ITmedia Inc. (2148) AI Stock Analysis

• Market Cap: ¥33.90B
• Dividend Yield: 5.92%
• Average Volume (3M): 68.75K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.86
• Revenue Growth: 1.36%
• EPS Growth: -0.89%
• Country: JP
• Employees: 339
• Sector: Communication Services
• Sector Strength: 95
• Industry: Advertising Agencies
• EPS (TTM): 12.49
• Shares Outstanding: 21,064,200
• 10 Day Avg. Volume: 58,510
• 30 Day Avg. Volume: 68,746
• 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: 11.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,874.00 ▲(11.08% 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. (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. 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: 1687.00
• 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 1687 is above the 20-day moving average (MA) of 1648.20, above the 50-day MA of 1632.52, and above the 200-day MA of 1544.53, indicating a bullish trend. The MACD of 15.19 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 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	¥38.33B	14.07		3.85%	13.99%	0.24%
2148	76 Outperform	¥33.90B	22.22		5.92%	1.36%	-0.89%
2389	71 Outperform	¥27.81B	17.87		2.22%	-10.30%	-13.43%
7095	68 Neutral	¥37.34B	10.27		1.41%	31.14%	24.77%
2491	67 Neutral	¥25.72B	5.38		6.72%	6.24%	48.37%
2461	63 Neutral	¥35.31B	27.52		5.13%	2.34%	-12.13%
Sector *	60 Neutral	$43.83B	3.98	-12.77%	4.14%	1.86%	-42.71%

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.