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SAKURA Internet Inc. (JP:3778)
:3778
Japanese Market

SAKURA Internet Inc. (3778) AI Stock Analysis

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JP

SAKURA Internet Inc.

(3778)

Rating:61Neutral
Price Target:
¥4,030.00
▲(1.13%Upside)
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. (3778) vs. iShares MSCI Japan ETF (EWJ)

SAKURA Internet Inc. Business Overview & Revenue Model

Company DescriptionSAKURA 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 MoneySAKURA 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
70
Positive
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
65
Positive
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
55
Neutral
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
27.56B31.41B21.83B20.62B20.02B22.17B
Gross Profit
9.03B11.23B5.74B5.37B4.71B5.69B
EBIT
3.02B4.15B884.77M1.09B763.14M1.37B
EBITDA
7.25B9.00B4.14B3.90B3.83B4.47B
Net Income Common Stockholders
1.99B2.94B651.72M666.55M275.45M758.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.46B29.49B5.26B4.81B5.45B4.17B
Total Assets
26.08B81.42B30.22B26.26B28.40B27.98B
Total Debt
9.65B23.65B12.40B9.56B11.50B12.22B
Net Debt
6.19B-5.84B7.14B4.75B6.05B8.05B
Total Liabilities
17.85B51.16B20.90B17.77B19.95B19.86B
Stockholders Equity
8.12B30.06B9.14B8.35B8.32B8.00B
Cash FlowFree Cash Flow
0.00-11.87B-734.64M3.19B2.53B2.62B
Operating Cash Flow
0.005.79B2.88B3.96B3.96B4.11B
Investing Cash Flow
0.00-8.32B-2.03B-606.13M-1.67B-1.36B
Financing Cash Flow
0.0026.76B-410.59M-4.00B-1.01B-3.15B

SAKURA Internet Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3985.00
Price Trends
50DMA
3465.14
Positive
100DMA
3885.52
Positive
200DMA
4080.06
Negative
Market Momentum
MACD
109.43
Negative
RSI
71.98
Negative
STOCH
92.51
Negative
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 3985 is above the 20-day moving average (MA) of 3476.75, above the 50-day MA of 3465.14, and below the 200-day MA of 4080.06, indicating a neutral trend. The MACD of 109.43 indicates Negative momentum. The RSI at 71.98 is Negative, neither overbought nor oversold. The STOCH value of 92.51 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥18.22B33.18
0.17%24.15%-7.80%
78
Outperform
¥36.02B39.48
29.12%238.06%
66
Neutral
¥29.98B25.43
0.14%-21.25%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
61
Neutral
¥159.32B52.97
0.10%43.92%305.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3778
SAKURA Internet Inc.
4,050.00
-1,164.67
-22.33%
JP:3694
OPTiM Corp.
544.00
-113.00
-17.20%
JP:3915
TerraSky Co., Ltd.
2,789.00
883.00
46.33%
JP:4493
Cyber Security Cloud, Inc.
1,859.00
-389.00
-17.30%

SAKURA Internet Inc. Corporate Events

SAKURA Internet Inc. Announces Executive Personnel Changes
May 22, 2025

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
Apr 28, 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
Apr 28, 2025

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
Mar 21, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.