Digital Information Technologies Corp. (3916) AI Stock Analysis

• Market Cap: ¥31.24B
• Dividend Yield: 2.45%
• Average Volume (3M): 44.39K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.40
• Revenue Growth: 19.04%
• EPS Growth: 30.67%
• Country: JP
• Employees: 1,399
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 31,003,640
• 10 Day Avg. Volume: 65,510
• 30 Day Avg. Volume: 44,386
• PEG Ratio: 0.53
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 14.88
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,169.00 ▼(-11.77% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Digital Information Technologies Corp. scores well due to its strong financial performance and reasonable valuation. The technical analysis suggests a neutral market position, with no strong momentum indicators. The absence of earnings call data and corporate events limits additional insights, but the company's solid financial foundation supports a positive outlook.

Positive Factors

Very low leverage and strong capital structure

The company’s virtually negligible debt burden and high equity ratio provide durable financial resilience, lowering default and refinancing risk while preserving flexibility for capital allocation. A ROE near 27% shows efficient use of equity and supports sustained shareholder returns over medium term.

Robust cash generation and free cash flow

Operating cash conversion above parity and strong free cash flow indicate the business reliably converts profits to cash, enabling reinvestment, debt avoidance, and potential shareholder distributions. Consistent cash generation underpins long-term solvency and strategic optionality.

Healthy margins with consistent revenue growth

Sustained revenue growth combined with mid-20s gross margin and double-digit operating margins reflect durable operational efficiency and pricing power in services. These margins support reinvestment and buffer cyclical demand, helping maintain competitive position over coming quarters.

Negative Factors

High FCF growth may be unsustainable

Management reported exceptional free cash flow growth but explicitly cautioned on sustainability. Reliance on unusually strong cash spikes can overstate long-term funding capacity; if cash growth normalizes, investment plans or distributions may face pressure.

Moderate revenue growth versus high-growth sector

Revenue expansion in the high single- to low double-digit range is solid but modest for information technology services. In a fast-evolving market, such growth may limit the company’s ability to expand market share rapidly or to offset competitive pricing pressure over a multi-quarter horizon.

Limited investor communications and event transparency

The lack of earnings call transcripts and corporate event disclosures reduces visibility into strategy, backlog, and guidance. For investors and counterparties, weaker transparency can hinder assessment of execution risks and long-term plans, elevating informational and governance uncertainty.

Digital Information Technologies Corp. Business Overview & Revenue Model

Company Description

Digital Information Technologies Corporation operates as an information service company. The company develops business systems, embedded devices, etc. for clients primarily in the fields of finance, communications, distribution, transportation, and others. Its products include WebARGUS, a Website security solution; xoBlos, an Excel work innovation platform; Anti Phishing Mail Gateway, a solution to prevent damage from phishing and illegal use of brands by automatically adding electronic signatures on e-mails; and Rakuraku page, a content management system that enable website editing and updating. The company also develops custom software for in-vehicle devices, mobile devices, information home appliances, and communication devices; and offers verification services, including various laboratory tests. Digital Information Technologies Corporation was founded in 1982 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Digital Information Technologies Corp. generates revenue through multiple streams, primarily by providing customized software solutions and IT consulting services. The company charges clients for project-based engagements, where they develop and implement tailored software applications. Additionally, it earns recurring revenue from managed services, which include ongoing IT support, maintenance, and cloud service subscriptions. Strategic partnerships with major technology providers enhance its offerings and expand its market reach, allowing for collaborative projects that further drive revenue. The company also benefits from licensing its proprietary software products, contributing to a diversified income portfolio.

Digital Information Technologies Corp. Financial Statement Overview

Summary

Digital Information Technologies Corp. demonstrates strong financial health with robust revenue growth, solid profitability, and a stable balance sheet. The company has minimal leverage and strong cash flow generation, indicating a strong competitive position and financial stability.

Income Statement

Digital Information Technologies Corp. has demonstrated strong revenue growth with a 9.22% increase in the latest year. The company maintains healthy profitability, with a gross profit margin of approximately 25.44% and a net profit margin of 9.02%. The EBIT and EBITDA margins are also robust at 12.48% and 13.57%, respectively, indicating efficient operational management. The consistent revenue growth and solid margins reflect a strong competitive position in the industry.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.0031, indicating minimal leverage and financial risk. The return on equity is impressive at 26.98%, showcasing effective utilization of shareholder funds. The equity ratio stands at 71.65%, reflecting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet is stable and supports future growth.

Cash Flow

Digital Information Technologies Corp. has shown exceptional free cash flow growth, with a significant increase in the latest period. The operating cash flow to net income ratio is 1.10, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 1.09, demonstrating efficient cash management. The cash flow metrics suggest a healthy liquidity position, although the high growth rate may not be sustainable long-term.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	24.16B	19.89B	18.15B	16.16B	14.44B
Gross Profit	6.15B	4.95B	4.32B	4.08B	3.57B
EBITDA	3.28B	2.53B	2.14B	2.04B	1.76B
Net Income	2.18B	1.69B	1.45B	1.44B	1.20B
Balance Sheet
Total Assets	11.27B	10.22B	8.18B	7.68B	6.39B
Cash, Cash Equivalents and Short-Term Investments	5.35B	4.62B	4.19B	3.84B	3.33B
Total Debt	25.10M	243.54M	0.00	5.00M	0.00
Total Liabilities	3.09B	3.16B	2.17B	2.13B	1.86B
Stockholders Equity	8.07B	6.96B	6.01B	5.55B	4.53B
Cash Flow
Free Cash Flow	2.38B	1.71B	1.41B	949.89M	1.25B
Operating Cash Flow	2.39B	1.74B	1.43B	958.38M	1.26B
Investing Cash Flow	10.94M	-595.61M	-66.84M	-14.44M	5.46M
Financing Cash Flow	-1.55B	-804.71M	-1.03B	-456.68M	-335.00M

Digital Information Technologies Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1325.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3916, the sentiment is Negative. The current price of 1325 is above the 20-day moving average (MA) of 1120.30, above the 50-day MA of 1246.79, and above the 200-day MA of 1227.80, indicating a bearish trend. The MACD of -68.10 indicates Positive momentum. The RSI at 31.55 is Neutral, neither overbought nor oversold. The STOCH value of 44.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3916.

Digital Information Technologies Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3837	81 Outperform	¥30.41B	21.13	―	2.18%	9.56%	30.03%
2359	80 Outperform	¥32.52B	11.12	―	2.93%	2.11%	5.55%
4072	73 Outperform	¥32.55B	11.50	―	2.22%	9.57%	315.38%
3916	72 Outperform	¥31.24B	14.25	―	2.45%	19.04%	30.67%
4725	65 Neutral	¥32.20B	10.11	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	58 Neutral	¥42.81B	45.42	―	2.77%	-2.93%	-30.16%

Digital Information Technologies Corp. Corporate Events

Digital Information Technologies Posts Modest Profit Dip on Higher Sales, Confirms Dividend and Growth Outlook

Digital Information Technologies Corp. reported consolidated net sales of ¥12.75 billion for the six months ended December 31, 2025, up 8.0% year on year, while operating profit edged down 1.9% to ¥1.57 billion and profit attributable to owners of parent slipped 0.4% to ¥1.07 billion. Despite the modest profit decline, total assets and equity grew, with the equity-to-asset ratio improving to 72.3%, indicating a solid financial base.

The company maintained its dividend policy, projecting a fiscal 2026 year-end dividend that implies a slight increase in total annual payouts on a pre–stock split basis, following a 2-for-1 share split effective January 1, 2026. For the full year ending June 30, 2026, it forecasts net sales of ¥26.0 billion and profit attributable to owners of parent of ¥2.2 billion, signaling expectations of continued, albeit moderate, growth and stable returns for shareholders.

The most recent analyst rating on (JP:3916) stock is a Buy with a Yen1519.00 price target. To see the full list of analyst forecasts on Digital Information Technologies Corp. stock, see the JP:3916 Stock Forecast page.

Digital Information Technologies Corp. Reports Q3 Growth and Announces Share Split

Digital Information Technologies Corporation reported a 10.9% increase in net sales and operating profit for the three months ended September 30, 2025, compared to the same period in the previous year. The company announced a two-for-one share split effective January 1, 2026, and revised its dividend forecast, reflecting a strategic move to enhance shareholder value and market positioning.

The most recent analyst rating on (JP:3916) stock is a Buy with a Yen2754.00 price target. To see the full list of analyst forecasts on Digital Information Technologies Corp. stock, see the JP:3916 Stock Forecast page.