tiprankstipranks
Trending News
More News >
Digital Holdings, Inc. (JP:2389)
:2389
Japanese Market

Digital Holdings, Inc. (2389) AI Stock Analysis

Compare
1 Followers

Top Page

JP:2389

Digital Holdings, Inc.

(2389)

Select Model
Select Model
Select Model
Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
¥2,237.00
▲(11.24% Upside)
The stock's overall score is driven by a strong balance sheet and moderate valuation, though tempered by inconsistent financial performance and neutral technical indicators. The absence of earnings call and corporate events data limits additional insights.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic downturns.
Improved Cash Flow
Turning positive free cash flow indicates improved financial health and operational efficiency, allowing for reinvestment in business expansion and debt reduction.
Operational Efficiency
Improved EBIT and EBITDA margins suggest enhanced operational efficiency, which can lead to better profitability and competitive positioning in the digital advertising market.
Negative Factors
Revenue Decline
Declining revenue trends can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and market share.
Inconsistent Cash Flow
Inconsistent cash flow generation can limit the company's ability to plan long-term investments and manage financial obligations, affecting overall financial stability.
Fluctuating Profit Margins
Fluctuating profit margins can signal operational challenges and market volatility, potentially impacting the company's ability to maintain consistent profitability.

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

Digital Holdings, Inc. Business Overview & Revenue Model

Company DescriptionDigital Holdings, Inc. provides advertising agency services, marketing services, and technology services for companies in Japan and internationally. It also supplies Web marketing support services, HR support services, and IT implementation support services for SMEs and venture businesses to expand their online businesses. The company was formerly known as OPT Holding, Inc. and changed its name to Digital Holdings, Inc. in July 2020. Digital Holdings, Inc. was founded in 1993 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyDigital Holdings, Inc. generates revenue through multiple streams, primarily from digital advertising services, including programmatic advertising and targeted marketing solutions. The company utilizes a subscription-based model for its analytics tools, allowing clients to access real-time data and insights that drive their marketing strategies. Additionally, partnerships with major tech platforms and advertising networks enable the company to expand its reach and enhance its service offerings. The combination of performance-based fees for successful ad placements and long-term contracts with corporate clients contributes significantly to its overall earnings.

Digital Holdings, Inc. Financial Statement Overview

Summary
The company shows financial stability with a strong balance sheet, characterized by a high equity ratio and low debt-to-equity ratio. However, the income statement reflects challenges in sustaining revenue and profit growth, and cash flow generation has been inconsistent, though recent improvements are noted.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.22B16.16B16.26B16.92B98.52B88.77B
Gross Profit9.55B10.02B10.95B11.21B25.23B17.79B
EBITDA3.70B1.96B856.00M8.79B11.65B3.86B
Net Income1.81B1.34B237.00M5.72B10.23B3.75B
Balance Sheet
Total Assets45.22B48.22B50.28B55.96B69.73B71.43B
Cash, Cash Equivalents and Short-Term Investments29.21B25.31B24.41B33.33B46.32B48.75B
Total Debt4.08B4.08B5.00B5.17B9.04B10.83B
Total Liabilities14.99B15.15B16.39B19.72B28.80B31.42B
Stockholders Equity28.40B30.69B29.33B29.83B32.67B31.19B
Cash Flow
Free Cash Flow3.26B6.92B-3.50B-8.18B10.97B1.22B
Operating Cash Flow6.16B6.92B-3.44B-7.61B12.13B2.18B
Investing Cash Flow1.11B395.00M-1.27B4.70B2.99B1.57B
Financing Cash Flow-1.05B-4.68B-3.06B-8.56B-4.83B2.95B

Digital Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2011.00
Price Trends
50DMA
2110.82
Negative
100DMA
1874.28
Positive
200DMA
1606.00
Positive
Market Momentum
MACD
-31.10
Positive
RSI
40.36
Neutral
STOCH
12.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2389, the sentiment is Neutral. The current price of 2011 is below the 20-day moving average (MA) of 2077.60, below the 50-day MA of 2110.82, and above the 200-day MA of 1606.00, indicating a neutral trend. The MACD of -31.10 indicates Positive momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2389.

Digital Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥33.87B11.404.86%58.08%29.89%
76
Outperform
¥16.37B14.691.44%7.24%215.65%
67
Neutral
¥21.94B4.897.93%-3.20%34.08%
63
Neutral
¥31.34B25.792.14%-22.10%-16.33%
63
Neutral
¥34.99B24.415.10%3.22%13.97%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
50
Neutral
¥30.54B-149.374.53%-467.16%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2389
Digital Holdings, Inc.
2,010.00
824.35
69.53%
JP:2461
FAN Communications. Inc.
525.00
133.39
34.06%
JP:2491
ValueCommerce Co., Ltd.
684.00
-409.07
-37.42%
JP:4499
Speee, Inc.
2,462.00
-3,238.00
-56.81%
JP:6535
i-mobile Co., Ltd.
491.00
-25.28
-4.90%
JP:7068
Feedforce Group Inc.
696.00
188.00
37.01%

Digital Holdings, Inc. Corporate Events

Digital Holdings Announces Successful Tender Offer and Shareholder Changes
Dec 4, 2025

Digital Holdings, Inc. announced the successful completion of a tender offer by Hakuhodo DY Holdings Inc., resulting in a change of the parent company and the largest shareholder. This strategic move is expected to enhance Digital Holdings’ market positioning and influence, as Hakuhodo DY Holdings Inc. will acquire more than 50% of the voting rights, marking a significant shift in the company’s shareholder structure.

Digital Holdings Faces Competing Tender Offers Amid Strategic Amendments
Nov 27, 2025

Digital Holdings, Inc. announced amendments regarding the planned tender offer by SilverCape Investments Limited, which intends to acquire all shares of the company. SilverCape has increased its tender offer price and matched the minimum share purchase requirements set by a competing offer from Hakuhodo DY Holdings Inc. The company has yet to announce its official stance on SilverCape’s offer, urging shareholders to consider forthcoming information carefully.

Digital Holdings Updates Tender Offer Stance Amid Competing Bids
Nov 18, 2025

Digital Holdings, Inc. has announced amendments to its previous statements regarding the tender offer for its shares by Hakuhodo DY Holdings Inc. The company has expressed continued support for the Hakuhodo tender offer, leaving the decision to shareholders, while also addressing a competing offer from SilverCape Investments Limited. The board has introduced response policies to mitigate potential coercion risks associated with SilverCape’s offer, emphasizing the importance of shareholder discretion in the decision-making process.

Digital Holdings Continues Response Policies Amid SilverCape Tender Offer
Nov 18, 2025

Digital Holdings, Inc. has announced the continuation of its response policies concerning a tender offer by SilverCape Investments Limited. The company aims to engage in negotiations to prevent its shareholders from becoming minority stakeholders due to the coercive nature of the tender offer. Despite receiving an amended proposal from SilverCape, which includes a potential second tender offer, the company’s Special Committee advises maintaining the response policies to protect shareholder interests, as the proposal still poses risks without sufficient information for shareholders to make informed decisions.

Digital Holdings Announces Delay in SilverCape Tender Offer
Nov 12, 2025

Digital Holdings, Inc. announced amendments to a planned tender offer by SilverCape Investments Limited, initially set for late November 2025, now postponed to late February 2026. The company has expressed concerns about potential coercion of shareholders due to SilverCape’s significant share acquisition, prompting the introduction of a response policy to protect shareholder interests.

Digital Holdings Extends Tender Offer Period Amid Shareholder Considerations
Nov 12, 2025

Digital Holdings, Inc. announced amendments to its previous notice regarding the tender offer for its shares by Hakuhodo DY Holdings Inc. The tender offer period, initially set to end on November 12, 2025, has been extended to November 27, 2025, to allow shareholders more time to make informed decisions and increase the likelihood of successful completion.

Digital Holdings Reports Financial Results and Dividend Revision
Nov 6, 2025

Digital Holdings, Inc. reported a decline in revenue and operating profit for the nine months ending September 30, 2025, compared to the previous year. Despite this, ordinary profit and profit attributable to owners showed growth. The company has revised its dividend forecast, deciding not to distribute year-end dividends for 2025, conditional upon a tender offer by Hakuhodo DY Holdings Inc.

Digital Holdings Responds to SilverCape’s Tender Offer Proposal
Oct 28, 2025

Digital Holdings, Inc. has announced its response policies concerning a tender offer proposal by SilverCape Investments Limited, which aims to acquire a significant portion of the company’s shares. The company expresses concerns about the coercive nature of the offer, the lack of specificity in SilverCape’s management plans, and the uncertainty of the funding sources for the acquisition, which may impact shareholders’ decisions.

Digital Holdings Amends Tender Offer Opinion Amid Competing Bids
Oct 28, 2025

Digital Holdings, Inc. has announced amendments to its previous opinion on a tender offer by Hakuhodo DY Holdings Inc. The company continues to support the Hakuhodo Tender Offer, leaving the decision to shareholders and stock acquisition rights holders. Meanwhile, SilverCape Investments Limited has announced a competing tender offer, which could result in significant ownership changes. Digital Holdings is introducing response policies to negotiate in good faith and avoid coercion risks for minority shareholders. Hakuhodo has extended its tender offer period to provide shareholders more time for consideration.

Digital Holdings Sets Record Date Amid Tender Offer Concerns
Oct 28, 2025

Digital Holdings, Inc. has announced the setting of a record date for voting rights in anticipation of a potential extraordinary general meeting of shareholders. This meeting is in response to a tender offer by SilverCape Investments Limited, which the company believes could exert coercive pressure on shareholders. To protect corporate value and shareholder interests, the company has introduced response policies to ensure shareholders have adequate information and time to make informed decisions regarding the tender offer.

Digital Holdings Faces Competing Tender Offers Amid Strategic Review
Oct 20, 2025

SilverCape Investments Limited has announced its intention to commence a tender offer for shares of Digital Holdings, Inc., pending certain conditions. This move follows a previous tender offer proposal from Hakuhodo DY Holdings Inc., which Digital Holdings had favored. The board of Digital Holdings is currently reviewing SilverCape’s proposal to ensure it aligns with the company’s corporate value and shareholder interests, and will announce its stance once a decision is made.

Digital Holdings Supports Hakuhodo DY Holdings’ Tender Offer
Sep 12, 2025

Digital Holdings, Inc. has announced its support for a tender offer by Hakuhodo DY Holdings Inc., which aims to acquire all shares and stock acquisition rights to make Digital Holdings a wholly-owned subsidiary. This move will result in the delisting of Digital Holdings’ shares, impacting shareholders and stock acquisition rights holders who must decide whether to participate in the offer.

Digital Holdings Revises Dividend Forecast Amid Acquisition Plans
Sep 12, 2025

Digital Holdings, Inc. announced a revision to its dividend forecast for the fiscal year ending December 31, 2025, deciding not to distribute year-end dividends. This decision is contingent upon the successful completion of a tender offer by Hakuhodo DY Holdings Inc., which aims to make Digital Holdings a wholly-owned subsidiary and delist its shares. The company plans to retain earnings to invest in business and human resources to boost management strength and profitability, aligning with its medium-term business plan.

Digital Holdings to Dissolve Vankable Amid Strategic Tender Offer
Sep 12, 2025

Digital Holdings, Inc. has announced its decision to dissolve and liquidate its subsidiary, Vankable, Inc., contingent upon the successful completion of a tender offer by Hakuhodo DY Holdings Inc. This move comes after a strategic review revealed limited synergies between Vankable’s financial services and the acquiring group’s operations. The decision is aimed at enhancing Digital Holdings’ corporate value and aligning with a strategic partner to support long-term growth. The dissolution of Vankable is seen as a necessary step to facilitate the tender offer and ultimately make Digital Holdings a wholly-owned subsidiary of Hakuhodo DY Holdings, which is expected to benefit shareholders.

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: Oct 30, 2025