Digital Information Technologies Corp. (3916) AI Stock Analysis

• Market Cap: ¥35.32B
• Dividend Yield: 2.86%
• Average Volume (3M): 60.49K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.45
• Revenue Growth: 21.47%
• EPS Growth: 30.65%
• Country: JP
• Employees: 1,399
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 34.53
• Shares Outstanding: 15,501,820
• 10 Day Avg. Volume: 52,810
• 30 Day Avg. Volume: 60,486
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

Digital Information Technologies Corp. scores well due to its strong financial performance and reasonable valuation. However, the current bearish technical indicators suggest caution. The absence of earnings call data and corporate events limits additional insights.

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: Neutral
• Last Price: 2311.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 2311 is below the 20-day moving average (MA) of 2386.00, below the 50-day MA of 2407.30, and above the 200-day MA of 2302.87, indicating a neutral trend. The MACD of -42.60 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 51.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3916	67 Neutral	¥35.32B	15.71		2.86%	21.47%	30.65%
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
CB4	―	€206.57M	9.97	10.08%	―	―	―
4743	80 Outperform	¥37.62B	14.30		3.44%	-5.91%	-1.55%
8275	74 Outperform	¥37.30B	18.62		2.06%	11.98%	3.13%
9742	71 Outperform	¥35.77B	17.75		3.08%	2.06%	83.15%
9739	68 Neutral	¥39.13B	10.85		3.24%	<0.01%	-17.60%

Digital Information Technologies Corp. Corporate Events

Digital Information Technologies Corp. Reports Strong Growth in Financial Performance

Digital Information Technologies Corp. reported a significant increase in its financial performance for the six months ending December 31, 2024, with net sales rising by 23.3% and operating profit increasing by 33.5% compared to the previous year. The company has revised its forecast for the fiscal year ending June 30, 2025, anticipating continued growth in net sales and profits, which suggests a strong market positioning and positive outlook for stakeholders.

Digital Information Technologies Corp. Increases Business and Dividend Forecasts for FY2025

Digital Information Technologies Corp. has revised its business and dividend forecasts for the fiscal year ending June 30, 2025, reflecting an improved outlook due to strong demand in the software industry. The company expects higher net sales and profits, driven by successful strategies in the financial sector, expanding automotive projects, and increased sales of cybersecurity products. The upward revisions are attributed to robust performance in their business units and strategic investments in new business models. The company has also increased its year-end dividend forecast, maintaining its commitment to stable profit distribution while enhancing shareholder returns.