tiprankstipranks
Datasection, Inc. (JP:3905)
:3905
Japanese Market
Want to see JP:3905 full AI Analyst Report?

Datasection, Inc. (3905) Price & Analysis

1 Followers

3905 Stock Chart & Stats

¥1995.00
¥12.00(1.69%)
At close: 4:00 PM EST
¥1995.00
¥12.00(1.69%)

Bulls Say, Bears Say

Bulls Say
Strong Balance Sheet & Low LeverageLeverage fell to ~0.03 and equity rose to ¥19.4B, with ROE around 14.5%. This materially reduces refinancing and liquidity risk, giving management flexibility to fund R&D, partnerships or M&A. A stronger balance sheet provides durable optionality to execute strategy despite cash volatility.
Large Revenue Step-change & ProfitabilityRevenue jumped to ¥33.6B from ¥2.9B with positive net and EBIT margins, indicating meaningful scale and a transition to operating profitability. Such a step-change suggests product-market fit and the potential for sustainable earnings if management can maintain margins and translate scale into repeatable operating cash.
Recurring SaaS/AI Business ModelSubscription licensing, AI platforms and consultancy create recurring revenue, cross-sell opportunities and client stickiness. Operating across marketing, retail and public sectors diversifies demand and captures secular AI and big-data adoption trends, supporting structural growth and more predictable revenue streams over time.
Bears Say
Weak Cash GenerationOperating cash flow of -¥4.9B and free cash flow of -¥9.5B in 2026 despite positive net income shows poor cash conversion. Persistent negative cash flows strain liquidity, elevate funding needs, and could force trade-offs between growth investments and balance-sheet repair or lead to dilutive financing if the trend continues.
Compressed Gross MarginsGross margin fell to ~18.7% from historical 31–41%, implying a shift to lower-margin revenue or higher direct costs. This erosion reduces the buffer for operating expenses and implies recent profit improvements may rely on a different, lower-quality revenue mix that could be harder to sustain as competition or contract mix normalizes.
History Of Uneven Performance & Execution RiskSeveral prior years of negative free cash flow and uneven cash conversion increase execution and funding risk. Management must demonstrate consistent cash generation and operational discipline; otherwise the company risks recurring funding needs, interrupted growth plans, or strategic pivots that weaken long-term prospects.

3905 FAQ

What was Datasection, Inc.’s price range in the past 12 months?
Datasection, Inc. lowest stock price was ¥1270.00 and its highest was ¥6140.00 in the past 12 months.
    What is Datasection, Inc.’s market cap?
    Datasection, Inc.’s market cap is ¥146.05B.
      When is Datasection, Inc.’s upcoming earnings report date?
      Datasection, Inc.’s upcoming earnings report date is Aug 19, 2026 which is in 69 days.
        How were Datasection, Inc.’s earnings last quarter?
        Datasection, Inc. released its earnings results on May 15, 2026. The company reported ¥140.77 earnings per share for the quarter, beating the consensus estimate of N/A by ¥140.77.
          Is Datasection, Inc. overvalued?
          According to Wall Street analysts Datasection, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Datasection, Inc. pay dividends?
            Datasection, Inc. does not currently pay dividends.
            What is Datasection, Inc.’s EPS estimate?
            Datasection, Inc.’s EPS estimate for its next earnings report is not yet available.
            How many shares outstanding does Datasection, Inc. have?
            Datasection, Inc. has 31,909,052 shares outstanding.
              What happened to Datasection, Inc.’s price movement after its last earnings report?
              Datasection, Inc. reported an EPS of ¥140.77 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 9.027%.
                Which hedge fund is a major shareholder of Datasection, Inc.?
                Currently, no hedge funds are holding shares in JP:3905
                What is the TipRanks Smart Score and how is it calculated?
                Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                  Company Description

                  Datasection, Inc.

                  Operating across Japan, Chile, and Colombia, Datasection Inc. specializes in delivering advanced solutions in social media analytics, retail marketing strategies, and artificial intelligence development. Their extensive suite of services encompasses product review surveys, in-depth lifestyle analysis, brand perception measurement, and public opinion polling. They also offer specialized platforms like 'Insight Intelligence Q' for comprehensive web-based consumer voice analysis and 'Social Monitor' for continuous risk assessment through monitoring online discussions. Additionally, Datasection provides 'FollowUP' to analyze customer behavior within physical retail spaces. Their AI division delivers capabilities such as data acquisition (crawling), image interpretation, and sophisticated social media data processing. Founded in 2000, Datasection Inc. maintains its primary operational base in Tokyo, Japan.

                  Datasection, Inc. (3905) Earnings & Revenues

                  Similar Stocks
                  Company
                  Price & Change
                  Follow
                  ExaWizards Inc.
                  Japan System Techniques Co., Ltd.
                  WingArc1st Inc.
                  Ridge-i Inc.
                  Laboro.AI, Inc.

                  Options Prices

                  Currently, No data available
                  ---
                  Popular Stocks