DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥5.12B
• Dividend Yield: N/A
• Average Volume (3M): 96.89K
• Price to Earnings (P/E): 3633.1
• Beta (1Y): 0.74
• Revenue Growth: 14.51%
• EPS Growth: 84.03%
• Country: JP
• Employees: 33
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): -7.46
• Shares Outstanding: 4,446,867
• 10 Day Avg. Volume: 44,070
• 30 Day Avg. Volume: 96,890
• PEG Ratio: 0.04
• Price to Book (P/B): 4.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.22
• 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: ¥1,010.00
• Price Target Upside: -11.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• 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. Business Overview & Revenue Model

Company Description

DIGITAL 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 Money

DIGITAL 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

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	838.50M	665.46M	623.88M	303.22M	586.68M
Gross Profit	714.10M	566.98M	594.55M	297.29M	213.36M
EBITDA	137.45M	-165.59M	-125.21M	47.58M	-474.92M
Net Income	21.17M	-289.15M	-201.92M	33.39M	-523.04M
Balance Sheet
Total Assets	2.34B	1.68B	1.62B	1.30B	1.42B
Cash, Cash Equivalents and Short-Term Investments	801.22M	444.77M	921.17M	601.74M	1.09B
Total Debt	781.74M	478.52M	279.94M	237.98M	323.49M
Total Liabilities	1.52B	1.15B	835.37M	457.15M	613.84M
Stockholders Equity	720.28M	491.86M	781.91M	840.96M	806.65M
Cash Flow
Free Cash Flow	-100.03M	-276.43M	32.65M	62.97M	-459.03M
Operating Cash Flow	-17.13M	-229.19M	71.01M	83.16M	-447.27M
Investing Cash Flow	-167.40M	-383.07M	169.13M	-482.90M	190.69M
Financing Cash Flow	540.54M	133.29M	279.29M	-84.58M	-288.27M

DIGITAL PLUS, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1141.00
• 50DMA: Positive
• 100DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3691	64 Neutral	¥5.12B	3,633.15		―	14.51%	84.03%
3645	62 Neutral	¥2.76B	―		0.96%	19.56%	-906.44%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
3985	59 Neutral	¥2.86B	―		―	-12.25%	-142.67%
7356	52 Neutral	¥2.97B	―		―	5.37%	94.53%
3845	51 Neutral	¥2.48B	―		―	-22.04%	-8.72%
6081	49 Neutral	¥3.29B	―		―	-10.81%	-71.05%