Why is Internet Initiative Japan, Inc. ?
1
With a growth in Net Sales of 27.05%, the company declared Very Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY 48,881 MM
- NET SALES(Q) Highest at JPY 97,604 MM
2
With ROE of 14.90%, it has a expensive valuation with a 3.57 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 29.48%, its profits have risen by 11.3% ; the PEG ratio of the company is 2.2
3
Underperformed the market in the last 1 year
- The stock has generated a return of 29.48% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
How much should you hold?
- Overall Portfolio exposure to Internet Initiative Japan, Inc. should be less than 10%
- Overall Portfolio exposure to Telecom - Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Internet Initiative Japan, Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Internet Initiative Japan, Inc.
22.6%
2.12
30.46%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality key factors
Factor
Value
Sales Growth (5y)
9.93%
EBIT Growth (5y)
20.30%
EBIT to Interest (avg)
29.42
Debt to EBITDA (avg)
0.11
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
1.76
Tax Ratio
30.33%
Dividend Payout Ratio
28.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.95%
ROE (avg)
14.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
3.57
EV to EBIT
16.41
EV to EBITDA
8.23
EV to Capital Employed
3.65
EV to Sales
1.59
PEG Ratio
2.15
Dividend Yield
NA
ROCE (Latest)
22.27%
ROE (Latest)
14.90%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 48,881 MM
NET SALES(Q)
Highest at JPY 97,604 MM
-15What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 3,186.18
RAW MATERIAL COST(Y)
Grown by 16.02% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 32.77 times
INTEREST(Q)
Highest at JPY 463 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 15.11 %
Here's what is working for Internet Initiative Japan, Inc.
Operating Cash Flow
Highest at JPY 48,881 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 97,604 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 97,604 MM has Grown at 27.05%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Here's what is not working for Internet Initiative Japan, Inc.
Interest
At JPY 463 MM has Grown at 45.6%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 3,186.18
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 463 MM
in the last five periods and Increased by 45.6% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 15.11 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 32.77 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 16.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






