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INTER ACTION (7725) AI Stock Analysis

JP:7725

INTER ACTION

(TSE/TYO:7725)

Select Model
Rating:63Neutral
Price Target:JPY 1,897.00â–²(5.33% Upside)
Action:reiterated
Date:10/14/26

The score is primarily supported by a conservatively financed balance sheet, but is held back by weakening recent fundamentals (revenue decline and margin compression), uneven historical cash-flow conversion, and a relatively high P/E. Technical signals are largely neutral and do not materially improve the outlook.

Positive Factors
Conservative Balance SheetVery low leverage and an equity-dominant capital structure reduce financial risk and provide resilience if operating conditions weaken. The modest debt burden also preserves flexibility to fund operations, invest selectively, and withstand earnings volatility without excessive financing pressure.
Negative Factors
Revenue ContractionRecent revenue contraction points to weakening demand or reduced business activity and limits the company’s ability to expand earnings through scale. If the trend persists, it could reduce operating leverage, constrain investment capacity, and make future profit growth more difficult.

INTER ACTION (7725) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%70%JP:7725+29.72%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 108.66M
Dividend Yield
2.44%
Average Volume (3M)
104.54K
Price to Earnings (P/E)
46.4
Beta (1Y)
1.13
Revenue Growth
-14.41%
EPS Growth
-12.98%
Country
Japan
Employees
123
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

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 ut...

INTER ACTION Financial Statement Overview

Summary

Strong balance-sheet quality (very low leverage; balance sheet score 86) supports stability, but operating performance has softened: revenue declined in 2026 and margins/net income stepped down versus prior years (income statement score 68). Cash generation recovered recently yet remains uneven due to prior volatility (cash flow score 62).

Income Statement

68Positive

Balance Sheet

86Very Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMMay 2026May 2025May 2024May 2023May 2022
Income Statement
Total Revenue4.59B4.82B6.67B7.75B6.86B6.02B
Gross Profit2.21B2.43B3.00B3.31B3.33B2.74B
EBITDA785.55M925.52M1.56B1.84B1.69B1.40B
Net Income401.07M530.31M979.27M1.13B981.11M761.11M
Balance Sheet
Total Assets11.67B12.06B13.66B13.65B12.62B11.54B
Cash, Cash Equivalents and Short-Term Investments7.80B8.58B9.13B6.37B6.90B6.79B
Total Debt539.24M554.86M760.90M819.34M884.68M822.15M
Total Liabilities1.30B1.27B1.90B2.62B2.48B2.20B
Stockholders Equity10.37B10.79B11.77B11.04B10.13B9.34B
Cash Flow
Free Cash Flow1.16B1.16B3.28B-157.81M297.31M297.24M
Operating Cash Flow1.35B1.35B3.56B8.28M438.77M423.08M
Investing Cash Flow-325.44M-325.44M-293.55M-154.06M-140.33M-124.86M
Financing Cash Flow-1.71B-1.71B-415.78M-469.56M-234.58M-832.13M

INTER ACTION Technical Analysis

Technical Analysis SentimentPositive
Last Price1801.00

Price Trends

50DMA1783.90Positive
100DMA1804.90Negative
200DMA1688.84Positive

Market Momentum

MACD5.58Negative
RSI52.16Neutral
STOCH66.98Neutral

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 1801.00 is above the 20-day moving average (MA) of 1773.45, above the 50-day MA of 1783.90, and above the 200-day MA of 1688.84, indicating a bullish trend. The MACD of 5.58 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 66.98 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7725 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6850JP:685072OutperformJPY 30.96B14.32―2.86%1.92%9.05%
JP:7745JP:774572OutperformJPY 80.05B14.40―2.05%2.11%-19.76%
JP:6853JP:685371OutperformJPY 18.86B19.14―2.91%2.51%0.17%
JP:6874JP:687469NeutralJPY 19.05B9.53―3.96%-3.24%-10.28%
JP:6858JP:685866NeutralJPY 8.30B9.75―3.65%15.62%50.30%
JP:7725JP:772563NeutralJPY 19.81B46.363.78%2.44%-14.41%-12.98%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

0%20%40%60%JP:7725JP:6850JP:6853JP:6858JP:6874JP:7745Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7725 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7725INTER ACTION Corporation1801.00413.6029.81%
JP:6850Chino Corporation1746.00404.1430.12%
JP:6853Kyowa Electronic Instruments Co., Ltd.739.0064.119.50%
JP:6858Ono Sokki Co., Ltd.740.00167.7229.31%
JP:6874Kyoritsu Electric Corporation2270.00-183.41-7.48%
JP:7745A&D HOLON Holdings Company. Limited2923.00939.4347.36%

INTER ACTION Corporate Events

INTER ACTION Swings to Quarterly Loss but Raises Dividend and Projects Strong FY Recovery

Oct 13, 2026

INTER ACTION Corporation reported a sharp downturn in first-quarter results for the period to August 31, 2026, with net sales falling 22.1% year on year to ¥816 million and a shift to an operating loss of ¥142 million, resulting in a net lo...

INTER ACTION Secures ¥747 Million in Image Sensor Inspection Orders

Sep 18, 2026

INTER ACTION Corporation has secured large orders totaling 747 million yen for its image sensor inspection products, underscoring steady demand for its specialized testing equipment in the semiconductor and imaging supply chain. The contracts will co...

INTER ACTION Corrects Expense Breakdown With No Impact on Profits

Aug 5, 2026

INTER ACTION Corporation has issued a partial correction to its consolidated financial results for the fiscal year ended May 2026, originally released in mid-July. The company discovered errors in the breakdown of selling, general and administrative...

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 accuracy a...

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 ex...

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.

Date of analysis: Oct 14, 2026