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INTER ACTION
(7725)
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Rating:61Neutral
Price Target:
¥1,697.00
▲(6.06% Upside)
Action:Downgraded
Date:07/14/26
The score is primarily supported by a conservatively financed balance sheet with very low leverage, reducing downside financial risk. Offsetting this, recent fundamental momentum has weakened (revenue decline and profit compression) and cash-flow history has been volatile. Technical indicators also point to a weak near-term trend, and the high P/E leaves limited valuation cushion despite a moderate dividend yield.
Positive Factors
Balance Sheet Strength
Very low leverage and a large equity base materially reduce financial risk and preserve financing optionality. This durable capital structure supports sustaining dividends, funding capex or strategic investments without relying on costly debt, and provides resilience through business cycles.
Negative Factors
Revenue and Profit Contraction
A multi‑year slowdown in top‑line and step‑down in net margins signal weakening demand or competitive pressure. Persistent revenue contraction reduces reinvestment capacity, undermines stable earnings growth, and may force strategic shifts to restore long‑term growth momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a large equity base materially reduce financial risk and preserve financing optionality. This durable capital structure supports sustaining dividends, funding capex or strategic investments without relying on costly debt, and provides resilience through business cycles.
Read all positive factors
INTER ACTION (7725) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.09B
Dividend Yield2.35%
Average Volume (3M)67.86K
Price to Earnings (P/E)36.5
Beta (1Y)1.18
Revenue Growth-27.69%
EPS Growth-41.91%
CountryJP
Employees130
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)51.37
Shares Outstanding11,510,200
10 Day Avg. Volume68,270
30 Day Avg. Volume67,860
Financial Highlights & Ratios
PEG Ratio-0.95
Price to Book (P/B)1.97
Price to Sales (P/S)4.40
P/FCF Ratio18.31
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)98.6
Revenue Forecast (FY)¥6.60B
INTER ACTION Business Overview & Revenue Model
Company Description
Inter Action Corporation, founded in Yokohama, Japan in 1992, specializes in providing a range of industrial solutions. The company's core business involves the development and distribution of sophisticated illuminators and lens modules, primarily...
How the Company Makes Money
null...
INTER ACTION Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.82B | 6.67B | 7.75B | 6.86B | 6.02B |
| Gross Profit | 2.43B | 3.00B | 3.31B | 3.33B | 2.74B |
| EBITDA | 925.52M | 1.56B | 1.84B | 1.69B | 1.40B |
| Net Income | 530.31M | 979.27M | 1.13B | 981.11M | 761.11M |
Balance Sheet | |||||
| Total Assets | 12.06B | 13.66B | 13.65B | 12.62B | 11.54B |
| Cash, Cash Equivalents and Short-Term Investments | 8.58B | 9.13B | 6.37B | 6.90B | 6.79B |
| Total Debt | 554.86M | 760.90M | 819.34M | 884.68M | 822.15M |
| Total Liabilities | 1.27B | 1.90B | 2.62B | 2.48B | 2.20B |
| Stockholders Equity | 10.79B | 11.77B | 11.04B | 10.13B | 9.34B |
Cash Flow | |||||
| Free Cash Flow | 1.16B | 3.28B | -157.81M | 297.31M | 297.24M |
| Operating Cash Flow | 1.35B | 3.56B | 8.28M | 438.77M | 423.08M |
| Investing Cash Flow | -325.44M | -293.55M | -154.06M | -140.33M | -124.86M |
| Financing Cash Flow | -1.71B | -415.78M | -469.56M | -234.58M | -832.13M |
INTER ACTION Technical Analysis
Positive
1600.00
Price Trends
1818.64
Positive
1817.22
Positive
1598.82
Positive
Market Momentum
25.93
Negative
51.93
Neutral
53.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7725, the sentiment is Positive. The current price of 1600 is below the 20-day moving average (MA) of 1844.35, below the 50-day MA of 1818.64, and above the 200-day MA of 1598.82, indicating a bullish trend. The MACD of 25.93 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7725.
INTER ACTION Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥30.44B | 14.01 | ― | 2.89% | 1.92% | 9.05% | |
72 Outperform | ¥79.26B | 14.30 | ― | 1.90% | 2.11% | -19.76% | |
69 Neutral | ¥9.22B | 9.90 | ― | 2.45% | 14.65% | 88.54% | |
69 Neutral | ¥19.68B | 9.96 | ― | 2.84% | -3.24% | -10.30% | |
68 Neutral | ¥19.40B | 19.81 | ― | 2.93% | 2.51% | 0.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥21.09B | 36.46 | 4.52% | 4.19% | -27.69% | -41.91% |
* Technology Sector Average
JP:7725
INTER ACTION
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INTER ACTION Corporate Events
INTER ACTION Outlines FY2026 Results and Progress on Mid-Term Plan
Jul 22, 2026
INTER ACTION Corporation reported its financial results for the fiscal year ended May 2026 at a briefing held on July 13, 2026. The presentation emphasized both recent performance metrics and the company’s ongoing efforts to maintain accurac...
INTER ACTION boosts R&D and overseas push as IoT and optical orders build
Jul 16, 2026
INTER ACTION Corporation outlined its financial outlook for the year to May 2027, indicating that while its planning methodology is unchanged, profitability will be tempered by higher research and development spending and increased agent fees from...
INTER ACTION to Revamp Director Stock Compensation With New Restricted Share Trust
Jul 13, 2026
INTER ACTION Corporation has resolved to overhaul its existing Board Benefit Trust stock compensation plan by introducing a new Board Benefit Trust-Restricted Stock scheme that will impose transfer restrictions on shares granted to directors until...
INTER ACTION Sees Earnings Slump in FY2026 but Forecasts Strong Rebound and Higher Dividends
Jul 13, 2026
INTER ACTION reported a sharp downturn for the fiscal year ended May 31, 2026, with net sales falling 27.7% to ¥4.82 billion and profit attributable to owners of parent dropping 45.8% to ¥530 million. Profitability metrics weakened, but ...
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.