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

• Market Cap: ¥3.13B
• Dividend Yield: N/A
• Average Volume (3M): 9.80K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.29
• Revenue Growth: 7.20%
• EPS Growth: 47.54%
• Country: JP
• Employees: 207
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 20.13
• 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: 6.16
• 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: 58 Neutral
• Price Target: ¥971.00 ▼(-0.72% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held up by balance-sheet strength and strong gross profitability, but is weighed down by recent revenue/margin softness, inconsistent historical cash-flow performance, negative MACD and long-term trend below the 200-day average, and an expensive valuation (very high P/E with no dividend support).

Positive Factors

High gross margins

Very high gross margins (~85–86%) point to advantaged unit economics from content/platform operations. Durable margin structure reduces sensitivity to revenue swings, supports reinvestment in product and platform reliability, and underpins long‑term profitability even with modest top‑line volatility.

Conservative balance sheet

Minimal debt and effectively zero reported leverage give the company strong financial flexibility. A conservative balance sheet lowers refinancing and liquidity risk, enabling opportunistic investment, continued service operation spending, or buffer through advertising/traffic cycles without needing external capital.

Positive free cash flow

TTM free cash flow is positive and growing (+8.6%), with FCF near 93% of net income, indicating strong cash conversion. Reliable FCF supports self‑funding of platform upkeep and enterprise services, reduces reliance on financing, and provides capacity for strategic initiatives or shareholder returns over the medium term.

Negative Factors

Revenue decline & margin squeeze

Revenue has softened (TTM -2.3%) while EBIT and net margins compressed versus prior periods. Persistent top‑line weakness coupled with narrower margins reduces internally generated funds for product development and sales investment, risking slower growth and weaker competitiveness if not reversed.

Cash flow volatility

Operating cash flow has been inconsistent: TTM coverage fell to ~0.90 and historical episodes include near‑zero OCF and negative FCF. This volatility undermines planning reliability, may force precautionary capital retention, and raises the risk that growth investments are curtailed during down cycles.

Declining return on equity

ROE has moderated materially from ~9.8% to ~6.2% TTM, signaling reduced efficiency in converting equity into profits. Persistently lower returns can limit shareholder value creation and indicate the need for either sustained revenue growth or margin recovery to restore long‑term capital efficiency.

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 generates revenue primarily through (1) B2B/enterprise services and (2) monetization of its consumer internet platforms. On the enterprise side, the company provides content management, media/owned-site development and operation support, and knowledge/FAQ/community solutions for corporate and organizational customers; revenue is typically earned via service fees that may include implementation/development fees plus ongoing usage, maintenance, or subscription/hosting fees depending on the offering. On the consumer platform side, the company earns from advertising displayed within its owned media/services and from paid user plans (premium memberships) where applicable; these revenues depend on traffic/engagement and conversion to paid features. Additional revenue may come from related ancillary services tied to these platforms and enterprise offerings. Specific breakdowns by segment, named major partners, and current-period contribution ratios are null.

Hatena Co., Ltd. Financial Statement Overview

Summary

Financial profile is stable but mixed: strong gross margins (~85–86%) and a low-leverage balance sheet (minimal debt vs equity) support resilience, while TTM revenue declined (-2.3%), margins compressed (net ~4.7%, EBIT ~6.8%), and cash-flow history shows volatility despite positive TTM free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue slipped (-2.3%) and profitability compressed versus FY2025: net margin fell to ~4.7% (from ~6.1%) and EBIT margin to ~6.8% (from ~8.9%). That said, the business continues to post very strong gross margins (~85–86%), and earnings remain positive. Longer-term results show meaningful volatility (strong FY2022, sharp profitability dip in FY2024), which keeps the score in the mid-range despite solid underlying unit economics.

Balance Sheet

The balance sheet looks conservatively positioned: debt is minimal (TTM total debt ~¥250m vs equity ~¥2.90bn) and reported debt-to-equity is effectively zero across periods, indicating low leverage risk. Equity has also grown over time, supporting financial flexibility. The main watch-out is returns have moderated from earlier highs (ROE ~9.8% in FY2022 to ~6.2% TTM), suggesting less efficient profit generation off the equity base recently.

Cash Flow

Cash generation is mixed. TTM free cash flow is positive (~¥306m) and grew (+8.6%), and cash conversion is generally reasonable (TTM free cash flow is ~93% of net income). However, operating cash flow coverage has become less comfortable TTM (~0.90) versus FY2025 (~1.19), and history shows notable volatility—FY2023 had near-zero operating cash flow and negative free cash flow. This inconsistency tempers an otherwise improving recent cash profile.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	3.63B	3.79B	3.31B	3.15B	3.06B	2.62B
Gross Profit	3.12B	3.24B	2.70B	2.59B	2.60B	2.30B
EBITDA	315.91M	473.26M	180.87M	269.64M	445.66M	361.94M
Net Income	139.02M	230.88M	62.37M	99.64M	240.22M	172.64M
Balance Sheet
Total Assets	3.54B	3.46B	2.92B	2.89B	2.99B	2.61B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.15B	1.52B	1.51B	1.73B	1.52B
Total Debt	250.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	644.89M	643.02M	361.59M	403.83M	546.85M	318.21M
Stockholders Equity	2.90B	2.82B	2.56B	2.49B	2.44B	2.29B
Cash Flow
Free Cash Flow	305.93M	688.20M	128.25M	-30.48M	269.96M	284.68M
Operating Cash Flow	319.49M	711.58M	147.01M	2.58M	327.36M	296.44M
Investing Cash Flow	-60.57M	-38.43M	-106.16M	-158.28M	-43.92M	-105.85M
Financing Cash Flow	1.61M	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: Negative
• RSI: Negative
• 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 939.60, above the 50-day MA of 933.54, and below the 200-day MA of 1113.48, indicating a neutral trend. The MACD of 16.01 indicates Negative momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 60.13 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	¥28.40B	12.43	―	0.38%	18.02%	46.43%
6180	75 Outperform	¥7.43B	15.62	―	3.29%	7.47%	55.61%
2193	62 Neutral	¥12.54B	15.07	4.78%	―	-10.17%	-19.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2454	59 Neutral	¥5.46B	-13.71	―	0.77%	4.75%	―
3930	58 Neutral	¥3.13B	11.33	―	―	7.20%	47.54%
5243	54 Neutral	¥40.08B	58.36	―	―	22.37%	655.34%