Internet Initiative Japan (3774) AI Stock Analysis

• Market Cap: $525.92B
• Dividend Yield: 1.19%
• Average Volume (3M): 498.47K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.35
• Revenue Growth: 12.19%
• EPS Growth: 4.12%
• Country: JP
• Employees: 5,206
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 21.35
• Shares Outstanding: 183,206,300
• 10 Day Avg. Volume: 539,480
• 30 Day Avg. Volume: 498,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 7.98
• Enterprise Value/Ebitda: 8.88
• 1Y Price Target: $3,444.17
• Price Target Upside: 17.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥3,104.00 ▲(6.23% Upside)

The stock's score is primarily driven by its solid financial performance, underscored by strong revenue growth and profitability. Technical analysis indicates neutral market sentiment, while valuation suggests potential overvaluation. The lack of earnings call data and corporate events does not impact the score.

Internet Initiative Japan Business Overview & Revenue Model

Company Description

Internet Initiative Japan Inc. (IIJ) is a leading Japanese internet service provider that offers a wide range of internet-related services. Established in 1992, IIJ specializes in providing high-quality network solutions, cloud computing services, and systems integration services. The company serves various sectors including enterprise, government, and individual consumers, with a focus on delivering secure and reliable internet connectivity and IT infrastructure solutions.

How the Company Makes Money

Internet Initiative Japan generates revenue through several key streams. Primarily, it earns money from providing internet connectivity services, which include broadband and leased line services tailored for businesses and individual users. Additionally, IIJ offers cloud computing services, including data center services, virtual infrastructure, and managed services, which contribute significantly to its revenue. The company also engages in systems integration services, offering tailored IT solutions and consulting to a variety of industries. Partnerships with technology providers and continuous innovation in secure and efficient internet infrastructures further bolster IIJ's revenue streams.

Internet Initiative Japan Financial Statement Overview

Summary

Internet Initiative Japan demonstrates a solid financial performance characterized by consistent revenue growth and strong profitability. The balance sheet reflects a stable financial structure with prudent leverage levels. Cash flow generation is robust, though attention is needed on maintaining liquidity.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	316.83B	276.08B	252.71B	226.34B	213.00B
Gross Profit	68.40B	63.87B	57.91B	51.63B	40.28B
EBITDA	62.06B	58.88B	56.66B	55.50B	43.00B
Net Income	19.93B	19.83B	18.85B	15.67B	9.71B
Balance Sheet
Total Assets	312.44B	273.71B	246.19B	231.81B	220.78B
Cash, Cash Equivalents and Short-Term Investments	32.53B	45.47B	44.39B	48.69B	44.44B
Total Debt	33.62B	30.18B	20.43B	21.87B	25.56B
Total Liabilities	170.35B	146.68B	126.89B	127.18B	129.81B
Stockholders Equity	140.68B	125.75B	118.12B	103.53B	89.96B
Cash Flow
Free Cash Flow	16.62B	21.84B	21.27B	32.05B	29.54B
Operating Cash Flow	28.53B	40.78B	38.53B	43.57B	40.54B
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: Positive
• Last Price: 2922.00
• 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:3774, the sentiment is Positive. The current price of 2922 is above the 20-day moving average (MA) of 2792.95, above the 50-day MA of 2795.14, and above the 200-day MA of 2782.69, indicating a bullish trend. The MACD of 46.40 indicates Negative momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 is Neutral, 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
3834	79 Outperform	¥19.26B	11.74		3.46%	6.35%	3.10%
9433	78 Outperform	¥9.76T	15.19	13.28%	4.09%	2.66%	11.83%
3774	73 Outperform	$525.92B	25.36	15.20%	1.19%	12.19%	4.12%
3776	69 Neutral	¥10.57B	43.73		1.20%	1.95%	-59.39%
9424	69 Neutral	¥27.53B	30.07		―	27.43%	-5.71%
9449	67 Neutral	¥397.26B	24.13	19.00%	1.37%	6.94%	7.61%
Sector *	66 Neutral	¥486.96B	16.60	1.07%	2.20%	6.20%	-17.02%