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Digital Garage
(4819)
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Rating:49Neutral
Price Target:
¥2,064.00
▼(-22.99% 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 growth & gross profit
A strong revenue rebound in 2026 with sizable gross profit indicates the company can regain demand and scale its core offerings. Durable top-line recovery supports longer-term product-market fit and provides the basis to leverage fixed costs if the company sustains growth across periods.
Negative Factors
Operating profitability remains negative
Persistent negative operating profit means core operations are not consistently covering operating costs, limiting sustainable net earnings. Reliance on non-operating items or one-time gains for net profit reduces predictability and hampers the firm’s ability to self-fund long-term strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & gross profit
A strong revenue rebound in 2026 with sizable gross profit indicates the company can regain demand and scale its core offerings. Durable top-line recovery supports longer-term product-market fit and provides the basis to leverage fixed costs if the company sustains growth across periods.
Read all positive factors
Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥96.80B
Dividend Yield1.97%
Average Volume (3M)127.34K
Price to Earnings (P/E)75.9
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 Outstanding47,788,130
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
¥3,615.00Price Target Upside34.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)112.71
Revenue Forecast (FY)¥45.48B
Digital Garage Business Overview & Revenue Model
Company Description
Digital Garage, Inc. functions as a "context company" with operations extending across Japan and into international markets. The company's activities are organized into four key segments. Its Financial Technology division specializes in providing ...
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
2099.96
Negative
2090.14
Negative
2532.75
Negative
Market Momentum
24.46
Negative
59.41
Neutral
82.54
Negative
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 1883.10, above the 50-day MA of 2099.96, and above the 200-day MA of 2532.75, indicating a neutral trend. The MACD of 24.46 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, 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 | ¥28.43B | 16.18 | ― | 0.73% | 17.32% | 33.18% | |
70 Outperform | ¥21.76B | 42.87 | ― | ― | 31.09% | 75.74% | |
68 Neutral | ¥137.15B | 10.45 | 11.52% | 2.76% | 4.79% | 15.28% | |
65 Neutral | ¥30.65B | 8.70 | 10.34% | 4.82% | -2.76% | 36.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥96.80B | 75.95 | 2.57% | 1.97% | 9.27% | ― |
* Technology Sector Average
JP:4819
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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.