Digital Arts Inc. (2326) AI Stock Analysis

• Market Cap: ¥101.74B
• Dividend Yield: 1.17%
• Average Volume (3M): 126.58K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.99
• Revenue Growth: -5.73%
• EPS Growth: 49.33%
• Country: JP
• Employees: 252
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 73.90
• Shares Outstanding: 14,133,000
• 10 Day Avg. Volume: 105,340
• 30 Day Avg. Volume: 126,576
• PEG Ratio: 7.89
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Digital Arts Inc. is fundamentally strong, with excellent profitability and a solid balance sheet supporting its position in the market. Its financial performance is the most significant factor in the overall score. Technical analysis suggests a stable trend, while the valuation is fair, aligning with industry averages. The absence of detailed cash flow data and technical momentum indicators tempers the overall score.

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 filtering software for corporations; i-FILTER Browser & Cloud, a web security solution for smart devices that prevents private usage, visualizes web access with logs and reports, and prevents leaks of critical information; i-FILTER for consumers, a parental control software; D-SPA, a proxy appliance product; m-FILTER, an email filtering software for corporations; and FinalCode, a persistent password-less file security and tracking solution. The company also provides consulting services related to information security solutions; and support services, software version updates, and web filtering databases. Digital Arts Inc. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Digital Arts Inc. generates revenue primarily through the sale of its software products and subscription-based services. The company’s key revenue streams include licensing fees for their software solutions, recurring subscription fees for cloud-based services, and maintenance and support contracts. Additionally, Digital Arts Inc. partners with various technology firms and enterprise clients to integrate their security solutions into broader IT infrastructures, which often involves long-term contracts and strategic partnerships. These partnerships not only enhance the company's market reach but also provide significant contributions to its overall earnings.

Digital Arts Inc. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
10.46B	11.51B	10.44B	9.05B	6.83B	5.64B
	Gross Profit
6.96B	6.93B	6.77B	6.38B	4.88B	4.28B
	EBIT
4.45B	4.43B	4.41B	4.13B	2.98B	2.33B
	EBITDA
5.34B	5.32B	5.30B	5.01B	3.84B	3.13B
	Net Income Common Stockholders
4.39B	4.38B	3.06B	2.90B	2.06B	1.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.23B	18.34B	17.02B	15.77B	11.38B	7.65B
	Total Assets
21.08B	22.52B	21.15B	19.34B	14.86B	10.85B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-17.23B	-18.34B	-17.02B	-15.77B	-11.38B	-7.65B
	Total Liabilities
4.48B	6.52B	6.98B	7.18B	4.80B	2.17B
	Stockholders Equity
16.60B	16.00B	14.15B	12.14B	10.05B	8.67B
Cash Flow		Free Cash Flow
0.00	1.84B	2.28B	5.19B	4.39B	1.90B
	Operating Cash Flow
0.00	2.83B	3.15B	6.17B	5.22B	2.69B
	Investing Cash Flow
0.00	1.01B	-867.00M	-978.00M	-830.00M	111.01M
	Financing Cash Flow
0.00	-2.54B	-1.05B	-810.00M	-671.00M	-709.21M

Digital Arts Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2326, the sentiment is Positive. The current price of 7250 is above the 20-day moving average (MA) of 6998.50, above the 50-day MA of 6835.20, and above the 200-day MA of 5848.82, indicating a bullish trend. The MACD of 160.93 indicates Negative momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2326.

Digital Arts Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2326	76 Outperform	¥101.74B	31.14		1.17%	-5.73%	49.33%
4432	76 Outperform	¥132.99B	22.45		2.69%	11.47%	8.73%
4071	74 Outperform	¥90.09B	25.67		0.76%	25.27%	9.70%
2492	73 Outperform	¥93.26B	121.71		0.43%	18.39%	89.36%
4776	72 Outperform	¥144.52B	34.00		0.95%	16.68%	43.49%
3673	65 Neutral	¥63.71B	112.52		0.28%	19.15%	―
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

Digital Arts Inc. Corporate Events

Digital Arts Inc. Acquires Own Shares to Boost Shareholder Value

Digital Arts Inc. announced the acquisition of 28,200 of its own shares, valued at JPY 188,427,000, through market purchases on the Tokyo Stock Exchange during April 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 90,000 shares, aiming to enhance shareholder value and optimize capital structure.

Digital Arts Inc. Acquires Own Shares to Enhance Shareholder Value

Digital Arts Inc. announced the acquisition of 21,700 of its own shares, valued at JPY 135,658,000, through market purchases on the Tokyo Stock Exchange during March 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 90,000 shares, aiming to enhance shareholder value and optimize capital structure.