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

• Market Cap: ¥18.61B
• Dividend Yield: 3.14%
• Average Volume (3M): 138.24K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.88
• 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)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Debt-free Balance Sheet

A zero-debt capital structure materially reduces financial risk and preserves strategic optionality. Over the next 2–6 months this provides resilience to economic shocks, lowers financing costs for potential investments, and supports steady capital returns or M&A without burdening cash flow.

High and Improving Profitability

Sustained high operating and net margins indicate a structurally efficient business model and pricing power in product information software. These margins support durable cash generation, fund reinvestment or dividends, and make the company resilient even with only moderate revenue growth.

Strong Cash Generation Quality

Consistent OCF above net income shows earnings are backed by real cash conversion, reducing earnings quality risk. Reliable cash flow underpins dividends, capex and strategic initiatives, and supports long-term financial flexibility despite cyclical swings in free cash flow.

Negative Factors

Modest Top-line Growth

Low-to-moderate revenue growth constrains long-term upside and increases reliance on margin expansion to drive earnings. Over the next several months, limited top-line momentum could make it harder to scale R&D, expand market share meaningfully, or offset competitive price pressure in core product-data markets.

Variable Free Cash Flow Growth

Intermittent negative free cash flow growth indicates episodic stress on liquidity planning and reinvestment timing. Even with good OCF, variability can force trade-offs between dividends, capex and M&A, reducing predictability of capital allocation over multi-quarter horizons.

Easing Capital Efficiency (ROE)

Rising equity with easing ROE suggests incremental capital is earning lower incremental returns. Persisting over time, this can dilute shareholder returns and signal diminishing marginal productivity of investments, limiting long-term return expansion unless growth accelerates or margins improve further.

eBASE Co., Ltd. Business Overview & Revenue Model

Company Description

eBase Co.,Ltd. engages in the planning, development, sale, and maintenance of content management software in Japan. The company offers eBASE, a comprehensive data management software; industry specific software for food, daily necessities, and chemical substance industries; optional software for eBASE servers; and other software solutions. It also offers daily sundries industry, housing industry, data pool, printing industry, sales support, data management, product planning and development, and complaint information management solutions. The company was incorporated in 2001 and is headquartered in Osaka, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	8.18B	7.84B	7.03B	6.33B	5.90B
Cash, Cash Equivalents and Short-Term Investments	4.89B	5.42B	5.01B	4.54B	4.16B	3.61B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	554.79M	824.80M	897.20M	734.99M	479.88M	488.19M
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 416.45, above the 50-day MA of 433.88, and below the 200-day MA of 470.16, indicating a bearish trend. The MACD of -6.01 indicates Negative momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 is Neutral, 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
3921	76 Outperform	¥23.41B	13.78	―	2.53%	16.13%	62.27%
3835	75 Outperform	¥18.61B	30.80	―	3.14%	0.50%	-2.92%
3853	70 Outperform	¥21.10B	12.24	―	0.82%	―	―
9553	68 Neutral	¥23.68B	15.25	―	―	14.28%	-30.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥11.75B	74.58	―	―	14.63%	-760.87%
5027	49 Neutral	¥26.49B	39.28	―	―	20.84%	10.41%

eBASE Co., Ltd. Corporate Events

eBASE Advances Share Buyback, Reaching Over 80% of Authorized Volume

eBASE Co., Ltd. reported progress on its ongoing share repurchase program authorized under Japan’s Companies Act. During the period from February 1 to February 28, 2026, the company acquired 271,400 shares of its common stock on the Tokyo Stock Exchange for a total of 117,269,000 yen.

This buyback is part of a broader Board-approved plan, set in October 2025, to repurchase up to 1,000,000 shares or 500 million yen between November 4, 2025, and March 31, 2026. Cumulatively through February 28, 2026, the company has bought back 805,500 shares for 359,763,100 yen, signaling active capital management that may support shareholder value and adjust its capital structure ahead of the program’s scheduled end.

The most recent analyst rating on (JP:3835) stock is a Buy with a Yen481.00 price target. To see the full list of analyst forecasts on eBASE Co., Ltd. stock, see the JP:3835 Stock Forecast page.

eBASE Reports Monthly Status of Ongoing Share Buyback Program

eBASE Co., Ltd. announced an update on its share buyback program conducted under the authorization of its Articles of Incorporation pursuant to the Companies Act, reporting that it acquired no treasury shares between January 1 and January 31, 2026, via market purchases on the Tokyo Stock Exchange. Under a board resolution passed on October 14, 2025, the company is permitted to repurchase up to 1,000,000 shares, or 2.23% of its outstanding shares excluding treasury stock, for a total of up to 500 million yen between November 4, 2025 and March 31, 2026; as of January 31, 2026, it has cumulatively bought back 534,100 shares for about 242.5 million yen, indicating the program is roughly halfway utilized and signaling an ongoing effort to return value to shareholders and optimize capital structure.

The most recent analyst rating on (JP:3835) stock is a Buy with a Yen551.00 price target. To see the full list of analyst forecasts on eBASE Co., Ltd. stock, see the JP:3835 Stock Forecast page.

eBASE Releases FY2026 Third-Quarter Results and Details Business Strategy Progress

eBASE Co., Ltd. released its financial and business report for the third quarter of fiscal 2026, covering trends in sales and ordinary income since listing, detailed segment performance for its core eBASE and eBASE-PLUS businesses, and updated full-year earnings forecasts. The company also outlined its capital position, including indicators such as ROE and ROA, and provided an extensive overview of its ongoing BtoB and BtoBtoC business strategies and progress, underscoring a continued emphasis on strengthening its main eBASE platform and expanding related services to support long-term growth and improve shareholder value.

The most recent analyst rating on (JP:3835) stock is a Buy with a Yen539.00 price target. To see the full list of analyst forecasts on eBASE Co., Ltd. stock, see the JP:3835 Stock Forecast page.

eBASE Posts Lower Nine-Month Profit but Keeps Full-Year Forecast and Dividend Plan Intact

For the nine months ended December 31, 2025, eBASE Co., Ltd. reported a 2.2% year-on-year decline in net sales to ¥3.61 billion, with operating profit down 16.8% to ¥782 million and profit attributable to owners of parent falling 16.0% to ¥546 million, reflecting weaker earnings despite relatively stable revenues. The company continued to maintain a strong financial position, with an equity-to-asset ratio of 93.1%, and left its full-year forecast unchanged, projecting ¥5.0 billion in net sales and a 26.4% rise in full-year profit to ¥921 million; it also reaffirmed its dividend plan for the year ending March 31, 2026, signaling management’s confidence in its capital base and earnings outlook despite the temporary profit slowdown.

The most recent analyst rating on (JP:3835) stock is a Buy with a Yen539.00 price target. To see the full list of analyst forecasts on eBASE Co., Ltd. stock, see the JP:3835 Stock Forecast page.

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.