INTER ACTION (7725) AI Stock Analysis

• Market Cap: ¥14.85B
• Dividend Yield: 2.49%
• Average Volume (3M): 67.86K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.61
• Revenue Growth: -35.91%
• EPS Growth: -67.27%
• Country: JP
• Employees: 128
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 11,510,200
• 10 Day Avg. Volume: 68,270
• 30 Day Avg. Volume: 67,860
• PEG Ratio: 0.91
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.06
• P/FCF Ratio: -101.45
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,497.00 ▲(10.89% Upside)

INTER ACTION's strong financial performance, characterized by profitability and a solid balance sheet, is a key strength. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profitability

Consistent profitability and a strong balance sheet with low leverage indicate financial stability and efficient operations, supporting long-term growth.

Solid Balance Sheet

A low debt-to-equity ratio enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities.

Efficient Operations

High EBIT and EBITDA margins reflect operational efficiency, enabling the company to maintain profitability even with revenue fluctuations.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact future earnings potential and market positioning, challenging long-term sustainability.

Cash Flow Volatility

Inconsistent free cash flow growth can hinder the company's ability to fund operations and investments, affecting financial stability.

Declining EPS Growth

A significant decline in EPS growth indicates challenges in profitability and may affect investor confidence and stock performance.

INTER ACTION Business Overview & Revenue Model

Company Description

Inter Action Corporation engages in the manufacture and sale of illuminators and lens modules used for quality inspections for semiconductor manufacturing in Japan. The company operates through three segments: Internet of Things Related Works; Environmental Energy Related Works; and Promotion Business of Industry 4.0. It offers e inspection illuminators and pupil lens modules for use in quality inspections in the image sensor production process. The company also manufactures drying deodorizers for web offset printing presses; and exhaust gas treatment systems for factories. In addition, it provides precision vibration isolation systems to display manufacturers; and gear testing systems to gear manufacturers. The company was founded in 1992 and is headquartered in Yokohama, Japan.

How the Company Makes Money

INTER ACTION generates revenue through multiple streams, primarily by selling its proprietary software and applications to educational institutions, corporations, and entertainment companies. The company offers subscription-based models for its platforms, providing ongoing revenue as clients pay for access to its services. Additionally, INTER ACTION engages in project-based contracts for customized solutions, allowing for significant income from tailored development projects. Partnerships with technology firms and educational organizations further enhance its market reach and credibility, contributing to increased sales and collaborative product development, which also serves as a revenue boost.

INTER ACTION Financial Statement Overview

Summary

INTER ACTION demonstrates strong profitability and a solid balance sheet, with low leverage and consistent returns on equity. However, challenges in revenue growth and cash flow stability could impact future performance.

Income Statement

INTER ACTION has maintained healthy profitability with a consistent net profit margin around 14-15% over the years. However, the revenue growth rate has been volatile, with a significant decline of 18.45% in the latest year. Despite this, the company has strong EBIT and EBITDA margins, indicating efficient operations.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio, indicating low leverage and financial stability. The return on equity has been positive, though slightly declining, reflecting consistent profitability. The equity ratio is robust, showcasing a solid capital structure.

Cash Flow

INTER ACTION's cash flow performance has been mixed. While the operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings, the free cash flow growth has been inconsistent. The recent improvement in free cash flow is a positive sign, but past volatility poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.36B	6.67B	6.86B	7.75B	6.02B	6.63B
Gross Profit	2.34B	3.00B	3.33B	3.31B	2.74B	3.44B
EBITDA	922.21M	1.56B	1.69B	1.84B	1.40B	1.94B
Net Income	496.76M	979.27M	981.11M	1.13B	761.11M	1.16B
Balance Sheet
Total Assets	11.72B	13.66B	12.61B	13.65B	11.53B	11.56B
Cash, Cash Equivalents and Short-Term Investments	7.70B	9.13B	6.90B	6.37B	6.79B	7.26B
Total Debt	595.43M	748.18M	863.95M	806.92M	803.86M	1.04B
Total Liabilities	1.44B	1.89B	2.48B	2.61B	2.19B	2.53B
Stockholders Equity	10.29B	11.77B	10.13B	11.04B	9.34B	9.04B
Cash Flow
Free Cash Flow	0.00	3.28B	297.31M	-157.81M	297.24M	2.25B
Operating Cash Flow	0.00	3.56B	438.77M	8.28M	423.08M	2.37B
Investing Cash Flow	0.00	-293.55M	-140.33M	-154.06M	-124.86M	-86.95M
Financing Cash Flow	0.00	-415.78M	-234.58M	-469.56M	-832.13M	28.19M

INTER ACTION Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7725, the sentiment is Negative. The current price of 1350 is below the 20-day moving average (MA) of 1398.30, below the 50-day MA of 1368.71, and above the 200-day MA of 1310.38, indicating a neutral trend. The MACD of 11.52 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 2.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7725.

INTER ACTION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.54B	12.89	―	2.89%	6.15%	2.98%
6863	75 Outperform	¥14.24B	10.29	―	5.39%	6.45%	26.58%
6848	73 Outperform	¥16.96B	16.53	―	2.59%	1.66%	-12.21%
6853	72 Outperform	¥19.14B	18.58	―	2.93%	-1.58%	12.24%
7725	64 Neutral	¥14.85B	37.86	4.52%	2.49%	-35.91%	-67.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6864	51 Neutral	¥8.06B	-397.73	―	2.85%	10.27%	-106.32%

INTER ACTION Corporate Events

INTER ACTION Sees SilverCape Investments Become Largest Shareholder

INTER ACTION Corporation announced a change in its largest shareholder after a large shareholding report revealed that SilverCape Investments Limited increased its stake to 14.85% of voting rights as of December 18, 2025, making it the top shareholder. Kaname Capital, L.P. retained its holdings at 14.07% but moved to second place, and the company stated that the shift in shareholder ranking stems solely from these ownership changes and does not currently alter its business outlook or require additional disclosures for stakeholders.

The most recent analyst rating on (JP:7725) stock is a Hold with a Yen1497.00 price target. To see the full list of analyst forecasts on INTER ACTION stock, see the JP:7725 Stock Forecast page.

INTER ACTION Discloses Increase in Stake Held by Major Shareholder SilverCape Investments

INTER ACTION Corporation announced a change in its major shareholders after confirming, via a large shareholder report filed with the Kanto Regional Financial Bureau, that SilverCape Investments Limited increased its stake in the company. According to the filing, SilverCape’s holdings rose from 1,027,700 shares (9.95% of voting rights) as of May 29, 2025, to 1,231,400 shares (11.92% of voting rights) as of December 12, 2025, indicating a stronger position by the Cayman Islands–based investment manager in INTER ACTION’s shareholder structure, although the company noted it has not independently verified the exact current holdings and does not expect this ownership change to have any immediate impact on its outlook.

The most recent analyst rating on (JP:7725) stock is a Hold with a Yen1497.00 price target. To see the full list of analyst forecasts on INTER ACTION stock, see the JP:7725 Stock Forecast page.

INTER ACTION Corporation Sees Growing Demand Amid Uncertainties

INTER ACTION Corporation’s recent financial results briefing highlighted the growing demand for smartphone sensors, which is driving capital investment by overseas customers. The company has received large-scale orders, including for Pupil Lens Modules®, indicating a potential increase in adoption by major customers. Despite the positive outlook, uncertainties remain, and the company maintains its full-year earnings forecast. The company is also progressing in developing mid- to low-end inspection illuminators, targeting the expanding robotics market.

The most recent analyst rating on (JP:7725) stock is a Hold with a Yen1497.00 price target. To see the full list of analyst forecasts on INTER ACTION stock, see the JP:7725 Stock Forecast page.

INTER ACTION Updates Corporate Governance Guidelines for Sustainable Growth

INTER ACTION Corporation, a company listed on the Tokyo Prime market, has revised its Corporate Governance Guidelines to align with its Mid-Term Management Plan 2026-2030. This revision aims to strengthen the company’s governance framework, ensuring sustainable growth and long-term corporate value enhancement. The changes include updates to the corporate philosophy, dividend policy, management compensation authorization, board composition, and director qualifications.

The most recent analyst rating on (JP:7725) stock is a Buy with a Yen1609.00 price target. To see the full list of analyst forecasts on INTER ACTION stock, see the JP:7725 Stock Forecast page.

INTER ACTION Reports Sharp Decline in Q1 Financial Results

INTER ACTION Corporation reported a significant decline in its financial performance for the first quarter of the fiscal year ending May 31, 2026, with net sales and profits dropping sharply compared to the previous year. This downturn reflects challenges in the market and may impact the company’s strategic positioning and stakeholder confidence, although no changes to dividend forecasts have been announced.

The most recent analyst rating on (JP:7725) stock is a Buy with a Yen1609.00 price target. To see the full list of analyst forecasts on INTER ACTION stock, see the JP:7725 Stock Forecast page.