Japan Data Science Consortium Co Ltd. (4418) AI Stock Analysis

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Japan Data Science Consortium Co Ltd.

(TSE/TYO:4418)

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Rating:58Neutral

Price Target:JPY 1,146.00▲(17.42% Upside)

Action:reiterated

Date:08/18/26

The score is primarily held back by weak and volatile cash flow in the latest year (negative operating and free cash flow despite rising net income), which creates near-term execution and funding risk. Offsetting this are improving profitability and a healthier balance sheet, while technicals are constructive but look overbought, and valuation appears moderate at a ~18x P/E.

Positive Factors

Long-term revenue expansionThe substantial multi-year revenue scale-up indicates that the company has expanded its commercial footprint and established a much larger operating base. This supports greater strategic relevance and provides a foundation for future growth if the business can sustain customer adoption and execution.

Negative Factors

Weak and volatile cash conversionNegative operating and free cash flow alongside higher accounting profit signals that earnings are not currently converting reliably into cash. If this divergence persists, it could constrain reinvestment, increase funding needs, and make the recent profitability rebound less durable.

Japan Data Science Consortium Co Ltd. (4418) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.93B
Dividend Yield: ―
Average Volume (3M): 245.34K
Price to Earnings (P/E): 17.8
Beta (1Y): 1.18
Revenue Growth: -0.96%
EPS Growth: 107.29%
Country: Japan
Employees: 263
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Japan Data Science Consortium Co Ltd. Business Overview & Revenue Model

Company Description

Japan Data Science Consortium Co.Ltd., established in 2013 and headquartered in Tokyo, Japan, focuses on the creation and licensing of algorithm modules that leverage machine learning within the Japanese market. The company offers a variety of specia...

How the Company Makes Money

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Japan Data Science Consortium Co Ltd. Financial Statement Overview

Summary

Strong multi-year revenue scale-up and a meaningful profitability rebound in 2025–2026 support the score, alongside improving leverage and ROE. However, the latest year shows weak cash conversion: operating and free cash flow turned negative despite higher net income, raising sustainability and funding-risk concerns. Thin gross margins (~10–13%) also limit operating leverage.

Income Statement

63Positive

Balance Sheet

74Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2022
Income Statement
Total Revenue	22.83B	22.83B	23.06B	16.46B	1.41B	1.94B
Gross Profit	2.92B	2.92B	2.34B	1.61B	810.77M	996.35M
EBITDA	821.48M	732.96M	644.12M	-19.21M	-64.47M	67.53M
Net Income	809.48M	809.48M	345.68M	-278.40M	-82.93M	1.29M
Balance Sheet
Total Assets	10.64B	10.64B	7.99B	7.61B	3.73B	4.23B
Cash, Cash Equivalents and Short-Term Investments	5.13B	5.13B	2.78B	2.30B	3.35B	3.15B
Total Debt	1.14B	1.14B	1.39B	1.65B	0	15.22M
Total Liabilities	3.88B	3.88B	4.09B	4.24B	141.71M	607.32M
Stockholders Equity	6.60B	6.60B	3.79B	3.29B	3.59B	3.56B
Cash Flow
Free Cash Flow	0	-120.61M	883.36M	-730.58M	-161.68M	366.40M
Operating Cash Flow	0	-52.59M	893.48M	-713.59M	-147.10M	399.82M
Investing Cash Flow	0	474.99M	-114.44M	-1.75B	-129.61M	-576.18M
Financing Cash Flow	0	1.93B	-299.59M	1.62B	614.93M	-31.10M

Japan Data Science Consortium Co Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price976.00

Price Trends

50DMA1085.02Negative

100DMA942.06Positive

200DMA904.22Positive

Market Momentum

MACD-32.76Positive

RSI43.29Neutral

STOCH46.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4418, the sentiment is Negative. The current price of 976.00 is below the 20-day moving average (MA) of 1054.90, below the 50-day MA of 1085.02, and above the 200-day MA of 904.22, indicating a neutral trend. The MACD of -32.76 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 46.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4418.

Japan Data Science Consortium Co Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4418 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3984	76Outperform	JPY 21.71B	12.88	―	1.78%	15.59%	6.88%
JP:5250	69Neutral	JPY 3.71B	38.24	―	2.09%	10.47%	-17.45%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:5574	60Neutral	JPY 20.20B	18.61	―	―	27.68%	126.99%
JP:4418	58Neutral	JPY 16.60B	17.80	―	―	-0.96%	107.29%
JP:2158	50Neutral	JPY 25.54B	41.13	―	―	27.44%	131.69%

* Technology Sector Average

Performance Comparison

JP:4418 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4418	Japan Data Science Consortium Co Ltd.	976.00	-414.00	-29.78%
JP:2158	FRONTEO, Inc.	645.00	-264.00	-29.04%
JP:3984	User Local, Inc.	1348.00	-553.06	-29.09%
JP:5250	Prime Strategy Co., Ltd.	1052.00	127.02	13.73%
JP:5574	ABEJA,Inc.	2041.00	-697.00	-25.46%

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 18, 2026

Japan Data Science Consortium Co Ltd. AI Stock Analysis