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YE DIGITAL CORPORATION (JP:2354)
:2354
Japanese Market
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YE DIGITAL CORPORATION (2354) AI Stock Analysis

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JP:2354

YE DIGITAL CORPORATION

(2354)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥1,428.00
▲(73.51% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by strong financial fundamentals—especially a debt-free balance sheet, rising equity, and solid returns—supported by an established upward price trend. Valuation is fair rather than compelling and the dividend yield is modest, which keeps the overall score from being higher.
Positive Factors
Debt-free balance sheet & ROE
A debt-free balance sheet with rising equity and mid-to-high teen ROE provides durable financial flexibility. It lowers solvency risk, supports reinvestment or shareholder returns without external funding, and underpins resilience through multi-quarter business cycles.
Negative Factors
Margin variability
Historical margin swings indicate earnings power is not fully stable. Variability can limit predictability of profits, complicate budgeting and capital allocation, and increase sensitivity to revenue cycles or cost pressures over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet & ROE
A debt-free balance sheet with rising equity and mid-to-high teen ROE provides durable financial flexibility. It lowers solvency risk, supports reinvestment or shareholder returns without external funding, and underpins resilience through multi-quarter business cycles.
Read all positive factors

YE DIGITAL CORPORATION (2354) vs. iShares MSCI Japan ETF (EWJ)

YE DIGITAL CORPORATION Business Overview & Revenue Model

Company Description
YE DIGITAL Corporation provides Internet of Things (IoT) solutions in Japan. The company operates cloud application service products, such as MMCloud, an IoT platform with data storage, visualization, and analysis; and MMPredict, an AI-based fault...
How the Company Makes Money
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YE DIGITAL CORPORATION Financial Statement Overview

Summary
Strong overall financial quality supported by a very conservative, debt-free balance sheet and healthy ROE (~16% in 2026). Revenue growth has re-accelerated and profits improved in the latest year, but historical margin and cash-conversion variability temper the score.
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
72
Positive
BreakdownTTMFeb 2026Feb 2026Feb 2025Feb 2024Feb 2023
Income Statement
Total Revenue20.13B20.26B19.94B19.50B16.15B13.73B
Gross Profit5.87B5.81B5.24B5.15B4.39B4.18B
EBITDA1.98B1.91B1.80B1.78B1.18B1.13B
Net Income1.23B1.28B1.04B1.09B783.18M403.94M
Balance Sheet
Total Assets14.17B14.30B13.43B12.49B11.81B10.08B
Cash, Cash Equivalents and Short-Term Investments4.84B3.41B3.20B2.49B2.64B2.74B
Total Debt0.000.000.000.000.000.00
Total Liabilities5.92B6.16B6.19B6.32B6.76B5.48B
Stockholders Equity8.23B8.11B7.23B6.16B5.03B4.59B
Cash Flow
Free Cash Flow0.001.41B1.09B296.50M98.54M327.64M
Operating Cash Flow0.001.42B1.29B545.88M563.25M487.23M
Investing Cash Flow0.00-522.17M-238.94M-504.42M-478.73M-213.42M
Financing Cash Flow0.00-692.21M-323.24M-191.60M-188.03M-188.68M

YE DIGITAL CORPORATION Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥25.40B19.302.66%1.66%17.98%
73
Outperform
¥12.70B7.791.19%15.87%39.37%
73
Outperform
¥11.45B11.743.61%1.14%-17.36%
72
Outperform
¥15.96B13.342.98%5.21%-0.19%
64
Neutral
¥17.65B19.411.75%15.06%52.37%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
43
Neutral
¥5.95B-42.20-1.67%98.41%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2354
YE DIGITAL CORPORATION
1,325.00
644.77
94.79%
JP:3683
Cyberlinks Co., Ltd.
1,121.00
-619.50
-35.59%
JP:3918
PCI Hodings INC.
1,161.00
25.48
2.24%
JP:4761
SAKURA KCS Corporation
1,434.00
19.21
1.36%
JP:5255
Monstarlab Holdings Inc.
90.00
-139.00
-60.70%
JP:6572
RPA Holdings, Inc.
270.00
-131.30
-32.72%
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 07, 2026