ITmedia Inc. (2148) AI Stock Analysis

• Market Cap: ¥31.21B
• Dividend Yield: 6.44%
• Average Volume (3M): 59.52K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.84
• Revenue Growth: 2.09%
• EPS Growth: -2.15%
• Country: JP
• Employees: 339
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 14.42
• Shares Outstanding: 21,070,600
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥1,601.00 ▲(3.09% Upside)

ITmedia Inc. has a strong financial foundation with robust revenue growth and solid profitability, which is a significant positive factor. However, the technical indicators suggest a bearish trend, which weighs down the overall score. The valuation is reasonable, supported by a high dividend yield, but not enough to offset the negative technical outlook.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand for ITmedia's offerings, supporting long-term business expansion and market presence.

Balance Sheet Health

A low debt-to-equity ratio highlights financial stability and reduces risk, providing ITmedia with flexibility for future investments.

Profitability Margins

Solid profitability margins reflect efficient operations and a strong competitive position, supporting sustainable earnings over time.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could challenge ITmedia's ability to maintain cash reserves, impacting future investment capacity.

Profit Margin Pressure

Decreasing profit margins suggest rising costs or competitive pressures, which may affect long-term profitability if not addressed.

Decline in Profit Margins

A decline in EBIT and EBITDA margins indicates potential inefficiencies or increased competition, which could impact future earnings.

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

ITmedia Inc. demonstrates strong financial performance with impressive revenue growth and profitability. The balance sheet is robust with minimal leverage and high equity. Cash flow generation is solid, though 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	8.17B	8.10B	8.00B	8.75B	8.09B	6.89B
Gross Profit	5.03B	5.04B	5.02B	5.72B	5.34B	4.54B
EBITDA	2.15B	2.24B	2.44B	3.22B	2.97B	2.37B
Net Income	1.39B	1.50B	1.50B	1.97B	1.80B	1.26B
Balance Sheet
Total Assets	9.65B	11.00B	11.38B	11.16B	10.05B	9.07B
Cash, Cash Equivalents and Short-Term Investments	6.03B	6.56B	8.44B	8.48B	7.32B	6.38B
Total Debt	221.53M	44.15M	251.31M	2.40M	165.07M	7.37M
Total Liabilities	1.69B	1.62B	1.57B	1.73B	2.12B	1.96B
Stockholders Equity	7.97B	9.38B	9.80B	9.43B	7.93B	7.12B
Cash Flow
Free Cash Flow	1.42B	1.66B	1.17B	1.82B	1.93B	2.13B
Operating Cash Flow	1.64B	1.84B	1.37B	1.88B	1.99B	2.21B
Investing Cash Flow	-1.22B	-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: Neutral
• Last Price: 1553.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1553 is above the 20-day moving average (MA) of 1511.70, above the 50-day MA of 1551.56, and below the 200-day MA of 1583.37, indicating a neutral trend. The MACD of -6.19 indicates Negative momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 82.40 is Negative, 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	¥28.09B	12.30	―	5.35%	58.08%	29.89%
2491	67 Neutral	¥22.23B	4.95	―	7.85%	-3.20%	34.08%
7095	66 Neutral	¥21.59B	8.11	―	2.01%	15.43%	12.47%
2389	63 Neutral	¥32.08B	25.39	―	2.14%	-22.10%	-16.33%
2461	63 Neutral	¥35.19B	24.55	―	5.08%	3.22%	13.97%
2148	62 Neutral	¥31.21B	21.69	―	6.44%	2.09%	-2.15%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ITmedia Inc. Corporate Events

ITmedia Inc. Reports Mixed Financial Results for H1 2025

ITmedia Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in revenue by 1.9% year-on-year to 3,921 million yen. However, the company experienced declines in operating income and net income, with decreases of 13.5% and 17.0%, respectively. The company’s financial position remains strong with a high equity ratio of 82.5%, despite a decrease in total assets compared to March 2025. The company maintains its dividend forecast for the fiscal year ending March 2026, indicating stability in shareholder returns.

ITmedia Inc. Acquires P.P.Communications to Boost Media and Consulting Services

ITmedia Inc. announced its acquisition of P.P.Communications Inc., making it a subsidiary to enhance its media content and expand consulting services. This strategic move is expected to strengthen ITmedia’s market position in the technology research and advisory field, leveraging P.P.Communications’ expertise in overseas technology exhibitions.