Datasection, Inc. (JP:3905)
:3905
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Datasection, Inc.
(3905)
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Rating:68Neutral
Price Target:
¥3,646.00
▲(82.76% Upside)
Action:Reiterated
Date:05/18/26
The score is driven primarily by improved profitability and a much stronger balance sheet, offset by significant negative operating/free cash flow and weaker cash conversion in the latest year. Technicals are supportive with strong momentum and an uptrend, while valuation appears reasonable on P/E but lacks dividend support and relies on earnings quality holding up.
Positive Factors
Balance sheet strength
The sharp improvement in equity and near-elimination of leverage materially reduces financial risk and increases strategic optionality. A stronger balance sheet supports sustained R&D, sales investment, or tuck-in acquisitions, improving resilience over the next 2–6 months and beyond.
Negative Factors
Poor cash conversion
Negative operating and free cash flow despite reported profits indicates earnings are not translating into cash; this raises funding and execution risk. Persistent cash deficits can force dilution, debt issuance, or scaling headcount cuts and hinder durable growth execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
The sharp improvement in equity and near-elimination of leverage materially reduces financial risk and increases strategic optionality. A stronger balance sheet supports sustained R&D, sales investment, or tuck-in acquisitions, improving resilience over the next 2–6 months and beyond.
Read all positive factors
Datasection, Inc. (3905) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥108.18B
Dividend YieldN/A
Average Volume (3M)5.98M
Price to Earnings (P/E)11.0
Beta (1Y)1.12
Revenue Growth1042.00%
EPS GrowthN/A
CountryJP
Employees210
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-49.59
Shares Outstanding31,909,052
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
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; publi...
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
1633.78
Positive
1809.61
Positive
2114.39
Positive
Market Momentum
336.20
Negative
85.33
Negative
93.67
Negative
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 above the 20-day moving average (MA) of 1905.75, above the 50-day MA of 1633.78, and below the 200-day MA of 2114.39, indicating a bullish trend. The MACD of 336.20 indicates Negative momentum. The RSI at 85.33 is Negative, neither overbought nor oversold. The STOCH value of 93.67 is Negative, 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 | ¥103.86B | 30.95 | ― | ― | 22.27% | ― | |
74 Outperform | ¥86.89B | 11.45 | ― | 2.59% | 7.79% | 9.07% | |
68 Neutral | ¥108.18B | 11.00 | ― | ― | 1042.00% | ― | |
66 Neutral | ¥42.54B | 18.56 | ― | 1.50% | 10.69% | 6.99% | |
65 Neutral | ¥13.13B | 50.36 | ― | ― | 26.18% | -33.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥9.42B | 33.78 | ― | ― | 17.58% | -28.24% |
* Technology Sector Average
JP:3905
Datasection, Inc.
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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.