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YE DIGITAL CORPORATION (2354) AI Stock Analysis

JP:2354

YE DIGITAL CORPORATION

(TSE/TYO:2354)

Select Model
Rating:77Outperform
Price Target:JPY 1,120.00â–²(13.48% Upside)
Action:reiterated
Date:08/07/26

The score is driven primarily by strong financial fundamentals—especially a debt-free balance sheet, rising equity, and solid returns—supported by an established upward price trend. Valuation is fair rather than compelling and the dividend yield is modest, which keeps the overall score from being higher.

Positive Factors
Debt-Free Balance SheetA debt-free balance sheet reduces refinancing and interest-cost exposure, preserving flexibility through changing conditions. Rising equity and assets reinforce financial resilience and provide a stronger base for funding operations, investment, and shareholder returns over the coming quarters.
Negative Factors
Margin VariabilityUneven margins make future earnings power less predictable across business cycles. Even with improving absolute profit, recurring variation can reduce confidence in sustained operating leverage and may constrain the company’s ability to translate revenue growth into consistent bottom-line expansion.

YE DIGITAL CORPORATION (2354) vs. iShares MSCI Japan ETF (EWJ)

-25%0%25%50%75%100%125%150%JP:2354+53.46%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.81B
Dividend Yield
2.53%
Average Volume (3M)
615.82K
Price to Earnings (P/E)
14.7
Beta (1Y)
1.12
Revenue Growth
3.05%
EPS Growth
32.80%
Country
Japan
Employees
690
Sector
General
Sector Strength
55
Industry
Information Technology Services

YE DIGITAL CORPORATION Business Overview & Revenue Model

Company Description

YE DIGITAL Corporation provides Internet of Things (IoT) solutions in Japan. The company operates cloud application service products, such as MMCloud, an IoT platform with data storage, visualization, and analysis; and MMPredict, an AI-based fault pr...

YE DIGITAL CORPORATION Financial Statement Overview

Summary

Strong overall financial quality supported by a very conservative, debt-free balance sheet and healthy ROE (~16% in 2026). Revenue growth has re-accelerated and profits improved in the latest year, but historical margin and cash-conversion variability temper the score.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2026Feb 2025Feb 2024Feb 2023
Income Statement
Total Revenue19.53B19.94B20.26B19.50B16.15B13.73B
Gross Profit5.19B5.24B5.81B5.15B4.39B4.18B
EBITDA1.62B1.80B1.91B1.78B1.18B1.13B
Net Income921.19M1.04B1.28B1.09B783.18M403.94M
Balance Sheet
Total Assets13.48B13.43B14.30B12.49B11.81B10.08B
Cash, Cash Equivalents and Short-Term Investments2.97B3.20B3.41B2.49B2.64B2.74B
Total Debt000000
Total Liabilities6.15B6.19B6.16B6.32B6.76B5.48B
Stockholders Equity7.31B7.23B8.11B6.16B5.03B4.59B
Cash Flow
Free Cash Flow01.09B1.41B296.50M98.54M327.64M
Operating Cash Flow01.29B1.42B545.88M563.25M487.23M
Investing Cash Flow0-238.94M-522.17M-504.42M-478.73M-213.42M
Financing Cash Flow0-323.24M-692.21M-191.60M-188.03M-188.68M

YE DIGITAL CORPORATION Technical Analysis

Technical Analysis SentimentNegative
Last Price987.00

Price Trends

50DMA1238.43Negative
100DMA1136.86Negative
200DMA988.61Negative

Market Momentum

MACD-65.90Positive
RSI30.65Neutral
STOCH33.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2354, the sentiment is Negative. The current price of 987.00 is below the 20-day moving average (MA) of 1081.15, below the 50-day MA of 1238.43, and below the 200-day MA of 988.61, indicating a bearish trend. The MACD of -65.90 indicates Positive momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2354.

YE DIGITAL CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:2354 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2354JP:235477OutperformJPY 18.30B14.70―2.53%3.05%32.80%
JP:3683JP:368373OutperformJPY 12.51B7.65―2.72%15.87%39.37%
JP:4761JP:476172OutperformJPY 16.71B13.88―4.62%5.21%-0.19%
JP:3918JP:391870OutperformJPY 10.84B11.13―5.27%1.14%-17.36%
JP:6572JP:657265NeutralJPY 13.67B14.34―2.27%16.73%105.01%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:5255JP:525542NeutralJPY 4.33B-31.42――-1.67%98.41%

* General Sector Average

Performance Comparison

-50%0%50%100%JP:2354JP:3683JP:3918JP:4761JP:5255JP:6572Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2354 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2354YE DIGITAL CORPORATION987.00343.8253.46%
JP:3683Cyberlinks Co., Ltd.1101.00-305.09-21.70%
JP:3918PCI Hodings INC.1101.00-39.49-3.46%
JP:4761SAKURA KCS Corporation1492.00216.5016.97%
JP:5255Monstarlab Holdings Inc.67.00-96.00-58.90%
JP:6572RPA Holdings, Inc.216.00-104.84-32.68%
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: Aug 07, 2026