CyberStep, Inc. (3810) AI Stock Analysis

• Market Cap: ¥17.74B
• 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): -18.80
• 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: ¥243.00 ▼(-11.64% 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

Free-to-play recurring monetization

CyberStep's core model depends on free-to-play titles monetized via in-game purchases and recurring event-driven spending. This business model creates enduring revenue levers (lifetime value, repeat purchases, and event cadence) that support stable revenue if user engagement and retention hold over months.

Live-operations and content cadence capability

The firm's explicit focus on live-operations (content updates, events, community management) is a durable operational advantage: consistent content pipelines preserve player engagement, raise ARPU opportunities, and reduce reliance on frequent new IP launches for sustaining revenue over several months.

Manageable leverage on balance sheet

A moderate debt-to-equity position provides long-term financial flexibility relative to highly leveraged peers. Manageable leverage reduces near-term solvency risk, enabling continued investment in live-ops and development without immediate refinancing pressure across the next several months.

Negative Factors

Declining revenue trend

Sustained revenue decline erodes scale economics and weakens the base for monetization. Over 2-6 months, continued top-line contraction reduces funds available for content, marketing, and retention, making it harder to reverse negative trends and preserve market position in a competitive sector.

Negative operating and free cash flow

Persistent negative operating and free cash flow indicate the business is not converting operations into liquidity. This limits the company's ability to self-fund game updates, user acquisition, or new development, increasing reliance on external financing and constraining durable growth initiatives.

Sustained losses and weak profitability metrics

Ongoing net losses, declining gross margins, and negative ROE signal structural profitability issues. Over the medium term these impair retained earnings, reduce reinvestment capacity, and weaken competitive positioning versus profitable peers that can outspend or subsidize user growth.

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’s primary revenue comes from operating free-to-play games in which users can play at no upfront cost and the company monetizes engagement through in-game purchases. Key revenue streams include (1) sale of virtual items and digital content (e.g., in-game currency, cosmetics, gameplay items, and other downloadable digital goods) purchased by players within its titles; and (2) recurring spending driven by ongoing game operations such as limited-time events, new item releases, and content updates that encourage continued participation and purchases. If applicable to specific titles and regions, additional revenue may include advertising and platform distribution proceeds (e.g., revenue shares via app stores or online game portals), but specific contributions by stream, title, or partner are null due to insufficient publicly provided breakdown in the prompt.

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	230.00M	0.00
Total Liabilities	530.00M	891.00M	1.02B	806.78M	1.02B
Stockholders Equity	546.00M	1.15B	2.19B	2.03B	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: Neutral

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 245.45, below the 50-day MA of 276.96, and below the 200-day MA of 320.77, indicating a neutral trend. The MACD of -1.30 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.65 is Neutral, 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	¥9.57B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3656	52 Neutral	¥29.86B	-95.92	―	―	-14.71%	-38.87%
4175	48 Neutral	¥10.91B	137.85	―	―	16.70%	87.76%
3903	46 Neutral	¥17.21B	9.33	―	―	-37.68%	―
3793	42 Neutral	¥11.62B	4.66	―	―	93.85%	-216.24%
3810	39 Underperform	¥17.74B	-4.05	―	―	-15.04%	25.50%