SAKURA Internet Inc. (3778) AI Stock Analysis

• Market Cap: ¥153.52B
• Dividend Yield: 0.1%
• Average Volume (3M): 2.53M
• 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: 90
• Industry: Software - Infrastructure
• EPS (TTM): 32.83
• Shares Outstanding: 41,890,700
• 10 Day Avg. Volume: 1,722,420
• 30 Day Avg. Volume: 2,531,053
• 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: ¥4,002.50
• Price Target Upside: 4.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: ¥4,111.00 ▲(7.06%Upside)

SAKURA Internet Inc. has a satisfactory financial performance with strong revenue growth but faces challenges in cash flow management. Technical analysis shows mixed signals with some bullish momentum but potential oversold conditions. Valuation indicates the stock may be overvalued, with a low dividend yield.

SAKURA Internet Inc. Business Overview & Revenue Model

Company Description

SAKURA Internet Inc. (3778) is a Japanese technology company that provides a wide range of internet-related services. Established in 1996, SAKURA Internet operates primarily in the data center, cloud services, and internet services sectors. The company offers hosting services, cloud infrastructure, and network solutions to a diverse clientele, including businesses and individual users, through its robust IT infrastructure and data centers located across Japan.

How the Company Makes Money

SAKURA Internet Inc. generates revenue primarily through its cloud services, data center operations, and hosting services. The company offers various subscription-based models for its cloud computing services, which include virtual private servers, dedicated servers, and cloud storage solutions. Additionally, SAKURA Internet earns income from managed hosting services, where it provides comprehensive IT management and support for clients' online operations. The company also benefits from strategic partnerships with technology vendors and enterprises that enhance its service offerings and expand its market reach. Revenue is further supported by continuous investments in infrastructure and technology, enabling the company to offer competitive and scalable solutions to its customers.

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
EBITDA	7.25B	9.00B	4.14B	3.90B	3.83B	4.47B
Net Income	1.99B	2.94B	651.72M	666.55M	275.45M	758.36M
Balance Sheet
Total Assets	26.08B	81.42B	30.22B	26.26B	28.40B	27.98B
Cash, Cash Equivalents and Short-Term Investments	3.46B	29.49B	5.26B	4.81B	5.45B	4.17B
Total Debt	9.65B	23.65B	12.40B	9.56B	11.50B	12.22B
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: Negative
• Last Price: 3840.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3778, the sentiment is Negative. The current price of 3840 is below the 20-day moving average (MA) of 4204.25, above the 50-day MA of 3782.80, and below the 200-day MA of 4152.94, indicating a bearish trend. The MACD of 6.03 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 4.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3778.

SAKURA Internet Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3915	67 Neutral	¥34.09B	33.16		―	29.12%	238.06%
4493	67 Neutral	¥16.42B	29.92		0.18%	24.15%	-7.80%
3694	66 Neutral	¥27.28B	23.47		―	0.14%	-21.25%
Sector *	63 Neutral	$33.92B	6.00	-11.84%	1.85%	5.31%	-18.34%
3778	60 Neutral	¥153.52B	51.04		0.10%	43.92%	302.88%

SAKURA Internet Inc. Corporate Events

SAKURA Internet Announces Extraordinary Income and Loss for Q1 2026

SAKURA Internet Inc. has announced the recognition of both extraordinary income and loss for the first quarter of the fiscal year ending March 2026, due to government subsidies related to its GPU cloud service. The financial impact of these extraordinary items is expected to be minimal on the company’s consolidated financial results for the fiscal year.

The most recent analyst rating on (JP:3778) stock is a Hold with a Yen3975.00 price target. To see the full list of analyst forecasts on SAKURA Internet Inc. stock, see the JP:3778 Stock Forecast page.

SAKURA Internet Strengthens Alliance with Sojitz Corporation

SAKURA Internet Inc. has announced a strengthened business alliance with Sojitz Corporation, which holds a 26.28% voting stake in the company. This partnership aims to enhance decision-making and strategic execution, particularly in digital transformation and AI, while maintaining SAKURA’s independence as a listed company. The collaboration includes personnel appointments from Sojitz to SAKURA’s board to bolster supervisory functions and cooperation in technology domains.

The most recent analyst rating on (JP:3778) stock is a Hold with a Yen3975.00 price target. To see the full list of analyst forecasts on SAKURA Internet Inc. stock, see the JP:3778 Stock Forecast page.

SAKURA Internet Inc. Announces Restricted Stock Compensation Plan

SAKURA Internet Inc. announced the disposal of treasury shares as part of a restricted stock compensation plan, aiming to align the interests of directors and executive officers with shareholders. The plan involves the allocation of 19,730 shares to selected directors and officers, enhancing their motivation to contribute to the company’s stock price and corporate value.

The most recent analyst rating on (JP:3778) stock is a Hold with a Yen3975.00 price target. To see the full list of analyst forecasts on SAKURA Internet Inc. stock, see the JP:3778 Stock Forecast page.

SAKURA Internet Secures Contract for Medical LLM Project

SAKURA Internet Inc. has entered into a contract with NEDO for a project focused on the safety verification and demonstration of a Japanese medical-specialized large language model. The contract, valued at approximately JPY 4.5 billion, will see SAKURA providing GPU cloud services and other services, with completion expected by March 2026. The company anticipates an additional JPY 2.5 billion in revenue due to a change in accounting treatment, although this will not affect profit forecasts.

The most recent analyst rating on (JP:3778) stock is a Hold with a Yen3975.00 price target. To see the full list of analyst forecasts on SAKURA Internet Inc. stock, see the JP:3778 Stock Forecast page.

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.