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Datasection, Inc. (JP:3905)
:3905
Japanese Market

Datasection, Inc. (3905) AI Stock Analysis

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JP

Datasection, Inc.

(3905)

Rating:54Neutral
Price Target:
¥2,026.00
▲(27.74%Upside)
The overall stock score for Datasection, Inc. is influenced primarily by its financial performance and valuation. Despite strong revenue growth, the company's negative profitability and cash flow issues weigh heavily on its financial health. Technical analysis provides some positive momentum indicators, but valuation remains a significant concern due to the negative P/E ratio. The absence of earnings call data and corporate events does not impact the score.

Datasection, Inc. (3905) vs. iShares MSCI Japan ETF (EWJ)

Datasection, Inc. Business Overview & Revenue Model

Company DescriptionDatasection, Inc. (3905) is a technology company specializing in the development and provision of artificial intelligence and data analysis solutions. The company focuses on sectors such as digital marketing, consumer insights, and smart city applications, offering advanced products and services that leverage big data and machine learning technologies to deliver actionable insights and innovative solutions for businesses and municipalities.
How the Company Makes MoneyDatasection, Inc. generates revenue through the sale of its AI-driven data analysis products and services. The company offers tailored solutions to its clients, which include businesses seeking to enhance their digital marketing strategies and municipalities looking to implement smart city technologies. Revenue streams are primarily derived from subscription fees for its software platforms, consulting services, and custom data analytics projects. Additionally, partnerships with technology firms and government entities contribute to its earnings by expanding its market reach and integrating its solutions into broader initiatives.

Datasection, Inc. Financial Statement Overview

Summary
Datasection, Inc. exhibits strong revenue growth but struggles with profitability and cash flow generation. The company maintains a relatively strong cash position, providing some financial stability; however, it must address operational inefficiencies and reduce its reliance on debt to improve financial health.
Income Statement
55
Neutral
Datasection, Inc. has shown a steady revenue growth from 2020 to 2025, with a significant increase from 2024 to 2025. However, the company is currently facing profitability challenges as evidenced by its negative EBIT and net income margins in recent years. The gross profit margin has remained relatively stable, indicating the company is maintaining its cost of goods sold effectively. Despite the growth in revenue, the company needs to improve its operational efficiency to return to profitability.
Balance Sheet
60
Neutral
The company's balance sheet shows a moderate debt-to-equity ratio, which suggests a balanced capital structure. However, the equity ratio has been declining, indicating an increasing reliance on debt to finance assets. The company has maintained a strong cash position relative to its liabilities, which provides some financial stability. Improving stockholders' equity and reducing total liabilities will be crucial for long-term financial health.
Cash Flow
50
Neutral
The cash flow statement highlights challenges in generating positive free cash flow, with negative values in recent years. The operating cash flow to net income ratio indicates cash flow issues, exacerbated by significant capital expenditures. Despite these challenges, the company has seen periods of positive operating cash flow, suggesting potential for cash generation if operational inefficiencies are addressed.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.74B2.94B2.23B1.92B1.69B1.39B
Gross Profit1.03B1.16B701.28M785.61M684.75M537.87M
EBITDA-431.09M-315.25M-873.90M770.76M322.44M240.38M
Net Income-812.66M-654.99M-1.26B-530.29M2.44M-41.77M
Balance Sheet
Total Assets4.38B4.59B3.79B4.39B4.40B4.27B
Cash, Cash Equivalents and Short-Term Investments544.00M526.04M1.69B2.01B1.95B1.92B
Total Debt1.18B1.37B843.53M1.16B960.68M709.88M
Total Liabilities1.82B2.19B1.80B1.88B1.58B1.40B
Stockholders Equity2.54B2.38B1.95B2.48B2.80B2.83B
Cash Flow
Free Cash Flow0.00-177.43M-360.75M-294.40M-76.90M-4.12M
Operating Cash Flow0.00-83.41M333.60M2.42M113.09M169.73M
Investing Cash Flow0.00-1.19B-569.26M-255.77M-304.07M-508.84M
Financing Cash Flow0.00163.55M382.96M242.02M28.31M232.93M

Datasection, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1586.00
Price Trends
50DMA
1411.70
Positive
100DMA
1140.67
Positive
200DMA
1048.10
Positive
Market Momentum
MACD
53.13
Positive
RSI
56.52
Neutral
STOCH
32.95
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 1586 is below the 20-day moving average (MA) of 2046.85, above the 50-day MA of 1411.70, and above the 200-day MA of 1048.10, indicating a neutral trend. The MACD of 53.13 indicates Positive momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥13.96B10.77
3.83%2.13%7.67%
74
Outperform
¥13.85B10.18
1.54%-54.06%-72.85%
69
Neutral
¥11.44B13.13
4.28%6.70%59.13%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
68
Neutral
¥13.69B20.20
3.66%-2.98%-31.07%
54
Neutral
¥33.37B
32.00%55.33%
45
Neutral
¥10.61B
45.82%-6.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3905
Datasection, Inc.
1,986.00
18.00
0.91%
JP:3800
UNIRITA, Inc.
1,910.00
16.58
0.88%
JP:3823
WHY HOW DO COMPANY,Inc.
102.00
69.00
209.09%
JP:3856
Abalance Corp
644.00
-530.39
-45.16%
JP:3937
Ubicom Holdings. Inc.
925.00
-459.28
-33.18%
JP:4299
HIMACS, Ltd.
1,197.00
-176.92
-12.88%
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.Date of analysis: Jul 05, 2025