DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥7.05B
• Dividend Yield: N/A
• Average Volume (3M): 65.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 11.29%
• EPS Growth: -358.08%
• Country: JP
• Employees: 33
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 6.95
• Shares Outstanding: 4,458,067
• 10 Day Avg. Volume: 51,650
• 30 Day Avg. Volume: 65,643
• PEG Ratio: 0.19
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 5.74
• P/FCF Ratio: -11.69
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥1,826.00 ▲(32.03% Upside)

The score is held back primarily by weak financial quality—loss-making operations and negative operating/free cash flow—despite moderate revenue growth. Technicals are strong with clear bullish trend signals, but overbought indicators increase near-term downside risk, and valuation is constrained by losses (negative P/E) with no dividend yield data.

Positive Factors

Diversified SaaS and services revenue model

A mix of recurring SaaS subscriptions, consulting revenue and partnership/performance marketing streams reduces single-channel dependence. This multi-pronged model supports steadier cash inflows and cross-sell opportunities, improving long-term resilience as the business scales.

Moderate, consistent top-line growth

Sustained revenue growth, even at a moderate pace, indicates ongoing customer acquisition and product adoption. For a software-driven company, consistent top-line expansion underpins future margin upside and justifies continued investment in product and sales capabilities over the next several quarters.

Lean operating base (small employee count)

A compact workforce suggests operating leverage potential typical of SaaS firms: revenue can scale faster than headcount. If management executes, a lean cost structure can translate into material margin improvement as revenue grows, providing durable profitability upside.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows signal difficulties converting revenue into sustainable cash, constraining internal funding for product development and go-to-market. Over months this raises refinancing and liquidity risk and can force dilutive financing or spending cuts.

Rising leverage and weak return on equity

Higher leverage combined with negative ROE reduces financial flexibility and increases interest and covenant risk. This structural balance sheet weakness can limit the company's ability to invest in growth initiatives or withstand downturns without seeking external capital.

Persistent operating losses and negative margins

Ongoing negative EBIT and net margins reflect structural cost or pricing issues that impair profitability. Continued losses hinder buildup of retained earnings and make it harder to self-fund expansion, raising execution risk unless margins improve through scale or cost discipline.

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company Description

DIGITAL PLUS, Inc. engages in the digital marketing and fintech businesses in Japan. The company offers internet advertising agency, consulting services, alliance media services, digital wallet exchange services, and media management consulting services; and web media marketing support services, including advertising placement, advertisement production, and various content creation services. It also offers Digital Gift, a contactless marketing support tool; Q-Kyu, a salary advance payment service; Mahina, a fortune-telling consultation; Peace, an online tutoring service. The company was formerly known as REALWORLD, inc. and changed its name to DIGITAL PLUS, Inc. in April 2022. DIGITAL PLUS, Inc. was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DIGITAL PLUS, Inc. generates revenue through multiple streams primarily by providing software-as-a-service (SaaS) solutions to businesses, which includes subscription fees for access to their digital platforms. Additional revenue comes from consulting services focused on digital transformation, where the company assists clients in implementing technology-driven strategies. The company also earns income through strategic partnerships with other tech firms, allowing for cross-promotional opportunities and shared revenue models. Furthermore, it engages in performance-based marketing initiatives, where it receives commissions or fees based on the success of digital marketing campaigns it manages for clients.

DIGITAL PLUS, Inc. Financial Statement Overview

Summary

Revenue grew 7.04%, but profitability is weak with negative EBIT and net margins. Balance sheet leverage has increased and ROE is negative, while cash flow is pressured by negative operating and free cash flow, indicating funding and execution risk.

Income Statement

DIGITAL PLUS, Inc. shows a mixed performance in its income statement. The company has experienced revenue growth, with a 7.04% increase in the latest year. However, profitability is a concern, as evidenced by negative net profit margins and EBIT margins. The company has struggled to maintain positive EBIT and net income, indicating challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet of DIGITAL PLUS, Inc. reflects a moderate financial position. The debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed properly. The equity ratio suggests a reasonable level of equity financing, but the return on equity is negative, highlighting inefficiencies in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals significant challenges for DIGITAL PLUS, Inc. The company has negative operating and free cash flows, indicating cash management issues. Although there is a high free cash flow growth rate, it stems from a low base, and the operating cash flow to net income ratio is negative, suggesting difficulties in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	932.34M	933.13M	838.50M	665.46M	623.88M	303.22M
Gross Profit	705.40M	697.87M	714.10M	566.98M	594.55M	297.29M
EBITDA	46.97M	52.63M	137.45M	-165.59M	-125.21M	46.88M
Net Income	-70.98M	-71.25M	21.17M	-289.15M	-201.92M	33.39M
Balance Sheet
Total Assets	3.33B	3.33B	2.34B	1.68B	1.62B	1.30B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.11B	801.22M	444.77M	921.17M	601.74M
Total Debt	1.36B	1.36B	781.74M	478.52M	279.94M	237.98M
Total Liabilities	2.41B	2.41B	1.52B	1.15B	835.37M	457.15M
Stockholders Equity	843.18M	843.18M	720.28M	491.86M	781.91M	840.96M
Cash Flow
Free Cash Flow	-457.32M	-458.38M	-100.03M	-276.43M	32.65M	62.97M
Operating Cash Flow	-444.74M	-445.13M	-17.13M	-229.19M	71.01M	83.16M
Investing Cash Flow	46.66M	46.66M	-167.40M	-383.07M	169.13M	-482.90M
Financing Cash Flow	709.84M	709.84M	540.54M	133.29M	279.29M	-84.58M

DIGITAL PLUS, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1383.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3691, the sentiment is Neutral. The current price of 1383 is below the 20-day moving average (MA) of 1630.05, below the 50-day MA of 1504.60, and above the 200-day MA of 1198.87, indicating a neutral trend. The MACD of 60.19 indicates Positive momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 14.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3691.

DIGITAL PLUS, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3985	59 Neutral	¥2.34B	31.84	―	―	0.36%	―
6081	55 Neutral	¥4.50B	-7.04	―	―	-14.76%	22.12%
3845	52 Neutral	¥5.40B	-44.01	―	―	-32.32%	-69.96%
3691	51 Neutral	¥7.05B	-93.90	―	―	11.29%	-358.08%
7356	45 Neutral	¥2.22B	187.84	―	―	4.36%	―
3645	43 Neutral	¥2.64B	68.12	―	1.01%	13.89%	82.37%