Digital Garage (4819) AI Stock Analysis

• Market Cap: ¥195.60B
• Dividend Yield: 1.14%
• Average Volume (3M): 122.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 20.96%
• EPS Growth: -222.11%
• Country: JP
• Employees: 1,087
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): -81.04
• Shares Outstanding: 47,692,030
• 10 Day Avg. Volume: 94,370
• 30 Day Avg. Volume: 122,250
• PEG Ratio: 0.31
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.41
• 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: ¥5,375.88
• Price Target Upside: 27.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• 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 Business Overview & Revenue Model

Company Description

Digital 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 Money

Digital 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.20B	31.38B	30.07B	72.95B	40.48B
Gross Profit	19.25B	20.70B	19.98B	62.44B	29.78B
EBITDA	-5.69B	10.30B	-5.31B	31.50B	14.79B
Net Income	-7.19B	5.81B	-9.32B	30.33B	9.79B
Balance Sheet
Total Assets	226.34B	231.43B	216.27B	231.61B	178.30B
Cash, Cash Equivalents and Short-Term Investments	111.29B	119.42B	121.29B	121.64B	86.07B
Total Debt	61.63B	67.34B	52.70B	49.93B	45.62B
Total Liabilities	148.65B	139.29B	134.19B	134.39B	115.22B
Stockholders Equity	75.42B	89.25B	80.14B	95.74B	62.13B
Cash Flow
Free Cash Flow	16.79B	-13.95B	11.29B	4.20B	3.84B
Operating Cash Flow	17.39B	-11.03B	13.47B	7.06B	7.05B
Investing Cash Flow	-10.04B	-8.76B	1.63B	-7.98B	-864.00M
Financing Cash Flow	-14.92B	15.93B	-5.21B	6.24B	-914.00M

Digital Garage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4220.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	82 Outperform	¥143.51B	17.09		3.03%	8.68%	24.54%
9715	78 Outperform	$131.16B	11.57	9.87%	3.03%	3.77%	12.41%
4722	73 Outperform	¥199.72B	19.74		2.04%	19.53%	9.84%
9682	73 Outperform	¥177.92B	19.21	17.46%	3.16%	8.80%	50.65%
Sector *	68 Neutral	¥228.97B	14.57	7.50%	2.70%	9.28%	6.70%
3636	67 Neutral	¥73.30B	19.85		3.45%	-0.93%	-37.97%
4819	47 Neutral	¥195.60B	―	-9.01%	1.14%	20.96%	-222.11%