Internet Initiative Japan (IIJIY) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: 0.67%
• Average Volume (3M): 6.00
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.10
• Revenue Growth: 11.79%
• EPS Growth: 2.96%
• Country: US
• Employees: 5,206
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.46
• Shares Outstanding: 91,724,430
• 10 Day Avg. Volume: 20
• 30 Day Avg. Volume: 6
• PEG Ratio: 28.28
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 52.13
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.06
• 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: 70 Outperform
• Price Target: $42.00 ▲(17.38% Upside)

Internet Initiative Japan's strong financial performance is the most significant factor contributing to its overall stock score. The company's robust revenue and profit growth, along with efficient operations and a stable balance sheet, provide a solid foundation. However, mixed technical indicators and a relatively high valuation suggest caution. The absence of earnings call data and corporate events means these factors do not influence the score.

Internet Initiative Japan Business Overview & Revenue Model

Company Description

Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.

How the Company Makes Money

IIJIY generates revenue primarily through its diverse range of network services and products. Key revenue streams include monthly subscription fees from broadband internet access and VPN services, as well as one-time fees from setup and installation services. The company also earns income from its data center operations, providing colocation and managed services to businesses. Additionally, IIJIY has established strategic partnerships with technology firms and cloud service providers, enhancing its service offerings and expanding its customer base. These collaborations contribute significantly to its earnings by allowing IIJIY to offer integrated solutions that meet the evolving needs of its clients.

Internet Initiative Japan Financial Statement Overview

Summary

Internet Initiative Japan exhibits strong financial health across all verticals. The company has achieved consistent revenue and profit growth, supported by efficient operations and robust cash flow generation. Its balance sheet is stable, with prudent leverage and effective use of equity. These factors collectively contribute to a positive financial outlook, positioning the company well within the telecommunications industry.

Income Statement

Internet Initiative Japan has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.52%. The company maintains healthy profitability metrics, with a gross profit margin of 22.06% and a net profit margin of 6.34% in the TTM period. EBIT and EBITDA margins are also strong at 9.90% and 19.75%, respectively. These figures indicate robust operational efficiency and profitability, contributing to a high score.

Balance Sheet

The company's balance sheet is stable, with a manageable debt-to-equity ratio of 0.23, indicating prudent leverage. The return on equity stands at 14.78%, reflecting effective use of shareholder funds. The equity ratio is approximately 45.89%, suggesting a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability and moderate risk.

Cash Flow

Internet Initiative Japan shows strong cash flow performance, with a significant free cash flow growth rate of 165.57% in the TTM period. The operating cash flow to net income ratio is 2.09, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.57 further supports the company's ability to generate cash from operations, enhancing its financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	321.64B	316.83B	276.08B	252.71B	252.71B	252.71B
Gross Profit	70.96B	68.40B	63.87B	57.91B	57.91B	57.91B
EBITDA	62.90B	61.64B	58.38B	55.84B	55.84B	55.84B
Net Income	20.39B	19.93B	19.83B	18.85B	18.85B	18.85B
Balance Sheet
Total Assets	313.00B	312.44B	273.71B	246.19B	246.19B	246.19B
Cash, Cash Equivalents and Short-Term Investments	32.84B	34.78B	47.01B	44.39B	44.39B	44.39B
Total Debt	33.60B	33.62B	30.18B	20.43B	20.43B	20.43B
Total Liabilities	167.96B	170.35B	146.68B	126.89B	126.89B	126.89B
Stockholders Equity	143.66B	140.68B	125.75B	118.12B	118.12B	118.12B
Cash Flow
Free Cash Flow	22.34B	8.41B	21.84B	21.27B	21.27B	21.27B
Operating Cash Flow	42.65B	28.53B	40.78B	38.53B	38.53B	38.53B
Investing Cash Flow	-21.32B	-21.75B	-17.93B	-18.39B	-18.39B	-18.39B
Financing Cash Flow	-20.53B	-19.67B	-20.80B	-25.73B	-25.73B	-25.73B

Internet Initiative Japan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.78 is above the 20-day moving average (MA) of 35.37, below the 50-day MA of 36.19, and below the 200-day MA of 36.78, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 40.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIJIY.

Internet Initiative Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	78 Outperform	$5.00B	11.43	7.38%	5.38%	19.25%	5.69%
IIJIY	70 Outperform	$3.19B	23.06	15.20%	0.67%	11.79%	2.96%
VEON	70 Outperform	$3.20B	3.15	89.94%	―	8.66%	―
PHI	70 Neutral	$4.16B	7.56	27.07%	8.62%	0.35%	19.08%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	57 Neutral	$4.22B	-160.26	-0.54%	48.23%	-3.65%	-134.04%
TEO	54 Neutral	$5.48B	―	-0.27%	1.67%	3.89%	-107.44%