Strong Revenue GrowthDatasection has delivered sustained top-line expansion (noted revenue growth ~27.6%), reflecting product demand and market penetration. Durable revenue expansion over multiple years expands scale, supports investment in growth initiatives and improves odds of eventual margin recovery if cost structure is managed.

Solid Cash BufferA strong cash position versus liabilities provides a multi-quarter buffer to fund operations, capex and working capital while management addresses operational inefficiencies. This structural liquidity reduces refinancing urgency and supports strategic flexibility during a turnaround.

Stable Gross Profit MarginStable gross margins indicate consistent pricing power or effective control of direct costs (COGS). This structural margin resilience means revenue gains largely translate to gross profit, making profitability achievable if operating expenses and overheads are optimized over the medium term.

Bears Say

Persistent UnprofitabilityNegative EBIT and net margins over recent years show the business is not yet generating operating profits, limiting retained earnings and internal funding capacity. Sustained unprofitability undermines long-term reinvestment, dividend potential and requires structural cost or revenue improvements to fix.

Weak Free Cash Flow GenerationRepeated negative free cash flow reflects structural shortfalls converting earnings to cash, driven by capex and operating inefficiencies. This limits the company's ability to self-fund growth or reduce leverage, increasing dependence on external financing and raising execution risk over months to years.

Rising Reliance On DebtA declining equity ratio signals greater leverage and reliance on debt financing. Higher leverage increases fixed obligations and interest sensitivity, reducing financial flexibility to invest or weather shocks and raising refinancing and solvency risks if profitability and cash flow do not improve.

Datasection, Inc. News

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3905 FAQ

What was Datasection, Inc.’s price range in the past 12 months?

Datasection, Inc. lowest stock price was ¥585.00 and its highest was ¥4320.00 in the past 12 months.

What is Datasection, Inc.’s market cap?

Datasection, Inc.’s market cap is ¥56.69B.

When is Datasection, Inc.’s upcoming earnings report date?

Datasection, Inc.’s upcoming earnings report date is May 08, 2026 which is in 81 days.

How were Datasection, Inc.’s earnings last quarter?

Datasection, Inc. released its earnings results on Feb 16, 2026. The company reported ¥46.67 earnings per share for the quarter, beating the consensus estimate of N/A by ¥46.67.

Is Datasection, Inc. overvalued?

According to Wall Street analysts Datasection, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Datasection, Inc. pay dividends?

Datasection, Inc. does not currently pay dividends.

What is Datasection, Inc.’s EPS estimate?

Datasection, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Datasection, Inc. have?

Datasection, Inc. has 29,769,050 shares outstanding.

What happened to Datasection, Inc.’s price movement after its last earnings report?

Datasection, Inc. reported an EPS of ¥46.67 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.679%.

Which hedge fund is a major shareholder of Datasection, Inc.?

Currently, no hedge funds are holding shares in JP:3905

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Datasection, Inc.

Datasection Inc. provides solutions for social media analysis, retail marketing, and artificial intelligence development in Japan, Chile, and Colombia. Its solutions include product review survey; lifestyle analysis; brand image measurement; public opinion polls; Insight Intelligence Q, a tool that allows to search and analyze consumer voices on the web; and Social Monitor, a risk monitoring tool that constantly checks the consumer voices. The company also offers FollowUP, a tool that analyzes the behavior of the store visitors; and artificial intelligence solutions comprising data crawling, image processing, and social media data analysis. Datasection Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.