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Internet Initiative Japan
(OTC:IIJIY)
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Rating:70Outperform
Price Target:
$51.00
▲(21.28% Upside)
Action:Reiterated
Date:08/10/26
IIJIY earns a 70 driven primarily by solid financial performance (steady growth, strong low-leverage balance sheet) and constructive technical momentum (price above key moving averages with positive MACD). The score is held back by weaker TTM free-cash-flow trends and a relatively higher P/E with only a modest dividend yield.
Positive Factors
Conservative balance sheet
Low reported leverage (debt-to-equity ~0.23) and stronger equity provide durable financial flexibility. This conservative funding base supports investment in data centers, cloud capacity and managed services, lowers default risk, and enables opportunistic M&A or capex without stressing liquidity.
Negative Factors
Weakening free cash flow conversion
A notable decline in free cash flow and coverage at ~60% of net income reduces internally available funds to finance capex, dividends or debt reduction. Sustained weak cash conversion could force external financing or slow growth investments, curbing long-term financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low reported leverage (debt-to-equity ~0.23) and stronger equity provide durable financial flexibility. This conservative funding base supports investment in data centers, cloud capacity and managed services, lowers default risk, and enables opportunistic M&A or capex without stressing liquidity.
Read all positive factors
Internet Initiative Japan (IIJIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.78B
Dividend Yield1.13%
Average Volume (3M)60.00
Price to Earnings (P/E)23.0
Beta (1Y)0.09
Revenue Growth10.29%
EPS Growth18.39%
CountryUS
Employees5,533
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)283.08
Shares Outstanding91,739,334
10 Day Avg. Volume127
30 Day Avg. Volume60
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.63
Price to Sales (P/S)1.14
P/FCF Ratio13.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.79
Revenue Forecast (FY)$2.50B
Internet Initiative Japan Business Overview & Revenue Model
Company Description
Internet Initiative Japan Inc. (IIJ), established in Tokyo, Japan, in 1992, is a comprehensive provider of IT and networking services primarily within Japan. The company operates through two distinct segments: its core Network Services and Systems...
How the Company Makes Money
IIJ primarily makes money by selling recurring subscription services and project-based integration work to corporate and government customers.
1) Recurring service revenue (core): A significant portion of IIJ’s earnings comes from monthly/usage-b...
Internet Initiative Japan Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 369.52B | 366.23B | 316.83B | 276.08B | 252.71B | 226.34B |
| Gross Profit | 78.19B | 80.76B | 68.40B | 63.87B | 57.91B | 51.63B |
| EBITDA | 70.88B | 70.40B | 61.64B | 58.88B | 55.84B | 53.17B |
| Net Income | 25.06B | 25.65B | 19.93B | 19.83B | 18.85B | 15.67B |
Balance Sheet | ||||||
| Total Assets | 363.76B | 348.44B | 312.44B | 273.71B | 246.19B | 231.81B |
| Cash, Cash Equivalents and Short-Term Investments | 37.42B | 41.58B | 34.78B | 47.01B | 44.39B | 48.69B |
| Total Debt | 35.57B | 35.72B | 33.62B | 30.18B | 20.43B | 21.87B |
| Total Liabilities | 201.29B | 188.28B | 170.35B | 146.68B | 126.89B | 127.18B |
| Stockholders Equity | 160.94B | 158.69B | 140.68B | 125.75B | 118.12B | 103.53B |
Cash Flow | ||||||
| Free Cash Flow | 21.65B | 31.90B | 8.41B | 21.84B | 21.27B | 32.05B |
| Operating Cash Flow | 49.04B | 53.50B | 28.53B | 40.78B | 38.53B | 43.57B |
| Investing Cash Flow | -27.24B | -28.02B | -21.75B | -17.93B | -18.39B | -11.84B |
| Financing Cash Flow | -18.91B | -20.16B | -19.67B | -20.80B | -25.73B | -27.30B |
Internet Initiative Japan Technical Analysis
Negative
42.05
Price Trends
42.81
Negative
39.99
Positive
36.27
Positive
Market Momentum
-0.34
Positive
45.55
Neutral
60.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIJIY, the sentiment is Negative. The current price of 42.05 is below the 20-day moving average (MA) of 42.65, below the 50-day MA of 42.81, and above the 200-day MA of 36.27, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 60.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIJIY.
Internet Initiative Japan Risk Analysis
Internet Initiative Japan disclosed 19 risk factors in its most recent earnings report. Internet Initiative Japan reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Internet Initiative Japan Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.78B | 22.96 | 16.03% | 1.13% | 10.29% | 18.39% | |
70 Outperform | $5.95B | 12.31 | 9.66% | 2.36% | 33.24% | ― | |
69 Neutral | $3.94B | 8.54 | 22.58% | 8.42% | -1.72% | -18.30% | |
69 Neutral | $4.46B | 11.28 | 7.05% | 4.20% | 16.11% | 2.15% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $3.33B | 4.27 | 37.85% | 110.32% | -94.23% | ― | |
58 Neutral | $4.09B | 95.34 | 4.15% | 12.73% | 14.60% | -94.13% |
* Communication Services Sector Average
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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.