Internet Initiative Japan (3774) AI Stock Analysis

• Market Cap: ¥456.88B
• Dividend Yield: 1.31%
• Average Volume (3M): 505.33K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.25
• Revenue Growth: 12.48%
• EPS Growth: 18.38%
• Country: JP
• Employees: 5,206
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 35.22
• Shares Outstanding: 183,448,850
• 10 Day Avg. Volume: 473,140
• 30 Day Avg. Volume: 505,333
• PEG Ratio: 29.64
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 27.66
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 153.14
• Revenue Forecast (FY): ¥376.60B

• Rating: 60 Neutral
• Price Target: ¥2,662.00 ▲(18.95% Upside)
• Action: Downgraded Date: 02/08/26
• Date: Action: Downgraded 02/08/26

The score is anchored by solid operating performance and positive free cash flow, but it is meaningfully reduced by very weak technicals (price below all major moving averages and extremely low RSI/Stoch) and increased balance-sheet leverage. Valuation is reasonable but not compelling enough to offset the current technical and leverage risks.

Positive Factors

Recurring, diversified revenue mix

IIJ’s business is anchored by recurring subscription and usage-based services across network, cloud, security, MVNO and systems integration. This diversified, sticky revenue base supports predictable cash flows, cross-sell opportunities and resilience in demand over the next several months.

Negative Factors

Rising leverage

A marked step-up in debt-to-equity reduces financial flexibility and raises refinancing and interest-rate risk. Higher leverage constrains capital allocation choices, limits cushion for cyclical weakness, and could force prioritization of debt service over strategic investments in the medium term.

Internet Initiative Japan Business Overview & Revenue Model

Company Description

Internet 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 A...

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Internet 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 A...

How the Company Makes Money

IIJ primarily earns revenue by selling recurring subscription and usage-based services to corporate and governmental customers, supplemented by systems integration and equipment-related sales. Key revenue streams include: (1) Network services: mon...

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IIJ primarily earns revenue by selling recurring subscription and usage-based services to corporate and governmental customers, supplemented by systems integration and equipment-related sales. Key revenue streams include: (1) Network services: mon...

Internet Initiative Japan Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	336.85B	316.83B	276.08B	252.71B	226.34B	213.00B
Gross Profit	73.68B	64.77B	60.57B	54.83B	48.50B	37.44B
EBITDA	65.20B	61.46B	58.41B	55.81B	52.11B	42.88B
Net Income	22.42B	19.93B	19.83B	18.85B	15.67B	9.71B
Balance Sheet
Total Assets	336.06B	312.44B	273.71B	246.32B	231.81B	220.78B
Cash, Cash Equivalents and Short-Term Investments	40.60B	32.53B	45.47B	42.47B	47.39B	42.47B
Total Debt	74.52B	64.21B	56.42B	50.47B	51.12B	60.31B
Total Liabilities	182.85B	170.35B	146.68B	126.89B	127.18B	129.81B
Stockholders Equity	151.81B	140.68B	125.75B	118.24B	103.53B	89.96B
Cash Flow
Free Cash Flow	32.75B	16.62B	29.04B	26.74B	36.79B	34.15B
Operating Cash Flow	49.36B	28.53B	40.78B	38.53B	43.57B	40.54B
Investing Cash Flow	-21.82B	-21.75B	-17.93B	-18.39B	-11.84B	-13.22B
Financing Cash Flow	-22.08B	-19.67B	-20.80B	-25.73B	-27.30B	-23.62B

Internet Initiative Japan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2238.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2238 is below the 20-day moving average (MA) of 2464.61, below the 50-day MA of 2341.42, and below the 200-day MA of 2636.02, indicating a neutral trend. The MACD of 71.22 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9433	65 Neutral	¥9.77T	12.02	13.75%	2.85%	3.34%	20.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3774	60 Neutral	¥456.88B	19.63	15.67%	1.31%	12.48%	18.38%
9434	60 Neutral	¥10.06T	19.08	―	3.99%	7.79%	5.53%
3776	59 Neutral	¥14.50B	37.44	―	1.01%	17.19%	-43.91%
9449	56 Neutral	¥306.44B	24.87	17.97%	1.36%	4.75%	17.02%
9432	56 Neutral	¥13.05T	9.80	11.22%	3.36%	2.10%	-9.29%