DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥5.92B
• Dividend Yield: N/A
• Average Volume (3M): 108.32K
• Price to Earnings (P/E): 3633.1
• Beta (1Y): 0.66
• Revenue Growth: 8.29%
• EPS Growth: 26.77%
• Country: JP
• Employees: 33
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -13.20
• Shares Outstanding: 4,446,867
• 10 Day Avg. Volume: 31,890
• 30 Day Avg. Volume: 108,316
• 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: ¥1,632.00
• Price Target Upside: 22.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥1,632.00 ▲(22.61% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including negative profitability and cash flow issues. However, the technical analysis shows positive momentum, which partially offsets the financial weaknesses. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield.

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company Description

DIGITAL PLUS, Inc. (3691) is a technology-driven company specializing in digital solutions and services. Operating primarily in the fields of software development, digital marketing, and e-commerce, the company offers a range of products designed to enhance online presence and drive customer engagement for businesses. With a focus on innovation, DIGITAL PLUS, Inc. leverages advanced technologies to provide customized solutions that meet the evolving needs of its clients across various industries.

How the Company Makes Money

DIGITAL PLUS, Inc. generates revenue through multiple avenues, primarily by offering subscription-based software solutions and digital marketing services. The company charges clients monthly or annual fees for access to its proprietary software platforms, which help businesses manage their online operations effectively. Additionally, DIGITAL PLUS, Inc. earns significant income from consulting services that assist clients in optimizing their digital strategies. Key partnerships with major technology firms enhance its service offerings, allowing the company to integrate advanced tools and resources into its solutions. Moreover, the company also benefits from performance-based pricing models in its marketing services, where it earns commissions based on the success of campaigns it manages for clients.

DIGITAL PLUS, Inc. Financial Statement Overview

Summary

DIGITAL PLUS, Inc. shows strong revenue growth and a stable balance sheet. However, profitability is a concern due to negative net profit margins and EBIT margins. The company has improved cash flow, which is a positive sign for future financial health, but needs to focus on cost management to enhance profitability.

Income Statement

DIGITAL PLUS, Inc. has demonstrated significant revenue growth, with a 34.8% increase from 2023 to 2024 and a further 6.9% increase in TTM. However, profitability remains a challenge as evidenced by negative net profit margins and EBIT margins in the TTM period. The company needs to focus on cost management to improve its bottom line.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 1.02 in TTM, indicating a balanced leverage. The equity ratio is 31.3%, suggesting a stable capital structure. However, the return on equity is negative due to net losses, highlighting the need for improved profitability.

Cash Flow

DIGITAL PLUS, Inc. has shown a strong recovery in cash flow, with a positive operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income. However, the company needs to maintain this trend to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	871.76M	838.50M	665.46M	623.88M	303.22M	586.68M
Gross Profit	675.81M	714.10M	566.98M	594.55M	297.29M	213.36M
EBITDA	-6.21M	137.45M	-165.59M	-125.21M	46.88M	-474.92M
Net Income	-101.86M	21.17M	-289.15M	-201.92M	33.39M	-523.04M
Balance Sheet
Total Assets	2.94B	2.34B	1.68B	1.62B	1.30B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.04B	801.22M	444.77M	921.17M	601.74M	1.09B
Total Debt	1.05B	781.74M	478.52M	279.94M	237.98M	323.49M
Total Liabilities	2.05B	1.52B	1.15B	835.37M	457.15M	613.84M
Stockholders Equity	807.80M	720.28M	491.86M	781.91M	840.96M	806.65M
Cash Flow
Free Cash Flow	-258.26M	-100.03M	-276.43M	32.65M	62.97M	-459.03M
Operating Cash Flow	-245.69M	-17.13M	-229.19M	71.01M	83.16M	-447.27M
Investing Cash Flow	45.94M	-167.40M	-383.07M	169.13M	-482.90M	190.69M
Financing Cash Flow	715.40M	540.54M	133.29M	279.29M	-84.58M	-288.27M

DIGITAL PLUS, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1331.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1331 is below the 20-day moving average (MA) of 1422.40, below the 50-day MA of 1345.64, and above the 200-day MA of 917.74, indicating a neutral trend. The MACD of -2.78 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, 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
3845	58 Neutral	¥5.47B	-50.50	-12.86%	―	-26.88%	26.91%
3691	54 Neutral	¥5.92B	3,633.15	―	―	8.29%	26.77%
3985	54 Neutral	¥3.15B	-12.27	-56.35%	―	-2.64%	-79.22%
6081	49 Neutral	¥3.07B	-4.20	-21.61%	―	-15.99%	-83.06%
3645	44 Neutral	¥2.78B	-43.00	-3.97%	0.95%	15.64%	-1211.95%
7356	41 Neutral	¥3.09B	264.61	-25.41%	―	6.67%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%