Japan Data Science Consortium Co Ltd. (4418) AI Stock Analysis

• Market Cap: ¥14.43B
• Dividend Yield: N/A
• Average Volume (3M): 137.59K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.47
• Revenue Growth: 6.24%
• EPS Growth: N/A
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 16,162,200
• 10 Day Avg. Volume: 165,770
• 30 Day Avg. Volume: 137,586
• PEG Ratio: -0.21
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 18.31
• 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: 59 Neutral
• Price Target: ¥932.00 ▼(-17.67% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by improving financial performance (growth and margin improvement with a solid balance sheet), but is held back by weak technicals (price below all key moving averages and negative MACD). Valuation is moderately high (P/E ~26.7) with no dividend yield provided, limiting support on that front.

Positive Factors

Revenue & Margin Improvement

Reported strong revenue growth alongside improving EBIT and EBITDA margins indicates the business is gaining operational leverage. Sustained margin expansion implies better cost control and pricing power, supporting durable profitability and reinvestment capacity over the next 2–6 months.

Balance Sheet Strength

A strong equity ratio and reasonable debt-to-equity suggest moderate leverage and financial resilience. This balance sheet strength provides capacity to fund capex, product development or weather cyclical headwinds without heavy reliance on market financing, supporting longer-term stability.

Improving Cash Generation

Operating cash flow turning positive and strong free cash flow growth signal improving conversion of revenue into cash. Reliable cash generation supports reinvestment, potential strategic initiatives, and reduces financing risk, making the company more self-sustaining over coming quarters.

Negative Factors

Cash Flow Volatility

Despite improving headline cash metrics, the flagged free cash flow to net income volatility means cash-driven performance may fluctuate. That inconsistency can constrain consistent reinvestment, increase reliance on reserves, and complicate forecasting and capital allocation decisions over the medium term.

Recent Revenue Trend

A reported negative recent revenue growth rate undermines the sustainability of top-line momentum. If revenue contraction persists it can pressure margins, slow scale benefits and limit free cash flow expansion, posing a structural headwind to durable operational improvement.

Profitability Volatility

Volatile net profit margins indicate earnings sensitivity to cost swings or revenue mix changes. Even with recent improvements, this variability increases business risk, complicates long-term planning and could lead to uneven cash flow and returns to stakeholders if underlying drivers aren't stabilized.

Japan Data Science Consortium Co Ltd. Business Overview & Revenue Model

Company Description

Japan Data Science Consortium Co.Ltd. engages in the development and licensing of algorithm modules utilizing machine learning in Japan. The company offers Wodom! A data platform that maintains high quality data; sales insight, a video distribution and performance visualization solution for sales DX; response insight for eliminate wasteful mailing and increasing sales with AI; learning insight for training with adaptive learning and automatic question generation; home insight, a home IoT that solves social issues, such as nursing care prevention and reduction of absentee deliveries; demand insight, an AI solution that prevents stockout and overstock, and semi-automates ordering operations; and maintenance insight, an AI solution that realizes remote monitoring, anomaly detection, and operation optimization of manufacturing equipment and home appliances. It is also involved in the development and operation of IT systems; and data science advisory and consulting business. Japan Data Science Consortium Co.Ltd. was founded in 2013 and is based in Tokyo, Japan.

How the Company Makes Money

Japan Data Science Consortium generates revenue primarily through a combination of consulting services, software licensing, and subscription fees for its data analytics platforms. The consulting services are tailored to meet specific client needs, involving projects that range from data strategy formulation to implementation of machine learning models. The company also earns revenue by licensing its proprietary software solutions to organizations looking to leverage data analytics capabilities in their operations. Additionally, recurring revenue is generated through subscription models for its cloud-based services, allowing clients continuous access to data analytics tools and support. Significant partnerships with technology firms and research institutions enhance its service offerings and contribute to a robust client base, thus playing a critical role in the company's overall financial performance.

Japan Data Science Consortium Co Ltd. Financial Statement Overview

Summary

Strong revenue growth and improving EBIT/EBITDA margins support the score, while cash flow remains somewhat volatile despite turning positive and showing strong free cash flow growth. Balance sheet leverage is moderate with a strong equity position.

Income Statement

The company has shown strong revenue growth with a significant increase in total revenue over the past year. Gross profit margin is healthy, indicating efficient cost management. However, net profit margin has been volatile, with recent improvements. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating moderate leverage. Return on equity has been improving, suggesting better profitability. The equity ratio is strong, highlighting a solid financial position with a good proportion of assets financed by equity.

Cash Flow

Operating cash flow has turned positive, indicating improved cash generation from operations. Free cash flow growth is strong, but the free cash flow to net income ratio suggests potential volatility in cash flow relative to earnings. Overall, cash flow management is improving but requires careful monitoring.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2022	Jun 2021
Income Statement
Total Revenue	23.06B	16.46B	1.94B	1.41B	1.09B
Gross Profit	2.34B	1.61B	996.35M	817.80M	582.40M
EBITDA	644.12M	-19.21M	67.54M	-64.47M	38.20M
Net Income	345.68M	-278.40M	1.29M	-82.93M	27.72M
Balance Sheet
Total Assets	7.99B	7.61B	4.22B	3.73B	3.19B
Cash, Cash Equivalents and Short-Term Investments	2.78B	2.30B	3.15B	3.35B	3.02B
Total Debt	1.39B	1.65B	12.24M	0.00	0.00
Total Liabilities	4.09B	4.24B	601.40M	141.71M	136.51M
Stockholders Equity	3.79B	3.29B	3.56B	3.59B	3.05B
Cash Flow
Free Cash Flow	883.36M	-730.58M	308.17M	-161.68M	135.11M
Operating Cash Flow	893.48M	-713.59M	341.59M	-147.10M	150.31M
Investing Cash Flow	-114.44M	-1.75B	-517.94M	-129.61M	-14.45M
Financing Cash Flow	-299.59M	1.62B	-31.10M	614.93M	2.63B

Japan Data Science Consortium Co Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1132.00
• 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:4418, the sentiment is Negative. The current price of 1132 is above the 20-day moving average (MA) of 976.75, above the 50-day MA of 1075.10, and above the 200-day MA of 1128.56, indicating a bearish trend. The MACD of -63.87 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 45.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4418.

Japan Data Science Consortium Co Ltd. 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%
5250	60 Neutral	¥4.23B	38.82	―	1.74%	―	―
4418	59 Neutral	¥14.43B	26.78	―	―	6.24%	―
2158	55 Neutral	¥37.40B	75.64	―	―	-10.49%	―