Digital Information Technologies Corp. (3916) AI Stock Analysis

• Market Cap: ¥40.04B
• Dividend Yield: 2.57%
• Average Volume (3M): 77.34K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.48
• Revenue Growth: 21.47%
• EPS Growth: 30.65%
• Country: JP
• Employees: 1,399
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 34.53
• Shares Outstanding: 15,501,820
• 10 Day Avg. Volume: 57,470
• 30 Day Avg. Volume: 77,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,653.00
• Price Target Upside: 1.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥2,653.00 ▲(1.03% Upside)

Digital Information Technologies Corp. receives a solid overall score driven by strong financial performance and reasonable valuation. However, mixed technical indicators suggest caution, as bearish momentum and potential overbought conditions could impact short-term price movements. The absence of recent earnings call insights or notable corporate events limits additional context for the stock's outlook.

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

The company generates revenue through multiple streams, including subscription fees for its cloud-based services, licensing fees for its proprietary software products, and consulting fees for its technology advisory services. Key revenue streams include long-term contracts with enterprise clients for software solutions and recurring monthly revenue from SaaS (Software as a Service) offerings. Additionally, Digital Information Technologies Corp. leverages strategic partnerships with other technology firms to enhance its service offerings and expand its market reach, contributing to its overall earnings.

Digital Information Technologies Corp. Financial Statement Overview

Summary

Digital Information Technologies Corp. demonstrates strong financial performance with robust revenue growth, solid profitability, and a stable balance sheet. The company maintains minimal leverage and effective cash flow management, supporting its operational and strategic initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.30B	24.16B	19.89B	18.15B	16.16B	14.44B
Gross Profit	6.01B	6.15B	4.95B	4.32B	4.08B	3.57B
EBITDA	3.29B	3.28B	2.53B	2.14B	2.04B	1.76B
Net Income	2.12B	2.18B	1.69B	1.45B	1.44B	1.20B
Balance Sheet
Total Assets	10.78B	11.27B	10.22B	8.18B	7.68B	6.39B
Cash, Cash Equivalents and Short-Term Investments	4.44B	5.35B	4.62B	4.19B	3.84B	3.33B
Total Debt	88.37M	25.10M	243.54M	0.00	5.00M	0.00
Total Liabilities	3.25B	3.09B	3.16B	2.17B	2.13B	1.86B
Stockholders Equity	7.43B	8.07B	6.96B	6.01B	5.55B	4.53B
Cash Flow
Free Cash Flow	0.00	2.38B	1.71B	1.41B	949.89M	1.25B
Operating Cash Flow	0.00	2.39B	1.74B	1.43B	958.38M	1.26B
Investing Cash Flow	0.00	10.94M	-595.61M	-66.84M	-14.44M	5.46M
Financing Cash Flow	0.00	-1.55B	-804.71M	-1.03B	-456.68M	-335.00M

Digital Information Technologies Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2626.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3916, the sentiment is Positive. The current price of 2626 is above the 20-day moving average (MA) of 2397.15, above the 50-day MA of 2427.36, and above the 200-day MA of 2329.69, indicating a bullish trend. The MACD of 43.75 indicates Negative momentum. The RSI at 68.28 is Neutral, neither overbought nor oversold. The STOCH value of 92.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4743	80 Outperform	39.28B	14.94	0.00%	3.31%	-5.91%	-1.55%
4725	73 Outperform	36.39B	10.88	8.29%	4.64%	-3.66%	31.12%
3916	72 Outperform	¥40.04B	17.41		2.57%	21.47%	30.65%
8275	72 Outperform	36.15B	18.04	12.36%	2.13%	11.98%	3.13%
9742	71 Outperform	40.65B	20.17	5.51%	2.71%	2.06%	83.15%
9739	68 Neutral	38.50B	10.68	0.00%	3.29%	<0.01%	-17.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Digital Information Technologies Corp. Corporate Events

Digital Information Technologies Corp. Reports Strong Fiscal Year Results and Positive Outlook

Digital Information Technologies Corp. reported strong financial results for the fiscal year ending June 30, 2025, with significant increases in net sales and profits compared to the previous year. The company achieved a 21.5% increase in net sales and a 29.1% rise in profit attributable to owners of the parent, reflecting robust operational performance. The company also announced an increase in annual dividends, indicating a positive outlook for shareholders. Looking ahead, the company forecasts continued growth in net sales and profits for the next fiscal year, although at a more moderate pace, suggesting a stable yet cautious market approach.

Digital Information Technologies Corp. Announces Treasury Stock Disposal for Employee Compensation

Digital Information Technologies Corporation has announced the disposal of 140,000 shares of treasury stock through a third-party allotment to Custody Bank of Japan, Ltd., as part of its stock-based compensation plan (J-ESOP). This move is aimed at compensating employees based on their performance and contribution, with the shares being allocated to employees under the plan. The disposal represents 0.90% of the total issued shares and is considered a reasonable level of dilution. The disposition price is set at 2,615 yen per share, reflecting the company’s corporate value in the stock market.

Digital Information Technologies Corp. Reports Strong Fiscal Year 2025 Results

Digital Information Technologies Corporation reported a significant increase in its financial performance for the fiscal year ending June 30, 2025, with net sales rising by 21.5% and profit attributable to owners increasing by 29.1%. The company also announced an increase in cash dividends, reflecting a strong financial position and commitment to returning value to shareholders.

Digital Information Technologies Corp. Announces Dividend Increase

Digital Information Technologies Corporation announced a proposed increase in its year-end dividend to 42 yen per share, up from the previous forecast of 36 yen and last year’s 23 yen. This decision aligns with the company’s policy of maintaining stable dividends while balancing internal reserves for business growth, reflecting a commitment to shareholder returns.

Digital Information Technologies Corp. Announces Restructuring and Leadership Changes

Digital Information Technologies Corp. announced a significant organizational restructuring effective July 1, 2025, expanding from four to six divisions to enhance business functions. Key personnel changes were also made, including new roles for existing directors and the introduction of a new outside director, indicating a strategic move to strengthen leadership and operational efficiency.