tiprankstipranks
Trending News
More News >
Internet Initiative Japan Inc. (JP:3774)
:3774

Internet Initiative Japan (3774) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Internet Initiative Japan

(OTC:3774)

Rating:70Outperform
Price Target:
¥3,036.00
▲(8.68%Upside)
The overall stock score of 70 reflects Internet Initiative Japan's strong financial performance and stable technical indicators, albeit with some short-term weakness. The high P/E ratio suggests potential overvaluation, and the modest dividend yield provides limited income. The company's financial health is a significant strength, while valuation concerns temper the overall score.

Internet Initiative Japan (3774) vs. iShares MSCI Japan ETF (EWJ)

Internet Initiative Japan Business Overview & Revenue Model

Company DescriptionInternet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyInternet Initiative Japan generates revenue through various streams, primarily focusing on its network services segment. This includes providing high-speed internet connectivity, VPN services, and data center operations. Additionally, IIJ earns income from its cloud services, which offer scalable and secure computing resources to businesses. Systems integration, which involves designing and implementing IT infrastructure, also contributes significantly to IIJ's revenue. The company benefits from strategic partnerships and collaborations, enhancing its service offerings and expanding its market reach. Its revenue model is further supported by subscription-based services, creating a steady income stream.

Internet Initiative Japan Financial Statement Overview

Summary
Internet Initiative Japan exhibits strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet shows prudent leverage and a stable financial structure, though liquidity requires attention due to cash reduction.
Income Statement
85
Very Positive
The company exhibits strong revenue growth with a consistent upward trend, growing from ¥204.47 billion in 2020 to ¥316.83 billion in 2025. The gross profit margin has remained steady, indicating effective cost management, while the net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are robust, showcasing operational efficiency.
Balance Sheet
80
Positive
The debt-to-equity ratio is favorable, suggesting prudent financial leverage. The return on equity (ROE) is strong, indicating effective utilization of equity capital. The equity ratio shows a solid financial position with a significant proportion of assets funded by equity. However, the reduction in cash and cash equivalents over the years may pose liquidity considerations.
Cash Flow
78
Positive
Free cash flow growth is positive, albeit with some volatility. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to profit. However, the free cash flow to net income ratio has seen fluctuations, requiring monitoring for sustained cash flow performance.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue316.83B276.08B252.71B226.34B213.00B
Gross Profit68.40B63.87B57.91B51.63B40.28B
EBITDA62.06B58.88B56.66B55.50B43.00B
Net Income19.93B19.83B18.85B15.67B9.71B
Balance Sheet
Total Assets312.44B273.71B246.19B231.81B220.78B
Cash, Cash Equivalents and Short-Term Investments32.53B45.47B44.39B48.69B44.44B
Total Debt33.62B30.18B20.43B21.87B25.56B
Total Liabilities170.35B146.68B126.89B127.18B129.81B
Stockholders Equity140.68B125.75B118.12B103.53B89.96B
Cash Flow
Free Cash Flow16.62B21.84B21.27B32.05B29.54B
Operating Cash Flow28.53B40.78B38.53B43.57B40.54B
Investing Cash Flow-21.75B-17.93B-18.39B-11.84B-13.22B
Financing Cash Flow-19.67B-20.80B-25.73B-27.30B-23.62B

Internet Initiative Japan Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2793.50
Price Trends
50DMA
2761.93
Positive
100DMA
2674.14
Positive
200DMA
2808.09
Negative
Market Momentum
MACD
9.41
Positive
RSI
49.49
Neutral
STOCH
44.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3774, the sentiment is Neutral. The current price of 2793.5 is below the 20-day moving average (MA) of 2823.45, above the 50-day MA of 2761.93, and below the 200-day MA of 2808.09, indicating a neutral trend. The MACD of 9.41 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 44.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3774.

Internet Initiative Japan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$496.76B24.4914.78%1.27%14.76%0.69%
61
Neutral
$41.24B-0.79-14.21%3.80%2.39%-73.52%
$2.53B30.6015.57%1.50%
$65.06B14.2713.04%3.13%
79
Outperform
¥18.99B10.45
3.53%6.35%54.17%
67
Neutral
¥9.16B24.00
1.34%4.70%35.62%
65
Neutral
¥24.72B29.07
24.84%-38.06%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3774
Internet Initiative Japan
2,793.50
288.49
11.52%
GMOYF
GMO Internet
25.63
10.30
67.19%
KDDIF
KDDI
15.85
2.49
18.64%
JP:3776
Broadband Tower, Inc.
149.00
-59.39
-28.50%
JP:3834
ASAHI Net, Inc.
679.00
10.20
1.53%
JP:9424
Japan Communications Inc.
149.00
-48.00
-24.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025