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SAKURA Internet Inc.
(3778)
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Rating:53Neutral
Price Target:
¥3,608.00
▲(29.78% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weakened financial performance—sharp margin deterioration, negative operating profit, and deeply negative free cash flow—despite solid technical strength with the stock in an uptrend. A high P/E further limits the score by requiring a meaningful improvement in profitability and cash generation to justify current pricing.
Positive Factors
Recurring, usage-based revenue model
SAKURA’s core business is recurring subscription and pay-as-you-go infrastructure services, creating durable revenue streams and predictable cash inflows. This business model supports retention, upsells (add-on services), and steady demand from developers and businesses, which underpins long-term revenue stability.
Negative Factors
Sharp gross margin compression
A large drop in gross margin materially weakens the company’s core profitability, suggesting increased cost of service delivery or pricing pressure. Persistently lower gross margins reduce operating leverage and make it harder to translate revenue growth into sustainable profit, raising execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, usage-based revenue model
SAKURA’s core business is recurring subscription and pay-as-you-go infrastructure services, creating durable revenue streams and predictable cash inflows. This business model supports retention, upsells (add-on services), and steady demand from developers and businesses, which underpins long-term revenue stability.
Read all positive factors
SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥122.93B
Dividend Yield0.16%
Average Volume (3M)1.25M
Price to Earnings (P/E)88.2
Beta (1Y)1.26
Revenue Growth18.12%
EPS Growth-45.73%
CountryJP
Employees1,135
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)34.88
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
¥5,980.00Price Target Upside115.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)72.97
Revenue Forecast (FY)¥46.81B
SAKURA Internet Inc. Business Overview & Revenue Model
Company Description
Established in 1996 and based in Osaka, Japan, SAKURA Internet Inc. delivers a comprehensive array of internet and technology services. The company specializes in providing internet access, along with various hosting solutions including co-locatio...
How the Company Makes Money
SAKURA Internet makes money primarily by charging recurring usage- and subscription-based fees for internet infrastructure services. Key revenue streams include: (1) Cloud/compute and storage services: customers pay for provisioned resources (e.g....
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 | 38.94B | 35.30B | 31.41B | 21.83B | 20.62B | 20.02B |
| Gross Profit | 9.83B | 7.96B | 11.23B | 5.74B | 5.37B | 4.71B |
| EBITDA | 10.44B | 7.34B | 8.91B | 4.02B | 3.88B | 4.04B |
| Net Income | 1.40B | 216.02M | 2.94B | 651.72M | 666.55M | 275.45M |
Balance Sheet | ||||||
| Total Assets | 87.55B | 82.45B | 81.60B | 30.38B | 26.37B | 28.52B |
| Cash, Cash Equivalents and Short-Term Investments | 17.27B | 15.39B | 29.49B | 5.26B | 4.81B | 5.45B |
| Total Debt | 37.57B | 35.83B | 23.66B | 12.41B | 9.56B | 11.55B |
| Total Liabilities | 56.56B | 52.12B | 51.34B | 21.06B | 17.88B | 20.07B |
| Stockholders Equity | 30.76B | 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
2947.56
Positive
3010.16
Positive
2997.04
Positive
Market Momentum
137.27
Negative
63.37
Neutral
84.75
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 2780 is below the 20-day moving average (MA) of 3047.60, below the 50-day MA of 2947.56, and below the 200-day MA of 2997.04, indicating a bullish trend. The MACD of 137.27 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.75 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥26.84B | 15.69 | ― | ― | 15.26% | 62.04% | |
77 Outperform | ¥42.32B | 28.37 | ― | 0.64% | 22.45% | 23.34% | |
71 Outperform | ¥9.15B | 10.78 | ― | 2.16% | -1.76% | 25.65% | |
68 Neutral | ¥48.21B | 75.66 | ― | ― | 38.15% | 78.39% | |
63 Neutral | ¥18.76B | -47.56 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | ¥122.93B | 88.16 | ― | 0.14% | 18.12% | -45.73% |
* Technology Sector Average
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SAKURA Internet Inc. Corporate Events
SAKURA Internet Commits ¥26 Billion to Boost Generative AI Infrastructure
Jul 28, 2026
SAKURA internet Inc. has approved a ¥26 billion investment in GPU servers, network, and storage equipment to expand its generative AI service capacity, leveraging NVIDIA HGX Rubin NVL8 GPUs. The move responds to strong demand from corporate, ...
SAKURA Internet Lifts Profit Outlook on Strong GPU and Cloud Demand
Jul 28, 2026
SAKURA Internet sharply raised its earnings forecasts for the six months to September 30, 2026 and the full fiscal year to March 31, 2027, citing stronger-than-expected demand for GPU infrastructure services. The company now expects higher net sal...
Sakura Internet Lifts Earnings Outlook on Record Q1 and AI-Driven GPU Demand
Jul 28, 2026
Sakura Internet Inc. reported strong first-quarter results for the fiscal year ending March 2027, with net sales rising 48.6% year on year to ¥11,134 million and both net sales and operating profit reaching record highs for a first quarter. O...
SAKURA Internet Swings Back to Profit and Lifts Full-Year Outlook
Jul 28, 2026
SAKURA Internet reported a sharp recovery in profitability for the quarter ended June 30, 2026, with net sales rising 48.6% year-on-year to ¥11.1 billion and profit attributable to owners of parent swinging from a loss to ¥855 million. B...
SAKURA Internet Grants Restricted Treasury Shares to Align Management with Shareholders
Jun 23, 2026
SAKURA Internet has approved the disposal of 22,185 treasury shares as restricted stock compensation for three internal directors and eleven executive officers, at a price of ¥3,190 per share, totaling about ¥70.8 million. The shares wil...
SAKURA internet to Record Offset Extraordinary Items on AI-Linked Subsidy
Jun 16, 2026
SAKURA internet Inc. will book both extraordinary income and an equivalent extraordinary loss of up to ¥2,587 million in the first quarter of the fiscal year ending March 31, 2027. The accounting entries stem from government subsidies under t...
SAKURA Internet Revamps Board and Auditor Lineup to Support Long-Term Growth
May 25, 2026
SAKURA Internet Inc. has announced a reshuffle of its board and auditors, to be finalized after shareholder approval at the June 23, 2026 annual meeting. President Kunihiro Tanaka and Director and CFO Masataka Kawada will remain on the board, whil...
SAKURA internet Wins ¥2.5 Billion NII Cloud Contract for Large Language Model R&D
May 18, 2026
SAKURA internet’s subsidiary Prunus Solutions has secured a major contract from Japan’s National Institute of Informatics to supply cloud services for large language model RD in fiscal 2026. The deal, valued at about JPY 2.5 billion, w...
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.