DIGITAL PLUS, Inc. (3691) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: N/A
• Average Volume (3M): 96.47K
• Price to Earnings (P/E): 3633.1
• Beta (1Y): 0.73
• Revenue Growth: 14.51%
• EPS Growth: 84.03%
• Country: JP
• Employees: 33
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): -7.46
• Shares Outstanding: 4,446,867
• 10 Day Avg. Volume: 210,410
• 30 Day Avg. Volume: 96,466
• PEG Ratio: 0.03
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.45
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,109.00 ▲(7.77%Upside)

DIGITAL PLUS, Inc. demonstrates strong technical momentum with a positive trend in stock price and favorable technical indicators. Despite robust revenue growth, ongoing profitability challenges and a negative valuation score due to a high P/E ratio and no dividend yield weigh on the overall score. The stable financial position provides some support, but improvements in profitability are crucial.

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. exhibits strong revenue growth and effective cost control, with a high gross profit margin of 81.1%. However, persistent profitability challenges, negative net and EBIT margins, and pressured return on equity due to negative net income impact the financial performance score.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	896.60M	838.50M	665.46M	623.88M	303.22M	586.68M
Gross Profit	727.01M	714.10M	566.98M	594.55M	297.29M	213.36M
EBITDA	2.18M	137.45M	-165.59M	-125.21M	47.58M	-474.92M
Net Income	-33.40M	21.17M	-289.15M	-201.92M	33.39M	-523.04M
Balance Sheet
Total Assets	2.76B	2.34B	1.68B	1.62B	1.30B	1.42B
Cash, Cash Equivalents and Short-Term Investments	1.17B	801.22M	444.77M	921.17M	601.74M	1.09B
Total Debt	884.51M	781.74M	478.52M	279.94M	237.98M	323.49M
Total Liabilities	1.81B	1.52B	1.15B	835.37M	457.15M	613.84M
Stockholders Equity	864.56M	720.28M	491.86M	781.91M	840.96M	806.65M
Cash Flow
Free Cash Flow	159.82M	-100.03M	-276.43M	32.65M	62.97M	-459.03M
Operating Cash Flow	186.81M	-17.13M	-229.19M	71.01M	83.16M	-447.27M
Investing Cash Flow	-107.33M	-167.40M	-383.07M	169.13M	-482.90M	190.69M
Financing Cash Flow	733.22M	540.54M	133.29M	279.29M	-84.58M	-288.27M

DIGITAL PLUS, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1029.00
• 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 1029 is above the 20-day moving average (MA) of 949.70, above the 50-day MA of 814.20, and above the 200-day MA of 705.38, indicating a bullish trend. The MACD of 76.20 indicates Negative momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.84 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	66 Neutral	¥4.58B	3,633.15		―	14.51%	84.03%
3645	62 Neutral	¥2.65B	―		1.00%	19.56%	-906.44%
Sector *	61 Neutral	$41.07B	-0.81	-14.21%	3.83%	2.45%	-73.69%
3985	58 Neutral	¥2.51B	―		―	-12.25%	-142.67%
3845	54 Neutral	¥2.26B	―		―	-22.04%	-8.72%
7356	52 Neutral	¥2.89B	―		―	5.37%	94.53%