INTER ACTION (7725) AI Stock Analysis

• Market Cap: $16.06B
• Dividend Yield: 2.4%
• Average Volume (3M): 66.45K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 0.67
• Revenue Growth: -35.91%
• EPS Growth: -67.27%
• Country: JP
• Employees: 128
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 4.44
• Shares Outstanding: 11,510,200
• 10 Day Avg. Volume: 65,400
• 30 Day Avg. Volume: 66,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 3.62
• 1Y Price Target: $1,608.71
• Price Target Upside: 10.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,609.00 ▲(10.21% Upside)

INTER ACTION's strong financial performance and positive technical indicators are the primary drivers of its score. While the valuation is fair, the lack of earnings call data and corporate events limits additional insights. Continued focus on revenue growth and cash flow stability will be crucial for future performance.

INTER ACTION Business Overview & Revenue Model

Company Description

INTER ACTION (7725) is a diversified company operating primarily in the technology and communication sectors. The company specializes in providing innovative software solutions, digital marketing services, and IT consulting. With a focus on enhancing user engagement and optimizing business processes, INTER ACTION offers a range of products that cater to both enterprise clients and individual consumers, including mobile applications, web platforms, and data analytics tools.

How the Company Makes Money

INTER ACTION generates revenue through multiple streams, primarily from the sale of its software products and subscription-based services. The company licenses its technology to businesses, allowing them to integrate INTER ACTION's solutions into their operations. Additionally, it earns income from consulting services, where experts provide tailored advice and strategies to optimize clients' tech infrastructures. The digital marketing division contributes significantly to revenue by offering targeted advertising solutions and SEO services, while strategic partnerships with other tech firms and agencies enhance its market reach and create additional income opportunities through collaborative projects.

INTER ACTION Financial Statement Overview

Summary

INTER ACTION shows 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 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.18B	6.67B	7.75B	6.86B	6.02B	6.63B
Gross Profit	3.83B	3.00B	3.31B	3.33B	2.74B	3.44B
EBITDA	2.25B	1.56B	1.84B	1.69B	1.40B	1.94B
Net Income	1.49B	979.27M	1.13B	981.11M	761.11M	1.16B
Balance Sheet
Total Assets	13.57B	13.66B	13.65B	12.61B	11.53B	11.56B
Cash, Cash Equivalents and Short-Term Investments	9.18B	9.13B	6.37B	6.90B	6.79B	7.26B
Total Debt	761.47M	748.18M	806.92M	863.95M	803.86M	1.04B
Total Liabilities	1.87B	1.89B	2.61B	2.48B	2.19B	2.53B
Stockholders Equity	11.71B	11.77B	11.04B	10.13B	9.34B	9.04B
Cash Flow
Free Cash Flow	0.00	3.28B	-157.81M	297.31M	297.24M	2.25B
Operating Cash Flow	0.00	3.56B	8.28M	438.77M	423.08M	2.37B
Investing Cash Flow	0.00	-293.55M	-154.06M	-140.33M	-124.86M	-86.95M
Financing Cash Flow	0.00	-415.78M	-469.56M	-234.58M	-832.13M	28.19M

INTER ACTION Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1460.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7725, the sentiment is Neutral. The current price of 1460 is below the 20-day moving average (MA) of 1499.00, above the 50-day MA of 1433.70, and above the 200-day MA of 1228.59, indicating a neutral trend. The MACD of 17.65 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7725.

INTER ACTION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	79 Outperform	¥23.69B	11.95	―	5.15%	9.88%	11.83%
7725	75 Outperform	$16.06B	32.14	4.52%	2.40%	-35.91%	-67.27%
6848	71 Outperform	¥16.60B	15.56	―	2.63%	2.16%	-15.53%
6853	69 Neutral	¥18.40B	17.37	―	3.27%	2.10%	4.70%
6863	67 Neutral	¥12.75B	9.54	―	5.63%	4.80%	32.85%
6864	67 Neutral	¥9.92B	27.34	―	2.26%	4.03%	-2.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

INTER ACTION Corporate Events

INTER ACTION Corporation Transfers Subsidiary, Alters Business Segments

INTER ACTION Corporation has completed the transfer of its subsidiary, AIR GASES TECHNOS Inc., to Chikuho Trading Inc., resulting in the discontinuation of its ‘Environmental energy related works’ segment. This strategic move will not affect the company’s earnings forecast for the fiscal year ending May 31, 2025, but will lead to a reclassification of business segments starting from the fiscal year ending May 2026.

INTER ACTION Corporation Transfers Subsidiary Shares to Chikuho Trading

INTER ACTION Corporation has decided to transfer all shares of its subsidiary, AIR GASES TECHNOS Inc., to Chikuho Trading Inc. This decision comes after a strategic review of its business portfolio, considering future business environments. The transfer marks a shift in INTER ACTION’s strategic direction, potentially impacting its focus on environmental energy-related works.

INTER ACTION Announces Chairman’s Retirement and Management Transition

INTER ACTION Corporation announced the retirement of its founder and Chairman, Hideo Kiji, from the Board of Directors, effective May 31, 2025. This change is part of a strategic transition to a new management structure, with Hideo Kiji continuing to support the company as its honorary chairman, ensuring stability and continuity.

INTER ACTION Corporation Exceeds Forecasts and Prepares for Future Growth

INTER ACTION Corporation’s recent financial results briefing highlights that the company is performing better than its earnings forecast, driven by strong sales in its Industry 4.0 business and profitability improvements. Despite potential indirect impacts from U.S. tariffs, the company remains optimistic about its ability to adapt and maintain growth. Looking ahead, INTER ACTION anticipates a temporary slowdown in customer capital expenditures but expects recovery and is preparing for critical periods in the coming years by focusing on strategic investments.

INTER ACTION Corporation’s 2025 Financial Results and Strategic Updates

INTER ACTION Corporation presented its financial results for the first three quarters of fiscal year 2025, highlighting progress in its IoT-related business and strategies for sustainable growth. The company emphasized changes to shareholder returns and cash allocation, which may impact its market positioning and stakeholder interests.

INTER ACTION Reports Strong Q3 Financial Performance

INTER ACTION Corporation reported a significant improvement in its financial performance for the third quarter of the fiscal year ending May 31, 2025, with notable increases in net sales and profits compared to the previous year. The company maintains a strong financial position with a high shareholders’ equity ratio, and it has set a target for its Dividend on Equity Ratio, reflecting its focus on shareholder returns.