Data Horizon Co., Ltd. (3628) AI Stock Analysis

• Market Cap: ¥6.63B
• Dividend Yield: N/A
• Average Volume (3M): 5.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -2.60%
• EPS Growth: -103.03%
• Country: JP
• Employees: 374
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -4.39
• Shares Outstanding: 12,711,780
• 10 Day Avg. Volume: 4,020
• 30 Day Avg. Volume: 5,480
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥515.00
• Price Target Upside: -1.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 40 Neutral
• Price Target: ¥515.00 ▼(-1.90% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining profitability and high leverage. Technical indicators suggest a bearish trend, and valuation metrics are weak due to negative earnings. These factors collectively contribute to a low overall score.

Positive Factors

Business Model Strength

The company's focus on healthcare IT and data analytics positions it well in a growing industry, leveraging expertise in EHR systems and consulting services to drive long-term growth.

Revenue Streams

Diverse revenue streams from software sales, subscriptions, and consulting provide a stable financial base and potential for growth through long-term contracts and partnerships.

Industry Position

Operating in the healthcare IT sector, the company benefits from increasing demand for digital health solutions, which supports sustainable growth and market expansion.

Negative Factors

Profitability Challenges

Ongoing profitability issues and high leverage can hinder financial stability and growth, requiring strategic adjustments to improve cost structure and cash flow management.

Balance Sheet Health

A high debt-to-equity ratio and negative ROE indicate financial instability, increasing risk and limiting the company's ability to invest in growth opportunities.

Cash Flow Management

Negative cash flows highlight significant management challenges, impacting the company's ability to sustain operations and invest in future growth, necessitating improved cash flow strategies.

Data Horizon Co., Ltd. Business Overview & Revenue Model

Company Description

Data Horizon Co., Ltd. (3628) is a company specializing in healthcare data management and analytics. It operates in the healthcare information technology sector, providing services that optimize the management and utilization of medical records and data. Its core products and services include electronic health record (EHR) systems, data analytics solutions, and healthcare IT consulting services, aimed at enhancing the efficiency and efficacy of healthcare providers.

How the Company Makes Money

Data Horizon Co., Ltd. generates revenue primarily through the sale and licensing of its electronic health record (EHR) systems and healthcare data analytics solutions. The company earns income from subscription fees for its software services and consulting fees for providing IT solutions tailored to healthcare institutions. Its key revenue streams include direct sales to hospitals, clinics, and other healthcare providers, as well as long-term contracts for software maintenance and upgrades. Significant partnerships with healthcare organizations and government bodies also contribute to its financial performance, enabling the company to expand its reach and service offerings.

Data Horizon Co., Ltd. Financial Statement Overview

Summary

Data Horizon Co., Ltd. is facing severe financial difficulties. The income statement indicates declining revenue and negative profitability margins. The balance sheet is highly leveraged with rising debt-to-equity, and the cash flow situation is dire with negative free cash flow, raising significant liquidity concerns.

Income Statement

The company exhibits a significant decline in revenue and profitability, with negative EBIT and net income margins for both TTM and annual data. Revenue growth has been inconsistent, and recent periods show a contraction in sales. The gross profit margin remains relatively high but is undermined by substantial operating losses.

Balance Sheet

The balance sheet shows high leverage with a rising debt-to-equity ratio, indicating increased financial risk. Stockholders' equity has been declining, further affecting the equity ratio negatively. While total assets have grown, the increase in liabilities poses a challenge to financial stability.

Cash Flow

Cash flow statements reveal negative free cash flow in recent periods, with operating cash flow unable to cover capital expenditures. The company's cash generation ability is weak, with no positive free cash flow growth observed. This raises concerns about liquidity and the ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	5.14B	5.01B	4.41B	2.99B	3.33B
Gross Profit	1.04B	1.36B	1.49B	1.42B	1.26B	1.78B
EBITDA	-2.27B	-3.15B	-148.66M	-222.73M	-246.87M	478.03M
Net Income	-2.75B	-3.95B	-807.18M	-664.86M	-410.80M	283.92M
Balance Sheet
Total Assets	6.10B	6.10B	6.66B	6.39B	2.26B	2.28B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.22B	1.42B	1.08B	379.98M	1.06B
Total Debt	4.81B	4.81B	2.46B	1.47B	400.00M	2.66M
Total Liabilities	5.87B	5.87B	3.44B	2.36B	977.21M	709.94M
Stockholders Equity	221.67M	221.67M	3.19B	3.97B	1.26B	1.54B
Cash Flow
Free Cash Flow	-154.63M	-1.89B	-678.92M	-923.59M	-1.04B	232.00M
Operating Cash Flow	-145.58M	-1.88B	120.13M	-198.37M	-442.98M	395.94M
Investing Cash Flow	-177.67M	-673.71M	-789.14M	-3.51B	-572.80M	-391.51M
Financing Cash Flow	410.07M	2.35B	1.02B	4.41B	331.20M	-56.21M

Data Horizon Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 525.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3628, the sentiment is Negative. The current price of 525 is below the 20-day moving average (MA) of 542.90, below the 50-day MA of 561.66, and above the 200-day MA of 492.64, indicating a neutral trend. The MACD of -8.83 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3628.

Data Horizon Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3671	85 Outperform	¥9.04B	13.48		8.26%	26.12%	38.78%
4172	76 Outperform	¥5.32B	12.89		4.28%	13.40%	21.76%
6095	72 Outperform	¥15.32B	10.17		0.65%	-17.86%	133.08%
Sector *	51 Neutral	$8.02B	-0.39	-43.38%	2.20%	22.34%	-2.13%
4263	45 Neutral	¥14.89B	―		―	35.15%	16.85%
3902	43 Neutral	¥22.46B	4,465.71		1.15%	-0.58%	-260.22%
3628	40 Neutral	¥6.63B	―		―	-2.60%	-103.03%