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SAKURA Internet Inc.
(3778)
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Rating:50Neutral
Price Target:
¥2,927.00
▲(5.29% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weakened financial performance—sharp margin deterioration and deeply negative free cash flow—plus a demanding valuation (P/E ~102). Offsetting these fundamentals, the technical picture is supportive with the stock trading above major moving averages and positive momentum indicators.
Positive Factors
Recurring infrastructure revenue
Recurring usage and subscription fees provide a repeatable revenue base tied to customer retention and resource consumption. As customers expand their infrastructure needs, the model can support steadier revenue visibility and operating scale than a business dependent mainly on one-time sales.
Negative Factors
Sharp margin deterioration
The steep decline in gross margin and move into operating losses indicate that recent growth is not currently translating efficiently into profit. If the weaker cost structure persists, earnings recovery may lag revenue growth and management will have less flexibility to reinvest or absorb execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring infrastructure revenue
Recurring usage and subscription fees provide a repeatable revenue base tied to customer retention and resource consumption. As customers expand their infrastructure needs, the model can support steadier revenue visibility and operating scale than a business dependent mainly on one-time sales.
Read all positive factors
SAKURA Internet Inc. (3778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥117.02B
Dividend Yield0.17%
Average Volume (3M)675.57K
Price to Earnings (P/E)84.9
Beta (1Y)1.36
Revenue Growth18.12%
EPS Growth-45.73%
CountryJP
Employees1,135
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)34.88
Shares Outstanding41,890,700
10 Day Avg. Volume790,230
30 Day Avg. Volume675,570
Financial Highlights & Ratios
PEG Ratio-4.95
Price to Book (P/B)3.30
Price to Sales (P/S)2.81
P/FCF Ratio-3.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)80.07
Revenue Forecast (FY)¥47.68B
SAKURA Internet Inc. Business Overview & Revenue Model
Company Description
Established in 1996 and based in Osaka, Japan, SAKURA Internet Inc. delivers a comprehensive array of internet and technology services. The company specializes in providing internet access, along with various hosting solutions including co-locatio...
How the Company Makes Money
SAKURA Internet makes money primarily by charging recurring usage- and subscription-based fees for internet infrastructure services. Key revenue streams include: (1) Cloud/compute and storage services: customers pay for provisioned resources (e.g....
SAKURA Internet Inc. Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.94B | 35.30B | 31.41B | 21.83B | 20.62B | 20.02B |
| Gross Profit | 9.83B | 7.96B | 11.23B | 5.74B | 5.37B | 4.71B |
| EBITDA | 10.44B | 7.34B | 8.91B | 4.02B | 3.88B | 4.04B |
| Net Income | 1.40B | 216.02M | 2.94B | 651.72M | 666.55M | 275.45M |
Balance Sheet | ||||||
| Total Assets | 87.55B | 82.45B | 81.60B | 30.38B | 26.37B | 28.52B |
| Cash, Cash Equivalents and Short-Term Investments | 17.27B | 15.39B | 29.49B | 5.26B | 4.81B | 5.45B |
| Total Debt | 37.57B | 35.83B | 23.66B | 12.41B | 9.56B | 11.55B |
| Total Liabilities | 56.56B | 52.12B | 51.34B | 21.06B | 17.88B | 20.07B |
| Stockholders Equity | 30.76B | 30.10B | 30.06B | 9.14B | 8.35B | 8.32B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -30.11B | -11.87B | -597.67M | 3.47B | 2.66B |
| Operating Cash Flow | 0.00 | 6.22B | 5.79B | 2.88B | 3.96B | 3.96B |
| Investing Cash Flow | 0.00 | -24.64B | -8.32B | -2.03B | -606.13M | -1.67B |
| Financing Cash Flow | 0.00 | 4.32B | 26.76B | -410.59M | -4.00B | -1.01B |
SAKURA Internet Inc. Technical Analysis
Negative
2780.00
Price Trends
3618.74
Negative
3286.05
Negative
3120.62
Negative
Market Momentum
-196.76
Positive
34.31
Neutral
12.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3778, the sentiment is Negative. The current price of 2780 is below the 20-day moving average (MA) of 3494.35, below the 50-day MA of 3618.74, and below the 200-day MA of 3120.62, indicating a bearish trend. The MACD of -196.76 indicates Positive momentum. The RSI at 34.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3778.
SAKURA Internet Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥82.12B | 43.97 | ― | 0.45% | 19.17% | 46.29% | |
74 Outperform | ¥29.70B | 14.60 | ― | 0.70% | 19.19% | 93.45% | |
73 Outperform | ¥12.81B | 7.86 | ― | 2.61% | -3.72% | 138.33% | |
68 Neutral | ¥23.49B | 20.60 | ― | 1.36% | 23.79% | ― | |
65 Neutral | ¥42.20B | 60.82 | ― | ― | 45.62% | 48.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | ¥117.02B | 84.92 | ― | 0.17% | 18.12% | -45.73% |
* Technology Sector Average
JP:3778
SAKURA Internet Inc.
2,927.00
-481.49
-14.13%
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SAKURA Internet Inc. Corporate Events
SAKURA internet Reports Final Findings on Cyber Incident, Sees Limited Financial Impact
Sep 10, 2026
SAKURA internet has released its third report on the unauthorized access incident affecting its web hosting and related management systems, following investigations with an external cybersecurity firm. The company detailed the intrusion route, fin...
SAKURA internet Probes Possible Breach of Customer Data Systems
Aug 19, 2026
SAKURA internet Inc. has disclosed that an ongoing investigation into unauthorized access to certain rental server environments has uncovered possible intrusions into systems managing subscriber, billing, and other customer information. The compan...
SAKURA Internet Commits ¥26 Billion to Boost Generative AI Infrastructure
Jul 28, 2026
SAKURA internet Inc. has approved a ¥26 billion investment in GPU servers, network, and storage equipment to expand its generative AI service capacity, leveraging NVIDIA HGX Rubin NVL8 GPUs. The move responds to strong demand from corporate, ...
SAKURA Internet Lifts Profit Outlook on Strong GPU and Cloud Demand
Jul 28, 2026
SAKURA Internet sharply raised its earnings forecasts for the six months to September 30, 2026 and the full fiscal year to March 31, 2027, citing stronger-than-expected demand for GPU infrastructure services. The company now expects higher net sal...
Sakura Internet Lifts Earnings Outlook on Record Q1 and AI-Driven GPU Demand
Jul 28, 2026
Sakura Internet Inc. reported strong first-quarter results for the fiscal year ending March 2027, with net sales rising 48.6% year on year to ¥11,134 million and both net sales and operating profit reaching record highs for a first quarter. O...
SAKURA Internet Swings Back to Profit and Lifts Full-Year Outlook
Jul 28, 2026
SAKURA Internet reported a sharp recovery in profitability for the quarter ended June 30, 2026, with net sales rising 48.6% year-on-year to ¥11.1 billion and profit attributable to owners of parent swinging from a loss to ¥855 million. B...
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.