True Data Inc. (4416) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 10.45K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 0.21
• Revenue Growth: 5.05%
• EPS Growth: -50.80%
• Country: JP
• Employees: 93
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.70
• 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: ¥542.00 ▼(-31.57% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is anchored by strong financial stability and improving operating efficiency, but is held back by very weak technical momentum (well below key moving averages with negative MACD) and a high P/E valuation without dividend support.

Positive Factors

Recurring subscription revenue

A subscription-based SaaS model creates durable, predictable recurring revenue and higher customer lifetime value. Over 2-6 months this supports cash visibility, easier capacity planning, and higher retention-driven revenue growth versus one-time sales, enabling scalable margin expansion.

Strong balance sheet, low leverage

Low leverage and a high equity ratio materially reduce financial risk and give management flexibility to invest in R&D, absorb cyclical downturns, or pursue M&A. This structural financial strength supports long-term strategic initiatives and resilience versus peers with higher debt.

Consistent revenue growth and gross margins

Sustained top-line growth with stable gross margins indicates product-market fit and operational efficiency across healthcare, finance and retail verticals. This combination supports scalable unit economics and reinvestment capacity to maintain competitive analytics offerings.

Negative Factors

Volatile free cash flow

Intermittent free cash flow volatility constrains reliable internal funding for capex, R&D and working capital. Over multiple quarters this makes strategic planning harder, may force external financing during investments, and can pressure margin recovery if volatility persists.

EPS contraction

A sharp negative EPS growth rate signals profitability pressures or one-off impacts that reduced earnings power. Continued EPS contraction can erode retained earnings, limit reinvestment capacity, and signal that operational improvements must outpace revenue gains to restore durable shareholder returns.

Operating margin variability

Fluctuating net margins and a recent EBIT decline undermine earnings predictability and suggest sensitivity to cost structure or pricing pressures. Without sustained margin stability, revenue growth may not translate into durable profitability or free cash generation over the medium term.

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

Solid fundamentals supported by consistent revenue growth and a strong, low-leverage balance sheet. Profitability and free cash flow are positive but have shown variability, which tempers the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 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 599.90, above the 50-day MA of 670.46, and below the 200-day MA of 823.55, indicating a bearish trend. The MACD of -45.44 indicates Positive momentum. The RSI at 28.26 is Positive, neither overbought nor oversold. The STOCH value of 20.80 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
3984	80 Outperform	¥26.65B	15.97	―	0.73%	17.86%	21.52%
5574	74 Outperform	¥31.40B	56.04	―	―	29.61%	93.16%
3655	70 Outperform	¥58.97B	606.48	―	0.28%	8.64%	-23.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4418	59 Neutral	¥14.43B	26.78	―	―	6.24%	―
4416	57 Neutral	¥2.56B	52.49	―	―	5.05%	-50.80%
4819	55 Neutral	¥98.36B	50.39	4.18%	1.97%	19.61%	―