Image Information Inc (3803) AI Stock Analysis

• Market Cap: ¥2.41B
• Dividend Yield: N/A
• Average Volume (3M): 517.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• 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: 51 Neutral
• Price Target: ¥752.00 ▲(44.06% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily constrained by weak financial performance, driven by losses and uneven cash generation, despite a comparatively stable low-leverage balance sheet. Technicals are mixed, showing short-term strength but negative MACD and a price still below the 200-day average. Valuation is also pressured by a negative P/E and no provided dividend yield.

Positive Factors

Low leverage / strong equity base

A low debt-to-equity profile and strong equity position provide durable financial flexibility. Over the next several months this supports interest-cost resilience, access to credit or strategic reinvestment, and lowers insolvency risk compared with highly leveraged peers.

Recent revenue growth

Reported revenue growth of ~30% signals stronger top-line momentum and market demand. Sustained revenue expansion can improve operating leverage, support margin recovery if cost control follows, and create a foundation for scalable profitability over the medium term.

Operating cash flow improvement in 2024

A return to positive operating cash flow in 2024 is a durable sign that core operations can generate cash. If sustained, this reduces reliance on external financing, enables reinvestment or debt reduction, and materially improves liquidity and strategic optionality over time.

Negative Factors

Negative profitability and margins

Persistent negative net and operating margins indicate structural profitability issues. Continued losses erode retained earnings, constrain reinvestment and R&D, and increase dependence on external capital, making sustainable growth and scalability more difficult over the medium term.

Volatile and weak cash generation

Volatile and intermittently negative operating and free cash flows undermine planning and capital allocation. Without consistent free cash generation, the company may face liquidity stress, higher financing costs, or dilution from capital raises, limiting long-term strategic initiatives.

Declining stockholders' equity

A shrinking equity base reduces the capital buffer against losses and can restrict borrowing capacity. Over months this diminishes financial resilience, raises solvency concerns if losses continue, and weakens the firm's ability to pursue investments or absorb shocks.

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

Weak profitability and declining revenue with negative EBIT/EBITDA margins weigh heavily. The balance sheet is a relative strength due to low leverage, but cash flows have been volatile with recent negative operating/free cash flow despite improvement in 2024.

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	677.28M	614.39M	627.90M	706.89M	767.52M	799.75M
Cash, Cash Equivalents and Short-Term Investments	359.33M	275.44M	363.16M	454.91M	504.97M	321.46M
Total Debt	53.24M	3.60M	0.00	106.66M	106.66M	140.00M
Total Liabilities	390.64M	306.29M	291.06M	348.12M	429.98M	452.87M
Stockholders Equity	262.55M	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: Negative
• RSI: Neutral
• STOCH: Negative

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 603.15, below the 50-day MA of 620.54, and below the 200-day MA of 756.53, indicating a neutral trend. The MACD of -14.74 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, 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	¥6.54B	14.49	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.27B	-16.02	―	1.61%	7.03%	1.01%
4396	76 Outperform	¥24.06B	11.39	―	1.70%	22.25%	31.88%
3916	72 Outperform	¥30.38B	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	¥33.58B	29.01	―	―	-10.49%	―
3803	51 Neutral	¥2.41B	-4.15	―	―	39.34%	-765.51%