Digital Garage Inc (JP:4819)
:4819
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Digital Garage
(4819)
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Rating:46Neutral
Price Target:
¥1,975.00
▼(-26.31% Downside)
Action:ReiteratedDate: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 margins
A sustained ~56% gross margin indicates the core offerings retain strong pricing power and value-add, which supports long-term margin sustainability. High gross margins provide a structural buffer against operating cost pressure and help restore operating profitability if revenue normalizes.
Negative Factors
Material negative operating and free cash flow
Large TTM operating and free cash outflows (~-¥15.5B / -¥15.7B) create durable funding and execution risk: they constrain reinvestment capacity, may require external financing if persistent, and reduce margin for strategic initiatives or weathering client/market slowdowns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
A sustained ~56% gross margin indicates the core offerings retain strong pricing power and value-add, which supports long-term margin sustainability. High gross margins provide a structural buffer against operating cost pressure and help restore operating profitability if revenue normalizes.
Read all positive factors
Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥90.48B
Dividend Yield1.97%
Average Volume (3M)127.34K
Price to Earnings (P/E)15.2
Beta (1Y)0.62
Revenue Growth19.61%
EPS GrowthN/A
CountryJP
Employees1,087
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)44.49
Shares Outstanding47,714,530
10 Day Avg. Volume124,770
30 Day Avg. Volume127,340
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.83
Price to Sales (P/S)6.63
P/FCF Ratio12.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,685.00Price Target Upside37.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)117.08
Revenue Forecast (FY)¥43.96B
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
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
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| 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
Negative
2680.00
Price Trends
2231.38
Negative
2590.38
Negative
3253.74
Negative
Market Momentum
-60.78
Negative
37.59
Neutral
18.69
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 2022.95, above the 50-day MA of 2231.38, and below the 200-day MA of 3253.74, indicating a bearish trend. The MACD of -60.78 indicates Negative momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.69 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥145.02B | 9.34 | 11.52% | 2.76% | 4.00% | 38.72% | |
74 Outperform | ¥23.05B | 16.06 | ― | 0.73% | 17.86% | 21.52% | |
74 Outperform | ¥27.26B | 35.99 | ― | ― | 29.61% | 93.16% | |
65 Neutral | ¥30.51B | 10.75 | 10.34% | 4.82% | -3.03% | 38.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | ¥90.48B | 15.20 | 2.57% | 1.97% | 19.61% | ― |
* 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.