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

• Market Cap: ¥6.44B
• Dividend Yield: N/A
• Average Volume (3M): 20.75K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.22
• 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: 50 Neutral
• Price Target: ¥551.00 ▲(11.31% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by poor financial performance (loss-making margins, high leverage, and negative cash flows). Technicals provide some offset with price trading above major moving averages, while valuation is only moderately supportive due to the modest P/E but no dividend yield and weak underlying fundamentals.

Positive Factors

Revenue Growth Trend

Latest reported revenue growth (~11.9%) and the cited 'recent revenue uptick' indicate demand traction. If sustained, higher top-line can fund product development, absorb fixed costs, and improve operating leverage over months, supporting a durable path toward recovery despite current margin pressure.

Industry Exposure

Operating in the Medical - Healthcare Information Services sector positions the company in a specialist B2B market with recurring data and system needs. This industry orientation supports multi-month revenue visibility through contract and service demand, creating a durable addressable market for core offerings.

Low Market Volatility (Beta)

A very low beta (~0.27) implies the company's equity is less sensitive to broad market swings, suggesting underlying operations and revenue may be relatively stable. Lower volatility aids multi-month planning, reduces refinancing stress risk, and can support steadier execution of strategic initiatives.

Negative Factors

Profitability Decline

The company reports negative net and EBIT margins and a declining profitability trend. Persistently negative operating profitability erodes retained earnings, limits reinvestment capacity, reduces pricing flexibility, and makes sustaining operations and strategic investment difficult without a clear margin recovery.

High Leverage / Weak Balance Sheet

The balance sheet shows elevated debt-to-equity, a falling equity ratio, and negative ROE. High leverage increases solvency and refinancing risk, constrains capital allocation for product and sales investments, and magnifies downside if revenue momentum falters over the next several months.

Negative Operating and Free Cash Flow

Operating and free cash flows are negative, indicating the business is burning cash. Continued cash burn undermines liquidity, forces reliance on external financing, and limits the firm's ability to self-fund growth or service debt; a sustained cash-flow turnaround is required to restore durable financial stability.

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

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Data Horizon Co., Ltd. Financial Statement Overview

Summary

Financials are weak: profitability has been declining with negative net and EBIT margins, leverage is high with negative ROE and a falling equity ratio, and operating/free cash flows are negative—raising solvency and execution risk despite a recent revenue uptick.

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	5.14B	5.14B	5.01B	4.41B	2.99B	3.33B
Gross Profit	1.32B	2.07B	1.90B	1.18B	1.44B	1.90B
EBITDA	82.80M	82.80M	-148.66M	-1.59M	-136.32M	475.24M
Net Income	-3.95B	-3.95B	-807.18M	-664.86M	-410.80M	283.92M
Balance Sheet
Total Assets	7.79B	7.79B	7.90B	7.44B	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	7.57B	7.57B	4.68B	3.42B	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	64.81M	-253.54M	-747.41M	232.91M
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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 495 is below the 20-day moving average (MA) of 502.00, below the 50-day MA of 504.40, and below the 200-day MA of 539.83, indicating a neutral trend. The MACD of 9.27 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.68 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
2413	70 Outperform	¥1.09T	18.91	12.15%	1.01%	33.50%	17.26%
3902	63 Neutral	¥65.59B	228.03	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥214.31B	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	¥57.19B	77.03	5.76%	―	31.95%	-40.95%
3628	50 Neutral	¥6.44B	10.51	―	―	-4.07%	-88.89%
4438	50 Neutral	¥2.91B	-4.28	―	―	16.19%	-4.42%