Datasection, Inc. AI Stock Analysis
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Datasection, Inc. (3905) AI Stock Analysis
Datasection, Inc.
(TSE/TYO:3905)
The score is primarily held back by weak cash-flow conversion and significant cash burn despite improved reported profitability, alongside a bearish technical trend with price below key moving averages. Supporting the score are the much stronger balance sheet (low leverage) and an inexpensive valuation (low P/E), but cash generation remains the central risk.
Datasection, Inc. (3905) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 29.48B
- Dividend Yield
- ―
- Average Volume (3M)
- 11.24M
- Price to Earnings (P/E)
- 5.0
- Beta (1Y)
- 1.19
- Revenue Growth
- 1178.31%
- EPS Growth
- ―
- Country
- Japan
- Employees
- 244
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
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 encompasses...
Datasection, Inc. Financial Statement Overview
Summary
Reported profitability and balance-sheet health improved sharply in 2026 (return to positive margins and very low leverage), but this is offset by a major cash-flow red flag: deeply negative operating cash flow (-4.9B) and free cash flow (-9.5B) despite positive net income, plus a notable gross-margin compression. Overall, earnings quality and cash conversion are the key constraints.
Income Statement
72PositiveBalance Sheet
88Very PositiveCash Flow
28Negative| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.26B | 2.94B | 33.61B | 2.23B | 1.92B | 1.69B |
| Gross Profit | 11.85B | 1.16B | 6.28B | 654.23M | 680.48M | 588.13M |
| EBITDA | 9.34B | -222.70M | 4.12B | -1.69M | 193.59M | 291.97M |
| Net Income | 7.05B | -654.99M | 2.80B | -1.26B | -530.29M | 2.44M |
Balance Sheet | ||||||
| Total Assets | 32.99B | 4.59B | 28.58B | 3.81B | 4.42B | 4.43B |
| Cash, Cash Equivalents and Short-Term Investments | 762.75M | 526.04M | 417.81M | 1.69B | 1.45B | 1.45B |
| Total Debt | 505.74M | 1.37B | 545.38M | 1.24B | 1.51B | 1.21B |
| Total Liabilities | 6.98B | 2.19B | 9.17B | 1.83B | 1.91B | 1.62B |
| Stockholders Equity | 25.98B | 2.38B | 19.37B | 1.95B | 2.48B | 2.80B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -177.43M | -9.54B | -203.17M | -84.27M | 63.22M |
| Operating Cash Flow | 0 | -83.41M | -4.91B | 333.60M | 2.42M | 113.09M |
| Investing Cash Flow | 0 | -1.19B | -8.30B | -569.26M | -255.77M | -304.07M |
| Financing Cash Flow | 0 | 163.55M | 13.12B | 382.96M | 242.02M | 28.31M |
Datasection, Inc. Technical Analysis
Price Trends
Market Momentum
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 1215.00 is below the 20-day moving average (MA) of 1600.25, below the 50-day MA of 1649.44, and below the 200-day MA of 2265.98, indicating a bearish trend. The MACD of -92.86 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 2.25 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
JP:443282Outperform
JP:557281Outperform
JP:558668Neutral
JP:432366Neutral
JP:425965Neutral- JP:390560Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4432 | 82Outperform | JPY 122.69B | 16.72 | ― | 2.99% | 14.67% | 39.11% |
| JP:5572 | 81Outperform | JPY 14.29B | 34.53 | ― | ― | 15.44% | 163.64% |
| JP:5586 | 68Neutral | JPY 11.22B | 39.28 | ― | ― | 36.53% | 93.50% |
| JP:4323 | 66Neutral | JPY 43.70B | 19.25 | ― | 2.78% | 6.05% | -21.43% |
| JP:4259 | 65Neutral | JPY 54.79B | 34.53 | ― | ― | 34.10% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:3905 | 60Neutral | JPY 46.51B | 4.97 | ― | ― | 1178.31% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3905 | Datasection, Inc. | 1215.00 | -1125.00 | -48.08% | |
| JP:4259 | ExaWizards Inc. | 575.00 | -143.00 | -19.92% | |
| JP:4323 | Japan System Techniques Co., Ltd. | 1763.00 | -501.95 | -22.16% | |
| JP:4432 | WingArc1st Inc. | 3545.00 | 102.76 | 2.99% | |
| JP:5572 | Ridge-i Inc. | 3290.00 | 933.00 | 39.58% | |
| JP:5586 | Laboro.AI, Inc. | 702.00 | -247.00 | -26.03% |
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: Nov 11, 2026