Digital Arts Inc. (JP:2326)
:2326
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Digital Arts Inc.
(2326)
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Rating:68Neutral
Price Target:
¥5,303.00
▼(-16.09% Downside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by strong financial quality (high margins and a debt-free balance sheet), partially offset by weakening technicals (price below key moving averages and negative MACD) and only moderate valuation support (P/E ~22.9 with a ~1.79% dividend yield).
Positive Factors
Debt-free balance sheet
Digital Arts' zero-reported debt and growing equity/assets provide durable financial flexibility. This eliminates leverage-driven solvency risk, enabling multi-year investments, R&D or opportunistic M&A without refinancing pressure, and supports resilience through economic cycles.
Negative Factors
2025 revenue and net income decline
After multi-year expansion, a ~4.6% revenue drop and falling net income in 2025 signal structural demand or competitive pressures that may persist. Reduced top-line momentum undermines visibility for future growth and limits the company’s ability to expand scale-related margins over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Digital Arts' zero-reported debt and growing equity/assets provide durable financial flexibility. This eliminates leverage-driven solvency risk, enabling multi-year investments, R&D or opportunistic M&A without refinancing pressure, and supports resilience through economic cycles.
Read all positive factors
Digital Arts Inc. (2326) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥75.36B
Dividend Yield1.42%
Average Volume (3M)119.34K
Price to Earnings (P/E)22.9
Beta (1Y)0.93
Revenue Growth-6.04%
EPS Growth-24.88%
CountryJP
Employees252
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding14,133,000
10 Day Avg. Volume113,130
30 Day Avg. Volume119,343
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)5.35
Price to Sales (P/S)9.31
P/FCF Ratio33.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Digital Arts Inc. Business Overview & Revenue Model
Company Description
Digital Arts Inc. develops and markets internet security software and appliances in Japan, the United States, Europe, and the Asia Pacific. It offers DigitalArts@Cloud that provides web security and email security in the cloud; i-FILTER, a web fil...
How the Company Makes Money
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Digital Arts Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.02B | 9.98B | 11.51B | 10.44B | 9.05B | 6.83B |
| Gross Profit | 7.06B | 7.03B | 6.93B | 6.77B | 6.38B | 4.88B |
| EBITDA | 5.42B | 5.48B | 5.31B | 5.30B | 5.02B | 3.84B |
| Net Income | 3.15B | 3.18B | 4.38B | 3.06B | 2.90B | 2.06B |
Balance Sheet | ||||||
| Total Assets | 22.44B | 22.63B | 22.52B | 21.15B | 19.34B | 14.86B |
| Cash, Cash Equivalents and Short-Term Investments | 18.43B | 17.95B | 18.34B | 17.02B | 15.77B | 11.38B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 5.39B | 5.26B | 6.52B | 6.97B | 7.18B | 4.79B |
| Stockholders Equity | 17.05B | 17.36B | 16.00B | 14.15B | 12.14B | 10.05B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.79B | 1.84B | 2.28B | 5.19B | 4.39B |
| Operating Cash Flow | 0.00 | 2.82B | 2.83B | 3.15B | 6.17B | 5.22B |
| Investing Cash Flow | 0.00 | -1.11B | 1.01B | -867.00M | -978.00M | -830.00M |
| Financing Cash Flow | 0.00 | -2.10B | -2.54B | -1.05B | -810.00M | -671.00M |
Digital Arts Inc. Technical Analysis
Neutral
6320.00
Price Trends
5238.67
Positive
5837.87
Negative
6681.58
Negative
Market Momentum
-27.06
Negative
52.49
Neutral
83.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2326, the sentiment is Neutral. The current price of 6320 is above the 20-day moving average (MA) of 5151.61, above the 50-day MA of 5238.67, and below the 200-day MA of 6681.58, indicating a neutral trend. The MACD of -27.06 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 83.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2326.
Digital Arts Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥74.56B | 21.08 | 31.71% | 1.68% | 16.12% | 46.57% | |
72 Outperform | ¥49.93B | 23.84 | ― | 1.50% | 13.48% | 35.63% | |
70 Outperform | ¥93.27B | 18.51 | ― | 1.02% | 26.47% | 142.77% | |
68 Neutral | ¥75.36B | 22.94 | ― | 1.42% | -6.04% | -24.88% | |
64 Neutral | ¥50.11B | 48.80 | ― | 0.20% | 50.53% | 227.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥40.68B | 106.87 | ― | ― | 29.56% | 86.66% |
* Technology Sector Average
JP:2326
Digital Arts Inc.
5,370.00
-635.81
-10.59%
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14.96%
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2,033.00
-237.35
-10.45%
Digital Arts Inc. Corporate Events
Digital Arts Posts Higher Nine-Month Earnings and Raises Annual Dividend Outlook
Jan 30, 2026
Digital Arts Inc. reported consolidated net sales of ¥7.83 billion for the nine months ended December 31, 2025, up 7.7% year on year, with operating profit rising 6.3% to ¥3.34 billion and profit attributable to owners of parent increasi...
Digital Arts Completes ¥395 Million Share Buyback Program
Jan 23, 2026
Digital Arts Inc. has completed a share buyback program authorized by its board on October 31, 2025, acquiring a total of 60,000 shares for approximately JPY 395 million through market purchases on the Tokyo Stock Exchange. The final tranche, cond...
Digital Arts Advances Share Buyback, Acquires 41,000 Shares Under Ongoing Program
Jan 5, 2026
Digital Arts Inc. reported progress on its ongoing share buyback program, confirming the purchase of 22,200 shares of its common stock for a total of ¥147.1 million through market transactions on the Tokyo Stock Exchange between December 1 an...
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.