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Datasection, Inc. (JP:3905)
:3905
Japanese Market
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Datasection, Inc. (3905) AI Stock Analysis

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JP:3905

Datasection, Inc.

(3905)

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Neutral 60 (OpenAI - Gpt-5.6Sol)
Rating:60Neutral
Price Target:
¥1,813.00
▼(-9.12% Downside)
Action:Reiterated
Date:08/29/26
The score is primarily held back by weak financial quality due to heavy negative operating and free cash flow in the latest year, despite a reported earnings rebound and stronger balance sheet. Technicals also remain bearish with the stock trading below major moving averages, while valuation is a partial offset due to a low P/E.
Positive Factors
Revenue Scale Expansion
The sharp increase in revenue indicates substantially greater business scale and market activity. If the expanded base is repeatable, it can support stronger operating leverage and provide a larger platform for future growth.
Negative Factors
Weak Cash Flow Conversion
Deeply negative operating and free cash flow shows that reported earnings are not currently translating into liquidity. Persistent weak conversion could require external funding, constrain investment, and increase execution risk as the business scales.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scale Expansion
The sharp increase in revenue indicates substantially greater business scale and market activity. If the expanded base is repeatable, it can support stronger operating leverage and provide a larger platform for future growth.
Read all positive factors

Datasection, Inc. (3905) vs. iShares MSCI Japan ETF (EWJ)

Datasection, Inc. Business Overview & Revenue Model

Company Description
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 encompass...

Datasection, Inc. Financial Statement Overview

Summary
Reported profitability and balance sheet strength improved sharply in 2026 (swing to positive margins and much lower leverage), but this is offset by very weak cash conversion: operating cash flow was deeply negative (-4.9B) and free cash flow fell further (-9.5B) despite positive net income. The sharp gross margin compression in 2026 also raises questions about earnings durability and mix.
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
28
Negative
BreakdownMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue33.61B2.94B2.23B1.92B1.69B
Gross Profit6.28B1.16B654.23M680.48M588.13M
EBITDA4.12B-222.70M-1.69M193.59M291.97M
Net Income2.80B-654.99M-1.26B-530.29M2.44M
Balance Sheet
Total Assets28.58B4.59B3.81B4.42B4.43B
Cash, Cash Equivalents and Short-Term Investments417.81M526.04M1.69B1.45B1.45B
Total Debt545.38M1.37B1.24B1.51B1.21B
Total Liabilities9.17B2.19B1.83B1.91B1.62B
Stockholders Equity19.37B2.38B1.95B2.48B2.80B
Cash Flow
Free Cash Flow-9.54B-177.43M-203.17M-84.27M63.22M
Operating Cash Flow-4.91B-83.41M333.60M2.42M113.09M
Investing Cash Flow-8.30B-1.19B-569.26M-255.77M-304.07M
Financing Cash Flow13.12B163.55M382.96M242.02M28.31M

Datasection, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1995.00
Price Trends
50DMA
2728.22
Negative
100DMA
2836.05
Negative
200DMA
2396.72
Negative
Market Momentum
MACD
-292.56
Negative
RSI
31.32
Neutral
STOCH
6.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3905, the sentiment is Negative. The current price of 1995 is above the 20-day moving average (MA) of 1844.10, below the 50-day MA of 2728.22, and below the 200-day MA of 2396.72, indicating a bearish trend. The MACD of -292.56 indicates Negative momentum. The RSI at 31.32 is Neutral, neither overbought nor oversold. The STOCH value of 6.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3905.

Datasection, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥116.43B18.752.59%8.77%16.25%
76
Outperform
¥47.50B20.231.50%9.28%-6.81%
72
Outperform
¥12.82B50.8512.23%38.11%
67
Neutral
¥76.27B46.5228.10%
63
Neutral
¥14.11B57.4834.57%80.99%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥53.16B7.071178.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3905
Datasection, Inc.
1,727.00
-506.00
-22.66%
JP:4259
ExaWizards Inc.
848.00
337.00
65.95%
JP:4323
Japan System Techniques Co., Ltd.
1,975.00
-16.55
-0.83%
JP:4432
WingArc1st Inc.
3,565.00
334.89
10.37%
JP:5572
Ridge-i Inc.
3,060.00
40.00
1.32%
JP:5586
Laboro.AI, Inc.
911.00
-115.00
-11.21%
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.Date of analysis: Aug 29, 2026