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SAKURA Internet Inc. (JP:3778)
:3778
Japanese Market
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SAKURA Internet Inc. (3778) AI Stock Analysis

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JP:3778

SAKURA Internet Inc.

(3778)

Rating:53Neutral
Price Target:
¥3,299.00
▲(7.99% Upside)
SAKURA Internet Inc. has a satisfactory financial performance with strong revenue growth and improving margins. However, technical indicators suggest a bearish trend, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors contribute to a moderate overall stock score.

SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)

SAKURA Internet Inc. Business Overview & Revenue Model

Company DescriptionSAKURA 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 MoneySAKURA 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. shows strong revenue growth and improving operational margins. However, cash flow management is concerning due to negative free cash flow, which needs strategic focus for sustainable growth.
Income Statement
70
Positive
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
65
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue31.41B21.83B20.62B20.02B22.17B
Gross Profit11.23B5.74B5.37B4.71B5.69B
EBITDA9.00B4.14B3.90B3.83B4.47B
Net Income2.94B651.72M666.55M275.45M758.36M
Balance Sheet
Total Assets81.42B30.22B26.26B28.40B27.98B
Cash, Cash Equivalents and Short-Term Investments29.49B5.26B4.81B5.45B4.17B
Total Debt23.65B12.40B9.56B11.50B12.22B
Total Liabilities51.16B20.90B17.77B19.95B19.86B
Stockholders Equity30.06B9.14B8.35B8.32B8.00B
Cash Flow
Free Cash Flow-11.87B-734.64M3.19B2.53B2.62B
Operating Cash Flow5.79B2.88B3.96B3.96B4.11B
Investing Cash Flow-8.32B-2.03B-606.13M-1.67B-1.36B
Financing Cash Flow26.76B-410.59M-4.00B-1.01B-3.15B

SAKURA Internet Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3055.00
Price Trends
50DMA
3789.50
Negative
100DMA
3652.08
Negative
200DMA
4066.75
Negative
Market Momentum
MACD
-229.88
Positive
RSI
37.24
Neutral
STOCH
51.81
Neutral
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 3055 is below the 20-day moving average (MA) of 3374.25, below the 50-day MA of 3789.50, and below the 200-day MA of 4066.75, indicating a bearish trend. The MACD of -229.88 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 51.81 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥17.51B31.89
0.17%24.15%-7.80%
66
Neutral
¥31.03B26.00
0.14%-21.25%
64
Neutral
¥29.84B28.27
23.85%138.81%
61
Neutral
$34.87B5.87-10.42%2.07%6.72%-8.84%
53
Neutral
¥122.14B47.52
0.13%45.51%292.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3778
SAKURA Internet Inc.
3,055.00
460.65
17.76%
JP:3694
OPTiM Corp.
549.00
-47.00
-7.89%
JP:3915
TerraSky Co., Ltd.
2,311.00
368.00
18.94%
JP:4493
Cyber Security Cloud, Inc.
1,727.00
-104.97
-5.73%

SAKURA Internet Inc. Corporate Events

SAKURA Internet Revises Earnings Forecast Amid GPU Sales Decline
Jul 28, 2025

SAKURA Internet Inc. has revised its earnings forecast for the fiscal year ending March 2026, citing a significant reduction in expected sales from its GPU infrastructure services due to the completion of a large-scale generative AI project. Despite this temporary setback, the company plans to introduce the new NVIDIA B200 GPU in August and is preparing to expand its offerings to meet the growing demand for AI inference services. The company is also focusing on securing Government Cloud certification and recruiting high-level talent to drive future growth.

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 Reports Revenue Growth Amid Profitability Challenges in Q1 2025
Jul 28, 2025

SAKURA Internet Inc. reported a significant increase in net sales by 26.2% for the first quarter of 2025 compared to the previous year. However, the company faced a downturn in profitability, with an operating loss of 457 million yen. The financial results indicate challenges in maintaining profitability despite revenue growth, which could impact stakeholders’ confidence and the company’s market positioning.

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 Announces Extraordinary Income and Loss for Q1 2026
Jun 27, 2025

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
Jun 20, 2025

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
Jun 20, 2025

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
Jun 19, 2025

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
May 22, 2025

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.

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.Date of analysis: Aug 07, 2025