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Digital Garage Inc (JP:4819)
:4819

Digital Garage (4819) AI Stock Analysis

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Digital Garage

(OTC:4819)

Rating:60Neutral
Price Target:
¥5,376.00
▲(12.12%Upside)
The overall stock score is driven by strong technical momentum, although financial and valuation concerns weigh heavily. While cash flow has improved, income volatility and high leverage are notable risks. The negative P/E indicates underlying profitability challenges, despite a positive dividend yield. Investors should be cautious of potential overbought conditions.

Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)

Digital Garage Business Overview & Revenue Model

Company DescriptionDigital Garage (4819) is a Japanese company primarily engaged in the internet and technology sector. It operates through various segments including marketing, fintech, and incubation. The company provides comprehensive digital marketing solutions, payment solutions, and supports the growth of startups through investments and incubation services. Digital Garage is known for leveraging technology to create innovative solutions that drive digital transformation for businesses.
How the Company Makes MoneyDigital Garage generates revenue through its diverse business segments. The marketing segment provides digital marketing services and solutions, earning revenue from clients using these services to enhance their online presence and advertising effectiveness. The fintech segment includes payment solutions and financial services, generating income through transaction fees and service charges. Additionally, the incubation segment invests in and supports startups, potentially earning returns through equity stakes and successful exits. Strategic partnerships and collaborations with other technology and financial firms also play a crucial role in expanding their market reach and revenue generation.

Digital Garage Financial Statement Overview

Summary
Digital Garage's financial performance shows mixed results. Positive cash flow improvements are offset by income statement volatility and high leverage. The need for improved revenue stability and cost efficiency is evident.
Income Statement
40
Negative
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
55
Neutral
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue32.20B31.38B30.07B72.95B40.48B
Gross Profit19.25B20.70B19.98B62.44B29.78B
EBITDA-5.69B10.30B-5.31B31.50B14.79B
Net Income-7.19B5.81B-9.32B30.33B9.79B
Balance Sheet
Total Assets226.34B231.43B216.27B231.61B178.30B
Cash, Cash Equivalents and Short-Term Investments111.29B119.42B121.29B121.64B86.07B
Total Debt61.63B67.34B52.70B49.93B45.62B
Total Liabilities148.65B139.29B134.19B134.39B115.22B
Stockholders Equity75.42B89.25B80.14B95.74B62.13B
Cash Flow
Free Cash Flow16.79B-13.95B11.29B4.20B3.84B
Operating Cash Flow17.39B-11.03B13.47B7.06B7.05B
Investing Cash Flow-10.04B-8.76B1.63B-7.98B-864.00M
Financing Cash Flow-14.92B15.93B-5.21B6.24B-914.00M

Digital Garage Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4795.00
Price Trends
50DMA
4643.70
Positive
100DMA
4534.41
Positive
200DMA
3953.03
Positive
Market Momentum
MACD
22.20
Positive
RSI
52.31
Neutral
STOCH
45.52
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 4795 is below the 20-day moving average (MA) of 4885.25, above the 50-day MA of 4643.70, and above the 200-day MA of 3953.03, indicating a neutral trend. The MACD of 22.20 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 45.52 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥147.49B17.57
2.96%8.68%24.54%
78
Outperform
¥130.97B11.569.87%3.03%3.77%12.41%
73
Outperform
¥194.23B19.19
2.08%19.53%9.84%
73
Outperform
$187.95B20.2917.46%2.99%8.80%50.65%
69
Neutral
¥231.71B14.677.64%2.71%9.09%8.52%
69
Neutral
¥72.43B19.62
3.52%-0.93%-37.97%
60
Neutral
$222.06B-9.01%<0.01%20.96%-222.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4819
Digital Garage
4,795.00
2,326.82
94.27%
JP:2317
Systena Corporation
407.00
101.05
33.03%
JP:3636
Mitsubishi Research Institute
4,575.00
-194.10
-4.07%
JP:4722
Future Corporation
2,194.00
698.93
46.75%
JP:9715
transcosmos
3,495.00
75.13
2.20%
JP:9682
DTS
5,150.00
1,064.95
26.07%
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.Date of analysis: Jun 05, 2025