Internet Initiative Japan, Inc. (3774) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ASAHI Net, Inc.

Internet Initiative Japan, Inc.

Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

Broad Enterprise Co., Ltd.

Why is Internet Initiative Japan, Inc. ?

Strong Long Term Fundamental Strength with a 28.71% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 28.65
The company has been able to generate a Return on Capital Employed (avg) of 21.80% signifying high profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 15.05%
INTEREST(Q) At JPY 409 MM has Grown at 23.94%
CASH AND EQV(HY) Lowest at JPY 62,554 MM

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 -8.82%, its profits have risen by 1.4% ; the PEG ratio of the company is 19.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.82% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

-8.92%

0.97

30.66%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

1.76

Tax Ratio

30.68%

Dividend Payout Ratio

31.06%

Pledged Shares

Institutional Holding

ROCE (avg)

21.32%

ROE (avg)

14.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

21.23%

ROE (Latest)

14.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 42,652 MM

RAW MATERIAL COST(Y)

Fallen by -11.33% (YoY

-13What is not working for the Company

ROCE(HY)

Lowest at 15.05%

INTEREST(Q)

At JPY 409 MM has Grown at 23.94%

CASH AND EQV(HY)

Lowest at JPY 62,554 MM

Here's what is working for Internet Initiative Japan, Inc.

Operating Cash Flow

Highest at JPY 42,652 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by -11.33% (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

Here's what is not working for Internet Initiative Japan, Inc.

Interest

At JPY 409 MM has Grown at 23.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 62,554 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents