PATH Corporation (JP:3840)
:3840
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PATH Corporation
(3840)
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Rating:46Neutral
Price Target:
¥72.00
▲(20.00% Upside)
Action:ReiteratedDate:03/24/26
The score is primarily weighed down by weak financial performance driven by ongoing losses and significant negative operating/free cash flow. Technical indicators are roughly neutral with a positive MACD but a weak long-term trend versus the 200-day average. Valuation is hard to support with a negative P/E and no dividend yield data.
Positive Factors
Strong FY2025 revenue rebound and higher gross margin
A large top-line rebound paired with a material gross margin improvement indicates recovering product-market fit and improved unit economics. If sustained, higher gross margins provide room to scale sales and R&D before needing operating profitability, supporting durable margin upside as revenue grows.
Negative Factors
Persistent negative operating and free cash flow
Chronic cash burn undermines autonomous funding of operations and growth. Continued negative OCF and FCF imply reliance on external financing or cash reserves, increasing dilution or liquidity risk and constraining investments in sales, product development, and customer acquisition over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong FY2025 revenue rebound and higher gross margin
A large top-line rebound paired with a material gross margin improvement indicates recovering product-market fit and improved unit economics. If sustained, higher gross margins provide room to scale sales and R&D before needing operating profitability, supporting durable margin upside as revenue grows.
Read all positive factors
PATH Corporation (3840) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.21B
Dividend YieldN/A
Average Volume (3M)199.72K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth2.43%
EPS Growth-172.00%
CountryJP
Employees46
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-2.59
Shares Outstanding82,680,240
10 Day Avg. Volume124,590
30 Day Avg. Volume199,720
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)2.51
Price to Sales (P/S)2.76
P/FCF Ratio-5.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PATH Corporation Business Overview & Revenue Model
Company Description
Path Corporation primarily engages in e-commerce business in Japan. The company offers cosmetics, beauty, and wellness products. It is also involved in the research, development, cultivation of microalgae and extracts; manufactures and sells human...
How the Company Makes Money
null...
PATH Corporation Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.36B | 2.25B | 2.32B | 1.99B | 2.11B | 2.21B |
| Gross Profit | 1.24B | 1.17B | 1.10B | 972.41M | 1.10B | 1.07B |
| EBITDA | -245.80M | -163.36M | -137.10M | -195.17M | -636.52M | -512.88M |
| Net Income | -381.63M | -276.77M | -175.88M | -256.11M | -745.99M | -538.11M |
Balance Sheet | ||||||
| Total Assets | 3.31B | 3.25B | 1.68B | 1.45B | 1.27B | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 56.78M | 154.66M | 296.58M | 172.88M | 345.48M | 205.66M |
| Total Debt | 282.95M | 293.39M | 0.00 | 0.00 | 500.00M | 0.00 |
| Total Liabilities | 763.77M | 777.41M | 477.02M | 350.55M | 802.16M | 392.57M |
| Stockholders Equity | 2.55B | 2.47B | 1.20B | 1.10B | 469.69M | 673.10M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.06B | -159.30M | -467.46M | -855.42M | -536.79M |
| 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
Negative
60.00
Price Trends
63.30
Negative
63.88
Negative
84.88
Negative
Market Momentum
0.15
Positive
45.14
Neutral
21.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3840, the sentiment is Negative. The current price of 60 is below the 20-day moving average (MA) of 70.20, below the 50-day MA of 63.30, and below the 200-day MA of 84.88, indicating a bearish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3840.
PATH Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥115.05B | 21.77 | 19.59% | 0.16% | 18.08% | 136.77% | |
68 Neutral | ¥40.98B | 7.42 | ― | 3.71% | -0.04% | 93.95% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥5.68B | -22.35 | ― | 2.72% | -1.30% | ― | |
53 Neutral | ¥6.78B | 45.76 | ― | 2.94% | -2.81% | 57.37% | |
53 Neutral | ¥3.29B | 5.78 | ― | 3.30% | -3.41% | -24.95% | |
46 Neutral | ¥5.21B | -5.70 | ― | ― | 2.43% | -172.00% |
* Industrials Sector Average
JP:3840
PATH Corporation
63.00
-32.00
-33.68%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.