SAKURA Internet Inc. (JP:3778)
:3778
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SAKURA Internet Inc.
(3778)
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Rating:45Neutral
Price Target:
¥3,096.00
▲(11.37% Upside)
Action:Reiterated
Date:04/29/26
The score is held down primarily by weakened financial performance—sharp margin deterioration and deeply negative free cash flow alongside rising leverage. Valuation further detracts due to an extremely high P/E and minimal dividend yield. Technical indicators are comparatively neutral, offering limited offset to the fundamental and valuation risks.
Positive Factors
Recurring revenue and high retention
SAKURA’s business is built on recurring, contract-based cloud, hosting and colocation revenue with high retention. This provides predictable topline visibility, supports steady cash inflows, and creates a platform for upsells and gradual margin recovery over the medium term.
Negative Factors
Sharp margin deterioration
A pronounced fall in gross margin and the shift to operating loss indicate structural pressure on pricing, cost of service, or mix. If sustained, this weakens cash generation, undermines return on invested capital, and complicates long-term profitability recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and high retention
SAKURA’s business is built on recurring, contract-based cloud, hosting and colocation revenue with high retention. This provides predictable topline visibility, supports steady cash inflows, and creates a platform for upsells and gradual margin recovery over the medium term.
Read all positive factors
SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥120.14B
Dividend Yield0.14%
Average Volume (3M)1.25M
Price to Earnings (P/E)32.4
Beta (1Y)1.20
Revenue Growth12.38%
EPS Growth-92.66%
CountryJP
Employees839
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)64.28
Shares Outstanding41,890,700
10 Day Avg. Volume655,830
30 Day Avg. Volume1,250,683
Financial Highlights & Ratios
PEG Ratio-4.95
Price to Book (P/B)3.30
Price to Sales (P/S)2.81
P/FCF Ratio-3.30
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)57.48
Revenue Forecast (FY)¥48.48B
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
48
Neutral
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.97B | 35.30B | 31.41B | 21.83B | 20.62B | 20.02B |
| Gross Profit | 11.08B | 7.96B | 11.23B | 5.74B | 5.37B | 4.71B |
| EBITDA | 8.88B | 7.34B | 8.91B | 4.02B | 3.88B | 4.04B |
| Net Income | 2.57B | 216.02M | 2.94B | 651.72M | 666.55M | 275.45M |
Balance Sheet | ||||||
| Total Assets | 81.00B | 82.45B | 81.60B | 30.38B | 26.37B | 28.52B |
| Cash, Cash Equivalents and Short-Term Investments | 24.25B | 15.39B | 29.49B | 5.26B | 4.81B | 5.45B |
| Total Debt | 21.81B | 35.83B | 23.66B | 12.41B | 9.56B | 11.55B |
| Total Liabilities | 51.18B | 52.12B | 51.34B | 21.06B | 17.88B | 20.07B |
| Stockholders Equity | 29.61B | 30.10B | 30.06B | 9.14B | 8.35B | 8.32B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -30.11B | -11.87B | -597.67M | 3.47B | 2.66B |
| Operating Cash Flow | 0.00 | 6.22B | 5.79B | 2.88B | 3.96B | 3.96B |
| Investing Cash Flow | 0.00 | -24.64B | -8.32B | -2.03B | -606.13M | -1.67B |
| Financing Cash Flow | 0.00 | 4.32B | 26.76B | -410.59M | -4.00B | -1.01B |
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥24.56B | 11.47 | ― | ― | 13.54% | 54.38% | |
68 Neutral | ¥15.83B | -40.95 | ― | ― | 12.01% | -191.28% | |
68 Neutral | ¥33.64B | 13.76 | ― | 0.39% | 22.45% | 23.34% | |
65 Neutral | ¥9.72B | 23.89 | ― | 2.16% | -1.76% | 25.65% | |
62 Neutral | ¥44.67B | 50.91 | ― | ― | 43.11% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | ¥120.14B | 32.36 | ― | 0.14% | 12.38% | -92.66% |
* Technology Sector Average
JP:3778
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SAKURA Internet Inc. Corporate Events
SAKURA internet Beats FY2026 Forecast on GPU Infrastructure Demand and Cost Controls
Apr 27, 2026
SAKURA internet Inc. reported that its full-year results for the fiscal year ended March 31, 2026, modestly exceeded its earlier consolidated forecast, with net sales reaching ¥35.3 billion and profits at every level surpassing guidance despi...
SAKURA Internet Posts Higher Sales but Swings to Loss, Targets Earnings Rebound in FY2027
Apr 27, 2026
SAKURA Internet reported a 12.4% rise in net sales to ¥35.3 billion for the year ended March 31, 2026, but swung to an operating loss of ¥403 million and saw profit attributable to owners of parent plunge 92.6% to ¥216 million. Prof...
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.