DIGITAL PLUS, Inc. (JP:3691)
:3691
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DIGITAL PLUS, Inc.
(3691)
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Rating:42Neutral
Price Target:
¥1,601.00
▲(15.76% Upside)
Action:Reiterated
Date:05/19/26
The score is weighed down primarily by weak financial quality—ongoing net losses, negative operating/free cash flow, and elevated leverage—despite healthy revenue growth and strong gross margins. Technicals are mixed with softer short-term momentum, and valuation is difficult to support given the negative P/E and no dividend data.
Positive Factors
High Gross Margins & Revenue Growth
Sustained TTM revenue growth (~16.5%) combined with very high gross margins (~76%) indicates durable unit economics and pricing power in core offerings. Such margins allow reinvestment in growth and can absorb fixed costs, supporting long-term profitability if scale continues.
Negative Factors
Negative Operating & Free Cash Flow
Persistent negative operating and free cash flow (TTM ~-¥153m and ~-¥166m) indicates the business is burning cash to sustain operations. Ongoing cash deficits raise financing needs, increase dilution or debt risk, and constrain reinvestment capacity absent consistent cash conversion improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins & Revenue Growth
Sustained TTM revenue growth (~16.5%) combined with very high gross margins (~76%) indicates durable unit economics and pricing power in core offerings. Such margins allow reinvestment in growth and can absorb fixed costs, supporting long-term profitability if scale continues.
Read all positive factors
DIGITAL PLUS, Inc. (3691) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.03B
Dividend YieldN/A
Average Volume (3M)65.64K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth33.34%
EPS Growth-116.31%
CountryJP
Employees33
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-16.86
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. engages in the digital marketing and fintech businesses in Japan. The company offers internet advertising agency, consulting services, alliance media services, digital wallet exchange services, and media management consulting se...
DIGITAL PLUS, Inc. Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 933.13M | 838.50M | 665.46M | 623.88M | 303.22M |
| Gross Profit | 915.23M | 697.87M | 674.07M | 475.41M | 571.79M | 228.06M |
| EBITDA | 72.02M | -484.00K | 37.83M | -148.37M | 101.03M | -64.05M |
| Net Income | -73.34M | -71.25M | 21.17M | -277.02M | -201.92M | 33.39M |
Balance Sheet | ||||||
| Total Assets | 4.47B | 3.33B | 2.34B | 1.69B | 1.62B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.11B | 801.22M | 444.77M | 921.17M | 601.74M |
| Total Debt | 1.14B | 1.36B | 781.74M | 478.52M | 279.94M | 237.98M |
| Total Liabilities | 3.62B | 2.41B | 1.52B | 1.16B | 835.37M | 457.15M |
| Stockholders Equity | 803.65M | 843.18M | 720.28M | 490.33M | 781.91M | 840.96M |
Cash Flow | ||||||
| Free Cash Flow | -166.13M | -458.38M | -17.45M | -229.62M | 69.16M | 83.16M |
| Operating Cash Flow | -152.68M | -445.13M | -17.13M | -229.19M | 71.01M | 83.16M |
| Investing Cash Flow | 53.89M | 46.66M | -167.40M | -381.60M | 169.13M | -482.90M |
| Financing Cash Flow | 270.68M | 709.84M | 540.54M | 131.82M | 279.29M | -84.58M |
DIGITAL PLUS, Inc. Technical Analysis
Negative
1383.00
Price Trends
1627.72
Negative
1596.18
Negative
1459.28
Positive
Market Momentum
23.55
Positive
39.97
Neutral
5.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3691, the sentiment is Negative. The current price of 1383 is below the 20-day moving average (MA) of 1906.30, below the 50-day MA of 1627.72, and below the 200-day MA of 1459.28, indicating a neutral trend. The MACD of 23.55 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 5.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥30.10B | 21.60 | ― | 0.38% | 19.28% | 113.67% | |
74 Outperform | ¥6.07B | 12.44 | ― | 3.29% | 2.36% | -15.08% | |
72 Outperform | ¥5.68B | 5.74 | ― | ― | 6.08% | 48.90% | |
67 Neutral | ¥11.52B | 8.66 | ― | ― | 22.47% | -28.97% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥10.56B | 6.53 | ― | 1.09% | -1.25% | ― | |
42 Neutral | ¥7.03B | -24.32 | ― | ― | 33.34% | -116.31% |
* Communication Services Sector Average
JP:3691
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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.