Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 42% After last week's 42% share price gain to JP¥4,740, the stock trades at a trailing P/E ratio of 50.2x. Average trailing P/E is 17x in the Software industry in Japan. Total returns to shareholders of 1,534% over the past three years. Reported Earnings • May 20
Full year 2026 earnings released: EPS: JP¥115 (vs JP¥37.34 loss in FY 2025) Full year 2026 results: EPS: JP¥115 (up from JP¥37.34 loss in FY 2025). Revenue: JP¥33.6b (up JP¥30.7b from FY 2025). Net income: JP¥2.80b (up JP¥3.46b from FY 2025). Profit margin: 8.3% (up from net loss in FY 2025). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 131% per year, which means it is tracking significantly ahead of earnings growth. Ankündigung • May 19
Datasection Inc., Annual General Meeting, Jun 30, 2026 Datasection Inc., Annual General Meeting, Jun 30, 2026. Ankündigung • May 14
Datasection Inc. to Report Fiscal Year 2026 Results on May 15, 2026 Datasection Inc. announced that they will report fiscal year 2026 results on May 15, 2026 New Risk • May 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 52% per year over the past 5 years. Shareholders have been substantially diluted in the past year (67% increase in shares outstanding). Minor Risk Less than 1 year of cash runway based on current free cash flow (-JP¥4.7b). Reported Earnings • Feb 17
Third quarter 2026 earnings released: EPS: JP¥34.02 (vs JP¥8.90 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥34.02 (up from JP¥8.90 loss in 3Q 2025). Revenue: JP¥14.2b (up JP¥13.5b from 3Q 2025). Net income: JP¥899.0m (up JP¥1.06b from 3Q 2025). Profit margin: 6.3% (up from net loss in 3Q 2025). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 100% per year, which means it is well ahead of earnings. New Risk • Dec 03
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 51% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Earnings have declined by 59% per year over the past 5 years. Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Reported Earnings • Nov 18
Second quarter 2026 earnings released: JP¥45.86 loss per share (vs JP¥8.67 loss in 2Q 2025) Second quarter 2026 results: JP¥45.86 loss per share (further deteriorated from JP¥8.67 loss in 2Q 2025). Revenue: JP¥1.08b (up 32% from 2Q 2025). Net loss: JP¥1.13b (loss widened JP¥979.0m from 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 101% per year, which means it is well ahead of earnings. Ankündigung • Sep 27
Datasection Inc. to Report Q2, 2026 Results on Nov 14, 2025 Datasection Inc. announced that they will report Q2, 2026 results on Nov 14, 2025 Reported Earnings • Aug 15
First quarter 2026 earnings released: JP¥17.75 loss per share (vs JP¥5.43 loss in 1Q 2025) First quarter 2026 results: JP¥17.75 loss per share (further deteriorated from JP¥5.43 loss in 1Q 2025). Revenue: JP¥668.0m (up 24% from 1Q 2025). Net loss: JP¥333.0m (loss widened 258% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has increased by 113% per year, which means it is well ahead of earnings. Ankündigung • Aug 13
Datasection Inc. to Report Q1, 2026 Results on Aug 14, 2025 Datasection Inc. announced that they will report Q1, 2026 results on Aug 14, 2025 New Risk • Jul 24
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 19% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥1.1b free cash flow). Share price has been highly volatile over the past 3 months (24% average weekly change). Earnings have declined by 65% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (19% increase in shares outstanding). Ankündigung • Jun 04
Datasection Inc. (TSE:3905) signed a letter of intent to acquire 55.98% stake in Cudo Ventures Limited from Mathew Hawkins. Datasection Inc. (TSE:3905) signed a letter of intent to acquire 55.98% stake in Cudo Ventures Limited from Mathew Hawkins on February 6, 2025. Datasection Inc. (TSE:3905) reached a basic agreement to acquire 55.98% stake in Cudo Ventures Limited from Mathew Hawkins on June 2, 2025. The transaction will strengthen and accelerate the shared vision of leveraging the technologies, products, resources and networks of both companies to enhance our competitive advantage in the AI market and provide cutting-edge global AI infrastructure solutions.
For the period ending November 30, 2024, Cudo Ventures Limited reported total revenue of ¥1.23 billion, operating loss of ¥0.77 million and net loss of ¥0.77 million. As of November 30, 2024, Cudo Ventures Limited reported total assets of ¥646.93 million.
The expected completion of the transaction is December 2, 2025. New Risk • May 20
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -JP¥1.1b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-JP¥1.1b free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 65% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥14.1b market cap, or US$97.4m). Ankündigung • May 16
Datasection Inc., Annual General Meeting, Jun 26, 2025 Datasection Inc., Annual General Meeting, Jun 26, 2025. Ankündigung • May 09
Datasection Inc. to Report Fiscal Year 2025 Results on May 15, 2025 Datasection Inc. announced that they will report fiscal year 2025 results on May 15, 2025 New Risk • Apr 04
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.0b (US$96.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 72% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥14.0b market cap, or US$96.2m). Ankündigung • Mar 06
Datasection Inc. announced that it has received ¥15.488 million in funding from Hayate Management Co., Ltd. On March 6, 2025, the company has closed the transaction. Ankündigung • Feb 19
Datasection Inc. announced that it expects to receive ¥15.488 million in funding from Hayate Management Co., Ltd. Datasection Inc. announced a private placement to issue 44,000 20th Stock Acquisition Rights at issue price of ¥352 per stock acquisition right for gross proceeds of ¥15,488,000 on February 18, 2025. The transaction includes participation from new investor, Hayate Management Inc. The potential shares from issuance of stock acquisition right will be 4,400,000 . The initial exercise price of stock acquisition right will be ¥688 for a exercise period from March 7, 2025 to March 6, 2026. The transaction will happen through third party allocation. The issue date will be March 6, 2025. The transaction has been approved at board of director meeting of the company. Reported Earnings • Feb 16
Third quarter 2025 earnings released: JP¥8.90 loss per share (vs JP¥50.63 loss in 3Q 2024) Third quarter 2025 results: JP¥8.90 loss per share (improved from JP¥50.63 loss in 3Q 2024). Revenue: JP¥701.0m (up 23% from 3Q 2024). Net loss: JP¥157.0m (loss narrowed 79% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 119 percentage points per year, which is a significant difference in performance. Ankündigung • Jan 03
Datasection Inc. to Report Q3, 2025 Results on Feb 14, 2025 Datasection Inc. announced that they will report Q3, 2025 results on Feb 14, 2025 New Risk • Nov 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.8b (US$98.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 79% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (JP¥14.8b market cap, or US$98.7m). Ankündigung • Sep 27
Datasection Inc. to Report Q2, 2025 Results on Nov 14, 2024 Datasection Inc. announced that they will report Q2, 2025 results on Nov 14, 2024 Reported Earnings • Aug 19
First quarter 2025 earnings released: JP¥5.43 loss per share (vs JP¥5.50 loss in 1Q 2024) First quarter 2025 results: JP¥5.43 loss per share. Revenue: JP¥539.0m (up 20% from 1Q 2024). Net loss: JP¥93.0m (loss widened 15% from 1Q 2024). Reported Earnings • May 21
Full year 2024 earnings released: JP¥84.03 loss per share (vs JP¥36.43 loss in FY 2023) Full year 2024 results: JP¥84.03 loss per share (further deteriorated from JP¥36.43 loss in FY 2023). Revenue: JP¥2.23b (up 16% from FY 2023). Net loss: JP¥1.26b (loss widened 138% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 180 percentage points per year, which is a significant difference in performance. Ankündigung • May 17
Datasection Inc., Annual General Meeting, Jun 27, 2024 Datasection Inc., Annual General Meeting, Jun 27, 2024. Board Change • May 05
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Kohki Sakata was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Ankündigung • Mar 28
Datasection Inc. to Report Fiscal Year 2024 Results on May 15, 2024 Datasection Inc. announced that they will report fiscal year 2024 results on May 15, 2024 New Risk • Mar 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings have declined by 88% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (16% increase in shares outstanding). Market cap is less than US$100m (JP¥14.3b market cap, or US$95.4m). Ankündigung • Mar 01
Datasection Inc. announced that it has received ¥688.2282 million in funding from First Group (Uk) Co., Limited On February 29, 2024, Datasection Inc., closed the transaction. Reported Earnings • Feb 19
Third quarter 2024 earnings released: JP¥50.63 loss per share (vs JP¥4.14 loss in 3Q 2023) Third quarter 2024 results: JP¥50.63 loss per share (further deteriorated from JP¥4.14 loss in 3Q 2023). Revenue: JP¥571.0m (up 21% from 3Q 2023). Net loss: JP¥753.0m (loss widened JP¥692.0m from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 140 percentage points per year, which is a significant difference in performance. Ankündigung • Dec 28
Datasection Inc. to Report Q3, 2024 Results on Feb 14, 2024 Datasection Inc. announced that they will report Q3, 2024 results on Feb 14, 2024 Reported Earnings • Nov 18
Second quarter 2024 earnings released: JP¥1.22 loss per share (vs JP¥5.55 profit in 2Q 2023) Second quarter 2024 results: JP¥1.22 loss per share (down from JP¥5.55 profit in 2Q 2023). Revenue: JP¥528.0m (up 16% from 2Q 2023). Net loss: JP¥18.0m (down 123% from profit in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 101 percentage points per year, which is a significant difference in performance. Ankündigung • Oct 18
Datasection Inc. to Report Q2, 2024 Results on Nov 14, 2023 Datasection Inc. announced that they will report Q2, 2024 results on Nov 14, 2023 Reported Earnings • Aug 16
First quarter 2024 earnings released: JP¥5.50 loss per share (vs JP¥0.35 loss in 1Q 2023) First quarter 2024 results: JP¥5.50 loss per share (further deteriorated from JP¥0.35 loss in 1Q 2023). Revenue: JP¥450.0m (up 11% from 1Q 2023). Net loss: JP¥81.0m (loss widened JP¥76.0m from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Ankündigung • Jul 29
Datasection Inc. to Report Q1, 2024 Results on Aug 14, 2023 Datasection Inc. announced that they will report Q1, 2024 results on Aug 14, 2023 New Risk • Jun 21
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.2% average weekly change). Earnings have declined by 68% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (2.9% increase in shares outstanding). Market cap is less than US$100m (JP¥6.00b market cap, or US$42.3m). Reported Earnings • Feb 12
Third quarter 2023 earnings released Third quarter 2023 results: JP¥4.14 loss per share. Revenue: JP¥473.0m (up 9.2% from 3Q 2022). Net loss: JP¥61.0m (flat on 3Q 2022). Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Ankündigung • Jan 22
Datasection Inc. to Report Q3, 2023 Results on Feb 10, 2023 Datasection Inc. announced that they will report Q3, 2023 results on Feb 10, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Kohki Sakata was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings released Second quarter 2023 results: EPS: JP¥5.55. Revenue: JP¥454.0m (up 20% from 2Q 2022). Net income: JP¥80.0m (up JP¥80.0m from 2Q 2022). Profit margin: 18% (up from 0% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Ankündigung • Sep 28
Datasection Inc. to Report Q2, 2023 Results on Nov 11, 2022 Datasection Inc. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 14
First quarter 2023 earnings released: JP¥0.35 loss per share (vs JP¥0.06 profit in 1Q 2022) First quarter 2023 results: JP¥0.35 loss per share (down from JP¥0.06 profit in 1Q 2022). Revenue: JP¥405.0m (up 18% from 1Q 2022). Net loss: JP¥5.00m (flat on 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Ankündigung • Jul 03
Datasection Inc. to Report Q1, 2023 Results on Aug 12, 2022 Datasection Inc. announced that they will report Q1, 2023 results on Aug 12, 2022 Ankündigung • May 15
Datasection Inc., Annual General Meeting, Jun 28, 2022 Datasection Inc., Annual General Meeting, Jun 28, 2022. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Independent Outside Director Takahiro Yamamoto was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Ankündigung • Apr 08
Datasection Inc. to Report Fiscal Year 2022 Results on May 13, 2022 Datasection Inc. announced that they will report fiscal year 2022 results on May 13, 2022 Reported Earnings • Feb 14
Third quarter 2022 earnings: Revenues in line with analyst expectations Third quarter 2022 results: Revenue: JP¥433.0m (up 28% from 3Q 2021). Net income: JP¥0 (up JP¥12.0m from 3Q 2021). Profit margin: 0% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Reported Earnings • May 17
Full year 2021 earnings released: JP¥2.97 loss per share (vs JP¥1.37 loss in FY 2020) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2021 results: Revenue: JP¥1.39b (up 19% from FY 2020). Net loss: JP¥41.0m (loss widened 141% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 14
Third quarter 2021 earnings released: JP¥0.86 loss per share (vs JP¥0.57 profit in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: JP¥338.0m (up 31% from 3Q 2020). Net loss: JP¥12.0m (down 271% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 65% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Ankündigung • Jan 22
Datasection Inc. to Report Q3, 2021 Results on Feb 12, 2021 Datasection Inc. announced that they will report Q3, 2021 results on Feb 12, 2021 Is New 90 Day High Low • Dec 15
New 90-day low: JP¥476 The company is down 25% from its price of JP¥633 on 16 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 5.0% over the same period. Ankündigung • Sep 30
Datasection Inc. announced that it expects to receive ¥3.66 million in funding from Daiwa Securities Co., Ltd., Investment Arm Datasection Inc. (TSE:3905) announced that it has entered into a purchase agreement for stock acquisition rights for a private placement of 12,000 13th stock acquisition rights at a price of ¥162 per right for proceeds of ¥1,944,000 and 12,000 14th stock acquisition rights at a price of ¥143 per right for proceeds of ¥1,716,000 for aggregate gross proceeds of ¥3,660,000 through third-party allotment on September 29, 2020. The transaction will include participation from returning investor Daiwa Securities Co., Ltd., Investment Arm. The stock acquisition rights are exercisable into a total of 2,400,000 shares which is equal to 100 shares per stock acquisition right. The initial exercise price of the 13th stock acquisition rights and 14th stock acquisition rights is ¥619 per right and ¥1,000 per right, respectively. The transaction has been approved in the board of directors meeting of the company and is subject to approval by the board of directors of the company. The stock acquisition rights are subject to restriction on transfer. The transaction is expected to close on October 15, 2020. Ankündigung • Aug 09
Datasection Inc. to Report Q1, 2021 Results on Aug 14, 2020 Datasection Inc. announced that they will report Q1, 2021 results on Aug 14, 2020