True Data Inc. (4416) AI Stock Analysis

• Market Cap: ¥3.63B
• Dividend Yield: N/A
• Average Volume (3M): 10.45K
• Price to Earnings (P/E): 82.6
• Beta (1Y): 0.31
• Revenue Growth: 5.05%
• EPS Growth: -50.80%
• Country: JP
• Employees: 93
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 5.91
• Shares Outstanding: 4,841,200
• 10 Day Avg. Volume: 10,400
• 30 Day Avg. Volume: 10,453
• PEG Ratio: -3.24
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 115.48
• 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: 57 Neutral
• Price Target: ¥849.00 ▲(7.20% Upside)

The overall stock score is primarily influenced by the company's strong financial performance, characterized by consistent revenue growth and a robust balance sheet. However, technical indicators suggest potential bearish momentum, and the extremely high P/E ratio indicates overvaluation, which significantly impacts the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity provides financial stability, reducing risk and enabling strategic investments.

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and profitability.

Operational Efficiency

Improved operational efficiency through higher EBIT and EBITDA margins suggests effective cost management and potential for sustained profitability.

Negative Factors

Volatile Cash Flow

Volatile cash flow can challenge the company's ability to sustain cash generation, impacting its capacity to fund operations and growth initiatives.

Fluctuating Profit Margins

Fluctuating profit margins indicate potential challenges in maintaining consistent profitability, which could affect long-term financial performance.

Revenue Decline

A negative revenue growth trend suggests potential difficulties in maintaining market share or adapting to industry changes, impacting future earnings.

True Data Inc. Business Overview & Revenue Model

Company Description

True Data Inc. (4416) is a technology company focused on providing advanced data analytics solutions and services across various sectors, including healthcare, finance, and retail. The company specializes in big data processing, machine learning algorithms, and data visualization tools that enable businesses to derive actionable insights from large datasets. True Data Inc. aims to empower organizations to make data-driven decisions and optimize their operations through its innovative software products and customized analytics services.

How the Company Makes Money

True Data Inc. generates revenue primarily through a subscription-based model for its software solutions, which allows clients to access its analytics platform on a recurring basis. Additional revenue streams include one-time fees for bespoke analytics projects and consulting services tailored to specific client needs. The company also partners with key technology firms to integrate its analytics tools with their platforms, enhancing its market reach and driving additional sales. Furthermore, True Data Inc. benefits from strategic collaborations with industry leaders in various sectors, which not only contribute to its reputation but also create opportunities for joint ventures and co-development of new products.

True Data Inc. Financial Statement Overview

Summary

True Data Inc. exhibits a strong financial position with consistent revenue growth and a solid balance sheet characterized by low leverage and high equity. While profitability margins have shown improvement, variability in net income and free cash flow suggests areas for improvement.

Income Statement

True Data Inc. has shown consistent revenue growth over the years, with a notable increase from 2020 to 2025. The gross profit margin has remained strong, indicating efficient cost management. However, the net profit margin has fluctuated, reflecting variability in profitability. The EBIT and EBITDA margins have improved, demonstrating enhanced operational efficiency, though the recent decline in EBIT margin suggests potential challenges in maintaining profitability.

Balance Sheet

The company's balance sheet is robust, with a strong equity base and low debt levels, as evidenced by a favorable debt-to-equity ratio. The return on equity has improved over the years, indicating effective use of shareholders' funds. The equity ratio is high, reflecting financial stability and low leverage, which reduces financial risk.

Cash Flow

True Data Inc. has demonstrated positive operating cash flows, supporting its operational needs. The free cash flow has shown growth, although it has been volatile, suggesting potential challenges in sustaining cash generation. The operating cash flow to net income ratio indicates efficient conversion of earnings into cash, while the free cash flow to net income ratio highlights the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.55B	1.59B	1.44B	1.31B	1.17B
Gross Profit	919.92M	892.96M	914.04M	765.03M	649.37M	503.15M
EBITDA	64.31M	71.39M	120.99M	162.52M	162.26M	53.58M
Net Income	3.62M	13.23M	60.00M	34.00M	15.48M	-60.80M
Balance Sheet
Total Assets	1.40B	1.36B	1.36B	1.28B	1.30B	890.49M
Cash, Cash Equivalents and Short-Term Investments	955.04M	859.56M	937.53M	879.05M	847.38M	434.02M
Total Debt	2.96M	5.48M	35.28M	63.11M	93.47M	123.83M
Total Liabilities	310.12M	281.84M	314.58M	307.64M	372.08M	352.32M
Stockholders Equity	1.09B	1.08B	1.05B	970.39M	925.37M	538.17M
Cash Flow
Free Cash Flow	0.00	29.07M	68.72M	82.82M	118.66M	55.53M
Operating Cash Flow	0.00	37.15M	127.53M	138.66M	137.01M	135.72M
Investing Cash Flow	0.00	-104.91M	-58.81M	-87.66M	-56.53M	-80.98M
Financing Cash Flow	0.00	-10.22M	-10.23M	-19.34M	332.87M	25.52M

True Data Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 792.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4416, the sentiment is Negative. The current price of 792 is above the 20-day moving average (MA) of 784.45, below the 50-day MA of 799.66, and below the 200-day MA of 832.05, indicating a bearish trend. The MACD of -14.56 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 36.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4416.

True Data Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4386	78 Outperform	¥5.20B	10.49	―	2.99%	26.64%	30.76%
3996	71 Outperform	¥3.54B	23.25	―	―	-1.26%	-39.08%
4398	68 Neutral	¥6.51B	40.44	―	1.04%	-3.46%	-59.98%
4068	66 Neutral	¥3.40B	34.53	―	―	9.33%	133.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4416	57 Neutral	¥3.63B	82.56	―	―	5.05%	-50.80%
4260	43 Neutral	¥3.26B	175.27	―	―	-3.52%	-65.34%