Digital Garage Inc (JP:4819)
:4819
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Digital Garage
(4819)
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Rating:49Neutral
Price Target:
¥2,320.00
▼(-13.43% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by volatile fundamentals: despite strong 2026 revenue growth and a return to net profitability, operating profitability remains negative and cash flows swung to materially negative in 2026. Technicals are mixed (positive momentum but weaker positioning vs. key moving averages), while valuation is a headwind due to the very high P/E despite a modest dividend yield.
Positive Factors
Revenue rebound
A ~76% revenue rebound in 2026 indicates renewed demand and improved top-line momentum across the company's digital services. Durable revenue recovery supports scale economics, funds reinvestment in platforms and product R&D, and provides a foundation for margin recovery if sustained operational discipline continues.
Negative Factors
Operating profitability negative
Persistent negative operating profit implies core operations still lose money and that net profit may reflect non-operating items or one-offs. Without sustainable EBIT improvement, the company faces structural margin risk, making earnings fragile and limiting long-term free cash generation and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
A ~76% revenue rebound in 2026 indicates renewed demand and improved top-line momentum across the company's digital services. Durable revenue recovery supports scale economics, funds reinvestment in platforms and product R&D, and provides a foundation for margin recovery if sustained operational discipline continues.
Read all positive factors
Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥100.23B
Dividend Yield1.97%
Average Volume (3M)127.34K
Price to Earnings (P/E)69.8
Beta (1Y)0.51
Revenue Growth9.27%
EPS GrowthN/A
CountryJP
Employees1,087
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)27.94
Shares Outstanding47,788,033
10 Day Avg. Volume124,770
30 Day Avg. Volume127,340
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.19
Price to Sales (P/S)2.55
P/FCF Ratio-13.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,375.00Price Target Upside25.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)115.19
Revenue Forecast (FY)¥45.85B
Digital Garage Business Overview & Revenue Model
Company Description
Digital Garage, Inc. operates as a context company in Japan and internationally. The company operates through Financial Technology, Marketing Technology, Incubation Technology, and Long-term Incubation segments. The Financial Technology segment pr...
How the Company Makes Money
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Digital Garage Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 35.19B | 32.20B | 31.38B | 30.07B | 72.95B |
| Gross Profit | 21.90B | 19.25B | 20.70B | 19.98B | 62.44B |
| EBITDA | 2.67B | -5.69B | 10.30B | -5.31B | 31.50B |
| Net Income | 1.28B | -7.19B | 5.81B | -9.32B | 30.33B |
Balance Sheet | |||||
| Total Assets | 218.70B | 226.34B | 231.43B | 216.28B | 231.61B |
| Cash, Cash Equivalents and Short-Term Investments | 93.97B | 111.29B | 119.14B | 121.01B | 121.36B |
| Total Debt | 62.05B | 65.88B | 73.02B | 59.98B | 58.77B |
| Total Liabilities | 141.01B | 148.65B | 139.29B | 134.30B | 134.39B |
| Stockholders Equity | 75.58B | 75.42B | 89.25B | 80.03B | 95.74B |
Cash Flow | |||||
| Free Cash Flow | -6.71B | 16.79B | -13.95B | 11.29B | 4.20B |
| Operating Cash Flow | -6.36B | 17.39B | -11.03B | 13.47B | 7.06B |
| Investing Cash Flow | -7.08B | -10.04B | -8.76B | 1.63B | -7.98B |
| Financing Cash Flow | -3.80B | -14.92B | 15.93B | -5.21B | 6.24B |
Digital Garage Technical Analysis
Negative
2680.00
Price Trends
2233.45
Negative
2279.41
Negative
2788.45
Negative
Market Momentum
-36.78
Positive
39.74
Neutral
5.20
Positive
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 2680 is above the 20-day moving average (MA) of 2449.80, above the 50-day MA of 2233.45, and below the 200-day MA of 2788.45, indicating a bearish trend. The MACD of -36.78 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 5.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4819.
Digital Garage Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥28.14B | 11.97 | ― | 0.73% | 17.32% | 33.18% | |
70 Outperform | ¥24.64B | 50.86 | ― | ― | 31.09% | 75.74% | |
68 Neutral | ¥138.84B | 13.67 | 11.52% | 2.76% | 4.79% | 15.28% | |
65 Neutral | ¥30.17B | 20.84 | 10.34% | 4.82% | -2.76% | 36.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥100.23B | 69.81 | 2.57% | 1.97% | 9.27% | ― |
* Technology Sector Average
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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.