DIGITAL HEARTS HOLDINGS Co., Ltd. (JP:3676)
:3676
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DIGITAL HEARTS HOLDINGS Co., Ltd.
(3676)
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Rating:73Outperform
Price Target:
¥939.00
▲(3.30% Upside)
Action:ReiteratedDate:11/01/25
DIGITAL HEARTS HOLDINGS Co., Ltd. has a strong financial foundation with consistent revenue growth and effective cash flow management, which are the most significant factors driving the score. The technical analysis presents a mixed outlook, with neutral momentum indicators. The valuation is reasonable, with a moderate P/E ratio and a decent dividend yield. The absence of earnings call and corporate events data has no impact on the overall score.
Positive Factors
Free Cash Flow Growth
Sustained and material free cash flow growth strengthens the firm's ability to fund operations, capex, dividends, and selective M&A without relying on external financing. Robust FCF conversion improves resilience to downturns and supports strategic investments over the next several quarters.
Negative Factors
Recent Revenue Contraction
Negative year-over-year revenue growth indicates recent softening in demand or contract timing for its outsourced services. For a service-led business, shrinking revenue undermines scalability and could pressure margins and cash conversion if not reversed by new contracts or market diversification in coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Growth
Sustained and material free cash flow growth strengthens the firm's ability to fund operations, capex, dividends, and selective M&A without relying on external financing. Robust FCF conversion improves resilience to downturns and supports strategic investments over the next several quarters.
Read all positive factors
DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥19.04B
Dividend Yield2.36%
Average Volume (3M)70.74K
Price to Earnings (P/E)7.6
Beta (1Y)0.83
Revenue Growth-2.68%
EPS Growth-12.83%
CountryJP
Employees1,870
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)29.80
Shares Outstanding23,890,800
10 Day Avg. Volume80,220
30 Day Avg. Volume70,740
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)2.44
Price to Sales (P/S)0.55
P/FCF Ratio8.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)107.6
Revenue Forecast (FY)¥43.90B
DIGITAL HEARTS HOLDINGS Co., Ltd. Business Overview & Revenue Model
Company Description
DIGITAL HEARTS HOLDINGS Co., Ltd., together with its subsidiaries, engages in debugging, media, and other businesses. It provides debug testing and reporting services for consumer games, mobile and online games, arcade games, etc.; one-stop soluti...
How the Company Makes Money
The company makes money primarily through fees earned by its operating subsidiaries for outsourced services provided to clients in the game and digital content ecosystem (e.g., publishers, developers, and other content companies). Key revenue stre...
DIGITAL HEARTS HOLDINGS Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.29B | 39.75B | 38.79B | 36.52B | 29.18B | 22.67B |
| Gross Profit | 10.32B | 10.14B | 10.09B | 10.63B | 8.39B | 6.43B |
| EBITDA | 3.08B | 2.70B | 1.91B | 3.18B | 3.49B | 1.92B |
| Net Income | 881.41M | 629.46M | 176.93M | 799.55M | 1.78B | 974.49M |
Balance Sheet | ||||||
| Total Assets | 19.71B | 19.95B | 21.10B | 19.58B | 17.61B | 14.34B |
| Cash, Cash Equivalents and Short-Term Investments | 7.22B | 7.59B | 6.90B | 6.50B | 5.24B | 5.23B |
| Total Debt | 5.39B | 5.25B | 7.13B | 5.13B | 5.59B | 4.80B |
| Total Liabilities | 10.45B | 10.69B | 12.25B | 10.11B | 10.04B | 8.03B |
| Stockholders Equity | 8.97B | 8.95B | 8.42B | 8.81B | 6.99B | 5.70B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.69B | 946.83M | 1.82B | 2.70B | 1.10B |
| Operating Cash Flow | 0.00 | 3.12B | 1.76B | 2.85B | 3.08B | 1.42B |
| Investing Cash Flow | 0.00 | -147.41M | -2.37B | -1.90B | -2.54B | -1.81B |
| Financing Cash Flow | 0.00 | -2.41B | 934.08M | 141.47M | -546.57M | 1.73B |
DIGITAL HEARTS HOLDINGS Co., Ltd. Technical Analysis
Neutral
909.00
Price Trends
885.46
Negative
905.61
Negative
923.84
Negative
Market Momentum
-9.41
Positive
49.96
Neutral
36.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3676, the sentiment is Neutral. The current price of 909 is above the 20-day moving average (MA) of 885.83, above the 50-day MA of 885.46, and below the 200-day MA of 923.84, indicating a bearish trend. The MACD of -9.41 indicates Positive momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3676.
DIGITAL HEARTS HOLDINGS Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥20.42B | 17.55 | ― | 0.90% | 17.75% | 44.95% | |
73 Outperform | ¥19.04B | 7.63 | ― | 2.36% | -2.68% | -12.83% | |
73 Outperform | ¥8.73B | 11.18 | ― | 0.95% | 9.36% | -1.69% | |
69 Neutral | ¥19.48B | 43.69 | ― | 2.13% | -0.62% | -11.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥19.63B | 17.48 | ― | 1.72% | 26.24% | 29.73% | |
45 Neutral | ¥10.96B | -3.21 | ― | 5.03% | 3.97% | 63.06% |
* Technology Sector Average
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DIGITAL HEARTS HOLDINGS Co., Ltd. Corporate Events
DIGITAL HEARTS to Boost Stake in G-angle, Paving Way to Full Ownership
Mar 19, 2026
DIGITAL HEARTS HOLDINGS has resolved to acquire an additional 28.4% stake in creative studio G-angle Co., Ltd., raising its holding from 5.1% to a level that makes G-angle an equity-method affiliate and setting terms for the future purchase of the...
Digital Hearts Drops AGEST Spin-Off Plan Amid Weak IT Valuations, Shifts to Alternative Shareholder Returns
Mar 2, 2026
DIGITAL HEARTS HOLDINGS has decided to withdraw its planned share-distribution-type spin-off and stock market listing of its consolidated subsidiary AGEST, Inc., despite having prepared the transaction as a major form of shareholder return. Manage...
DIGITAL HEARTS HOLDINGS Revamps Strategy, Drops Spin-Off Plan
Mar 2, 2026
DIGITAL HEARTS HOLDINGS announced strategic changes aimed at maximizing corporate value, centered on withdrawing its previously planned spin-off listing initiative. The company is also introducing new shareholder return measures, signaling a shift...
Digital Hearts Adopts Progressive Dividend Policy and Launches New Shareholder Benefits
Mar 2, 2026
DIGITAL HEARTS HOLDINGS has revised its shareholder return policy after canceling the planned share-distribution-type spin-off and listing of its subsidiary AGEST Inc., citing current equity market conditions. In place of the spin-off, the company...
DIGITAL HEARTS Adjusts Start Date of Capital and Business Alliance with GTL Media
Feb 6, 2026
DIGITAL HEARTS HOLDINGS Co., Ltd. announced a revision to the schedule for its planned capital and business alliance with GTL Media, Inc., changing the expected commencement date from February 6, 2026, to February 12, 2026. The adjustment stems fr...
DIGITAL HEARTS HOLDINGS Lifts Profit Despite Lower Sales, Keeps Full-Year Outlook and Dividend Plan Intact
Feb 5, 2026
DIGITAL HEARTS HOLDINGS reported consolidated net sales of ¥29.1 billion for the nine months ended December 31, 2025, down 4.4% year on year, but achieved strong profit growth with operating income up 27.4% to ¥2.34 billion and profit at...
DIGITAL HEARTS HOLDINGS Releases Segment-Based Results for Nine-Month Period
Feb 5, 2026
DIGITAL HEARTS HOLDINGS Co., Ltd. has released presentation materials for the nine months ended December 31, 2025, outlining its financial performance by business segment. The disclosure clarifies that the reported net sales figures for each segme...
DIGITAL HEARTS Strikes Alliance with GameScribes to Build Global One-Stop Game Localization Platform
Jan 23, 2026
DIGITAL HEARTS HOLDINGS has agreed to enter a capital and business alliance with U.S.-based game localization firm GTL Media, Inc., known as GameScribes, and is exploring the possibility of making it a consolidated subsidiary. The company will ini...
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.