc. (2148) AI Stock Analysis

• Market Cap: ¥34.20B
• Dividend Yield: 5.88%
• Average Volume (3M): 68.05K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.85
• Revenue Growth: 1.36%
• EPS Growth: -0.89%
• Country: JP
• Employees: 339
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 12.49
• Shares Outstanding: 21,066,200
• 10 Day Avg. Volume: 58,020
• 30 Day Avg. Volume: 68,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,874.00
• Price Target Upside: 10.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,874.00 ▲(10.11% Upside)

ITmedia Inc. has a strong financial foundation with robust revenue growth and profitability, supported by a solid balance sheet. Technical indicators show positive momentum, though valuation metrics suggest the stock may be slightly overvalued. The high dividend yield is a significant positive factor.

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 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. shows strong financial performance with impressive revenue growth and profitability. The balance sheet is robust with low leverage and high equity. However, the decline in free cash flow growth needs attention.

Income Statement

ITmedia Inc. demonstrates strong profitability with a consistent gross profit margin around 62% and a net profit margin of approximately 18%. The company has shown impressive revenue growth, particularly in the TTM period with a 70.7% increase, indicating robust expansion. However, there is a slight decline in EBIT and EBITDA margins over time, suggesting potential cost pressures.

Balance Sheet

The balance sheet is solid, with a very low debt-to-equity ratio of 0.0047, indicating minimal leverage and financial risk. The return on equity is healthy at 17.16%, reflecting efficient use of equity. The equity ratio is strong, showcasing a stable financial structure with a high proportion of equity financing.

Cash Flow

Cash flow performance is stable, with a high operating cash flow to net income ratio of 1.21, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has been negative in recent periods, which could be a concern if it persists. The free cash flow to net income ratio remains robust at 0.90, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.16B	8.10B	8.00B	8.75B	8.09B	6.89B
Gross Profit	5.05B	5.04B	5.02B	5.72B	5.34B	4.54B
EBITDA	2.21B	2.24B	2.44B	3.22B	2.97B	2.37B
Net Income	1.47B	1.50B	1.50B	1.97B	1.80B	1.26B
Balance Sheet
Total Assets	9.32B	11.00B	11.38B	11.16B	10.05B	9.07B
Cash, Cash Equivalents and Short-Term Investments	4.84B	6.56B	8.44B	8.48B	7.32B	6.38B
Total Debt	255.36M	44.15M	132.31M	2.40M	165.07M	7.37M
Total Liabilities	1.64B	1.62B	1.57B	1.73B	2.12B	1.96B
Stockholders Equity	7.68B	9.38B	9.80B	9.43B	7.93B	7.12B
Cash Flow
Free Cash Flow	1.45B	1.66B	1.17B	1.82B	1.93B	2.13B
Operating Cash Flow	1.67B	1.84B	1.37B	1.88B	1.99B	2.21B
Investing Cash Flow	-1.23B	-1.18B	-164.86M	-53.15M	152.49M	-161.29M
Financing Cash Flow	-2.07B	-2.04B	-1.25B	-660.38M	-1.20B	-475.60M

ITmedia Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1702.00
• 50DMA: Positive
• 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:2148, the sentiment is Positive. The current price of 1702 is above the 20-day moving average (MA) of 1683.10, above the 50-day MA of 1649.98, and above the 200-day MA of 1558.91, indicating a bullish trend. The MACD of 13.10 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 75.21 is Neutral, 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
6535	81 Outperform	37.81B	12.72	―	3.98%	14.91%	22.07%
2148	76 Outperform	¥34.20B	22.41	―	5.88%	1.36%	-0.89%
2389	71 Outperform	29.80B	19.35	4.37%	2.14%	-10.30%	-13.43%
2491	67 Neutral	26.21B	5.44	―	6.66%	6.24%	48.37%
7095	65 Neutral	32.44B	11.32	28.33%	1.63%	26.56%	31.28%
2461	63 Neutral	34.52B	26.90	―	5.18%	2.34%	-12.13%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ITmedia Inc. Corporate Events

ITmedia Inc. Reports Q1 2025 Financial Results

ITmedia Inc. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in revenue by 3.1% year-on-year to 1,906 million yen. However, the company experienced a decline in operating income and net income, with decreases of 5.8% and 8.9% respectively, indicating challenges in maintaining profitability despite revenue growth. The financial position showed a reduction in total assets and equity compared to the previous quarter, and the company maintained its dividend forecast for the fiscal year ending March 31, 2026.

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.