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Digital Garage (JP:4819)
:4819
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Digital Garage (4819) AI Stock Analysis

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Digital Garage

(OTC:4819)

Rating:47Neutral
Price Target:
¥4,388.00
▲(3.98%Upside)
The overall stock score of 47 reflects significant financial and technical challenges. Financial performance shows mixed results with leverage concerns. Technical analysis indicates bearish momentum, and valuation highlights profitability issues. These factors collectively suggest caution for investors.

Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)

Digital Garage Business Overview & Revenue Model

Company DescriptionDigital Garage, Inc. (4819) is a Japanese technology company engaged in various sectors including information technology, e-commerce, and digital marketing. The company offers a range of services such as internet advertising, digital marketing solutions, and online payment systems. It also invests in and incubates startups and new business ventures, leveraging its expertise in the digital space to foster innovation and growth.
How the Company Makes MoneyDigital Garage generates revenue through multiple streams. It earns money from its digital marketing and advertising services by providing strategic marketing solutions to businesses looking to enhance their online presence. The company also derives income from transaction fees associated with its online payment systems, facilitating secure and efficient e-commerce transactions. Additionally, Digital Garage invests in startups and technology ventures, which can lead to capital gains and dividends from successful exits or business growth. Partnerships with other technology firms and strategic collaborations further enhance its revenue potential by opening up new markets and opportunities.

Digital Garage Financial Statement Overview

Summary
Digital Garage's financial performance depicts a mixed picture. Positive cash flow management improvements are overshadowed by income statement volatility and high leverage, posing financial risks. Revenue stabilization and cost efficiency are needed to enhance profitability. The score reflects these concerns but acknowledges areas for improvement.
Income Statement
40
Negative
The company has experienced volatility in its financial performance. Gross profit margin has decreased over the years, highlighting cost management challenges. The net profit margin is negative in the latest period, indicating recent operational inefficiencies. Revenue growth has been inconsistent, with recent declines, suggesting potential market challenges.
Balance Sheet
55
Neutral
The balance sheet shows a reasonable equity ratio, indicating some level of asset financing through equity, which is a positive sign. However, high debt-to-equity levels in recent years highlight significant leverage, posing potential financial risk. Return on equity has been unstable due to fluctuating net income.
Cash Flow
65
Positive
Cash flow analysis reveals a strong turnaround in operating cash flow in the latest year, suggesting improved cash generation capacity. Free cash flow has also turned positive, which is a positive indicator for financial flexibility. However, the cash flow to net income ratios have been inconsistent, indicating potential cash flow management issues.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue32.20B31.38B30.07B72.95B40.48B
Gross Profit19.25B20.70B19.98B62.44B29.78B
EBITDA-5.69B10.30B-5.31B31.50B14.79B
Net Income-7.19B5.81B-9.32B30.33B9.79B
Balance Sheet
Total Assets226.34B231.43B216.27B231.61B178.30B
Cash, Cash Equivalents and Short-Term Investments111.29B119.42B121.29B121.64B86.07B
Total Debt61.63B67.34B52.70B49.93B45.62B
Total Liabilities148.65B139.29B134.19B134.39B115.22B
Stockholders Equity75.42B89.25B80.14B95.74B62.13B
Cash Flow
Free Cash Flow16.79B-13.95B11.29B4.20B3.84B
Operating Cash Flow17.39B-11.03B13.47B7.06B7.05B
Investing Cash Flow-10.04B-8.76B1.63B-7.98B-864.00M
Financing Cash Flow-14.92B15.93B-5.21B6.24B-914.00M

Digital Garage Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4220.00
Price Trends
50DMA
4587.50
Negative
100DMA
4548.77
Negative
200DMA
4065.19
Positive
Market Momentum
MACD
-145.59
Positive
RSI
37.97
Neutral
STOCH
24.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4819, the sentiment is Negative. The current price of 4220 is below the 20-day moving average (MA) of 4430.75, below the 50-day MA of 4587.50, and above the 200-day MA of 4065.19, indicating a neutral trend. The MACD of -145.59 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4819.

Digital Garage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥143.51B17.09
3.03%8.68%24.54%
78
Outperform
$131.16B11.579.87%3.03%3.77%12.41%
73
Outperform
¥199.72B19.74
2.04%19.53%9.84%
73
Outperform
¥177.92B19.2117.46%3.16%8.80%50.65%
68
Neutral
¥228.97B14.577.50%2.70%9.28%6.70%
67
Neutral
¥73.30B19.85
3.45%-0.93%-37.97%
47
Neutral
¥195.60B-9.01%1.14%20.96%-222.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4819
Digital Garage
4,220.00
1,589.65
60.43%
JP:2317
Systena Corporation
396.00
63.90
19.24%
JP:3636
Mitsubishi Research Institute
4,630.00
-332.19
-6.69%
JP:4722
Future Corporation
2,256.00
723.75
47.23%
JP:9715
transcosmos
3,500.00
133.79
3.97%
JP:9682
DTS
4,875.00
862.98
21.51%
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.Date of analysis: Jul 03, 2025