Why is Internet Initiative Japan, Inc. ?
1
High Management Efficiency with a high ROE of 14.42%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 28.65
3
Healthy long term growth as Operating profit has grown by an annual rate 28.71%
4
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST(HY) At JPY 679 MM has Grown at 17.47%
5
With ROE of 14.29%, it has a attractive valuation with a 3.70 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 -3.07%, its profits have risen by 1.4% ; the PEG ratio of the company is 19.5
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -3.07% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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, Low Return
Absolute
Risk Adjusted
Volatility
Internet Initiative Japan, Inc.
-3.07%
0.35
32.09%
Japan Nikkei 225
38.94%
1.38
28.28%
Quality key factors
Factor
Value
Sales Growth (5y)
9.15%
EBIT Growth (5y)
28.71%
EBIT to Interest (avg)
28.65
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
1.77
Tax Ratio
30.68%
Dividend Payout Ratio
31.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.32%
ROE (avg)
14.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
3.70
EV to EBIT
17.32
EV to EBITDA
8.48
EV to Capital Employed
3.68
EV to Sales
1.64
PEG Ratio
19.50
Dividend Yield
NA
ROCE (Latest)
21.23%
ROE (Latest)
14.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 49,364 MM
RAW MATERIAL COST(Y)
Fallen by 1.75% (YoY
-7What is not working for the Company
INTEREST(HY)
At JPY 679 MM has Grown at 17.47%
Here's what is working for Internet Initiative Japan, Inc.
Operating Cash Flow
Highest at JPY 49,364 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Raw Material Cost
Fallen by 1.75% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at JPY 8,345 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Internet Initiative Japan, Inc.
Interest
At JPY 679 MM has Grown at 17.47%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






