YE DIGITAL CORPORATION (2354) AI Stock Analysis

• Market Cap: ¥14.46B
• Dividend Yield: 2.66%
• Average Volume (3M): 48.37K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 676
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.69
• Shares Outstanding: 18,326,300
• 10 Day Avg. Volume: 76,950
• 30 Day Avg. Volume: 48,373
• PEG Ratio: -1.86
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 9.92
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥955.00 ▲(16.04% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

Overall score reflects strong financial strength (notably the zero-debt balance sheet) and favorable valuation, complemented by clear positive technical momentum. The main restraint is cash-flow consistency and some near-term technical overheating signals.

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 prediction engine. It also offers MMsmartMonitor service with wireless cameras and cloud viewer; MMEye that enables real-time image inspection; MMsmartSecurity, a factory security solution for monitoring and status management; Smart Berth System, a berth monitoring system at the logistics facilities; and MMsmart BusStop, a smart bus stop cloud system. In addition, the company provides communication adapters with various communication interfaces, such as MMLink-3G communication adapters; and MMLink-Lite 3G SIM-unlocked USB interface communication adapters. Further, the company offers location aware solutions, precise indoor localization solutions, camera products, controllers, cellular network products, data loggers, programmable HMIs, and remote monitoring software, as well as IoT consulting services. It serves various industries, such as semi-conductor manufacturers, machine tool manufacturers, food manufacturers, temperature controller manufacturers, and others. The company was formerly known as Yaskawa Information Systems Corporation and changed its name to YE DIGITAL Corporation in March 2019. YE DIGITAL Corporation was incorporated in 1978 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

YE DIGITAL CORPORATION Financial Statement Overview

Summary

Strong overall fundamentals supported by a very conservative, zero-debt balance sheet and steady revenue growth. Profitability is healthy but net income slipped versus the prior year and gross margin has eased. Cash flow is improving, but historical volatility and relatively low operating cash flow versus revenue keep the score below top-tier.

Income Statement

Revenue has grown steadily over the last several years, with the latest year showing a mid-single-digit increase. Profitability is healthy for the business profile, with net margin around 5% and operating profitability holding relatively stable, though gross margin has eased versus earlier years. Net income is solid but slightly lower than the prior year, indicating some cost pressure despite continued top-line growth.

Balance Sheet

The balance sheet is very conservatively positioned with zero debt across the periods provided, which materially reduces financial risk. Equity has increased over time and returns on equity remain strong (mid-teens recently), supporting a picture of disciplined capital management. The main trade-off is that with no leverage, future return expansion depends more on operating execution than balance-sheet optimization.

Cash Flow

Cash generation improved meaningfully in the latest year, with free cash flow rising and running at roughly 85% of net income, which is a solid conversion rate. However, operating cash flow is relatively low compared with revenue and has been volatile historically, including periods of weak or negative free cash flow. Overall, cash flow quality is improving, but consistency remains a watch item.

Breakdown	TTM	Feb 2025	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	19.53B	19.94B	19.50B	16.15B	13.73B	14.48B
Gross Profit	5.19B	5.24B	5.15B	4.39B	4.18B	4.32B
EBITDA	1.62B	1.80B	1.78B	1.18B	1.13B	1.32B
Net Income	921.19M	1.04B	1.09B	783.18M	403.94M	641.21M
Balance Sheet
Total Assets	13.48B	13.23B	12.32B	11.65B	10.08B	11.56B
Cash, Cash Equivalents and Short-Term Investments	2.97B	3.20B	2.49B	2.64B	2.74B	2.65B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.15B	5.98B	6.15B	6.60B	5.48B	7.40B
Stockholders Equity	7.31B	7.23B	6.16B	5.03B	4.59B	4.15B
Cash Flow
Free Cash Flow	0.00	1.09B	296.50M	98.54M	327.64M	215.80M
Operating Cash Flow	0.00	1.29B	545.88M	563.25M	487.23M	841.10M
Investing Cash Flow	0.00	-238.94M	-504.42M	-478.73M	-213.42M	119.76M
Financing Cash Flow	0.00	-323.24M	-191.60M	-188.03M	-188.68M	-113.42M

YE DIGITAL CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2354	82 Outperform	¥14.46B	11.29	―	2.66%	―	―
3918	74 Outperform	¥11.36B	12.18	―	3.61%	-2.26%	3.37%
3683	67 Neutral	¥13.05B	9.94	―	1.19%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4761	60 Neutral	¥14.50B	14.89	―	2.98%	5.14%	16.05%
6572	56 Neutral	¥14.57B	16.30	―	1.75%	13.47%	296.94%
5255	41 Neutral	¥6.47B	-12.25	―	―	-29.41%	79.74%