Loading…
Japanese internet service provider offering network connectivity, cloud and security services to enterprises.
Japanese internet service provider offering network connectivity, cloud and security services to enterprises.
Charges companies monthly fees for internet access, mobile and cloud services, which gives it recurring income, plus one-off systems-integration projects that vary by year. It is also a virtual mobile operator, buying capacity from the big carriers and reselling it to businesses and consumers. NTT is its largest shareholder.
In one line: Japan's original enterprise ISP, akin to a smaller Equinix plus managed network services.
Moat: narrow (installed base, customer qualification, brand). Long-standing enterprise network relationships and brand as Japan's pioneering commercial ISP.
Headquarters: Tokyo, Japan · Founded: 1992 · Employees: 5,533
Size Internet Initiative Japan (3774.T) is a Japan Communication Services company (Major Telecommunications) with a market value of $4.05B, the 284th largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥3,607 on 6 Nov 2026.
Performance Over six months the shares gained 30.1%, against -10.2% for the median peer and +1.8% for the Japan market (cap-weighted) — 4th highest of 21 in its peer set.
Growth Revenue grew 13.8% over the last twelve months (peer median +2.7%); the operating margin is 9.3% (peer median 9.6%).
Valuation It trades at 25.3× forward earnings against a peer median of 14.6× (4th most expensive of 15).
Price implies For today's price to make sense, revenue must grow about 2% a year for seven years (Req g). Recent delivered growth is +10%, so the hurdle is -8 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 6.8 points above its cost of capital (5.0% WACC).
Next results Next results expected around 10 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ¥366B | ¥345B | ¥317B | ¥276B | ¥253B |
| Revenue growth | — | +9% | +15% | +9% | — |
| Gross profit | ¥77.4B | ¥72.3B | ¥64.8B | ¥60.6B | ¥54.8B |
| EBITDA | ¥67.1B | ¥66.4B | ¥61.5B | ¥58.4B | ¥55.8B |
| Net income | ¥24.8B | ¥24.2B | ¥19.9B | ¥19.8B | ¥18.9B |
| Free cash flow | ¥25.2B | ¥30.1B | ¥16.6B | ¥29.0B | ¥26.7B |
| Capital expenditure | ¥31.4B | ¥28.5B | ¥20.1B | ¥18.9B | ¥17.3B |
| Total debt | ¥71.3B | ¥78.6B | ¥82.5B | ¥72.9B | ¥68.5B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Internet Initiative Japan 3774.T | $4.05B | +30% | +14% | 9% | 25.3× | 2.3% |
| Kddi 9433.T | $66.4B | +10% | +4% | 18% | 14.2× | -1.4% |
| Softbank 9434.T | $71.3B | +6% | +8% | 14% | 18.5× | 3.4% |
| SAKURA Internet 3778.T | $688M | -13% | +26% | 8% | 35.7× | n/a |
| GMO Internet 9449.T | $1.94B | -4% | +6% | 21% | 13.4× | n/a |
| Fujitsu 6702.T | $35.4B | +1% | +4% | 10% | 18.0× | 4.1% |
| Nec 6701.T | $36.3B | +5% | +7% | 12% | 18.6× | 5.5% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 3774.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +3.0% | +2.3% | 9th highest of 21 |
| 6-month return | +30.1% | -10.2% | 4th highest of 21 |
| Distance from 52-week high | -3.2% | -20.2% | 3rd highest of 21 |
| Revenue growth (TTM) | +13.8% | +2.7% | 3rd highest of 21 |
| Operating margin | 9.3% | 9.6% | 9th lowest of 21 |
| Forward P/E | 25.3× | 14.6× | 4th most expensive of 15 |
| Growth the price implies (Req g, 7 yrs) | 2.3% | 0.8% | 6th most demanding of 17 |
| Growth delivered (Del g) | +10.2% | +2.8% | 2nd highest of 17 |
| Hurdle (Req g minus delivered) | -7.8 pp | -3.6 pp | 3rd least demanding of 17 |
| ROIC minus cost of capital | +6.8 pp | -0.7 pp | 3rd highest of 20 |
| EV / EBITDA | 10.1× | 8.0× | 5th most expensive of 18 |
| Net debt / EBITDA | 0.6× | 2.9× | 3rd least indebted of 18 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Internet Initiative Japan 3774.T | Japan | $4.05B | +30% | +14% | 9% | 25.3× | 2.3% | +10.2% |
| Lumen Technologies LUMN | United States | $4.12B | -59% | -8% | -3% | n/a | 5.1% | -9.7% |
| Telecom Argentina SA Sponsored ADR TEO | United States | $4.87B | -16% | +33% | 9% | 12.8× | 4.1% | +8.4% |
| Liberty Global LBTYA | United States | $3.28B | -19% | -27% | -1% | n/a | n/a | n/a |
| PCCW 0008.HK | Hong Kong | $5.04B | -17% | +7% | 13% | 46.4× | 1.2% | +2.3% |
| Tata Communications TATACOMM.NS | India | $5.15B | +7% | +9% | 8% | 30.9× | 34.1% | +7.7% |
| LG Uplus 032640.KS | South Korea | $5.17B | +6% | 0% | 7% | 9.8× | -17.5% | +2.9% |
| United Internet UTDI.DE | Germany | $5.17B | -9% | -8% | 9% | 15.5× | 1.4% | +2.7% |
| NetLink NBN Trust CJLU.SI | Singapore | $2.87B | -7% | 0% | 22% | 44.5× | 16.0% | +2.3% |
| ITI ITI.NS | India | $2.53B | -18% | -41% | -1% | n/a | n/a | n/a |
| Eutelsat Communications ETL.PA | France | $2.40B | -40% | -1% | -6% | n/a | n/a | n/a |
| IDT IDT | United States | $2.18B | +54% | +5% | 9% | 19.5× | 5.7% | -2.2% |
| KT 030200.KS | South Korea | $9.46B | -12% | +9% | 7% | 9.0× | -4.1% | +3.4% |
| Liberty Latin America LILA | United States | $1.73B | +72% | +1% | 17% | n/a | 0.5% | +3.4% |
| Tele2 TEL2-A.ST | Sweden | $11.2B | -14% | +2% | 24% | 10.7× | -2.4% | +2.4% |
| HKT Trust and HKT 6823.HK | Hong Kong | $11.9B | -2% | +7% | 22% | 16.8× | -3.1% | +2.4% |
| Guangdong South New Media 300770.SZ | China | $1.37B | +7% | -6% | 37% | 13.8× | -1.5% | +5.9% |
| Quebecor QBR-B.TO | Canada | $12.3B | +36% | +3% | 27% | 16.8× | 0.4% | +5.6% |
| Gamma Communications GAMA.L | United Kingdom | $1.32B | +23% | +7% | 15% | 11.9× | -0.4% | +10.4% |
| Uniti UNIT | United States | $1.27B | -54% | +200% | 10% | n/a | n/a | n/a |
| Grupo Televisa, S.A.B. Sponsored ADR TV | United States | $1.24B | -18% | +6% | 11% | 9.9× | 1.1% | -7.5% |