SAKURA Internet Inc. (JP:3778)
:3778
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SAKURA Internet Inc.
(3778)
Select Model
Select Model
Rating:52Neutral
Price Target:
¥2,666.00
▼(-4.10% Downside)
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 Trend
High recurring and consumption-based revenue growth demonstrates durable demand for SAKURA’s infrastructure services. Sustained top-line expansion supports investment in capacity, strengthens competitive positioning, and enables long-term customer expansion and upsell across cloud and hosting segments.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow from heavy capex reduces financial flexibility and increases reliance on external financing. Over months this can constrain ability to fund growth initiatives, dividends, or debt reduction, and heightens exposure if revenue growth slows or capex needs persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trend
High recurring and consumption-based revenue growth demonstrates durable demand for SAKURA’s infrastructure services. Sustained top-line expansion supports investment in capacity, strengthens competitive positioning, and enables long-term customer expansion and upsell across cloud and hosting segments.
Read all positive factors
SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥105.54B
Dividend Yield0.14%
Average Volume (3M)1.25M
Price to Earnings (P/E)367.3
Beta (1Y)1.27
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.77
Revenue Forecast (FY)¥35.33B
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 earns revenue by selling subscription- and usage-based internet infrastructure services. Key revenue streams include: (1) Cloud services: recurring and consumption-based fees for compute instances/virtual machines, storag...
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
Negative
2780.00
Price Trends
2836.80
Negative
2910.82
Negative
3178.03
Negative
Market Momentum
-48.85
Positive
37.23
Neutral
2.81
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 2780 is below the 20-day moving average (MA) of 2863.90, below the 50-day MA of 2836.80, and below the 200-day MA of 3178.03, indicating a bearish trend. The MACD of -48.85 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 2.81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥20.73B | 9.96 | ― | ― | 17.93% | 91.21% | |
68 Neutral | ¥31.01B | 27.58 | ― | 0.39% | 30.59% | 65.14% | |
65 Neutral | ¥10.14B | 13.23 | ― | 2.16% | 2.75% | 25.24% | |
62 Neutral | ¥43.48B | 50.91 | ― | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥15.78B | 8.71 | ― | ― | ― | ― | |
52 Neutral | ¥105.54B | 367.27 | ― | 0.14% | 36.42% | 28.23% |
* Technology Sector Average
JP:3778
SAKURA Internet Inc.
2,640.00
-1,276.00
-32.58%
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SAKURA Internet Inc. Corporate Events
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.