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DIGITAL PLUS, Inc. (JP:3691)
:3691
Japanese Market
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DIGITAL PLUS, Inc. (3691) AI Stock Analysis

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JP:3691

DIGITAL PLUS, Inc.

(3691)

Rating:64Neutral
Price Target:
¥1,219.00
▲(6.84%Upside)
DIGITAL PLUS, Inc. shows strong technical momentum with prices above major moving averages and positive MACD, indicating bullish trends. However, significant profitability challenges and negative valuation metrics, such as a negative P/E ratio, reduce the overall score. Financial performance reveals robust revenue growth, but profitability issues need addressing to improve investor confidence.

DIGITAL PLUS, Inc. (3691) vs. iShares MSCI Japan ETF (EWJ)

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company DescriptionDIGITAL PLUS, Inc. (3691) is a technology company specializing in digital transformation solutions and services. The company operates within the information technology sector, offering innovative products and services that enhance digital capabilities for businesses and consumers alike. DIGITAL PLUS provides a wide range of services including cloud computing, data analytics, and cybersecurity solutions, aiming to support organizations in optimizing their digital infrastructure and processes.
How the Company Makes MoneyDIGITAL PLUS, Inc. generates revenue primarily through a combination of subscription services, professional services, and licensing fees. The company offers subscription-based access to its cloud computing and data analytics platforms, charging clients on a monthly or annual basis. Additionally, DIGITAL PLUS earns revenue by providing professional services such as consulting, implementation, and support to assist clients in deploying and managing its solutions. Licensing fees from proprietary software products also contribute to the company's earnings. Strategic partnerships with technology providers and enterprise clients further enhance its revenue potential by expanding its market reach and service offerings.

DIGITAL PLUS, Inc. Financial Statement Overview

Summary
DIGITAL PLUS, Inc. shows strong revenue growth and effective cost control with a high gross profit margin. However, profitability challenges persist with negative net and EBIT margins. The balance sheet is stable with moderate leverage, but profitability improvements are needed for better cash flow stability.
Income Statement
65
Positive
DIGITAL PLUS, Inc. shows a strong gross profit margin of 81.1% for TTM, indicating effective cost control. Although revenue has grown significantly by 33.4% from 2023 to TTM, the company has struggled with profitability, as evidenced by negative net profit and EBIT margins. EBITDA margin also decreased, showing challenges in operational efficiency.
Balance Sheet
72
Positive
The company maintains a solid equity position, with an equity ratio of 31.3% for TTM. The debt-to-equity ratio is 1.02, reflecting moderate leverage. Despite negative net income, the return on equity remains pressured. The overall balance sheet suggests stability, but the company must manage liabilities effectively to improve financial health.
Cash Flow
60
Neutral
There is a significant improvement in operating cash flow in TTM, with a positive free cash flow of ¥159.8 million, marking a turnaround from negative cash flow in previous periods. However, the free cash flow to net income ratio is concerning due to negative net income, highlighting ongoing profitability issues.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue838.50M665.46M623.88M303.22M586.68M
Gross Profit714.10M566.98M594.55M297.29M213.36M
EBITDA137.45M-165.59M-125.21M47.58M-474.92M
Net Income21.17M-289.15M-201.92M33.39M-523.04M
Balance Sheet
Total Assets2.34B1.68B1.62B1.30B1.42B
Cash, Cash Equivalents and Short-Term Investments801.22M444.77M921.17M601.74M1.09B
Total Debt781.74M478.52M279.94M237.98M323.49M
Total Liabilities1.52B1.15B835.37M457.15M613.84M
Stockholders Equity720.28M491.86M781.91M840.96M806.65M
Cash Flow
Free Cash Flow-100.03M-276.43M32.65M62.97M-459.03M
Operating Cash Flow-17.13M-229.19M71.01M83.16M-447.27M
Investing Cash Flow-167.40M-383.07M169.13M-482.90M190.69M
Financing Cash Flow540.54M133.29M279.29M-84.58M-288.27M

DIGITAL PLUS, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1141.00
Price Trends
50DMA
913.30
Positive
100DMA
818.78
Positive
200DMA
742.75
Positive
Market Momentum
MACD
48.14
Negative
RSI
64.47
Neutral
STOCH
68.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3691, the sentiment is Positive. The current price of 1141 is above the 20-day moving average (MA) of 1045.90, above the 50-day MA of 913.30, and above the 200-day MA of 742.75, indicating a bullish trend. The MACD of 48.14 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3691.

DIGITAL PLUS, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥5.12B3,633.15
14.51%84.03%
62
Neutral
¥2.76B
0.96%19.56%-906.44%
62
Neutral
$42.18B-1.51-12.07%2.79%2.09%-71.01%
59
Neutral
¥2.86B
-12.25%-142.67%
52
Neutral
¥2.97B
5.37%94.53%
51
Neutral
¥2.48B
-22.04%-8.72%
49
Neutral
¥3.29B
-10.81%-71.05%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3691
DIGITAL PLUS, Inc.
1,151.00
634.00
122.63%
JP:3645
Medical Net,Inc.
313.00
-45.70
-12.74%
JP:3845
I-Freek Mobile Inc.
118.00
29.00
32.58%
JP:3985
Temona, Inc.
268.00
60.00
28.85%
JP:6081
Allied Architects, Inc.
232.00
12.00
5.45%
JP:7356
Retty Inc.
198.00
35.00
21.47%
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: Jul 19, 2025