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Digital Arts Inc.
(2326)
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Rating:67Neutral
Price Target:
¥4,904.00
▼(-22.41% Downside)
Action:Reiterated
Date:06/03/26
Strong financial performance (durable margins, revenue growth, and a zero-debt balance sheet) is the main positive. However, the stock’s technical picture is notably weak with a clear downtrend and negative momentum, keeping the overall score in the mid-range despite reasonable valuation and dividend support.
Positive Factors
Revenue Growth and Profitability
Sustained revenue expansion alongside high gross and EBIT margins indicates strong software economics and operating leverage. This combination supports durable earnings capacity and suggests the business can convert market demand into profitable growth over the medium term.
Negative Factors
Net Income Decline Despite Revenue Growth
Earnings failing to keep pace with revenue signals that profitability is not fully stable across periods. If this pattern persists, it could constrain earnings growth, reduce operating leverage and make medium-term results less predictable despite strong underlying margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Sustained revenue expansion alongside high gross and EBIT margins indicates strong software economics and operating leverage. This combination supports durable earnings capacity and suggests the business can convert market demand into profitable growth over the medium term.
Read all positive factors
Digital Arts Inc. (2326) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥63.43B
Dividend Yield2.01%
Average Volume (3M)119.34K
Price to Earnings (P/E)17.8
Beta (1Y)0.62
Revenue Growth12.56%
EPS Growth14.98%
CountryJP
Employees279
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)266.04
Shares Outstanding14,133,000
10 Day Avg. Volume113,130
30 Day Avg. Volume119,343
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)3.78
Price to Sales (P/S)6.44
P/FCF Ratio8.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)297.85
Revenue Forecast (FY)¥12.28B
Digital Arts Inc. Business Overview & Revenue Model
Company Description
Digital Arts Inc. specializes in the creation and distribution of cybersecurity software and hardware solutions, with a presence across Japan, the United States, Europe, and the Asia Pacific region. Their comprehensive portfolio features DigitalAr...
Digital Arts Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.28B | 10.84B | 9.98B | 11.51B | 10.44B | 9.05B |
| Gross Profit | 7.73B | 7.50B | 7.03B | 6.93B | 6.77B | 6.38B |
| EBITDA | 6.09B | 5.77B | 5.48B | 5.31B | 5.30B | 5.02B |
| Net Income | 3.59B | 3.43B | 3.18B | 4.38B | 3.06B | 2.90B |
Balance Sheet | ||||||
| Total Assets | 29.18B | 27.86B | 22.63B | 22.52B | 21.15B | 19.34B |
| Cash, Cash Equivalents and Short-Term Investments | 23.95B | 23.08B | 17.95B | 18.34B | 17.02B | 15.77B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 10.97B | 9.41B | 5.26B | 6.52B | 6.97B | 7.18B |
| Stockholders Equity | 18.20B | 18.45B | 17.36B | 16.00B | 14.15B | 12.14B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 8.24B | 2.79B | 1.84B | 2.28B | 5.19B |
| Operating Cash Flow | 0.00 | 8.38B | 2.82B | 2.83B | 3.15B | 6.17B |
| Investing Cash Flow | 0.00 | -1.16B | -1.11B | 1.01B | -867.00M | -978.00M |
| Financing Cash Flow | 0.00 | -2.10B | -2.10B | -2.54B | -1.05B | -810.00M |
Digital Arts Inc. Technical Analysis
Positive
6320.00
Price Trends
4085.60
Positive
4388.35
Positive
5175.95
Negative
Market Momentum
95.47
Positive
58.79
Neutral
31.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2326, the sentiment is Positive. The current price of 6320 is above the 20-day moving average (MA) of 4449.25, above the 50-day MA of 4085.60, and above the 200-day MA of 5175.95, indicating a neutral trend. The MACD of 95.47 indicates Positive momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 31.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2326.
Digital Arts Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥142.68B | 20.10 | ― | 1.02% | 20.38% | 45.30% | |
82 Outperform | ¥83.38B | 18.11 | 32.68% | 3.53% | 15.67% | 23.19% | |
76 Outperform | ¥47.50B | 20.23 | ― | 1.50% | 9.28% | -6.81% | |
72 Outperform | ¥38.31B | 83.74 | ― | ― | 22.56% | ― | |
69 Neutral | ¥45.27B | 44.05 | ― | 0.20% | 27.86% | 14.99% | |
67 Neutral | ¥63.43B | 17.78 | ― | 1.42% | 12.56% | 14.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:2326
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Digital Arts Inc. Corporate Events
Digital Arts Completes Share Buyback, Repurchasing 166,000 Shares on TSE
Aug 18, 2026
Digital Arts Inc. has completed a share repurchase program authorized by its board of directors on May 11, 2026, acquiring a total of 166,000 common shares through market purchases on the Tokyo Stock Exchange. The final tranche, executed between A...
Digital Arts Steps Up Share Buybacks Under Board-Approved Program
Aug 3, 2026
Digital Arts Inc. has been actively executing a share buyback program under the Companies Act, acquiring 60,800 of its own common shares for approximately JPY 241.48 million via market purchases on the Tokyo Stock Exchange between July 1 and July ...
Digital Arts Delivers Strong Q1 Earnings and Confirms Higher Dividend Outlook
Jul 31, 2026
Digital Arts Inc. reported strong results for the three months ended June 30, 2026, with net sales rising 19.4% year on year to ¥2,711 million and profit attributable to owners of parent climbing 29.2% to ¥718 million. Earnings per share...
Digital Arts Completes Restricted Stock Grant to Directors
Jul 17, 2026
Digital Arts Inc. has completed the disposal of a portion of its treasury shares as part of a restricted stock compensation program for executives. The move reflects the company’s continued use of equity-based incentives to align management ...
Digital Arts Advances Share Buyback Program on Tokyo Stock Exchange
Jul 1, 2026
Digital Arts Inc. has continued its share repurchase program, buying back 47,500 of its own common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, at a total cost of ¥174,216,500. This transaction forms part of a broader ...
Digital Arts to Grant Restricted Stock to Directors Under Revised Incentive Plan
Jun 26, 2026
Digital Arts Inc. has approved the disposal of 4,144 treasury shares as restricted stock compensation for two internal directors, valued at ¥3,570 per share for a total of about ¥14.8 million. The move is part of an existing stock compen...
Digital Arts Weighs Lowering Minimum Investment Unit to Boost Liquidity
Jun 25, 2026
Digital Arts Inc. outlined its approach to reducing the minimum investment unit of its shares, framing higher liquidity, greater access for individual investors, and a broader shareholder base as key management priorities for achieving an appropri...
Digital Arts Starts Share Buyback Under JPY 1 Billion Authorization
Jun 1, 2026
Digital Arts Inc. has begun executing a share repurchase program authorized by its board, acquiring 30,700 shares of its common stock for a total of JPY 127,034,500 through market purchases on the Tokyo Stock Exchange between May 15 and May 31, 20...
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.