Digital Information Technologies Corp. (3916) AI Stock Analysis

• Market Cap: ¥41.20B
• Dividend Yield: 2.41%
• Average Volume (3M): 44.39K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.49
• Revenue Growth: 19.04%
• EPS Growth: 30.67%
• Country: JP
• Employees: 1,399
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 31.81
• Shares Outstanding: 15,501,820
• 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): 149.6
• Revenue Forecast (FY): ¥25.80B

• Rating: 72 Outperform
• Price Target: ¥2,754.00 ▲(1.92% Upside)

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

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for future investments and growth initiatives.

Cash Generation Ability

Robust cash generation supports liquidity and operational flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Margin Sustainability

While margins are healthy, maintaining them amidst competitive pressures and potential cost increases could challenge long-term profitability.

Cash Flow Sustainability

Sustaining high cash flow growth could be challenging if market conditions change or operational costs rise, impacting future liquidity.

Industry Competition

Intense competition in the technology sector may pressure pricing and margins, requiring continuous innovation and investment to maintain market position.

Digital Information Technologies Corp. Business Overview & Revenue Model

Company Description

Digital Information Technologies Corp. (3916) is a leading provider of innovative technology solutions, specializing in digital transformation, data analytics, and cloud computing services. The company operates primarily in the information technology sector, delivering a range of products and services including software development, IT consulting, and managed services. With a focus on enhancing business efficiency and operational performance, Digital Information Technologies Corp. serves a diverse clientele across various industries, leveraging cutting-edge technology to meet evolving market demands.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.16B	24.16B	19.89B	18.15B	16.16B	14.44B
Gross Profit	6.15B	6.15B	4.95B	4.32B	4.08B	3.57B
EBITDA	3.24B	3.28B	2.53B	2.14B	2.04B	1.76B
Net Income	2.18B	2.18B	1.69B	1.45B	1.44B	1.20B
Balance Sheet
Total Assets	11.27B	11.27B	10.22B	8.18B	7.68B	6.39B
Cash, Cash Equivalents and Short-Term Investments	5.35B	5.35B	4.62B	4.19B	3.84B	3.33B
Total Debt	25.10M	25.10M	243.54M	0.00	5.00M	0.00
Total Liabilities	3.09B	3.09B	3.16B	2.17B	2.13B	1.86B
Stockholders Equity	8.07B	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: 2702.00
• 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:3916, the sentiment is Positive. The current price of 2702 is above the 20-day moving average (MA) of 2633.70, above the 50-day MA of 2549.54, and above the 200-day MA of 2459.85, indicating a bullish trend. The MACD of 44.16 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, 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	¥43.05B	15.58	―	3.30%	-3.21%	8.89%
4725	77 Outperform	¥34.65B	10.05	10.34%	4.87%	-3.03%	38.83%
3916	72 Outperform	¥41.20B	17.83	―	2.41%	19.04%	30.67%
8275	68 Neutral	¥30.61B	15.95	―	2.51%	8.88%	2.72%
9739	68 Neutral	¥36.65B	10.71	―	3.39%	-0.10%	-19.50%
9742	66 Neutral	¥38.13B	30.51	―	2.84%	-2.93%	-30.16%
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 Q3 Growth and Announces Share Split

Digital Information Technologies Corporation reported a 10.9% increase in net sales for the three months ended September 30, 2025, with significant growth in operating and ordinary profits. The company announced a two-for-one share split effective January 1, 2026, impacting dividend forecasts and reflecting a strategic move to enhance shareholder value.

Digital Information Technologies Corp. Announces Stock Split and Dividend Forecast Revision

Digital Information Technologies Corp. announced a 2-for-1 stock split to lower the price per investment unit, thereby improving stock liquidity and expanding its investor base. The company will amend its Articles of Incorporation to reflect the increased number of authorized shares and revise its dividend forecast, maintaining the overall dividend payout. The stock split will also adjust stock-based compensation plans, but it will not affect the company’s capital amount.

Digital Information Technologies Corp. Announces Disposal of Treasury Shares for Directors

Digital Information Technologies Corporation has announced the disposal of 2,900 treasury shares as restricted stock for directors, as part of a new compensation system aimed at aligning directors’ interests with shareholder value. This move is intended to incentivize directors to enhance corporate value and promote value sharing with shareholders, potentially impacting the company’s governance and stakeholder relations positively.