True Data Inc. (4416) AI Stock Analysis

• Market Cap: ¥4.32B
• Dividend Yield: N/A
• Average Volume (3M): 62.80K
• Price to Earnings (P/E): 323.6
• Beta (1Y): 0.47
• Revenue Growth: -2.43%
• EPS Growth: -78.05%
• Country: JP
• Employees: 93
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 1.71
• Shares Outstanding: 4,840,800
• 10 Day Avg. Volume: 24,450
• 30 Day Avg. Volume: 62,796
• PEG Ratio: 0.00
• Price to Book (P/B): 14.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.04
• 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: ¥1,263.00
• Price Target Upside: 39.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥910.00 ▲(0.44%Upside)

True Data Inc.'s strong financial foundation is overshadowed by its high valuation and weak technical indicators. The significant overvaluation, as reflected by a very high P/E ratio, combined with negative technical signals, results in a moderate overall stock score. Improvements in profitability consistency and market momentum are needed to enhance the stock's appeal.

True Data Inc. Business Overview & Revenue Model

Company Description

True Data Inc. (4416) is a company specializing in digital data solutions, providing comprehensive data analytics and insights to businesses across various sectors. The company focuses on transforming raw data into actionable intelligence, helping clients make informed decisions and optimize their operations. True Data Inc. leverages cutting-edge technology to deliver high-quality data services, including data management, analytics, and consulting.

How the Company Makes Money

True Data Inc. generates revenue through a diverse range of data-related services. The company's primary revenue streams include subscription-based data analytics platforms, where clients pay regular fees to access data insights and analytics tools. Additionally, True Data Inc. offers customized data consulting services, which generate revenue on a project basis. The company also partners with various businesses to provide tailored data solutions, enabling them to enhance their operational efficiency and decision-making processes. These partnerships often include revenue-sharing agreements or licensing deals, further contributing to the company's earnings.

True Data Inc. Financial Statement Overview

Summary

True Data Inc. demonstrates solid financial health with strong growth in revenues and profitability over the long term. The company has a robust balance sheet with low leverage and strong cash reserves, though recent performance indicates slowing growth.

Income Statement

True Data Inc. has shown strong revenue growth from 2020 to 2024, with a notable increase in gross profit margin over the same period. The company has managed to turn around its net income from losses in 2020 to profitability in recent years. However, the slight decline in revenue and profitability in 2025 indicates potential challenges ahead. Despite this, the EBIT and EBITDA margins have remained relatively stable, supporting the company's profitability.

Balance Sheet

The company's balance sheet is robust with a high equity ratio, indicating financial stability and low leverage. The debt-to-equity ratio is minimal, showcasing prudent financial management. Return on Equity (ROE) has improved significantly as net income turned positive, reflecting efficient use of equity capital. The strong cash position and decreasing total debt further strengthen the company's financial standing.

Cash Flow

Cash flow analysis indicates a healthy operating cash flow consistently exceeding net income, signaling strong cash-generating ability. Although free cash flow has decreased recently, the company maintains positive free and operating cash flow ratios. However, fluctuating investing and financing cash flows suggest potential volatility in cash deployment strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.53B	1.55B	1.59B	1.44B	1.31B	1.17B
Gross Profit	901.84M	892.96M	914.04M	765.03M	649.37M	503.15M
EBITDA	137.57M	71.39M	120.99M	195.95M	162.26M	53.58M
Net Income	63.90M	13.23M	60.00M	34.00M	15.48M	-60.80M
Balance Sheet
Total Assets	1.31B	1.36B	1.36B	1.28B	1.30B	890.49M
Cash, Cash Equivalents and Short-Term Investments	925.00M	859.56M	937.53M	879.05M	847.38M	434.02M
Total Debt	22.00M	5.48M	35.28M	63.11M	93.47M	123.83M
Total Liabilities	251.00M	281.84M	314.58M	307.64M	372.08M	352.32M
Stockholders Equity	1.06B	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	44.38M	127.53M	138.66M	137.01M	135.72M
Investing Cash Flow	0.00	-112.13M	-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: Neutral
• Last Price: 906.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 906 is below the 20-day moving average (MA) of 914.30, below the 50-day MA of 942.04, and above the 200-day MA of 711.19, indicating a neutral trend. The MACD of -13.11 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 32.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	¥4.27B	8.75		3.37%	26.96%	100.15%
3996	71 Outperform	¥4.03B	19.57		―	-1.23%	2.92%
4260	61 Neutral	¥4.92B	108.15		―	-1.88%	-137.84%
4068	60 Neutral	¥3.78B	26.48		―	30.73%	―
4398	55 Neutral	¥5.52B	28.50		1.22%	-3.90%	-63.64%
4416	54 Neutral	¥4.32B	323.63		―	-2.43%	-78.05%
Sector *	50 Neutral	C$3.13B	2.46	-63.57%	2.58%	4.49%	-6.00%