Digital Garage (4819) AI Stock Analysis

• Market Cap: ¥98.36B
• Dividend Yield: 1.97%
• Average Volume (3M): 127.34K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.64
• Revenue Growth: 19.61%
• EPS Growth: N/A
• Country: JP
• Employees: 1,087
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 44.49
• Shares Outstanding: 47,714,530
• 10 Day Avg. Volume: 124,770
• 30 Day Avg. Volume: 127,340
• PEG Ratio: 0.13
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 6.63
• P/FCF Ratio: 12.71
• 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: ¥3,685.00
• Price Target Upside: 37.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 107.5
• Revenue Forecast (FY): ¥44.94B

• Rating: 46 Neutral
• Price Target: ¥2,200.00 ▼(-17.91% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held down primarily by weak TTM cash generation and inconsistent/low-quality profitability, alongside a bearish technical setup (below major moving averages with negative MACD). A moderate P/E and solid dividend yield provide partial support but do not outweigh the near-term financial and trend risks.

Positive Factors

High gross margin

A ~56% TTM gross margin indicates the core offerings capture meaningful value and have pricing power. For a services/platform business this supports durable unit economics, allowing the company to invest in product development and client retention while insulating gross profitability from short-term demand swings.

Negative Factors

Material negative cash flow

Sizable negative operating and free cash flow on a TTM basis signals weak cash conversion and potential working-capital or investment overshoots. If this persists it raises funding and execution risk, forcing external financing or asset sales and limiting reinvestment capacity over the medium term.

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...

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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

Digital Garage primarily makes money through service and platform revenues tied to its internet and marketing operations. Key revenue streams include: (1) Digital marketing/advertising services: fees from providing marketing support such as campai...

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Digital Garage primarily makes money through service and platform revenues tied to its internet and marketing operations. Key revenue streams include: (1) Digital marketing/advertising services: fees from providing marketing support such as campai...

Digital Garage Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.92B	32.20B	31.38B	30.07B	72.95B	40.48B
Gross Profit	19.72B	19.25B	20.70B	19.98B	62.44B	29.78B
EBITDA	106.00M	-5.69B	10.30B	-5.31B	31.50B	14.79B
Net Income	1.93B	-7.19B	5.81B	-9.32B	30.33B	9.79B
Balance Sheet
Total Assets	228.25B	226.34B	231.43B	216.28B	231.61B	178.30B
Cash, Cash Equivalents and Short-Term Investments	111.04B	111.29B	119.14B	121.01B	121.36B	85.16B
Total Debt	61.89B	65.88B	73.02B	59.98B	58.77B	56.02B
Total Liabilities	148.21B	148.65B	139.29B	134.30B	134.39B	115.22B
Stockholders Equity	77.92B	75.42B	89.25B	80.03B	95.74B	62.13B
Cash Flow
Free Cash Flow	-15.72B	16.79B	-13.95B	11.29B	4.20B	3.84B
Operating Cash Flow	-15.46B	17.39B	-11.03B	13.47B	7.06B	7.05B
Investing Cash Flow	-6.70B	-10.04B	-8.76B	1.63B	-7.98B	-864.00M
Financing Cash Flow	-5.55B	-14.92B	15.93B	-5.21B	6.24B	-914.00M

Digital Garage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2680.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 2680 is above the 20-day moving average (MA) of 2044.15, above the 50-day MA of 2065.51, and below the 200-day MA of 3032.36, indicating a neutral trend. The MACD of 30.52 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4819.

Digital Garage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9715	75 Outperform	¥148.39B	9.34	11.52%	2.76%	4.00%	38.72%
3984	74 Outperform	¥23.40B	16.06	―	0.73%	17.86%	21.52%
5574	74 Outperform	¥30.60B	35.99	―	―	29.61%	93.16%
4725	65 Neutral	¥31.12B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	46 Neutral	¥98.36B	15.20	2.57%	1.97%	19.61%	―