SAKURA Internet Inc. (3778) AI Stock Analysis

• Market Cap: ¥153.32B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 51.0
• Beta (1Y): 1.63
• Revenue Growth: 43.92%
• EPS Growth: 302.88%
• Country: JP
• Employees: 839
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 32.83
• Shares Outstanding: 41,890,700
• 10 Day Avg. Volume: 2,910,930
• 30 Day Avg. Volume: 1,714,370
• PEG Ratio: 1.23
• Price to Book (P/B): 5.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,975.00
• Price Target Upside: -1.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥4,030.00 ▼(-0.49%Downside)

SAKURA Internet Inc.'s stock score is primarily driven by strong financial performance, with notable revenue growth and improving margins. The technical analysis shows short-term bullish momentum, though caution is advised due to overbought signals. Valuation is a concern with a high P/E ratio, indicating potential overvaluation. Cash flow management needs improvement for long-term sustainability.

SAKURA Internet Inc. Business Overview & Revenue Model

Company Description

SAKURA Internet Inc. (3778) is a leading Japanese company that specializes in providing internet infrastructure services. The company offers a wide range of products and services including dedicated servers, cloud computing services, colocation services, and data center operations. SAKURA Internet aims to support businesses by delivering reliable and scalable internet solutions, ensuring high performance and security for their clients' digital operations.

How the Company Makes Money

SAKURA Internet Inc. makes money primarily through the provision of internet infrastructure services. Their revenue model is based on subscription and usage fees for services such as dedicated server hosting, cloud computing services, and colocation. Key revenue streams include monthly service fees from individual and corporate clients who require hosting solutions and data storage. Additionally, the company generates income through partnerships with other technology firms and by providing managed services that offer enhanced operational support. SAKURA Internet's data centers and cloud platforms are critical components of its business, contributing significantly to its earnings by catering to the increasing demand for online and digital solutions.

SAKURA Internet Inc. Financial Statement Overview

Summary

SAKURA Internet Inc. has shown strong revenue growth and improved operational margins. The balance sheet is stable but requires careful monitoring due to increasing debt levels. Cash flow management is concerning, with negative free cash flow highlighting a need for better capital management.

Income Statement

SAKURA Internet Inc. has shown significant revenue growth over the past year, with a 43.9% increase from 2024 to 2025. The gross profit margin improved from 26.3% to 35.8%, indicating better cost management. However, the net profit margin is relatively low at 9.4%, despite an improvement from the previous year. The EBITDA margin increased to 28.7%, showcasing operational strength. The company needs to focus on further enhancing profitability.

Balance Sheet

The company has a reasonable debt-to-equity ratio of 0.79, indicating a balanced leverage position. The return on equity is strong at 9.8%, up from 7.1% the previous year, reflecting efficient use of equity. The equity ratio stands at 36.9%, suggesting a stable financial structure. However, the increase in total liabilities and debt levels poses a potential risk if not managed carefully.

Cash Flow

The operating cash flow increased significantly, but the free cash flow remains negative due to high capital expenditures, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio is robust at 1.97, indicating good cash generation relative to profits. The negative free cash flow to net income ratio highlights the need for better capital management to improve free cash flow.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
27.56B	31.41B	21.83B	20.62B	20.02B	22.17B
	Gross Profit
9.03B	11.23B	5.74B	5.37B	4.71B	5.69B
	EBIT
3.02B	4.15B	884.77M	1.09B	763.14M	1.37B
	EBITDA
7.25B	9.00B	4.14B	3.90B	3.83B	4.47B
	Net Income Common Stockholders
1.99B	2.94B	651.72M	666.55M	275.45M	758.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.46B	29.49B	5.26B	4.81B	5.45B	4.17B
	Total Assets
26.08B	81.42B	30.22B	26.26B	28.40B	27.98B
	Total Debt
9.65B	23.65B	12.40B	9.56B	11.50B	12.22B
	Net Debt
6.19B	-5.84B	7.14B	4.75B	6.05B	8.05B
	Total Liabilities
17.85B	51.16B	20.90B	17.77B	19.95B	19.86B
	Stockholders Equity
8.12B	30.06B	9.14B	8.35B	8.32B	8.00B
Cash Flow		Free Cash Flow
0.00	-11.87B	-734.64M	3.19B	2.53B	2.62B
	Operating Cash Flow
0.00	5.79B	2.88B	3.96B	3.96B	4.11B
	Investing Cash Flow
0.00	-8.32B	-2.03B	-606.13M	-1.67B	-1.36B
	Financing Cash Flow
0.00	26.76B	-410.59M	-4.00B	-1.01B	-3.15B

SAKURA Internet Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4050.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3778, the sentiment is Positive. The current price of 4050 is above the 20-day moving average (MA) of 3646.50, above the 50-day MA of 3496.02, and below the 200-day MA of 4113.54, indicating a neutral trend. The MACD of 158.83 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 74.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3778.

SAKURA Internet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	77 Outperform	¥18.96B	34.53		0.16%	24.15%	-7.80%
3915	75 Outperform	¥38.87B	38.15		―	29.12%	238.06%
3694	66 Neutral	¥31.25B	26.51		―	0.14%	-21.25%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
3778	61 Neutral	¥153.32B	50.98		0.10%	43.92%	302.88%

SAKURA Internet Inc. Corporate Events

SAKURA Internet Inc. Announces Executive Personnel Changes

SAKURA Internet Inc. has announced changes in its executive personnel, subject to approval at the upcoming Annual General Meeting. These changes include the appointment of Tatsuya Morita as a new outside director, bringing extensive experience in legal and compliance matters to strengthen the company’s governance.

SAKURA Internet Inc. Reports Strong Financial Growth for FY 2025

SAKURA Internet Inc. reported significant financial growth for the fiscal year ended March 31, 2025, with net sales increasing by 43.9% and operating profit surging by 368.7%. This substantial improvement in financial performance reflects the company’s strengthened market position and operational efficiency, which could positively impact stakeholders and enhance its competitive edge in the industry.

SAKURA Internet Inc. Reports Strong Financial Performance and Extraordinary Income

SAKURA Internet Inc. announced a significant improvement in their full-year consolidated earnings for the fiscal year ending March 31, 2025, surpassing previous forecasts. The increase in net sales and profits was driven by strong project acquisitions, lower cost ratios, and postponed expenses. Additionally, the company recorded extraordinary income from national subsidies and an extraordinary loss related to tax-purpose reduction of non-current assets, reflecting their investment in GPU cloud services.

SAKURA Internet Inc. Expands Ishikari Data Center to Boost Cloud Service Capacity

SAKURA Internet Inc. has announced an additional investment in its Ishikari Data Center to expand its capacity, specifically in the C Zone and D Zone of Building No. 3, and to enhance the emergency generator at Building No. 2. This strategic move aims to ensure the company can accommodate anticipated large-scale demand for its cloud services, positioning it for continued growth in the competitive data center market. The investment, totaling approximately JPY 5.3 billion, will be procured through leasing and is expected to have no immediate impact on the company’s current fiscal year financial results.