TSE:3774

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Internet Initiative Japan

Executive Summary

Internet Initiative Japan Inc. offers Internet connectivity, WAN, outsourcing, systems integration, and equipment sales services in Japan.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Internet Initiative Japan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3774's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

3774

2.7%

JP Telecom

2.8%

JP Market


1 Year Return

91.5%

3774

2.9%

JP Telecom

5.4%

JP Market

Return vs Industry: 3774 exceeded the JP Telecom industry which returned 2.9% over the past year.

Return vs Market: 3774 exceeded the JP Market which returned 5.4% over the past year.


Shareholder returns

3774IndustryMarket
7 Day5.0%2.7%2.8%
30 Day6.4%3.4%12.4%
90 Day26.8%1.7%9.3%
1 Year93.3%91.5%6.5%2.9%8.2%5.4%
3 Year102.0%95.2%7.6%-2.6%9.9%2.4%
5 Year111.9%100.0%34.5%16.3%14.2%1.7%

Price Volatility Vs. Market

How volatile is Internet Initiative Japan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Internet Initiative Japan undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3774 (¥3995) is trading below our estimate of fair value (¥9288.71)

Significantly Below Fair Value: 3774 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3774 is poor value based on its PE Ratio (44.9x) compared to the Telecom industry average (19.4x).

PE vs Market: 3774 is poor value based on its PE Ratio (44.9x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3774 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 3774 is good value based on its PB Ratio (2.3x) compared to the JP Telecom industry average (3x).


Next Steps

Future Growth

How is Internet Initiative Japan forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3774's forecast earnings growth (15.9% per year) is above the savings rate (0.05%).

Earnings vs Market: 3774's earnings (15.9% per year) are forecast to grow faster than the JP market (12.2% per year).

High Growth Earnings: 3774's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3774's revenue (4.6% per year) is forecast to grow faster than the JP market (3.1% per year).

High Growth Revenue: 3774's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3774's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

  • Explore growth companies in the Telecom industry.

Past Performance

How has Internet Initiative Japan performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3774 has high quality earnings.

Growing Profit Margin: 3774's current net profit margins (2%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: 3774's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: 3774's earnings growth over the past year (13.6%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: 3774 earnings growth over the past year (13.6%) exceeded the Telecom industry 11.7%.


Return on Equity

High ROE: 3774's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Internet Initiative Japan's financial position?


Financial Position Analysis

Short Term Liabilities: 3774's short term assets (¥86.6B) exceed its short term liabilities (¥65.7B).

Long Term Liabilities: 3774's short term assets (¥86.6B) exceed its long term liabilities (¥60.8B).


Debt to Equity History and Analysis

Debt Level: 3774's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: 3774's debt to equity ratio has increased from 14.7% to 34.7% over the past 5 years.

Debt Coverage: 3774's debt is well covered by operating cash flow (120.3%).

Interest Coverage: 3774's interest payments on its debt are well covered by EBIT (37.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Internet Initiative Japan's current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3774's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.44%).

High Dividend: 3774's dividend (0.85%) is low compared to the top 25% of dividend payers in the JP market (3.33%).


Stability and Growth of Payments

Stable Dividend: 3774's dividends per share have been stable in the past 10 years.

Growing Dividend: 3774's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.4%), 3774's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Koichi Suzuki (73yo)

26.17yrs

Tenure

Mr. Koichi Suzuki has been the Chief Executive Officer and President of hi-ho, Inc. since April 1, 2016. Mr. Suzuki has been the Chairman of Internet Initiative Japan Inc. since June 26, 2013 and serves as ...


Leadership Team

NamePositionTenureCompensationOwnership
Koichi Suzuki
Chairman & CEO26.17yrsno data5.86% ¥10.6b
Eijiro Katsu
President7yrsno data0.069% ¥124.9m
Akihisa Watai
CFO, Chief Accounting Officer16yrsno data0.029% ¥52.6m
Junichi Shimagami
CTO & Director5yrsno data0.021% ¥38.2m
Masayoshi Tobita
Managing Exec. Officer & Division Director of Administrative Divisionno datano datano data
Akira Sumiya
Executive Officer & GM of Compliance Departmentno datano datano data
Kazuhiro Tokita
Senior Managing Executive Officer8.17yrsno datano data
Takeshi Kikuchi
Senior MD & Director10yrsno data0.13% ¥239.5m
Naoshi Yoneyama
Senior Managing Exec. Officer & Division Director of Corporate Planning Divisionno datano data0.044% ¥79.9m
Tadashi Kawashima
MD & Director5yrsno data0.0047% ¥8.5m

8.2yrs

Average Tenure

56yo

Average Age

Experienced Management: 3774's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Koichi Suzuki
Chairman & CEO26.17yrsno data5.86% ¥10.6b
Eijiro Katsu
President7yrsno data0.069% ¥124.9m
Akihisa Watai
CFO, Chief Accounting Officer16yrsno data0.029% ¥52.6m
Junichi Shimagami
CTO & Director5yrsno data0.021% ¥38.2m
Takeshi Kikuchi
Senior MD & Director10yrsno data0.13% ¥239.5m
Tadashi Kawashima
MD & Director5yrsno data0.0047% ¥8.5m
Tadashi Okamura
Director5yrsno data0.00025% ¥450.3k
Yasurou Tanahashi
Director16yrsno datano data
Shingo Oda
Director12yrsno datano data
Toshinori Iwasawa
Director7yrsno data0.0032% ¥5.8m

7.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 3774's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Internet Initiative Japan Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Internet Initiative Japan Inc.
  • Ticker: 3774
  • Exchange: TSE
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥180.109b
  • Shares outstanding: 45.08m
  • Website: https://www.iij.ad.jp

Number of Employees


Location

  • Internet Initiative Japan Inc.
  • Iidabashi Grand Bloom
  • 2-10-2 Fujimi
  • Tokyo
  • 102-0071
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIJI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 1999
IIJDB (Deutsche Boerse AG)SPONSORED ADRDEEURAug 1999
IIJBST (Boerse-Stuttgart)SPONSORED ADRDEEURAug 1999
3774TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2005
I6IDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2005
IIJI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2005

Biography

Internet Initiative Japan Inc. offers Internet connectivity, WAN, outsourcing, systems integration, and equipment sales services in Japan. It operates in two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company’s Internet connectivity services for enterprise include IP services and IIJ data center connectivity services, IIJ FiberAccess/F and IIJ DSL/F services, IIJ mobile services, and dial-up access services, as well as other Internet connectivity services comprising IIJ ISDN/F and IIJ line management/F services. Its Internet connectivity services for consumers consist of various service, including ADSL, fiber optic, WiMAX, 3G, and LTE wireless data communication services under the IIJmio and hi-ho brand names. The company also offers WAN services, a closed network service primarily using dedicated lines, as well as wide-area Ethernet services and IP-VPN services to corporate customers; outsourcing services that comprise security-related, network-related, server-related, data center-related, and IIJ GIO/Hosting package services for non-customizable hosting package cloud computing services; and customer support and help desk solutions, and IP phone services. In addition, it provides systems integration services, which include consulting, project planning, systems design, and development of network systems, which focus on Internet business systems, and Intranet and Extranet corporate information systems; and systems operation and maintenance services. Further, the company sells routers, iPads, and other equipment, as well as software; and provides automated teller machine (ATM) services. As of June 29, 2018, it operated 29 primary points of presence (POP) for dedicated access and 1 universal POP for nationwide dial-up access; 27 Internet data centers; and 1,096 ATMs. The company was founded in 1992 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 16:22
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.