Internet Initiative Japan Inc. (JP:3774)
:3774
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Internet Initiative Japan
(3774)
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Rating:74Outperform
Price Target:
¥3,315.00
▲(48.12% Upside)
Action:Upgraded
Date:05/15/26
The score is driven primarily by solid financial performance (steady growth, stronger balance sheet, healthy cash generation) and supported by a strong technical uptrend. Offsetting factors include overbought technical signals and only moderate valuation support with a modest dividend yield.
Positive Factors
Recurring revenue base
A high proportion of contracted recurring connectivity, cloud and managed services creates predictable, repeatable revenue and strengthens customer stickiness. Over 2–6 months this supports steady cash inflows, enables multi-year customer relationships and provides a foundation for cross-sell of higher‑margin services.
Negative Factors
Slowing revenue growth
A shift to low-single-digit top-line growth signals maturation in core markets and fewer high-growth opportunities. Persistently slower revenue expansion limits operating leverage, constrains margin and earnings upside and forces reliance on cost control or adjacent service expansion to sustain returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue base
A high proportion of contracted recurring connectivity, cloud and managed services creates predictable, repeatable revenue and strengthens customer stickiness. Over 2–6 months this supports steady cash inflows, enables multi-year customer relationships and provides a foundation for cross-sell of higher‑margin services.
Read all positive factors
Internet Initiative Japan (3774) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥535.61B
Dividend Yield1.31%
Average Volume (3M)505.33K
Price to Earnings (P/E)21.5
Beta (1Y)0.28
Revenue Growth9.02%
EPS Growth21.15%
CountryJP
Employees5,206
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)136.51
Shares Outstanding183,471,370
10 Day Avg. Volume473,140
30 Day Avg. Volume505,333
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)2.74
Price to Sales (P/S)1.26
P/FCF Ratio14.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,600.00Price Target Upside60.86% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)148.55
Revenue Forecast (FY)¥383.43B
Internet Initiative Japan Business Overview & Revenue Model
Company Description
Internet Initiative Japan Inc. (IIJ), established in Tokyo in 1992, is a leading technology company in Japan offering a diverse portfolio of internet and IT services. The company operates through two primary divisions: Network Services and Systems...
How the Company Makes Money
IIJ primarily makes money through a mix of recurring subscription/service fees and one-time project and equipment-related revenue. (1) Recurring network and connectivity fees: A core revenue stream is ongoing charges for Internet access and enterp...
Internet Initiative Japan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 345.39B | 316.83B | 276.08B | 252.71B | 226.34B |
| Gross Profit | 76.17B | 64.77B | 60.57B | 54.83B | 48.50B |
| EBITDA | 69.32B | 61.64B | 58.88B | 56.66B | 53.16B |
| Net Income | 24.19B | 19.93B | 19.83B | 18.85B | 15.67B |
Balance Sheet | |||||
| Total Assets | 346.93B | 312.44B | 273.71B | 246.32B | 231.81B |
| Cash, Cash Equivalents and Short-Term Investments | 38.40B | 32.53B | 45.47B | 42.47B | 47.39B |
| Total Debt | 35.57B | 64.21B | 56.42B | 50.47B | 51.12B |
| Total Liabilities | 187.46B | 170.35B | 146.68B | 126.89B | 127.18B |
| Stockholders Equity | 158.01B | 140.68B | 125.75B | 118.24B | 103.53B |
Cash Flow | |||||
| Free Cash Flow | 30.08B | 16.62B | 29.04B | 26.74B | 36.79B |
| Operating Cash Flow | 50.46B | 28.53B | 40.78B | 38.53B | 43.57B |
| Investing Cash Flow | -26.43B | -21.75B | -17.93B | -18.39B | -11.84B |
| Financing Cash Flow | -19.01B | -19.67B | -20.80B | -25.73B | -27.30B |
Internet Initiative Japan Technical Analysis
Neutral
2238.00
Price Trends
2870.28
Positive
2610.24
Positive
2677.68
Positive
Market Momentum
64.16
Positive
45.27
Neutral
21.40
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 2238 is below the 20-day moving average (MA) of 3105.73, below the 50-day MA of 2870.28, and below the 200-day MA of 2677.68, indicating a neutral trend. The MACD of 64.16 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 21.40 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥535.61B | 21.54 | 15.67% | 1.31% | 9.02% | 21.15% | |
73 Outperform | ¥10.18T | 18.12 | ― | 3.99% | 7.55% | 3.27% | |
69 Neutral | ¥9.97T | 14.15 | 13.75% | 2.85% | 4.05% | 13.53% | |
66 Neutral | ¥16.88B | 50.13 | ― | 1.01% | 14.48% | -12.25% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥12.61T | 11.39 | 11.22% | 3.36% | 5.14% | 5.49% | |
56 Neutral | ¥318.69B | 17.98 | 17.97% | 1.36% | 5.57% | 31.99% |
* Communication Services Sector Average
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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.