Internet Initiative Japan (3774) AI Stock Analysis

• Market Cap: $487.43B
• Dividend Yield: 1.21%
• Average Volume (3M): 770.79K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.40
• Revenue Growth: 13.34%
• EPS Growth: 9.80%
• Country: JP
• Employees: 5,206
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 35.68
• Shares Outstanding: 183,184,890
• 10 Day Avg. Volume: 498,750
• 30 Day Avg. Volume: 770,790
• PEG Ratio: 2.18
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.01
• 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: $2,879.58
• Price Target Upside: 1.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Internet Initiative Japan demonstrates strong financial performance with solid revenue and profitability figures, supported by a stable balance sheet. Technical analysis shows mixed signals with slight positive short-term momentum, but caution is warranted due to negative MACD and neutral RSI. Valuation metrics suggest the stock is moderately valued, with a modest dividend yield adding to its appeal. However, attention to free cash flow trends is advised for future investments.

Internet Initiative Japan Business Overview & Revenue Model

Company Description

Internet Initiative Japan (IIJ) is a pioneering Japanese internet service provider, which primarily focuses on offering comprehensive network solutions and services. Established in 1992, the company is recognized for its robust portfolio, including internet connectivity services, cloud computing, and systems integration. It caters to a diverse clientele comprising enterprises and governmental organizations, providing them with reliable internet services, data center capabilities, and managed network services.

How the Company Makes Money

Internet 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 is in a strong financial position with solid revenue growth and profitability, supported by a robust balance sheet and healthy cash flow. While the company maintains low leverage, the recent decline in free cash flow growth may warrant attention for future investments.

Income Statement

Internet Initiative Japan shows a strong financial performance with consistent revenue growth, demonstrating a 10.2% increase from the previous year in TTM. The gross profit margin stands at approximately 22%, and the net profit margin is around 6.8%, indicating good cost management and profitability. EBIT and EBITDA margins are solid at 9.7% and 19.7%, respectively, reflecting efficient operations.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of approximately 0.25, indicating low leverage. The equity ratio is about 44.4%, which signifies a strong equity base. However, stockholders' equity growth has been moderate, which could constrain future leverage opportunities.

Cash Flow

Internet Initiative Japan's cash flow is robust with a healthy operating cash flow to net income ratio of approximately 1.6, indicating strong cash generation relative to earnings. Free cash flow has decreased compared to the previous year, resulting in a negative growth rate of approximately -46.7%, but it remains positive at 11.6 billion yen, suggesting ongoing investment capacity.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
304.29B	276.08B	252.71B	226.34B	213.00B	204.47B
	Gross Profit
66.84B	63.87B	57.91B	51.63B	40.28B	32.59B
	EBIT
29.50B	29.11B	27.22B	23.55B	14.25B	8.23B
	EBITDA
60.16B	58.88B	56.87B	55.50B	43.00B	36.26B
	Net Income Common Stockholders
20.64B	19.83B	18.85B	15.67B	9.71B	4.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.98B	45.47B	44.39B	48.69B	44.44B	41.34B
	Total Assets
307.67B	273.71B	246.19B	231.81B	220.78B	206.52B
	Total Debt
33.63B	30.18B	20.43B	21.87B	25.56B	27.75B
	Net Debt
-1.18B	-15.29B	-22.04B	-25.52B	-16.91B	-10.92B
	Total Liabilities
169.75B	146.68B	126.89B	127.18B	129.81B	126.47B
	Stockholders Equity
136.55B	125.75B	118.12B	103.53B	89.96B	79.08B
Cash Flow		Free Cash Flow
11.64B	21.84B	21.27B	32.05B	29.54B	21.55B
	Operating Cash Flow
32.52B	40.78B	38.53B	43.57B	40.54B	33.39B
	Investing Cash Flow
-22.74B	-17.93B	-18.39B	-11.84B	-13.22B	-7.26B
	Financing Cash Flow
-17.19B	-20.80B	-25.73B	-27.30B	-23.62B	-19.35B

Internet Initiative Japan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3774, the sentiment is Positive. The current price of 2830 is above the 20-day moving average (MA) of 2625.05, above the 50-day MA of 2584.78, and above the 200-day MA of 2777.78, indicating a bullish trend. The MACD of 37.61 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3774.

Internet Initiative Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9432	77 Outperform	$12.88T	11.33	9.84%	3.35%	3.22%	-4.93%
9433	76 Outperform	$10.24T	16.73	11.94%	2.43%	1.71%	-4.87%
3774	72 Outperform	$487.43B	23.21	16.10%	1.21%	13.34%	9.80%
3788	72 Outperform	¥26.17B	30.61		1.64%	9.52%	15.61%
9424	72 Outperform	¥27.37B	32.34		―	21.68%	-30.98%
9449	63 Neutral	$352.93B	26.74	15.63%	1.00%	7.25%	-5.11%
Sector *	60 Neutral	$13.44B	7.03	-2.73%	3.78%	2.17%	-39.43%