OTCPK:IIJI.Y

Stock Analysis Report

Internet Initiative Japan

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

-3.0%

IIJI.Y

-0.3%

US Telecom

1.0%

US Market


1 Year Return

21.9%

IIJI.Y

10.9%

US Telecom

6.7%

US Market

Return vs Industry: IIJI.Y exceeded the US Telecom industry which returned 10.9% over the past year.

Return vs Market: IIJI.Y exceeded the US Market which returned 6.7% over the past year.


Share holder returns

IIJI.YIndustryMarket
7 Day-3.0%-0.3%1.0%
30 Day-1.0%-1.0%-1.8%
90 Day15.0%7.1%-1.8%
1 Year21.9%21.9%16.7%10.9%9.1%6.7%
3 Year34.2%34.2%19.6%2.2%46.1%36.6%
5 Year23.3%23.3%39.4%7.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

27.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: IIJI.Y ($11.29) is trading above our estimate of fair value ($7.3)

Significantly Undervalued: IIJI.Y is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: IIJI.Y is poor value based on its PE Ratio (27.3x) compared to the Telecom industry average (18.7x).

PE vs Market: IIJI.Y is poor value based on its PE Ratio (27.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: IIJI.Y is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: IIJI.Y is overvalued based on its PB Ratio (2.9x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

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

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: IIJI.Y's forecast earnings growth (13.8% per year) is above the savings rate (2.7%).

Earnings vs Market: IIJI.Y's earnings (13.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: IIJI.Y's revenue (5.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: IIJI.Y's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: IIJI.Y's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

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

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IIJI.Y's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: IIJI.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IIJI.Y had negative earnings growth (-13%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: IIJI.Y's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: IIJI.Y's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: IIJI.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Internet Initiative Japan's financial position?


Financial Position Analysis

Short Term Liabilities: IIJI.Y's short term assets (¥79.9B) exceeds its short term liabilities (¥59.1B)

Long Term Liabilities: IIJI.Y's short term assets (79.9B) exceeds its long term liabilities (67.4B)


Debt to Equity History and Analysis

Debt Level: IIJI.Y's debt to equity ratio (14.1%) is considered satisfactory

Reducing Debt: IIJI.Y's debt to equity ratio has reduced from 16.9% to 14.1% over the past 5 years.

Debt Coverage: IIJI.Y's debt is well covered by operating cash flow (219.4%).

Interest Coverage: IIJI.Y's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet

Inventory Level: IIJI.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: IIJI.Y's debt is covered by short term assets (assets are 7.289320x debt).


Next Steps

Dividend

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

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: IIJI.Y's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: IIJI.Y's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), IIJI.Y'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

What is the CEO of Internet Initiative Japan's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Koichi Suzuki (73yo)

25.5yrs

Tenure

0

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 ...


Management Age and Tenure

7.5yrs

Average Tenure

56yo

Average Age

Experienced Management: IIJI.Y's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: IIJI.Y's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Koichi Suzuki (73yo)

    Chairman & CEO

    • Tenure: 25.5yrs
  • Naoshi Yoneyama

    Senior Managing Exec. Officer & Division Director of Corporate Planning Division

    • Tenure: 0yrs
  • Akihisa Watai (54yo)

    CFO, Chief Accounting Officer

    • Tenure: 15.3yrs
  • Kazuhiro Tokita (50yo)

    Senior Managing Executive Officer

    • Tenure: 7.5yrs
  • Junichi Shimagami (52yo)

    CTO & Director

    • Tenure: 4.3yrs
  • Takeshi Kikuchi (60yo)

    Senior MD & Director

    • Tenure: 9.3yrs
  • Masayoshi Tobita

    Managing Exec. Officer & Division Director of Administrative Division

    • Tenure: 0yrs
  • Eijiro Katsu (69yo)

    President

    • Tenure: 6.3yrs
  • Tadashi Kawashima (56yo)

    MD & Director

    • Tenure: 4.3yrs
  • Akira Sumiya

    Executive Officer & GM of Compliance Department

    • Tenure: 0yrs

Board Members

  • Koichi Suzuki (73yo)

    Chairman & CEO

    • Tenure: 25.5yrs
  • Tadashi Okamura (81yo)

    Director

    • Tenure: 4.3yrs
  • Yasurou Tanahashi (78yo)

    Director

    • Tenure: 15.3yrs
  • Akihisa Watai (54yo)

    CFO, Chief Accounting Officer

    • Tenure: 15.3yrs
  • Junichi Shimagami (52yo)

    CTO & Director

    • Tenure: 4.3yrs
  • Shingo Oda (75yo)

    Director

    • Tenure: 11.3yrs
  • Takeshi Kikuchi (60yo)

    Senior MD & Director

    • Tenure: 9.3yrs
  • Toshinori Iwasawa (57yo)

    Director

    • Tenure: 6.3yrs
  • Eijiro Katsu (69yo)

    President

    • Tenure: 6.3yrs
  • Tadashi Kawashima (56yo)

    MD & Director

    • Tenure: 4.3yrs

Company Information

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


Key Information

  • Name: Internet Initiative Japan Inc.
  • Ticker: IIJI.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$1.018b
  • Shares outstanding: 90.17m
  • 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)YesSPON ADR EACH REP 0.5 ORD NPVUSUSDAug 1999
IIJDB (Deutsche Boerse AG)YesSPON ADR EACH REP 0.5 ORD NPVDEEURAug 1999
IIJBST (Boerse-Stuttgart)YesSPON ADR EACH REP 0.5 ORD NPVDEEURAug 1999
3774TSE (The Tokyo Stock Exchange)Common StockJPJPYDec 2005
I6IDB (Deutsche Boerse AG)Common StockDEEURDec 2005
IIJI.FOTCPK (Pink Sheets LLC)Common 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 Integrat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:16
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.

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