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PATH Corporation
(3840)
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Rating:42Neutral
Price Target:
¥54.00
▼(-10.00% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by weak financial performance: widening losses in 2026 and ongoing negative operating/free cash flow outweigh the benefit of revenue growth and manageable leverage. Technicals add additional pressure with the stock trading below key moving averages and negative MACD. Valuation is also hindered by the negative P/E, indicating losses rather than earnings-based support.
Positive Factors
Revenue Growth Trajectory
Sustained revenue expansion into 2026 indicates underlying demand and market traction for the company’s services. Over months this supports scale benefits, helps absorb fixed costs, and creates a foundation for future margin recovery if management converts top-line growth into improved operating efficiency.
Negative Factors
Persistent Negative Cash Flow
Consistent negative operating and free cash flow means the business cannot internally fund operations or growth, requiring external financing. Over months this erodes liquidity, increases financing costs or dilution risk, and constrains the company’s ability to invest in product or sales initiatives needed for durable recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trajectory
Sustained revenue expansion into 2026 indicates underlying demand and market traction for the company’s services. Over months this supports scale benefits, helps absorb fixed costs, and creates a foundation for future margin recovery if management converts top-line growth into improved operating efficiency.
Read all positive factors
PATH Corporation (3840) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.80B
Dividend YieldN/A
Average Volume (3M)132.26K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth-0.19%
EPS Growth-172.04%
CountryJP
Employees50
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-16.54
Shares Outstanding82,680,240
10 Day Avg. Volume122,080
30 Day Avg. Volume132,256
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)2.72
Price to Sales (P/S)2.18
P/FCF Ratio-10.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PATH Corporation Business Overview & Revenue Model
Company Description
Path Corporation, headquartered in Tokyo, Japan, was established in 1990 and primarily focuses on its e-commerce ventures across the country. The company offers a wide array of cosmetics, beauty products, and wellness items. Its activities also en...
How the Company Makes Money
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PATH Corporation Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
52
Neutral
Cash Flow
18
Very Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.37B | 2.25B | 2.32B | 1.99B | 2.11B |
| Gross Profit | 1.16B | 1.17B | 1.10B | 972.41M | 1.10B |
| EBITDA | -788.58M | -163.36M | -137.10M | -195.17M | -636.52M |
| Net Income | -1.28B | -276.77M | -175.88M | -256.11M | -745.99M |
Balance Sheet | |||||
| Total Assets | 2.53B | 3.25B | 1.68B | 1.45B | 1.27B |
| Cash, Cash Equivalents and Short-Term Investments | 357.20M | 154.66M | 296.58M | 172.88M | 345.48M |
| Total Debt | 250.00M | 293.39M | 0.00 | 0.00 | 500.00M |
| Total Liabilities | 621.09M | 777.41M | 477.02M | 350.55M | 802.16M |
| Stockholders Equity | 1.91B | 2.47B | 1.20B | 1.10B | 469.69M |
Cash Flow | |||||
| Free Cash Flow | -490.93M | -1.06B | -159.30M | -467.46M | -855.42M |
| Operating Cash Flow | -435.48M | -538.51M | -76.61M | -352.40M | -835.56M |
| Investing Cash Flow | -319.23M | -525.28M | -87.37M | -113.93M | -23.60M |
| Financing Cash Flow | 957.25M | 914.00M | 287.69M | 281.09M | 998.98M |
PATH Corporation Technical Analysis
Positive
60.00
Price Trends
58.64
Positive
58.84
Positive
61.72
Positive
Market Momentum
0.35
Negative
62.85
Neutral
69.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3840, the sentiment is Positive. The current price of 60 is above the 20-day moving average (MA) of 57.05, above the 50-day MA of 58.64, and below the 200-day MA of 61.72, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3840.
PATH Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥45.45B | 11.33 | ― | 3.71% | -1.79% | 10.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥6.69B | 17.19 | ― | 4.39% | 1.99% | 114.51% | |
55 Neutral | ¥5.88B | 32.25 | ― | 2.72% | -3.93% | 11.47% | |
53 Neutral | ¥3.16B | 15.63 | ― | 3.30% | -2.64% | -18.75% | |
42 Neutral | ¥4.80B | -3.93 | ― | ― | -0.19% | -172.04% |
* Industrials Sector Average
JP:3840
PATH Corporation
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.