DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) AI Stock Analysis

• Market Cap: ¥20.77B
• Dividend Yield: 2.4%
• Average Volume (3M): 88.01K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.85
• Revenue Growth: 2.47%
• EPS Growth: 255.58%
• Country: JP
• Employees: 1,870
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): -33.22
• Shares Outstanding: 23,890,800
• 10 Day Avg. Volume: 100,030
• 30 Day Avg. Volume: 88,013
• PEG Ratio: 0.29
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 70 Neutral
• Price Target: ¥1,020.00 ▲(6.25%Upside)

DIGITAL HEARTS HOLDINGS Co., Ltd. shows strong financial performance, which is the most significant contributor to the score. However, the technical analysis suggests a neutral to slightly bearish trend, and valuation metrics indicate the stock may be expensive. These factors collectively result in an overall stock score slightly below the midpoint of the scoring range.

DIGITAL HEARTS HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

DIGITAL HEARTS HOLDINGS Co., Ltd. is a Japan-based company specializing in quality assurance and testing services primarily for the gaming and entertainment industries. The company operates through various segments, including game debugging services, IT services, and enterprise solutions, offering comprehensive support to ensure the reliability and performance of digital products. Through its subsidiaries, DIGITAL HEARTS provides testing and evaluation services that help developers and publishers enhance the quality of their software products, particularly in the fast-evolving gaming sector.

How the Company Makes Money

DIGITAL HEARTS HOLDINGS Co., Ltd. generates revenue primarily through its quality assurance and testing services. The company's key revenue streams include game debugging services, where it provides comprehensive testing solutions to game developers and publishers to identify and resolve software issues before release. Additionally, the company offers IT services and enterprise solutions that extend beyond gaming to other digital products, supporting their functionality and performance. Revenue is also driven by strategic partnerships with gaming companies and software developers, establishing long-term contracts that ensure a steady stream of income. The company's focus on high-quality service delivery and leveraging its expertise in the gaming industry significantly contributes to its earnings.

DIGITAL HEARTS HOLDINGS Co., Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
40.54B	38.79B	36.52B	29.18B	22.67B	21.14B
	Gross Profit
10.34B	10.09B	10.63B	8.39B	6.43B	5.57B
	EBIT
2.45B	2.02B	3.00B	2.70B	1.91B	1.39B
	EBITDA
2.09B	1.91B	3.18B	3.49B	1.92B	1.64B
	Net Income Common Stockholders
1.62B	176.93M	799.55M	1.78B	974.49M	792.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.21B	6.90B	6.50B	5.24B	5.23B	3.90B
	Total Assets
19.91B	21.10B	19.58B	17.57B	14.34B	10.64B
	Total Debt
4.80B	7.10B	5.11B	5.59B	4.80B	2.55B
	Net Debt
-2.41B	236.50M	-1.35B	382.22M	-278.64M	-1.19B
	Total Liabilities
10.15B	12.25B	10.11B	9.99B	8.02B	5.20B
	Stockholders Equity
9.33B	8.42B	8.81B	7.00B	5.70B	4.94B
Cash Flow		Free Cash Flow
0.00	946.83M	1.82B	2.70B	1.10B	829.90M
	Operating Cash Flow
0.00	1.76B	2.85B	3.08B	1.42B	1.09B
	Investing Cash Flow
0.00	-2.37B	-1.90B	-2.54B	-1.81B	-1.02B
	Financing Cash Flow
0.00	934.08M	141.47M	-546.57M	1.73B	-515.83M

DIGITAL HEARTS HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 960.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3676, the sentiment is Positive. The current price of 960 is above the 20-day moving average (MA) of 900.35, above the 50-day MA of 936.15, and above the 200-day MA of 882.37, indicating a neutral trend. The MACD of -4.51 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 87.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3676.

DIGITAL HEARTS HOLDINGS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6199	77 Outperform	¥22.15B	12.62		0.81%	10.07%	27.39%
2185	74 Outperform	¥19.50B	9.22		4.64%	4.16%	36.43%
3676	70 Neutral	¥20.77B	33.98		2.40%	2.47%	255.58%
3788	69 Neutral	¥23.36B	32.30		1.83%	7.60%	-6.99%
6572	68 Neutral	¥18.83B	42.10		1.83%	17.17%	160.84%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
3657	51 Neutral	¥12.84B	―		4.41%	11.17%	64.67%

DIGITAL HEARTS HOLDINGS Co., Ltd. Corporate Events

DIGITAL HEARTS HOLDINGS Reports Growth in Fiscal Year 2025

DIGITAL HEARTS HOLDINGS Co., Ltd. reported a 2.5% increase in net sales for the fiscal year ending March 31, 2025, with significant growth in operating income and profit attributable to owners of the parent. The company’s financial position improved with a higher shareholders’ equity ratio and increased cash and cash equivalents. The announcement reflects a positive impact on the company’s operations, showcasing resilience and strategic growth, which could enhance its industry positioning and offer favorable implications for stakeholders.

DIGITAL HEARTS HOLDINGS Reports Significant Extraordinary Losses

DIGITAL HEARTS HOLDINGS Co., Ltd. reported an extraordinary loss of 1,184 million yen due to a significant decline in the value of its investment securities. This loss impacted the company’s financial results for the fiscal year ending March 31, 2025, leading to a substantial shortfall in profit attributable to owners of the parent. Despite steady project acquisition by its business groups, the company’s net income fell significantly compared to forecasts and the previous fiscal year, primarily due to these extraordinary losses.