Image Information Inc (3803) AI Stock Analysis

• Market Cap: ¥2.15B
• Dividend Yield: N/A
• Average Volume (3M): 517.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 39.34%
• EPS Growth: -765.51%
• Country: JP
• Employees: 54
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -31.48
• Shares Outstanding: 3,381,500
• 10 Day Avg. Volume: 101,160
• 30 Day Avg. Volume: 517,020
• PEG Ratio: -0.34
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -110.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥473.00 ▼(-9.39% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial performance (losses and inconsistent cash flow) and a bearish technical trend (price below key moving averages with negative momentum). A low-leverage balance sheet provides some stability, but the negative P/E and lack of dividend data keep valuation support limited.

Positive Factors

Low leverage / strong equity ratio

A low debt-to-equity profile and solid equity ratio provide durable financial flexibility, lowering refinancing risk and enabling the company to fund operations or strategic initiatives without heavy interest burdens. This stability supports survival and optionality through economic cycles.

Top-line growth momentum

Reported ~30% revenue growth shows recent top-line momentum that, if sustained, can enable scale benefits and leverage fixed costs. Persistent growth improves the odds of returning to profitability and makes investments in product, sales, or recurring-revenue models more effective over the medium term.

Improving operating cash flow (2024)

A shift to positive operating cash flow in 2024 indicates the business can generate cash from core operations intermittently. If management sustains this trend, it reduces reliance on external financing, helps repair free-cash-generation dynamics, and supports reinvestment or debt reduction over months.

Negative Factors

Negative profitability and margins

Persistently negative net, EBIT and EBITDA margins signal structural profitability issues and operational inefficiencies. Over the medium term, absent sustained margin recovery, the company may struggle to convert revenue growth into cash profits, constraining reinvestment and strategic options.

Volatile and weak cash generation

Intermittent negative operating and free cash flows point to inconsistent cash conversion and liquidity risk. Even with one year of positive OCF, ongoing volatility hampers the company’s ability to fund capex, pay suppliers, or build reserves, raising execution risk over coming quarters.

Declining shareholders' equity

A trend of declining shareholders' equity erodes the company’s capital buffer and can limit borrowing capacity. Over months, continued equity erosion increases vulnerability to adverse shocks, reduces strategic flexibility, and may pressure creditor and supplier confidence if not reversed.

Image Information Inc Business Overview & Revenue Model

Company Description

Image Information Inc. provides business integration services in Japan. It develops and offers a platform that enables companies and organizations to integrate various IT consulting-based services and functions in their business models. The company trades in IT equipment and software; and develops packaged software. In addition, it provides medical and anti-aging related services, as well as involved in payment processing services. The company serves the finance and manufacturing, shopping mall, and other sectors. Image Information Inc. was incorporated in 1975 and is headquartered in Tokyo, Japan.

Image Information Inc Financial Statement Overview

Summary

Financials are pressured by negative profitability (declining revenue, negative net/EBIT/EBITDA margins) and uneven cash generation (recent negative operating and free cash flow, despite improvement in 2024). The balance sheet is a relative strength with low leverage and a solid equity ratio, though equity has been declining.

Income Statement

Image Information Inc's income statement reflects a challenging period with a negative net profit margin and declining revenue over the recent years. The gross profit margin is positive but has decreased over time, indicating potential cost management issues. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet of Image Information Inc shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains solid, suggesting a robust asset base backed by equity. However, declining stockholders' equity over the years may pose a risk if not addressed.

Cash Flow

The cash flow statement reveals volatility, with negative operating and free cash flows in recent periods, suggesting liquidity challenges. However, the company had positive operating cash flow in 2024, indicating potential for improvement. The free cash flow to net income ratio is concerning, reflecting cash generation issues relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	720.35M	646.06M	527.91M	546.14M	928.83M	684.95M
Gross Profit	152.32M	138.07M	149.19M	177.00M	160.11M	146.32M
EBITDA	-102.60M	-8.80M	-1.03M	58.10M	25.65M	151.09M
Net Income	-107.28M	-36.57M	-20.73M	50.56M	6.42M	144.88M
Balance Sheet
Total Assets	677.00M	614.39M	627.90M	706.89M	767.52M	799.75M
Cash, Cash Equivalents and Short-Term Investments	360.00M	275.44M	363.16M	454.91M	504.97M	321.46M
Total Debt	52.00M	3.60M	0.00	106.66M	140.00M	140.00M
Total Liabilities	391.00M	306.29M	291.06M	348.12M	429.99M	452.87M
Stockholders Equity	262.00M	284.14M	336.84M	358.77M	337.53M	346.88M
Cash Flow
Free Cash Flow	0.00	-8.55M	-20.81M	-82.34M	168.22M	-220.53M
Operating Cash Flow	0.00	-7.53M	39.15M	-46.20M	189.04M	-219.45M
Investing Cash Flow	0.00	-44.69M	-24.24M	29.47M	-5.53M	137.09M
Financing Cash Flow	0.00	-39.82M	-106.66M	-33.34M	0.00	120.00M

Image Information Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 522.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3803, the sentiment is Positive. The current price of 522 is below the 20-day moving average (MA) of 605.45, below the 50-day MA of 616.00, and below the 200-day MA of 755.32, indicating a neutral trend. The MACD of -31.53 indicates Positive momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 57.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3803.

Image Information Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3940	78 Outperform	¥6.49B	14.84	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.32B	-16.02	―	1.61%	7.03%	1.01%
4396	76 Outperform	¥24.11B	11.39	―	1.70%	22.25%	31.88%
3916	72 Outperform	¥30.14B	16.05	―	2.45%	19.04%	30.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥32.32B	29.01	―	―	-10.49%	―
3803	47 Neutral	¥2.15B	-4.15	―	―	39.34%	-765.51%