PATH Corporation (3840) AI Stock Analysis

• Market Cap: ¥8.22B
• Dividend Yield: N/A
• Average Volume (3M): 408.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -3.89%
• EPS Growth: -11.80%
• Country: JP
• Employees: 46
• Sector: Industrials
• Sector Strength: 91
• Industry: Specialty Business Services
• EPS (TTM): -1.15
• Shares Outstanding: 74,745,030
• 10 Day Avg. Volume: 292,470
• 30 Day Avg. Volume: 408,650
• PEG Ratio: 0.15
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.91
• 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

• Rating: 41 Neutral
• Price Target: ―

PATH Corporation's stock is under pressure due to significant financial performance challenges, including persistent losses and negative cash flows, despite a strong equity position. Technical indicators suggest a bearish trend, and valuation metrics point to profitability concerns with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score, indicating caution for potential investors.

PATH Corporation Business Overview & Revenue Model

Company Description

PATH Corporation (3840) is a company that operates in the technology sector, focusing on the development and provision of innovative software solutions. The company is known for its advanced automation tools that serve various industries, helping businesses optimize their operational efficiency. PATH Corporation's core products include software platforms that automate repetitive tasks, streamline business processes, and enhance productivity, making it a key player in the tech-driven business solutions market.

How the Company Makes Money

PATH Corporation generates revenue primarily through the sale and subscription of its software platforms. The company employs a SaaS (Software as a Service) model, offering cloud-based solutions that businesses subscribe to on a monthly or annual basis. This model provides a steady stream of recurring revenue. Additionally, PATH Corporation offers premium features and customization options for its software, which are available at additional costs. The company may also engage in strategic partnerships with other technology firms to expand its market reach and integrate complementary technologies, further contributing to its earnings.

PATH Corporation Financial Statement Overview

Summary

PATH Corporation faces significant challenges with profitability and cash flow, as evidenced by negative EBIT margins and operating cash flows. Despite a strong equity position with no debt, the inability to generate positive earnings and cash flows highlights ongoing operational and strategic issues.

Income Statement

PATH Corporation has shown a decline in revenue over the recent TTM period compared to the previous annual data. The company operates at a negative net profit margin and EBIT margin, indicative of ongoing losses. While gross profit margins are relatively stable, profitability is concerning with continuous negative EBIT and EBITDA, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity position with no debt, resulting in a favorable debt-to-equity ratio of zero. Stockholders' equity has increased significantly, enhancing the equity ratio. Despite the absence of debt, the company has been unable to achieve profitability, which remains a potential risk.

Cash Flow

Operating cash flow and free cash flow remain negative, indicating cash constraints from operations. The lack of free cash flow growth and negative cash flow ratios highlight significant cash management challenges. This poses a risk to future operations without improved cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.22B	2.25B	2.32B	1.99B	2.11B	2.21B
Gross Profit	1.13B	1.17B	1.10B	972.41M	1.10B	1.07B
EBITDA	-172.44M	-221.05M	-138.00M	-226.44M	-709.07M	-519.93M
Net Income	-243.19M	-276.77M	-175.88M	-256.11M	-745.99M	-538.11M
Balance Sheet
Total Assets	2.75B	3.25B	1.68B	1.45B	1.27B	1.07B
Cash, Cash Equivalents and Short-Term Investments	131.00M	154.66M	296.58M	172.88M	345.48M	205.66M
Total Debt	0.00	293.39M	0.00	0.00	500.00M	0.00
Total Liabilities	407.00M	777.41M	477.02M	350.55M	802.16M	392.57M
Stockholders Equity	2.34B	2.47B	1.20B	1.10B	469.69M	673.10M
Cash Flow
Free Cash Flow	0.00	-1.06B	-159.30M	-467.82M	-857.66M	-540.34M
Operating Cash Flow	0.00	-538.51M	-76.61M	-352.40M	-835.56M	-502.38M
Investing Cash Flow	0.00	-525.28M	-87.37M	-113.93M	-23.60M	1.93M
Financing Cash Flow	0.00	914.00M	287.69M	281.09M	998.98M	454.18M

PATH Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3840, the sentiment is Positive. The current price of 110 is above the 20-day moving average (MA) of 107.75, above the 50-day MA of 101.40, and above the 200-day MA of 107.00, indicating a bullish trend. The MACD of 1.77 indicates Positive momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3840.

PATH Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	73 Outperform	¥25.79B	19.12		2.02%	20.63%	21.52%
Sector *	71 Outperform	¥254.45B	13.41	8.48%	3.03%	6.31%	12.90%
3915	67 Neutral	¥33.78B	33.16		―	29.12%	238.06%
3694	66 Neutral	¥27.66B	23.47		―	0.14%	-21.25%
3774	60 Neutral	¥473.18B	23.33	14.78%	1.33%	14.76%	0.69%
3681	43 Neutral	€4.32B	―	-144.02%	―	-7.16%	71.43%
3840	41 Neutral	¥8.22B	―		―	-3.89%	-11.80%