Datasection, Inc. (JP:3905)
:3905
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Datasection, Inc.
(3905)
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Rating:66Neutral
Price Target:
¥4,687.00
▲(134.94% Upside)
Action:Reiterated
Date:06/06/26
The score is held back primarily by weak cash conversion and large negative operating/free cash flow despite the 2026 earnings rebound, which raises execution and funding risk. Offsetting that, the balance sheet looks much stronger with very low leverage and improved returns, and technicals are strongly bullish. Valuation is a headwind given the high P/E and lack of dividend support.
Positive Factors
Balance-sheet strength
A materially stronger balance sheet and near-zero leverage provide lasting financial flexibility: the company can fund R&D, absorb operational shocks, or pursue strategic partnerships without immediate refinancing pressure, reducing solvency risk over the next 2–6 months.
Negative Factors
Weak cash generation
Deeply negative operating and free cash flow despite reported net income raises execution and funding risk. Persistent cash outflows can force external financing, constrain investment in product development, and increase the likelihood of dilution or spending cuts over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
A materially stronger balance sheet and near-zero leverage provide lasting financial flexibility: the company can fund R&D, absorb operational shocks, or pursue strategic partnerships without immediate refinancing pressure, reducing solvency risk over the next 2–6 months.
Read all positive factors
Datasection, Inc. (3905) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥163.14B
Dividend YieldN/A
Average Volume (3M)5.98M
Price to Earnings (P/E)43.6
Beta (1Y)1.37
Revenue Growth1042.00%
EPS GrowthN/A
CountryJP
Employees210
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-49.59
Shares Outstanding32,017,050
10 Day Avg. Volume5,608,600
30 Day Avg. Volume5,980,486
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.59
Price to Sales (P/S)0.92
P/FCF Ratio-3.23
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
Datasection, Inc. Business Overview & Revenue Model
Company Description
Operating across Japan, Chile, and Colombia, Datasection Inc. specializes in delivering advanced solutions in social media analytics, retail marketing strategies, and artificial intelligence development. Their extensive suite of services encompass...
How the Company Makes Money
Datasection, Inc. generates revenue by offering subscription-based software services and bespoke solutions for data analysis and artificial intelligence applications. The company earns from licensing its proprietary AI platforms and tools, as well...
Datasection, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 33.61B | 2.94B | 2.23B | 1.92B | 1.69B |
| Gross Profit | 1.09B | 6.28B | 1.16B | 654.23M | 680.48M | 588.13M |
| EBITDA | -400.89M | 4.12B | -222.70M | -1.69M | 193.59M | 291.97M |
| Net Income | -894.99M | 2.80B | -654.99M | -1.26B | -530.29M | 2.44M |
Balance Sheet | ||||||
| Total Assets | 6.42B | 28.58B | 4.59B | 3.81B | 4.42B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00B | 417.81M | 526.04M | 1.69B | 1.45B | 1.45B |
| Total Debt | 1.03B | 545.38M | 1.37B | 1.24B | 1.51B | 1.21B |
| Total Liabilities | 1.65B | 9.17B | 2.19B | 1.83B | 1.91B | 1.62B |
| Stockholders Equity | 4.74B | 19.37B | 2.38B | 1.95B | 2.48B | 2.80B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -9.54B | -177.43M | -203.17M | -84.27M | 63.22M |
| Operating Cash Flow | 0.00 | -4.91B | -83.41M | 333.60M | 2.42M | 113.09M |
| Investing Cash Flow | 0.00 | -8.30B | -1.19B | -569.26M | -255.77M | -304.07M |
| Financing Cash Flow | 0.00 | 13.12B | 163.55M | 382.96M | 242.02M | 28.31M |
Datasection, Inc. Technical Analysis
Positive
1995.00
Price Trends
3090.54
Positive
2405.21
Positive
2287.80
Positive
Market Momentum
495.09
Positive
59.19
Neutral
64.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3905, the sentiment is Positive. The current price of 1995 is below the 20-day moving average (MA) of 4894.00, below the 50-day MA of 3090.54, and below the 200-day MA of 2287.80, indicating a bullish trend. The MACD of 495.09 indicates Positive momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 64.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3905.
Datasection, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥80.57B | 12.26 | ― | 2.59% | 7.79% | 9.06% | |
72 Outperform | ¥12.22B | 46.66 | ― | ― | 12.23% | 38.11% | |
69 Neutral | ¥86.78B | 50.20 | ― | ― | 22.27% | ― | |
66 Neutral | ¥163.14B | 43.64 | ― | ― | 1042.00% | ― | |
66 Neutral | ¥39.59B | 15.06 | ― | 1.50% | 10.69% | 6.99% | |
65 Neutral | ¥12.68B | 81.82 | ― | ― | 26.18% | -33.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.