DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥4.92B
• Dividend Yield: N/A
• Average Volume (3M): 65.64K
• Price to Earnings (P/E): ―
• 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: 4,456,867
• 10 Day Avg. Volume: 51,650
• 30 Day Avg. Volume: 65,643
• PEG Ratio: -0.95
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 2.57
• P/FCF Ratio: -21.57
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥1,188.00 ▲(4.85% Upside)

DIGITAL PLUS, Inc. is facing significant financial challenges, with weak profitability and cash flow issues being the most critical concerns. The technical analysis indicates a bearish trend, and the valuation is unattractive due to the negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

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 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. faces challenges with fluctuating revenue growth and profitability, as indicated by a negative net profit margin and EBIT margin. While the gross profit margin is strong, cash flow issues and a negative return on equity highlight financial instability.

Income Statement

DIGITAL PLUS, Inc. has experienced fluctuating revenue growth, with a recent decline of 2.77% in TTM. The gross profit margin remains strong at 81.09%, but the company is struggling with profitability, as indicated by a negative net profit margin of -3.73% and negative EBIT margin of -4.21%. The EBITDA margin is slightly positive at 0.24%, showing some operational efficiency. Overall, the income statement reflects challenges in maintaining consistent revenue growth and profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 1.02, indicating a balanced approach to leveraging. However, the return on equity is negative at -4.56%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 27.44%, suggesting a stable capital structure. While the company maintains a reasonable debt level, the negative ROE is a concern for long-term sustainability.

Cash Flow

DIGITAL PLUS, Inc. faces significant cash flow challenges, with a negative free cash flow growth rate of -261.60% in TTM. The operating cash flow to net income ratio is low at 0.12, indicating difficulties in converting income into cash. The free cash flow to net income ratio is relatively high at 0.86, suggesting some ability to generate cash relative to net income. Overall, the cash flow statement highlights liquidity issues and the need for improved cash management.

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: Negative
• Last Price: 1133.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 1133 is below the 20-day moving average (MA) of 1167.80, below the 50-day MA of 1296.20, and above the 200-day MA of 991.24, indicating a neutral trend. The MACD of -42.22 indicates Negative momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 34.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
3845	51 Neutral	¥5.03B	―	―	―	-26.88%	26.91%
3691	46 Neutral	¥4.92B	-46.00	―	―	8.29%	26.77%
6081	46 Neutral	¥2.93B	-4.01	―	―	-15.99%	-83.06%
3645	43 Neutral	¥2.68B	―	―	0.99%	13.89%	82.37%
3985	42 Neutral	¥2.65B	-10.31	―	―	-2.64%	-79.22%
7356	41 Neutral	¥2.50B	214.52	―	―	6.67%	―