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DIGITAL PLUS, Inc.
(3691)
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Rating:56Neutral
Price Target:
¥1,924.00
▲(39.12% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by moderate financial performance: strong growth and high gross margins with a meaningful rebound in operating and free cash flow, offset by continued net losses and a leveraged balance sheet. Technicals are supportive with the price above major moving averages and positive MACD, but momentum looks somewhat stretched (RSI/Stoch elevated). Valuation remains a key risk signal because earnings are negative and there is no dividend yield data to provide support.
Positive Factors
Revenue Growth and Gross Margin
TTM revenue growth of 22.6% and a ~76% gross margin indicate expanding demand alongside strong unit economics. If maintained, this combination gives DIGITAL PLUS room to fund product development and absorb operating costs while scaling toward sustainable profitability.
Negative Factors
Continuing Net Losses
Despite operating improvement, TTM net margin remains about -6.1%, and the company was profitable in 2024 but loss-making in 2025 and 2023. This uneven record indicates earnings have not stabilized, limiting internal capital formation and increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Gross Margin
TTM revenue growth of 22.6% and a ~76% gross margin indicate expanding demand alongside strong unit economics. If maintained, this combination gives DIGITAL PLUS room to fund product development and absorb operating costs while scaling toward sustainable profitability.
Read all positive factors
DIGITAL PLUS, Inc. (3691) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.79B
Dividend YieldN/A
Average Volume (3M)65.64K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth67.96%
EPS Growth81.44%
CountryJP
Employees39
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-4.46
Shares Outstanding4,459,567
10 Day Avg. Volume51,650
30 Day Avg. Volume65,643
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)6.35
Price to Sales (P/S)5.74
P/FCF Ratio-11.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DIGITAL PLUS, Inc. Business Overview & Revenue Model
Company Description
DIGITAL PLUS, Inc., based in Tokyo, Japan, is a Japanese company founded in 2005 that specializes in providing solutions in both digital marketing and financial technology (fintech). The organization was previously known as REALWORLD, inc. until i...
DIGITAL PLUS, Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 933.13M | 838.50M | 665.46M | 623.88M | 303.22M |
| Gross Profit | 1.14B | 697.87M | 674.07M | 475.41M | 571.79M | 228.06M |
| EBITDA | 170.17M | -484.00K | 37.83M | -148.37M | 101.03M | -64.05M |
| Net Income | -19.44M | -71.25M | 21.17M | -277.02M | -201.92M | 33.39M |
Balance Sheet | ||||||
| Total Assets | 8.32B | 3.33B | 2.34B | 1.69B | 1.62B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 4.11B | 1.11B | 801.22M | 444.77M | 921.17M | 601.74M |
| Total Debt | 1.64B | 1.36B | 781.74M | 478.52M | 279.94M | 237.98M |
| Total Liabilities | 7.49B | 2.41B | 1.52B | 1.16B | 835.37M | 457.15M |
| Stockholders Equity | 800.64M | 843.18M | 720.28M | 490.33M | 781.91M | 840.96M |
Cash Flow | ||||||
| Free Cash Flow | 2.59B | -458.38M | -17.45M | -229.62M | 69.16M | 83.16M |
| Operating Cash Flow | 2.60B | -445.13M | -17.13M | -229.19M | 71.01M | 83.16M |
| Investing Cash Flow | -136.86M | 46.66M | -167.40M | -381.60M | 169.13M | -482.90M |
| Financing Cash Flow | 602.07M | 709.84M | 540.54M | 131.82M | 279.29M | -84.58M |
DIGITAL PLUS, Inc. Technical Analysis
Positive
1383.00
Price Trends
1500.82
Positive
1574.40
Positive
1515.41
Positive
Market Momentum
17.77
Negative
70.63
Negative
70.62
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 1383 is below the 20-day moving average (MA) of 1555.30, below the 50-day MA of 1500.82, and below the 200-day MA of 1515.41, indicating a bullish trend. The MACD of 17.77 indicates Negative momentum. The RSI at 70.63 is Negative, neither overbought nor oversold. The STOCH value of 70.62 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥28.95B | 11.90 | ― | 0.66% | 16.53% | 76.82% | |
78 Outperform | ¥6.48B | 14.73 | ― | 6.36% | -1.51% | -34.53% | |
64 Neutral | ¥5.44B | 17.11 | ― | ― | 9.66% | -14.00% | |
64 Neutral | ¥13.38B | 9.40 | ― | ― | 14.00% | -71.98% | |
63 Neutral | ¥14.55B | 10.16 | ― | 1.09% | 3.61% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | ¥6.79B | -418.83 | ― | ― | 67.96% | 81.44% |
* Communication Services Sector Average
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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.