DIGITALIFT Inc. (9244) AI Stock Analysis

• Market Cap: ¥1.82B
• Dividend Yield: N/A
• Average Volume (3M): 13.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -0.32%
• EPS Growth: -515.21%
• Country: JP
• Employees: 61
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 47.43
• Shares Outstanding: 1,570,200
• 10 Day Avg. Volume: 11,580
• 30 Day Avg. Volume: 13,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,160.00
• Price Target Upside: -8.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥1,160.00 ▼(-8.73% Downside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenue and profitability, and high leverage. Despite strong technical indicators suggesting bullish momentum, the negative valuation metrics due to poor profitability weigh heavily on the stock's attractiveness.

DIGITALIFT Inc. Business Overview & Revenue Model

Company Description

DIGITALIFT Inc. engages in the integrated digital marketing business in Japan. The company is also involved in the DMP implementation consulting, SNS operation, and system planning/development/consulting businesses. DIGITALIFT Inc. was formerly known as Dencco, inc. and changed its name to DIGITALIFT Inc. in March 2020. DIGITALIFT Inc. was incorporated in 2012 and is based in Tokyo, Japan.

How the Company Makes Money

DIGITALIFT Inc. generates revenue primarily through service fees and subscription-based models. The company charges clients for customized digital marketing solutions and consultancy services, which include a combination of one-time fees for specific projects and ongoing retainers for continuous support and strategy development. Additionally, DIGITALIFT offers subscription packages for its analytics and reporting tools, which provide clients with valuable insights into their marketing performance. The company also forms strategic partnerships with major digital advertising platforms, which may include revenue-sharing arrangements or commissions for managing advertising budgets on behalf of their clients. These partnerships, along with a diverse client base, significantly contribute to DIGITALIFT's earnings.

DIGITALIFT Inc. Financial Statement Overview

Summary

DIGITALIFT Inc. faces significant financial challenges, with declining revenue and profitability, high leverage, and cash flow issues. The income statement shows a decline in revenue with negative margins, and the balance sheet reveals high debt levels. Cash flow analysis indicates cash generation challenges.

Income Statement

The income statement shows a decline in revenue from the previous year, with a negative revenue growth rate of -6.6%. Gross profit margin is at 22.9%, and the net profit margin has turned negative at -22.3%, indicating significant profitability challenges. The EBIT margin is low at 1.0%, and the EBITDA margin is negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.97, suggesting high leverage. The return on equity is negative at -11.9%, reflecting poor profitability relative to shareholder equity. The equity ratio is 27.2%, indicating a moderate level of equity financing.

Cash Flow

Cash flow analysis reveals a negative free cash flow, with a significant decline from the previous year. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is also negative, highlighting cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.38B	3.33B	3.56B	2.63B	2.34B	2.07B
Gross Profit	804.28M	762.04M	831.97M	736.79M	649.47M	504.32M
EBITDA	71.06M	-5.39M	117.70M	203.33M	201.75M	119.91M
Net Income	-72.14M	-74.08M	52.86M	147.96M	127.78M	73.28M
Balance Sheet
Total Assets	2.29B	2.29B	1.93B	1.46B	1.18B	746.77M
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.56B	1.24B	1.07B	804.04M	449.40M
Total Debt	1.10B	1.22B	715.11M	331.11M	269.44M	226.60M
Total Liabilities	1.62B	1.66B	1.24B	685.44M	650.77M	503.43M
Stockholders Equity	624.28M	621.51M	689.46M	772.37M	530.01M	243.34M
Cash Flow
Free Cash Flow	0.00	-30.55M	83.24M	123.45M	157.54M	12.36M
Operating Cash Flow	0.00	-8.96M	83.24M	124.32M	159.48M	21.79M
Investing Cash Flow	0.00	-175.26M	-101.10M	-11.05M	-4.48M	-10.38M
Financing Cash Flow	0.00	510.61M	186.60M	151.59M	199.64M	33.20M

DIGITALIFT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1271.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1271 is below the 20-day moving average (MA) of 1277.60, above the 50-day MA of 1186.24, and above the 200-day MA of 855.92, indicating a neutral trend. The MACD of 19.29 indicates Positive momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.99 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
4196	73 Outperform	¥3.47B	46.83	18.20%	―	1.64%	-65.79%
9254	72 Outperform	¥1.66B	13.20	26.83%	―	―	―
7067	66 Neutral	¥1.55B	27.08	6.49%	1.02%	11.28%	275.99%
9244	58 Neutral	¥1.82B	―	―	―	-0.32%	-515.21%
7357	52 Neutral	¥3.64B	298.82	1.43%	2.46%	4.86%	-49.46%
7078	48 Neutral	¥4.93B	-4.15	-60.83%	―	-8.33%	-462.10%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%