DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥6.37B
• Dividend Yield: N/A
• Average Volume (3M): 65.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥1,426.00 ▼(-0.28% Downside)

DIGITAL PLUS, Inc. has a mixed outlook. The most significant factor is its financial performance, which is challenged by profitability and cash flow issues. Technical analysis provides some optimism with positive momentum indicators. However, valuation remains a concern due to negative earnings and lack of dividends, which impacts the overall attractiveness of the stock.

Positive Factors

Revenue Growth

The company's ability to achieve double-digit revenue growth reflects strong demand for its digital solutions and services, indicating a robust market position and potential for continued expansion.

Diverse Revenue Streams

A diversified revenue model reduces dependency on a single income source, enhancing financial stability and providing resilience against market fluctuations.

Strategic Partnerships

Strategic partnerships enable cross-promotional opportunities and shared revenue models, which can drive growth and strengthen market presence.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate challenges in cost management and operational efficiency, which could hinder long-term financial performance.

Cash Flow Issues

Negative cash flows suggest difficulties in cash management, limiting the company's ability to invest in growth opportunities and manage debt effectively.

High Leverage

Increased leverage can pose financial risks, potentially affecting the company's ability to sustain operations and invest in future growth.

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company Description

DIGITAL PLUS, Inc. (3691) is a leading technology company specializing in digital solutions and services across various sectors, including e-commerce, digital marketing, and software development. The company offers a diverse range of products, including innovative software applications, data analytics tools, and comprehensive digital marketing strategies designed to enhance online presence and drive business growth for its clients.

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

DIGITAL PLUS, Inc. faces several financial challenges. Despite revenue growth, the company struggles with profitability and cash flow management. High leverage and negative returns on equity further highlight the need for strategic improvements to enhance financial stability and performance.

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: Positive
• Last Price: 1430.00
• 50DMA: Positive
• 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 Positive. The current price of 1430 is above the 20-day moving average (MA) of 1421.25, above the 50-day MA of 1296.66, and above the 200-day MA of 1079.14, indicating a bullish trend. The MACD of 21.26 indicates Positive momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.46 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

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	¥2.25B	31.26	―	―	0.36%	―
3845	52 Neutral	¥5.49B	-44.01	―	―	-32.32%	-69.96%
6081	52 Neutral	¥3.23B	-5.16	―	―	-14.76%	22.12%
3691	51 Neutral	¥6.37B	-87.86	―	―	11.29%	-358.08%
7356	45 Neutral	¥2.35B	199.26	―	―	4.36%	―
3645	43 Neutral	¥2.61B	-294.85	―	1.01%	13.89%	82.37%