SAKURA Internet Inc. (JP:3778)
:3778
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SAKURA Internet Inc.
(3778)
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Rating:52Neutral
Price Target:
¥3,788.00
▲(36.26% Upside)
Action:ReiteratedDate:11/18/25
SAKURA Internet Inc. has a satisfactory financial performance with strong revenue growth but faces challenges in cash flow management. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio. These factors contribute to a moderate overall stock score.
Positive Factors
Revenue Growth
A 43.9% year-over-year revenue jump indicates durable demand for SAKURA's cloud and data-center services in Japan. Sustained top-line expansion improves scale economics, supports reinvestment in capacity and product development, and strengthens competitive position over the next several quarters.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow from elevated capex limits the company's ability to self-fund expansion and puts pressure on liquidity. Over a multi-quarter horizon, continued negative FCF may force external financing, increasing leverage risk and reducing financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A 43.9% year-over-year revenue jump indicates durable demand for SAKURA's cloud and data-center services in Japan. Sustained top-line expansion improves scale economics, supports reinvestment in capacity and product development, and strengthens competitive position over the next several quarters.
Read all positive factors
SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥132.93B
Dividend Yield0.14%
Average Volume (3M)1.25M
Price to Earnings (P/E)367.3
Beta (1Y)1.03
Revenue Growth36.42%
EPS Growth28.23%
CountryJP
Employees839
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.89
Shares Outstanding41,890,700
10 Day Avg. Volume655,830
30 Day Avg. Volume1,250,683
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.78
Price to Sales (P/S)4.57
P/FCF Ratio-12.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,510.00Price Target Upside134.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)56.83
Revenue Forecast (FY)¥47.60B
SAKURA Internet Inc. Business Overview & Revenue Model
Company Description
SAKURA Internet Inc. provides internet connection services in Japan. The company offers housing services; and hosting services, such as dedicated and rental server, VPS, and cloud services. It is also involved in setting up and management of serve...
How the Company Makes Money
SAKURA Internet primarily makes money by charging recurring and usage-based fees for internet infrastructure services. Key revenue streams include: (1) Cloud/IaaS services: customers pay monthly and/or metered charges for compute, storage, and rel...
SAKURA Internet Inc. Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
65
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.97B | 31.41B | 21.83B | 20.62B | 20.02B | 22.17B |
| Gross Profit | 11.08B | 11.23B | 5.74B | 5.37B | 4.71B | 5.69B |
| EBITDA | 8.88B | 8.91B | 4.02B | 3.88B | 4.04B | 4.57B |
| Net Income | 2.57B | 2.94B | 651.72M | 666.55M | 275.45M | 758.36M |
Balance Sheet | ||||||
| Total Assets | 81.00B | 81.60B | 30.38B | 26.37B | 28.52B | 28.17B |
| Cash, Cash Equivalents and Short-Term Investments | 24.25B | 29.49B | 5.26B | 4.81B | 5.45B | 4.17B |
| Total Debt | 21.81B | 23.66B | 12.41B | 9.56B | 11.55B | 12.32B |
| Total Liabilities | 51.18B | 51.34B | 21.06B | 17.88B | 20.07B | 20.05B |
| Stockholders Equity | 29.61B | 30.06B | 9.14B | 8.35B | 8.32B | 8.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -11.87B | -597.67M | 3.47B | 2.66B | 2.76B |
| 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
Positive
2780.00
Price Trends
2926.11
Positive
2907.12
Positive
3122.51
Positive
Market Momentum
186.40
Negative
68.86
Neutral
77.39
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 2780 is below the 20-day moving average (MA) of 2989.68, below the 50-day MA of 2926.11, and below the 200-day MA of 3122.51, indicating a bullish trend. The MACD of 186.40 indicates Negative momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 77.39 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥23.58B | 14.66 | ― | ― | 17.93% | 91.21% | |
68 Neutral | ¥16.57B | 8.71 | ― | ― | ― | ― | |
68 Neutral | ¥31.72B | 27.58 | ― | 0.39% | 30.59% | 65.14% | |
65 Neutral | ¥10.06B | 13.23 | ― | 2.16% | 2.75% | 25.24% | |
62 Neutral | ¥47.58B | 50.91 | ― | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | ¥132.93B | 367.27 | ― | 0.14% | 36.42% | 28.23% |
* Technology Sector Average
JP:3778
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SAKURA Internet Inc. Corporate Events
SAKURA internet Wins ¥3.8 Billion National Generative AI Supercomputing Deal
Apr 13, 2026
SAKURA internet Inc. has secured a large-scale generative AI-related order from a national institution, centered on its cloud-based supercomputer offerings “SAKURAONE Managed HPC Cluster H100” and “SAKURAONE Managed HPC Cluster H...
SAKURA Internet Confirms Exploratory AI Cloud Collaboration Talks With Microsoft Japan
Apr 3, 2026
SAKURA internet Inc. has clarified recent media reports by confirming it is working with Microsoft Japan on a potential joint solution that would link its AI computing infrastructure with Microsoft Azure. The collaboration aims to expand AI infras...
SAKURA Internet Sees Sojitz Drop Affiliated-Company Status After Stake Cut
Mar 19, 2026
SAKURA internet Inc. announced that Sojitz Corporation has ceased to be classified as an “other affiliated company” after Sojitz reduced its shareholding in SAKURA. The change was confirmed based on an amended large shareholding report...
SAKURA Internet Gains Independence as Sojitz Cuts Stake and Board Members Exit
Mar 19, 2026
SAKURA internet Inc. announced board-level changes and a revision of its long-standing business alliance with trading house Sojitz Corporation after Sojitz reduced its stake, ending SAKURA’s status as an equity-method affiliate. Two outside ...
SAKURA Internet Cuts FY2026 Forecast, Hit by Deferred GPU Contract Revenue
Feb 25, 2026
SAKURA Internet has revised its full-year forecast for the fiscal year ending March 31, 2026, cutting expected net sales to ¥35.2 billion and projecting an operating loss of ¥500 million, down sharply from its prior profit outlook. The c...
SAKURA internet books offsetting extraordinary items tied to ¥10.5bn AI subsidy
Feb 24, 2026
SAKURA internet Inc. has received approval for a government grant totaling 10,539 million yen under the Ministry of Economy, Trade and Industry’s Cloud Program Supply Assurance Plan, earmarked for expenses related to its generative AI servic...
SAKURA Internet Slips to Nine-Month Loss but Sticks to Full-Year Profit and Higher Dividend Plan
Jan 30, 2026
SAKURA Internet reported consolidated net sales of ¥24.0 billion for the nine months ended 31 December 2025, up 12.3% year-on-year, but swung to an operating loss of ¥1.1 billion and a net loss attributable to owners of the parent of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.