CyberStep, Inc. (3810) AI Stock Analysis

• Market Cap: ¥17.81B
• Dividend Yield: N/A
• Average Volume (3M): 391.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -15.04%
• EPS Growth: 25.50%
• Country: JP
• Employees: 264
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 69,013,084
• 10 Day Avg. Volume: 410,600
• 30 Day Avg. Volume: 391,750
• PEG Ratio: 0.27
• Price to Book (P/B): 8.08
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -2.15
• 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: 39 Underperform
• Price Target: ¥255.00 ▼(-7.27% Downside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is driven down primarily by weak financial performance (declining revenue, ongoing losses, and negative cash flows). Technicals also remain bearish with the stock below key moving averages and negative MACD, despite oversold readings. Valuation provides limited support given negative earnings and no dividend yield data.

Positive Factors

Recurring F2P monetization

A core free-to-play monetization model based on in-game item and virtual goods sales supports recurring, high-margin revenue streams when user engagement is sustained. This structure provides durable cash inflows tied to player retention and content cadence rather than one-time purchases.

Multiplayer game development expertise

Long-standing capability in multiplayer and virtual world design creates product differentiation and community-driven engagement, which are structural advantages in online gaming. Expertise across PC and mobile reduces single-platform dependency and supports multi-channel user acquisition and retention strategies.

Manageable leverage

Moderate debt levels provide financial flexibility and lower refinancing risk compared with highly leveraged peers. This balance sheet positioning allows continued investment in live-ops and content while avoiding excessive interest burden that could squeeze operating investment during revenue recovery periods.

Negative Factors

Sharp revenue decline

A steep multi-year revenue decline erodes the addressable spend base and reduces economies of scale for content production and marketing. Persistent top-line contraction undermines the sustainability of recurring monetization and hampers the ability to fund new titles or retain development talent without external capital.

Consistent net losses

Ongoing net losses and negative operating/EBITDA margins indicate structural profitability issues, limiting reinvestment capacity and weakening shareholder equity over time. Without margin recovery, the company may struggle to scale marketing and live-ops needed to revive user monetization sustainably.

Poor cash generation

Negative operating and free cash flows signal an inability to convert revenue into liquidity, increasing reliance on external financing or equity issuance. This constrains long-term content investment cycles and increases vulnerability to market shocks when cash reserves and internal funding are insufficient.

CyberStep, Inc. Business Overview & Revenue Model

Company Description

CyberStep, Inc. (3810) is a Japanese company that specializes in the development and publishing of online games and entertainment software. Operating primarily in the gaming sector, CyberStep is known for its engaging titles across various platforms, including PC and mobile devices. The company's core products include multiplayer online games and virtual worlds that foster community interaction, leveraging their expertise in game design and technology to create immersive experiences.

How the Company Makes Money

CyberStep generates revenue primarily through the sale of in-game items and virtual goods within its online games, which are often free-to-play, allowing a broad audience to access its products. Additionally, the company earns money through subscriptions and premium memberships that provide players with enhanced experiences and exclusive content. Advertising partnerships and sponsorships within its gaming platforms also contribute to revenue, while collaborations with other companies in the gaming industry can lead to co-marketing opportunities and shared revenues. The recurring nature of its revenue model, driven by engaged user bases in their titles, supports a stable financial foundation.

CyberStep, Inc. Financial Statement Overview

Summary

Very weak fundamentals: revenues are declining, profitability is negative (net losses and negative operating margins), and cash generation is poor with negative operating/free cash flow. The balance sheet shows only moderate leverage, but negative ROE and declining equity add financial strain.

Income Statement

CyberStep, Inc. has experienced a significant decline in revenue over the past few years, with a negative revenue growth rate of -9.86% in the most recent year. The company has consistently reported negative net income, leading to negative net profit margins. The gross profit margin has also decreased over time, indicating pressure on profitability. The EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is relatively stable, but the declining stockholders' equity over time suggests financial strain.

Cash Flow

CyberStep, Inc. has faced significant challenges in generating positive cash flows, with negative operating and free cash flows in recent years. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	2.50B	2.99B	4.06B	7.42B	12.19B
Gross Profit	1.27B	1.66B	2.58B	5.43B	9.71B
EBITDA	-2.14B	-1.52B	-1.30B	-1.95B	-946.40M
Net Income	-1.70B	-1.46B	-1.38B	-2.10B	-1.16B
Balance Sheet
Total Assets	1.08B	2.04B	3.34B	2.83B	4.65B
Cash, Cash Equivalents and Short-Term Investments	212.00M	903.00M	2.28B	1.67B	2.32B
Total Debt	120.00M	219.00M	436.00M	229.00M	0.00
Total Liabilities	530.00M	893.00M	1.02B	807.00M	1.02B
Stockholders Equity	546.00M	1.15B	2.19B	2.02B	3.62B
Cash Flow
Free Cash Flow	-2.05B	-1.45B	-1.22B	-1.24B	-365.50M
Operating Cash Flow	-2.05B	-1.44B	-1.19B	-1.24B	-115.70M
Investing Cash Flow	1.22B	-60.00M	-223.00M	-56.00M	-436.94M
Financing Cash Flow	697.00M	82.00M	1.79B	688.00M	-85.92M

CyberStep, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3810, the sentiment is Negative. The current price of 275 is above the 20-day moving average (MA) of 241.30, below the 50-day MA of 281.60, and below the 200-day MA of 321.42, indicating a neutral trend. The MACD of -3.96 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3810.

CyberStep, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3911	62 Neutral	¥9.90B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3656	52 Neutral	¥30.48B	-5.14	―	―	-14.71%	-38.87%
4175	48 Neutral	¥10.38B	-17.86	―	―	16.70%	87.76%
3903	46 Neutral	¥19.08B	9.33	―	―	-37.68%	―
3793	42 Neutral	¥11.82B	4.66	―	―	93.85%	-216.24%
3810	39 Underperform	¥17.81B	-4.05	―	―	-15.04%	25.50%