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Internet Initiative Japan
(3774)
Select Model
Select Model
Rating:70Outperform
Price Target:
¥3,798.00
▲(11.28% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by steady revenue growth, healthy margins, and a conservative balance sheet with strong ROE. Offsetting factors are weaker recent free cash flow conversion and a relatively high P/E with only a modest dividend yield. Technicals are supportive but currently neutral, suggesting consolidation rather than strong momentum.
Positive Factors
Recurring, diversified revenue streams
IIJ's core model centers on subscription and usage-based network, cloud, security and mobile services plus SI projects. This mix drives customer stickiness and predictable contracted revenue, supporting durable topline visibility and cross-sell opportunities over a multi-month horizon.
Negative Factors
Weaker free cash flow conversion
A sharp FCF decline and FCF covering only ~60% of net income mean reported earnings are not fully converting to residual cash after investments. Persisting weak cash conversion can constrain dividends, buybacks or organic capex funding and raise dependence on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue streams
IIJ's core model centers on subscription and usage-based network, cloud, security and mobile services plus SI projects. This mix drives customer stickiness and predictable contracted revenue, supporting durable topline visibility and cross-sell opportunities over a multi-month horizon.
Read all positive factors
Internet Initiative Japan (3774) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥597.37B
Dividend Yield1.2%
Average Volume (3M)505.33K
Price to Earnings (P/E)23.3
Beta (1Y)0.11
Revenue Growth13.85%
EPS Growth21.44%
CountryJP
Employees5,576
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)139.95
Shares Outstanding183,478,670
10 Day Avg. Volume473,140
30 Day Avg. Volume505,333
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)2.74
Price to Sales (P/S)1.26
P/FCF Ratio14.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,300.00Price Target Upside-3.31% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)143.18
Revenue Forecast (FY)¥395.48B
Internet Initiative Japan Business Overview & Revenue Model
Company Description
Internet Initiative Japan Inc. (IIJ), established in Tokyo in 1992, is a leading technology company in Japan offering a diverse portfolio of internet and IT services. The company operates through two primary divisions: Network Services and Systems...
How the Company Makes Money
IIJ primarily makes money by selling recurring (subscription/usage-based) ICT services and by delivering project-based systems integration and related support.
1) Recurring network and connectivity services: A core revenue stream is providing ent...
Internet Initiative Japan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 366.18B | 345.39B | 316.83B | 276.08B | 252.71B | 226.34B |
| Gross Profit | 77.44B | 76.17B | 64.77B | 60.57B | 54.83B | 48.50B |
| EBITDA | 70.56B | 69.32B | 61.64B | 58.88B | 56.66B | 53.16B |
| Net Income | 24.81B | 24.19B | 19.93B | 19.83B | 18.85B | 15.67B |
Balance Sheet | ||||||
| Total Assets | 363.76B | 346.93B | 312.44B | 273.71B | 246.32B | 231.81B |
| Cash, Cash Equivalents and Short-Term Investments | 34.19B | 38.40B | 32.53B | 45.47B | 42.47B | 47.39B |
| Total Debt | 71.27B | 35.57B | 64.21B | 56.42B | 50.47B | 51.12B |
| Total Liabilities | 201.29B | 187.46B | 170.35B | 146.68B | 126.89B | 127.18B |
| Stockholders Equity | 160.94B | 158.01B | 140.68B | 125.75B | 118.24B | 103.53B |
Cash Flow | ||||||
| Free Cash Flow | 23.12B | 30.08B | 16.62B | 29.04B | 26.74B | 36.79B |
| Operating Cash Flow | 48.88B | 50.46B | 28.53B | 40.78B | 38.53B | 43.57B |
| Investing Cash Flow | -27.03B | -26.43B | -21.75B | -17.93B | -18.39B | -11.84B |
| Financing Cash Flow | -18.73B | -19.01B | -19.67B | -20.80B | -25.73B | -27.30B |
Internet Initiative Japan Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥15.34B | 30.06 | ― | 1.01% | 14.33% | 112.44% | |
70 Outperform | ¥597.37B | 23.31 | 16.08% | 1.12% | 13.85% | 21.44% | |
69 Neutral | ¥10.44T | 14.68 | 14.41% | 2.71% | 4.05% | 18.81% | |
68 Neutral | ¥14.46T | 13.09 | 10.96% | 3.50% | 7.56% | 8.41% | |
66 Neutral | ¥11.44T | 20.73 | ― | 3.88% | 7.91% | 8.35% | |
65 Neutral | ¥418.44B | 24.41 | 16.96% | 1.49% | 6.44% | 8.66% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* 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.