DIGITALIFT Inc. (9244) AI Stock Analysis

• Market Cap: ¥1.47B
• Dividend Yield: N/A
• Average Volume (3M): 5.33K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.95
• Revenue Growth: 4.93%
• EPS Growth: N/A
• Country: US
• Employees: 61
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 26.81
• Shares Outstanding: 1,571,000
• 10 Day Avg. Volume: 3,810
• 30 Day Avg. Volume: 5,330
• PEG Ratio: -0.05
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 6.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥1,053.00 ▲(8.89% Upside)

DIGITALIFT Inc. has a stable financial performance with growth potential, but technical indicators suggest bearish momentum. The valuation is reasonable, but the lack of a dividend yield and weak market momentum are concerns. Careful management of leverage and cash flow is crucial for future stability.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth, even modest, indicates persistent customer demand and successful product-market fit for its cloud and analytics offerings. Combined with a subscription-heavy revenue model, recurring fees should support predictable top-line cash flow and enable multi-year customer value realization.

Improving Profitability Margins

Material margin expansion at gross and EBITDA levels signals better cost control and operating leverage in core software and services. Higher operating efficiency enhances internal funding for R&D and sales, supporting durable competitive positioning versus lower-margin services competitors over a multi-quarter horizon.

Recovering Free Cash Flow

A recovery to positive free cash flow demonstrates the business is translating profits into cash, strengthening liquidity and the ability to fund growth, reduce reliance on external financing, and withstand industry cycles. This improves long-term financial flexibility and capital allocation options.

Negative Factors

Rising Financial Leverage

Higher leverage raises interest expense and reduces balance sheet flexibility, increasing refinancing and solvency risk if cash generation weakens. For a growth-oriented tech services firm, elevated debt can constrain strategic investments and magnify downturn sensitivity across multiple quarters.

Cash Flow Volatility

Intermittent swings in free cash flow complicate forecasting and can force reactive financing or cutbacks in capex and hiring. For a firm with subscription and project revenue, this volatility risks underfunding strategic initiatives and increases the impact of economic or client-specific shocks on operations.

Profitability Volatility

Variable net margins suggest exposed pricing or cost structure sensitivity, which undermines earnings predictability. Persistent margin swings can erode investor and customer confidence, complicate long-range planning, and limit the firm’s ability to sustainably reinvest in product development and go-to-market capabilities.

DIGITALIFT Inc. Business Overview & Revenue Model

Company Description

DIGITALIFT Inc. (9244) is a technology-driven company specializing in digital transformation solutions across various sectors, including e-commerce, healthcare, and finance. The company offers a suite of core products such as cloud-based software platforms, data analytics services, and user experience design, aimed at enhancing operational efficiency and driving innovation for its clients. DIGITALIFT's mission is to empower businesses to leverage technology for improved performance and customer engagement.

How the Company Makes Money

DIGITALIFT Inc. generates revenue through multiple streams, primarily focusing on subscription-based models for its software solutions. Clients pay recurring fees for access to its cloud platforms and data analytics services. Additionally, the company earns income from consulting services that assist businesses in implementing and optimizing digital transformation strategies. Significant partnerships with major tech firms and industry leaders enhance its offerings and expand its market reach, contributing to overall revenue growth. Furthermore, DIGITALIFT capitalizes on performance-based contracts, where payments are tied to the achievement of specific metrics or outcomes for its clients.

DIGITALIFT Inc. Financial Statement Overview

Summary

DIGITALIFT Inc. shows consistent revenue growth and improved profitability margins. However, increased leverage and cash flow volatility pose risks. Overall, the company is on a stable growth path, but careful management of debt and cash flow is essential.

Income Statement

DIGITALIFT Inc. has shown consistent revenue growth with a recent increase of 2.73% in the latest year. The gross profit margin has improved significantly, indicating better cost management. However, the net profit margin has fluctuated, reflecting some volatility in profitability. The EBIT and EBITDA margins have improved, suggesting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, which could pose a risk if not managed carefully. However, the return on equity has shown improvement, suggesting effective use of equity to generate profits. The equity ratio has remained stable, reflecting a balanced asset structure.

Cash Flow

DIGITALIFT Inc. has demonstrated strong free cash flow growth, recovering from previous negative figures. The operating cash flow to net income ratio has improved, indicating better cash generation relative to net income. However, fluctuations in free cash flow growth highlight potential volatility in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.40B	3.49B	3.33B	3.56B	2.63B	2.34B
Gross Profit	959.59M	1.09B	762.04M	831.97M	736.79M	649.47M
EBITDA	162.14M	245.27M	-5.39M	117.70M	203.33M	201.75M
Net Income	-18.20M	108.13M	-74.08M	52.86M	147.96M	127.78M
Balance Sheet
Total Assets	2.21B	2.24B	2.29B	1.93B	1.46B	1.18B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.47B	1.56B	1.24B	1.07B	804.04M
Total Debt	1.02B	936.27M	1.22B	715.11M	331.11M	269.44M
Total Liabilities	1.47B	1.46B	1.66B	1.24B	685.44M	650.77M
Stockholders Equity	692.62M	731.97M	621.51M	689.46M	772.37M	530.01M
Cash Flow
Free Cash Flow	0.00	227.43M	-30.55M	83.24M	123.45M	157.54M
Operating Cash Flow	0.00	231.13M	-8.96M	83.24M	124.32M	159.48M
Investing Cash Flow	0.00	16.41M	-175.26M	-101.10M	-11.05M	-4.48M
Financing Cash Flow	0.00	-345.07M	510.61M	186.60M	151.59M	199.64M

DIGITALIFT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 967.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9244, the sentiment is Positive. The current price of 967 is below the 20-day moving average (MA) of 972.60, above the 50-day MA of 924.54, and above the 200-day MA of 934.47, indicating a bullish trend. The MACD of 28.57 indicates Negative momentum. The RSI at 69.21 is Neutral, neither overbought nor oversold. The STOCH value of 38.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9244.

DIGITALIFT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.76B	46.14	―	1.00%	5.79%	-30.56%
4196	63 Neutral	¥3.03B	118.64	―	―	9.93%	-81.98%
7357	62 Neutral	¥4.44B	83.85	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9244	60 Neutral	¥1.47B	13.59	―	―	4.93%	―
9254	58 Neutral	¥1.88B	10.94	―	―	21.68%	110.72%
7078	52 Neutral	¥4.26B	-3.29	―	―	-8.67%	-407.35%