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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:54Neutral
Price Target:
¥1,632.00
▲(18.95% 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. (3691) vs. iShares MSCI Japan ETF (EWJ)

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company DescriptionDIGITAL 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 MoneyDIGITAL 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
55
Neutral
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue871.76M838.50M665.46M623.88M303.22M586.68M
Gross Profit675.81M714.10M566.98M594.55M297.29M213.36M
EBITDA-6.21M137.45M-165.59M-125.21M46.88M-474.92M
Net Income-101.86M21.17M-289.15M-201.92M33.39M-523.04M
Balance Sheet
Total Assets2.94B2.34B1.68B1.62B1.30B1.42B
Cash, Cash Equivalents and Short-Term Investments1.04B801.22M444.77M921.17M601.74M1.09B
Total Debt1.05B781.74M478.52M279.94M237.98M323.49M
Total Liabilities2.05B1.52B1.15B835.37M457.15M613.84M
Stockholders Equity807.80M720.28M491.86M781.91M840.96M806.65M
Cash Flow
Free Cash Flow-258.26M-100.03M-276.43M32.65M62.97M-459.03M
Operating Cash Flow-245.69M-17.13M-229.19M71.01M83.16M-447.27M
Investing Cash Flow45.94M-167.40M-383.07M169.13M-482.90M190.69M
Financing Cash Flow715.40M540.54M133.29M279.29M-84.58M-288.27M

DIGITAL PLUS, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1372.00
Price Trends
50DMA
1244.36
Positive
100DMA
1020.62
Positive
200DMA
865.75
Positive
Market Momentum
MACD
51.23
Positive
RSI
48.18
Neutral
STOCH
7.47
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 1372 is below the 20-day moving average (MA) of 1493.30, above the 50-day MA of 1244.36, and above the 200-day MA of 865.75, indicating a neutral trend. The MACD of 51.23 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 7.47 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$46.60B4.09-11.41%4.12%1.85%-42.71%
58
Neutral
¥4.78B
-26.88%26.91%
54
Neutral
¥6.10B3,633.15
8.29%26.77%
54
Neutral
¥3.32B
-2.64%-79.22%
53
Neutral
¥3.46B296.72
6.67%
51
Neutral
¥2.83B
0.93%15.64%-1211.95%
49
Neutral
¥3.27B
-14.72%-60.34%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3691
DIGITAL PLUS, Inc.
1,372.00
802.00
140.70%
JP:3645
Medical Net,Inc.
321.00
-1.04
-0.32%
JP:3845
I-Freek Mobile Inc.
224.00
140.00
166.67%
JP:3985
Temona, Inc.
311.00
106.00
51.71%
JP:6081
Allied Architects, Inc.
230.00
38.00
19.79%
JP:7356
Retty Inc.
231.00
77.00
50.00%
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: Aug 29, 2025