eBASE Co., Ltd. (3835) AI Stock Analysis

• Market Cap: ¥20.08B
• Dividend Yield: 3.14%
• Average Volume (3M): 138.24K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.93
• Revenue Growth: 0.50%
• EPS Growth: -2.92%
• Country: JP
• Employees: 461
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.59
• Shares Outstanding: 47,164,800
• 10 Day Avg. Volume: 137,920
• 30 Day Avg. Volume: 138,240
• PEG Ratio: 1.87
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 4.49
• P/FCF Ratio: 20.46
• 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: 75 Outperform
• Price Target: ¥501.00 ▲(15.17% Upside)

The score is driven primarily by strong financial performance (rising margins, debt-free balance sheet, and cash flows supporting earnings). Valuation is reasonable with a supportive dividend yield, while technical indicators are mixed and cap the score due to negative MACD and price below longer-term moving averages.

Positive Factors

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances the company's ability to invest in growth opportunities without the burden of interest payments.

Profitability

Strong and expanding profitability margins indicate efficient operations and pricing power, supporting long-term earnings stability and growth potential.

Cash Generation

Consistent cash flow generation exceeding net income suggests robust earnings quality and provides flexibility for reinvestment and shareholder returns.

Negative Factors

Revenue Growth Challenges

Moderate revenue growth limits the company's ability to rapidly scale and capture market share, potentially impacting long-term competitive positioning.

Earnings Forecast Revision

Revising earnings forecasts downward due to adaptation challenges suggests potential difficulties in executing strategic initiatives, impacting future growth.

Market Challenges

Predicted decrease in sales and profits indicates ongoing market challenges, which could pressure financial performance and strategic execution.

eBASE Co., Ltd. Business Overview & Revenue Model

Company Description

eBASE Co., Ltd. is a Japanese company operating primarily in the information technology sector, focusing on providing software solutions and services. The company's core offerings include product information management systems, data management solutions, and IT consulting services designed to enhance efficiency and data accuracy for businesses in various industries.

How the Company Makes Money

eBASE Co., Ltd. generates revenue through the sale and licensing of its software solutions, including product information management systems. The company also earns income from providing IT consulting and implementation services to its clients, ensuring that their software solutions are effectively integrated into business operations. Additionally, eBASE may engage in strategic partnerships that enhance its product offerings and extend its market reach, contributing to its overall revenue growth.

eBASE Co., Ltd. Financial Statement Overview

Summary

High-quality fundamentals: steadily rising revenue (though moderate growth), expanding profitability with operating margin improving to 32.5% and net margin to 22.9% (2025), a debt-free balance sheet with growing equity, and operating cash flow consistently exceeding net income. Main risks are only modest top-line growth and some variability in free cash flow growth.

Income Statement

Revenue has grown steadily from 2022–2025 (annual growth improving to 3.4% in 2025), while profitability is strong and expanding: gross margin held around ~50–53% and net margin rose from 17.1% (2022) to 22.9% (2025). Operating profitability is particularly robust with operating margin improving from 24.9% (2022) to 32.5% (2025). The main weakness is that top-line growth is moderate rather than high-growth, including a slight revenue decline in 2021.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across all periods provided, implying very low financial risk. Equity has grown consistently (from ~4.75B in 2020 to ~7.36B in 2025) alongside asset growth, supporting balance-sheet strength. Returns on equity are healthy (about 12.7%–19.0% range; 17.0% in 2025), though they eased from the 2020 peak, suggesting incremental capital is being added faster than returns are expanding.

Cash Flow

Cash generation quality is solid: operating cash flow consistently exceeds net income (about 1.4x–2.0x historically; 1.57x in 2025), indicating earnings are well-supported by cash. Free cash flow also tracks net income closely and slightly exceeded it in 2025 (about 1.03x). The key weakness is variability in free cash flow growth (notably negative in 2021–2022), even though absolute free cash flow recovered strongly in 2023–2025.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.48B	5.47B	5.19B	4.71B	4.35B	4.30B
Gross Profit	2.32B	2.91B	2.76B	2.47B	2.20B	2.29B
EBITDA	1.81B	1.84B	1.70B	1.40B	1.11B	1.24B
Net Income	1.23B	1.25B	1.14B	890.80M	744.05M	869.79M
Balance Sheet
Total Assets	7.38B	8.11B	7.81B	7.02B	6.31B	5.88B
Cash, Cash Equivalents and Short-Term Investments	4.89B	5.37B	4.95B	4.49B	4.16B	3.60B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	554.79M	754.69M	867.91M	719.79M	460.41M	470.45M
Stockholders Equity	6.83B	7.36B	6.94B	6.30B	5.85B	5.41B
Cash Flow
Free Cash Flow	0.00	1.20B	1.24B	928.87M	679.75M	931.47M
Operating Cash Flow	0.00	1.17B	1.33B	1.03B	763.08M	960.63M
Investing Cash Flow	0.00	87.08M	-306.27M	-134.80M	-53.50M	133.09M
Financing Cash Flow	0.00	-837.87M	-565.36M	-415.97M	-259.98M	-262.07M

eBASE Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 435.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3835, the sentiment is Negative. The current price of 435 is below the 20-day moving average (MA) of 455.50, below the 50-day MA of 443.94, and below the 200-day MA of 486.79, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 6.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3835.

eBASE Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥21.88B	15.96	―	3.86%	0.50%	17.15%
3771	77 Outperform	¥32.83B	13.42	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
3921	74 Outperform	¥24.93B	13.98	―	2.53%	16.13%	62.27%
3800	71 Outperform	¥14.19B	19.16	―	3.62%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4192	41 Neutral	¥10.79B	-27.12	―	―	22.18%	28.27%

eBASE Co., Ltd. Corporate Events

eBASE Continues Share Buyback, Acquires Additional Treasury Stock in December

eBASE Co., Ltd. announced that it acquired 124,800 shares of its own common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥53.8 million, as part of its ongoing share buyback program authorized under Japan’s Companies Act. Under a board resolution approved in October 2025, the company is permitted to repurchase up to 1 million shares or ¥500 million by March 31, 2026, and as of December 31, 2025, it has cumulatively bought back 534,100 shares for about ¥242.5 million, signaling continued capital management efforts that may support shareholder returns and optimize its capital structure.

The most recent analyst rating on (JP:3835) stock is a Buy with a Yen501.00 price target. To see the full list of analyst forecasts on eBASE Co., Ltd. stock, see the JP:3835 Stock Forecast page.

eBASE Co., Ltd. Announces Treasury Stock Acquisition

eBASE Co., Ltd. has announced the acquisition of 409,300 shares of its treasury stock for 188,689,900 yen, as part of a broader plan to acquire up to 1,000,000 shares by March 31, 2026. This move is expected to impact the company’s stock value and market positioning, reflecting a strategic effort to consolidate ownership and potentially enhance shareholder value.

eBASE Co., Ltd. Reports Decline in Semi-Annual Financial Results

eBASE Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company maintains a strong equity-to-asset ratio, indicating financial stability. The forecast for the fiscal year ending March 31, 2026, also predicts a decrease in sales and profits, reflecting ongoing challenges in the market.