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Digital Holdings, Inc. (JP:2389)
:2389
Japanese Market

Digital Holdings, Inc. (2389) AI Stock Analysis

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JP

Digital Holdings, Inc.

(2389)

Rating:64Neutral
Price Target:
¥1,458.00
▲(9.46%Upside)
Digital Holdings, Inc. presents a mixed investment case. The company's financial stability, underpinned by a strong balance sheet, is a significant strength. Valuation metrics suggest the stock may be undervalued, with a compelling dividend yield. However, technical analysis indicates limited momentum, and past financial performance reveals revenue and profit growth challenges. The lack of earnings call insights further limits the current outlook.

Digital Holdings, Inc. (2389) vs. iShares MSCI Japan ETF (EWJ)

Digital Holdings, Inc. Business Overview & Revenue Model

Company DescriptionDigital Holdings, Inc. (2389) is a prominent player in the digital marketing and advertising industry. The company specializes in providing comprehensive digital marketing solutions, including online advertising, data analytics, and performance marketing services. By leveraging advanced technology and data-driven strategies, Digital Holdings, Inc. helps businesses enhance their online presence and optimize their marketing efforts across various digital platforms.
How the Company Makes MoneyDigital Holdings, Inc. generates revenue primarily through its diverse portfolio of digital marketing services. Key revenue streams include online advertising services, where the company collaborates with businesses to create and manage effective advertising campaigns across digital channels. The company also earns income from its data analytics services, which provide clients with actionable insights to improve their marketing strategies. Additionally, performance marketing services, which focus on delivering measurable results such as lead generation and sales conversions, contribute significantly to the company's earnings. Strategic partnerships with digital platforms and technology providers enhance the company's service offerings and expand its market reach, further supporting its revenue growth.

Digital Holdings, Inc. Financial Statement Overview

Summary
Digital Holdings, Inc. shows financial stability with a strong balance sheet characterized by high equity and low debt, indicating robust financial health. The income statement reflects challenges, particularly in sustaining revenue and profit growth, though EBIT and EBITDA margins have seen recent improvement. Cash flow generation has improved but with historical volatility, raising concerns about consistency.
Income Statement
45
Neutral
The company has experienced erratic revenue performance with a decline in recent years. Gross and net profit margins have fluctuated, with the latest year showing some recovery in net income after previous declines. EBIT and EBITDA margins have improved in the latest period, indicating better operational efficiency but remain challenged overall.
Balance Sheet
78
Positive
The balance sheet is solid, with a high equity ratio and low debt-to-equity ratio, indicating financial stability and low leverage. The company maintains strong cash reserves, supporting its liquidity position. Stockholders' equity has remained stable, providing a strong capital base.
Cash Flow
55
Neutral
Cash flow generation has been inconsistent, with negative free cash flow in previous years turning positive in the latest period. Operating cash flow has shown significant improvement, but historical volatility poses concerns. The company has managed to improve free cash flow to net income ratios recently.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.53B16.16B16.26B16.92B98.52B88.77B
Gross Profit
9.63B10.02B10.95B11.21B25.23B17.79B
EBIT
1.04B984.00M616.00M-417.00M10.92B3.24B
EBITDA
4.13B1.96B856.00M20.00M11.65B3.86B
Net Income Common Stockholders
2.64B1.34B237.00M5.72B10.23B3.75B
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.91B25.31B24.41B33.33B46.32B48.75B
Total Assets
46.93B48.22B50.28B55.96B69.73B71.43B
Total Debt
4.08B4.08B5.00B5.17B9.04B10.83B
Net Debt
-20.09B-17.66B-13.86B-21.30B-28.50B-16.23B
Total Liabilities
15.83B15.15B16.39B19.72B28.80B31.42B
Stockholders Equity
28.74B30.69B29.33B29.83B32.67B31.19B
Cash FlowFree Cash Flow
5.47B6.92B-3.79B-8.18B10.97B1.22B
Operating Cash Flow
6.72B6.92B-3.44B-7.61B12.13B2.18B
Investing Cash Flow
191.00M395.00M-1.27B4.70B2.99B1.57B
Financing Cash Flow
-1.94B-4.68B-3.06B-8.56B-4.83B2.95B

Digital Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1332.00
Price Trends
50DMA
1368.14
Negative
100DMA
1381.32
Negative
200DMA
1204.37
Positive
Market Momentum
MACD
-7.95
Positive
RSI
41.87
Neutral
STOCH
7.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2389, the sentiment is Negative. The current price of 1332 is below the 20-day moving average (MA) of 1387.05, below the 50-day MA of 1368.14, and above the 200-day MA of 1204.37, indicating a neutral trend. The MACD of -7.95 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2389.

Digital Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥32.95B12.81
3.86%14.35%-5.35%
74
Outperform
¥12.44B14.09
2.01%2.79%194.48%
67
Neutral
¥25.95B5.95
7.10%5.36%32.46%
64
Neutral
¥19.78B8.82
4.88%-9.56%127.51%
63
Neutral
¥28.09B21.72
4.48%-5.88%15.11%
61
Neutral
$14.59B5.85-4.31%3.69%2.76%-30.36%
55
Neutral
¥23.53B152.30
10.17%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2389
Digital Holdings, Inc.
1,332.00
324.27
32.18%
JP:2461
FAN Communications. Inc.
424.00
30.86
7.85%
JP:2491
ValueCommerce Co., Ltd.
803.00
-348.78
-30.28%
JP:4499
Speee, Inc.
2,047.00
607.00
42.15%
JP:6535
i-mobile Co., Ltd.
570.00
111.18
24.23%
JP:7068
Feedforce Group Inc.
497.00
-120.86
-19.56%

Digital Holdings, Inc. Corporate Events

Digital Holdings Reports Q1 2025 Financial Results with Profit Surge
May 9, 2025

Digital Holdings, Inc. reported its consolidated financial results for the first quarter of 2025, showing a decline in revenue by 14.6% compared to the previous year. Despite the revenue drop, the company saw a significant increase in ordinary profit and profit attributable to owners, indicating improved operational efficiency. The company maintains its forecast for the fiscal year 2025, with expectations of a decrease in revenue and operating profit but a substantial rise in ordinary profit and profit attributable to owners, reflecting strategic adjustments in its operations.

Digital Holdings Receives USD 27 Million Dividend from OPT America
Apr 30, 2025

Digital Holdings, Inc. announced the receipt of a USD 27 million dividend from its consolidated subsidiary, OPT America, Inc. This dividend will be recorded as revenue in the company’s non-consolidated financial statements for the fiscal year ending December 31, 2025. However, it will have an immaterial impact on the consolidated financial results for the same period.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.