Digital Media Professionals Inc. (3652) AI Stock Analysis

• Market Cap: ¥6.86B
• Dividend Yield: N/A
• Average Volume (3M): 13.98K
• Price to Earnings (P/E): 41.6
• Beta (1Y): 1.10
• Revenue Growth: -10.37%
• EPS Growth: -139.17%
• Country: JP
• Employees: 63
• Sector: Technology
• Sector Strength: 92
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -76.48
• Shares Outstanding: 3,152,400
• 10 Day Avg. Volume: 17,590
• 30 Day Avg. Volume: 13,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 73 Outperform
• Price Target: ―

Digital Media Professionals Inc. shows strong financial stability with no debt and robust revenue growth. The technical outlook is cautious due to the stock trading below key moving averages, and the valuation is fair. Missing cash flow data and lack of recent earnings call information limit the ability to fully assess liquidity and future guidance.

Digital Media Professionals Inc. Business Overview & Revenue Model

Company Description

Digital Media Professionals Inc. engages in the intellectual property (IP) core license, product, and professional service business in Japan and internationally. The company licenses graphics processing units (GPU), and artificial intelligence (AI) related IP products; and develops and sells semiconductors and modules. It also offers low-load and high-precision license plate recognition software products; configurable AI inference processor IP, AI inference processor IP, and AI camera system small-size image signal processing IP hardware products. In addition, the company provides ZIA C3 SoM, a platform for developing edge devices equipped with AI functions; and ZIA Cloud SAFE, a SaaS type cloud service. Further, it offers professional services, such as safety driving assistance system development, system design, board development, and AI solutions; 3D and 2D graphics GPU hardware products; and image processors. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Digital Media Professionals Inc. generates revenue primarily through the licensing of its proprietary GPU and AI technologies to manufacturers and developers in the gaming, automotive, and industrial sectors. The company earns income from upfront licensing fees, royalties based on the volume of products sold using its technology, and service fees for customization and technical support. Strategic partnerships with semiconductor manufacturers and OEMs further bolster DMP's revenue streams by expanding the market reach and adoption of its solutions. Additionally, the company invests in research and development to maintain a competitive edge and explore new applications for its technologies, contributing to sustained business growth.

Digital Media Professionals Inc. Financial Statement Overview

Summary

Digital Media Professionals Inc. exhibits strong financial performance with robust revenue growth and healthy margins. The balance sheet is excellent, with no debt and high equity ratio, but missing TTM cash flow data limits full liquidity assessment.

Income Statement

The company demonstrated strong revenue growth with a significant increase from 2022 to 2023, resulting in improving profitability margins. Gross Profit Margin in TTM is approximately 42.9%, with a Net Profit Margin of 7.1%. EBIT and EBITDA margins are also healthy at 6.4% and 7.4% respectively. However, a slight decline in total revenue in TTM indicates potential challenges in sustaining the high growth trajectory.

Balance Sheet

Digital Media Professionals Inc. maintains a robust balance sheet with no debt, reflecting high financial stability. The Equity Ratio stands at 85.7%, indicative of strong equity backing. Return on Equity is 5.9% for TTM, which is modest but points to improved profitability compared to previous years. The excellent cash position further underscores financial resilience.

Cash Flow

Cash flow statements show a lack of data for the TTM period, potentially obscuring recent performance. Historical data reflects strong free cash flow growth from 2022 to 2023, but TTM metrics are missing. The Free Cash Flow to Net Income and Operating Cash Flow to Net Income ratios are not available due to data gaps, which affects comprehensive cash flow analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	3.08B	3.02B	2.32B	1.67B	1.01B
Gross Profit	1.32B	1.32B	1.27B	860.67M	604.46M	335.15M
EBITDA	302.55M	256.89M	371.77M	100.64M	-84.17M	-363.00M
Net Income	156.35M	157.12M	331.27M	22.57M	-157.20M	-364.62M
Balance Sheet
Total Assets	4.09B	4.09B	3.92B	3.84B	3.47B	3.48B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.73B	2.90B	2.74B	2.30B	2.41B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	480.94M	480.94M	461.95M	717.96M	376.70M	227.09M
Stockholders Equity	3.61B	3.61B	3.46B	3.12B	3.10B	3.25B
Cash Flow
Free Cash Flow	0.00	84.71M	633.70M	-73.30M	-77.40M	5.54M
Operating Cash Flow	0.00	93.25M	660.98M	-37.57M	-39.92M	36.36M
Investing Cash Flow	0.00	-167.11M	-500.03M	465.91M	-77.35M	68.62M
Financing Cash Flow	0.00	0.00	-291.00K	-108.00K	-90.00K	-1.51M

Digital Media Professionals Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2180.00
• 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:3652, the sentiment is Positive. The current price of 2180 is above the 20-day moving average (MA) of 2084.15, above the 50-day MA of 2104.28, and above the 200-day MA of 1857.33, indicating a bullish trend. The MACD of 11.27 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3652.

Digital Media Professionals Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	79 Outperform	¥21.56B	11.39		2.73%	9.88%	11.83%
6919	75 Outperform	¥10.24B	55.48		5.71%	-2.65%	-74.99%
3652	73 Outperform	¥6.86B	41.62		―	-10.37%	-139.17%
6772	68 Neutral	¥13.10B	21.05		1.75%	1.49%	-26.82%
6928	64 Neutral	¥10.96B	15.91		4.44%	8.68%	859.21%
6864	62 Neutral	¥9.47B	26.08		2.35%	4.03%	-2.88%
Sector *	59 Neutral	€6.30B	13.00	2.05%	2.03%	2.92%	-49.70%