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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 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
¥3,523.00
▲(76.59% Upside)
Action:Reiterated
Date:07/02/26
The score is driven primarily by improved profitability and a much stronger balance sheet, but it is held back by very weak cash flow conversion and sizable cash burn in the latest year. Near-term technical indicators are also bearish (below key short-term averages with weak momentum), and the valuation (P/E ~33.6) leaves less room for execution setbacks.
Positive Factors
Balance Sheet Strength
A materially stronger balance sheet with equity at 19.4B and extremely low leverage meaningfully reduces financial risk and increases flexibility. This durable improvement supports funding of growth, M&A or short-term cash stress without immediate refinancing risk over the next several quarters.
Negative Factors
Severe Negative Cash Flow
Deep negative operating and free cash flow despite reported net income highlights weak cash conversion and potential working-capital or investment drains. If persistent, the cash burn raises execution and funding risk, could require new financing, and undermines the sustainability of reported profits over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A materially stronger balance sheet with equity at 19.4B and extremely low leverage meaningfully reduces financial risk and increases flexibility. This durable improvement supports funding of growth, M&A or short-term cash stress without immediate refinancing risk over the next several quarters.
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 results improved sharply in 2026 with a major revenue step-up and a return to profitability, and the balance sheet looks materially stronger with very low leverage. However, cash flow is a major concern: operating cash flow and free cash flow were deeply negative in 2026 despite positive net income, raising questions about earnings quality and funding risk if the cash burn continues.
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
Neutral
Last Price1995.00
Price Trends
50DMA
3787.12
Negative
100DMA
2683.17
Positive
200DMA
2373.55
Positive
Market Momentum
MACD
-368.46
Positive
RSI
37.64
Neutral
STOCH
6.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3905, the sentiment is Neutral. The current price of 1995 is below the 20-day moving average (MA) of 4067.40, below the 50-day MA of 3787.12, and below the 200-day MA of 2373.55, indicating a neutral trend. The MACD of -368.46 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 6.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
78
Outperform
¥45.44B17.401.50%10.69%6.99%
74
Outperform
¥88.44B13.672.59%7.79%9.06%
72
Outperform
¥11.69B45.5512.23%38.11%
65
Neutral
¥13.36B86.4526.18%-33.28%
62
Neutral
¥81.55B48.9222.27%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
¥87.29B28.711042.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3905
Datasection, Inc.
2,925.00
-1,165.00
-28.48%
JP:4259
ExaWizards Inc.
886.00
468.00
111.96%
JP:4323
Japan System Techniques Co., Ltd.
1,846.00
68.88
3.88%
JP:4432
WingArc1st Inc.
2,564.00
-1,031.48
-28.69%
JP:5572
Ridge-i Inc.
2,741.00
190.00
7.45%
JP:5586
Laboro.AI, Inc.
836.00
-256.00
-23.44%
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: Jul 02, 2026