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

• Market Cap: ¥6.12B
• Dividend Yield: N/A
• Average Volume (3M): 20.75K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.26
• Revenue Growth: -4.07%
• EPS Growth: -88.89%
• Country: JP
• Employees: 374
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 11.78
• Shares Outstanding: 12,711,780
• 10 Day Avg. Volume: 32,020
• 30 Day Avg. Volume: 20,746
• PEG Ratio: >-0.01
• Price to Book (P/B): 26.38
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -3.09
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥478.00 ▼(-3.43% Downside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is held back primarily by weak financial performance (loss-making margins, high leverage, and negative cash flows). Technical indicators are mixed but generally not supportive due to trading below key moving averages and a negative MACD. Valuation is a partial offset with a modest P/E, though the absence of a dividend yield reduces support.

Positive Factors

Recent revenue growth

Despite prior inconsistency, the latest period shows meaningful top-line growth (Fundamentals.RevenueGrowth ~11.9%). Sustained revenue expansion provides a runway to recover margins and leverage operating scale, improving long-term viability if cost control continues.

Industry exposure

Operating in medical healthcare information positions the company in a structurally growing sector driven by digitization and demand for health data services. This sector alignment supports durable market opportunities and recurring service demand over multi-quarter horizons.

Operational headcount

A workforce of 374 indicates substantive operational capacity to develop, deliver, and support healthcare information services. This scale can underpin recurring contracts and product delivery, enabling commercial execution and incremental margin improvement as revenue rises.

Negative Factors

Declining profitability

Consistent negative net profit and EBIT margins reduce retained earnings and limit reinvestment capacity. Prolonged unprofitability erodes stakeholder confidence, constrains strategic initiatives, and makes it harder to build durable economics without structural margin recovery.

Elevated leverage

High debt-to-equity increases financial risk and interest burden, reducing flexibility to invest or weather shocks. Elevated leverage heightens default and refinancing risk and can force conservative capital allocation, limiting long-term strategic growth options.

Negative cash flows

Negative operating and free cash flows impair the company's ability to fund operations, service debt, and invest organically. Persistent cash deficits typically necessitate external financing, diluting shareholders or increasing leverage, and weaken financial resilience over months.

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

Company Description

Data Horizon Corporation provides data health support services to insurers in Japan. It develops and provides medical information services, such as health related data and generic drug notification services, as well as a health business support system. The company was founded in 1981 and is headquartered in Hiroshima, Japan. Data Horizon Corporation operates as a subsidiary of DeNA Co., Ltd.

How the Company Makes Money

Data Horizon Co., Ltd. generates revenue through several key streams. The primary source of income comes from software licensing fees, where clients pay for the right to use the company's proprietary analytics and AI software. Additionally, the company offers subscription-based services for its cloud-based platforms, providing ongoing access to updates and support. Professional services, including consulting and implementation support for clients looking to integrate Data Horizon's solutions into their operations, also contribute significantly to revenue. Furthermore, strategic partnerships with other tech firms and industry leaders enhance its market reach and open up collaborative revenue opportunities, particularly in joint ventures and bundled service offerings.

Data Horizon Co., Ltd. Financial Statement Overview

Summary

Weak fundamentals: profitability is declining with negative net profit and EBIT margins, leverage is elevated with a high debt-to-equity ratio and negative ROE, and cash flow is pressured with negative operating and free cash flow.

Income Statement

The company has experienced a declining trend in profitability, with negative net profit margins and EBIT margins over recent periods. Revenue growth has been inconsistent, with a notable growth in the latest period, but margins remain under pressure. The gross profit margin has also decreased over time, indicating challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, particularly in the latest period, indicating significant leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio has decreased, suggesting increased financial risk and reduced stability.

Cash Flow

Cash flow metrics indicate significant challenges, with negative operating and free cash flows in recent periods. The free cash flow to net income ratio is volatile, and the operating cash flow coverage ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 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: 495.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 495 is above the 20-day moving average (MA) of 484.95, below the 50-day MA of 500.20, and below the 200-day MA of 536.72, indicating a bearish trend. The MACD of -2.95 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, 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
2413	70 Outperform	¥1.12T	18.91	12.15%	1.01%	33.50%	17.26%
3902	63 Neutral	¥65.51B	228.03	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥269.91B	26.76	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥63.74B	77.03	8.79%	―	31.95%	-40.95%
4438	51 Neutral	¥3.02B	-4.28	―	―	16.19%	-4.42%
3628	48 Neutral	¥6.12B	10.51	―	―	-4.07%	-88.89%