Hatena Co., Ltd. (3930) AI Stock Analysis

• Market Cap: ¥2.90B
• Dividend Yield: N/A
• Average Volume (3M): 9.80K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.30
• Revenue Growth: 7.20%
• EPS Growth: 47.54%
• Country: JP
• Employees: 207
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.93
• Shares Outstanding: 3,075,200
• 10 Day Avg. Volume: 13,990
• 30 Day Avg. Volume: 9,800
• PEG Ratio: 0.07
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 6.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,009.00 ▲(3.17% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is primarily supported by a very strong, debt-free balance sheet and generally solid underlying profitability at the gross level, but is held back by compressed operating leverage, a sharp recent decline in free cash flow versus last year, and bearish technical signals with the price trading below major moving averages.

Positive Factors

Debt-free Balance Sheet

A zero-debt capital structure and stable equity base materially reduce solvency and refinancing risk. This durable financial flexibility supports sustained investment in product development, enterprise service delivery and opportunistic M&A without relying on external borrowing.

High Gross Margins

Very high gross margins reflect scalable digital and SaaS-like economics across platforms and enterprise services. These unit economics provide a lasting cushion for profitability, allowing the firm to absorb SG&A or R&D investments while preserving the potential for improved operating leverage over time.

Positive Cash Generation

Consistent positive operating and free cash flow underpin self-funded growth and lower dependence on external capital. With FCF roughly tracking net income (~0.93), the company can fund platform improvements and enterprise projects internally, supporting durable operational scalability.

Negative Factors

Compressed Operating Margins

Declining operating and net margins signal weakening operating leverage. If fixed costs or sales/marketing spend remain elevated while top-line growth is muted, sustained margin compression can limit reinvestment capacity and reduce return on equity over the medium term.

Sharp FCF Decline & Volatility

A steep year-over-year drop in free cash flow and historical volatility indicate risk in cash conversion. This reduces predictable funding for strategic initiatives, increases reliance on operational recovery to restore cushion, and raises execution risk for multi-quarter investments.

Near-term Revenue Softness

A small but persistent top-line decline points to pressure on user monetization or enterprise demand. Absent durable revenue growth, the company faces constrained scale benefits and tougher margin recovery, making long-term profitability and reinvestment more challenging.

Hatena Co., Ltd. Business Overview & Revenue Model

Company Description

Hatena Co., Ltd. (3930) is a Japanese technology company primarily engaged in providing web services and applications. The company offers platforms for blogging, social networking, and information sharing, serving both individual users and businesses. Hatena's core products include blogging platforms, community services, and content management tools that facilitate content creation and interaction among users.

How the Company Makes Money

Hatena Co., Ltd. generates revenue primarily through a combination of advertising, premium membership subscriptions, and partnerships. The company offers advertising space on its platforms, which generates income from advertisers seeking to reach Hatena's user base. Additionally, Hatena provides premium services and features for which users can subscribe, offering enhanced functionalities and experiences. Strategic partnerships with other technology firms and content creators also contribute to its revenue, facilitating cross-platform promotions and expanding its service offerings.

Hatena Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet (debt-free, stable equity) supports a solid base, but income performance is mixed: high gross margin (~85.7%) is offset by compressed operating/net margins (TTM ~6.8% / ~4.7%) and slightly negative TTM revenue growth (-2.1%). Cash flow is positive but stepped down sharply vs FY2025 (TTM FCF -59.1% YoY) and has been volatile.

Income Statement

Profitability remains solid at the gross level (TTM (Trailing-Twelve-Months) gross margin ~85.7%), but earnings power has weakened versus prior annual periods: TTM operating margin (~6.8%) and net margin (~4.7%) are down from FY2025 (~8.9% / ~6.1%) and well below FY2022 highs. Revenue is slightly down in TTM (-2.1% growth rate), indicating near-term top-line softness, though the multi-year picture still shows growth off the FY2021 base. Overall, the income statement shows a high-margin business with currently compressed operating leverage.

Balance Sheet

The balance sheet is a clear strength: the company reports zero total debt across all periods shown, resulting in no meaningful leverage risk. Equity has been stable-to-growing (TTM equity ~¥2.82B), supporting a strong capital base. Returns have improved from the FY2024 trough (ROE ~2.4%) to TTM (~6.2%), but are still moderate versus earlier peaks (FY2022 ~9.8%), suggesting profitability—not balance sheet capacity—is the main limiter on returns.

Cash Flow

Cash generation is positive in TTM (operating cash flow ~¥302M; free cash flow ~¥282M), and free cash flow roughly tracks reported earnings (TTM free cash flow to net income ~0.93). However, cash flow has been volatile: FY2023 saw very weak operating cash flow and negative free cash flow, and TTM free cash flow is sharply lower than FY2025 (free cash flow growth -59.1%). While the business is currently generating cash, the recent step-down and historical variability keep cash-flow quality from scoring higher.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	3.71B	3.79B	3.31B	3.15B	3.06B	2.62B
Gross Profit	3.18B	3.25B	2.71B	2.61B	2.65B	2.34B
EBITDA	387.34M	472.00M	207.80M	280.60M	449.75M	364.47M
Net Income	173.17M	230.00M	62.37M	99.64M	240.22M	172.64M
Balance Sheet
Total Assets	3.19B	3.45B	2.91B	2.88B	2.97B	2.61B
Cash, Cash Equivalents and Short-Term Investments	1.34B	2.15B	1.52B	1.51B	1.73B	1.52B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	373.80M	635.00M	350.00M	392.59M	528.60M	318.21M
Stockholders Equity	2.82B	2.81B	2.56B	2.49B	2.44B	2.29B
Cash Flow
Free Cash Flow	281.95M	689.00M	128.25M	-112.20M	226.86M	174.83M
Operating Cash Flow	302.35M	711.00M	147.01M	2.58M	327.36M	296.44M
Investing Cash Flow	-77.05M	-38.00M	-106.16M	-158.28M	-43.92M	-105.85M
Financing Cash Flow	-247.14M	2.01M	1.55M	-97.14M	-52.20M	6.92M

Hatena Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 978.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3930, the sentiment is Positive. The current price of 978 is above the 20-day moving average (MA) of 937.95, above the 50-day MA of 914.62, and below the 200-day MA of 1146.37, indicating a neutral trend. The MACD of 5.83 indicates Positive momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3930.

Hatena Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3922	77 Outperform	¥32.41B	15.15	―	0.38%	18.02%	46.43%
6180	75 Outperform	¥7.63B	12.37	―	3.29%	7.47%	55.61%
2193	62 Neutral	¥12.62B	15.54	4.78%	―	-10.17%	-19.44%
3930	61 Neutral	¥2.90B	16.19	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2454	59 Neutral	¥5.54B	-112.79	―	0.77%	4.75%	―
5243	54 Neutral	¥40.45B	83.80	―	―	22.37%	655.34%