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DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) AI Stock Analysis
DIGITAL HEARTS HOLDINGS Co., Ltd.
(TSE/TYO:3676)
DIGITAL HEARTS HOLDINGS scores 70, indicating a moderately positive outlook. The company's solid balance sheet and robust cash flows provide financial stability, while technicals show a strong uptrend, albeit with overbought conditions. Valuation is fair but not compelling, suggesting a hold with a neutral to slightly bullish bias.
DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 23.44B
- Dividend Yield
- 2.47%
- Average Volume (3M)
- 250.76K
- Price to Earnings (P/E)
- 21.8
- Beta (1Y)
- 0.58
- Revenue Growth
- 0.26%
- EPS Growth
- 22.01%
- Country
- Japan
- Employees
- 2,132
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
DIGITAL HEARTS HOLDINGS Co., Ltd. Business Overview & Revenue Model
Company Description
DIGITAL HEARTS HOLDINGS Co., Ltd., operating with its subsidiaries, is engaged in a wide array of services primarily focused on quality assurance (debugging), media content, and various other IT solutions. The company delivers extensive testing and r...
How the Company Makes Money
The company makes money primarily by selling outsourced QA/testing services to corporate clients (typically on a B2B basis) and consolidating the resulting revenues at the holding-company level through its subsidiaries. Key revenue streams generally...
DIGITAL HEARTS HOLDINGS Co., Ltd. Financial Statement Overview
Summary
The company exhibits mixed financials: income statement shows modest revenue and volatile profitability, but balance sheet is healthy with moderate leverage and strong cash flow generation. Overall, financial performance is satisfactory with room for improvement.
Income Statement
58NeutralBalance Sheet
72PositiveCash Flow
78Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.40B | 38.93B | 39.75B | 38.79B | 36.52B | 29.18B |
| Gross Profit | 10.07B | 10.00B | 10.14B | 10.09B | 10.63B | 8.39B |
| EBITDA | 3.26B | 2.84B | 2.70B | 1.91B | 3.18B | 3.49B |
| Net Income | 1.08B | 1.18B | 629.46M | 176.93M | 799.55M | 1.78B |
Balance Sheet | ||||||
| Total Assets | 21.35B | 21.53B | 19.95B | 21.10B | 19.58B | 17.61B |
| Cash, Cash Equivalents and Short-Term Investments | 6.54B | 7.13B | 7.59B | 6.90B | 6.50B | 5.24B |
| Total Debt | 6.24B | 5.67B | 5.25B | 7.13B | 5.13B | 5.59B |
| Total Liabilities | 11.17B | 11.57B | 10.69B | 12.25B | 10.11B | 10.04B |
| Stockholders Equity | 9.86B | 9.63B | 8.95B | 8.42B | 8.81B | 6.99B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 2.93B | 2.69B | 946.83M | 1.82B | 2.70B |
| Operating Cash Flow | 0 | 3.22B | 3.12B | 1.76B | 2.85B | 3.08B |
| Investing Cash Flow | 0 | -3.72B | -147.41M | -2.37B | -1.90B | -2.54B |
| Financing Cash Flow | 0 | -97.42M | -2.41B | 934.08M | 141.47M | -546.57M |
DIGITAL HEARTS HOLDINGS Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3676, the sentiment is Neutral. The current price of 1051.00 is below the 20-day moving average (MA) of 1052.70, below the 50-day MA of 1054.90, and above the 200-day MA of 884.16, indicating a neutral trend. The MACD of 4.20 indicates Positive momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 4.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3676.
DIGITAL HEARTS HOLDINGS Co., Ltd. Peers Comparison
Overall Rating
JP:449880Outperform
JP:444272Outperform- JP:367670Outperform
JP:396866Neutral
JP:605060Neutral
JP:365753Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4498 | 80Outperform | JPY 36.04B | 28.66 | ― | 0.56% | 10.51% | 29.95% |
| JP:4442 | 72Outperform | JPY 9.77B | 22.00 | ― | 0.87% | 9.86% | -35.09% |
| JP:3676 | 70Outperform | JPY 22.73B | 21.78 | ― | 2.47% | 0.26% | 22.01% |
| JP:3968 | 66Neutral | JPY 29.48B | 12.69 | ― | 1.97% | 52.56% | 326.22% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:6050 | 60Neutral | JPY 18.36B | 25.15 | ― | 2.39% | -4.37% | -29.68% |
| JP:3657 | 53Neutral | JPY 12.02B | -4.53 | ― | 4.71% | -10.31% | -194.96% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3676 | DIGITAL HEARTS HOLDINGS Co., Ltd. | 1051.00 | 105.03 | 11.10% | |
| JP:3657 | Pole To Win Holdings.Inc. | 340.00 | 24.72 | 7.84% | |
| JP:3968 | Segue Group Co., Ltd. | 811.00 | 184.85 | 29.52% | |
| JP:4442 | VALTES HOLDINGS CO. LTD. | 460.00 | 18.89 | 4.28% | |
| JP:4498 | Cybertrust Japan Co.Ltd. | 2150.00 | 855.56 | 66.09% | |
| JP:6050 | E-Guardian Inc. | 1588.00 | -149.90 | -8.63% |
DIGITAL HEARTS HOLDINGS Co., Ltd. Corporate Events
DIGITAL HEARTS Chairman Launches MBO Tender Offer via Sandbox K.K.
Sandbox K.K., a newly established company wholly owned by DIGITAL HEARTS chairman and largest shareholder Eiichi Miyazawa, has launched a tender offer to acquire common shares of DIGITAL HEARTS HOLDINGS Co., Ltd. The move targets all listed shares ex...
DIGITAL HEARTS backs management buyout and plans delisting via tender offer
DIGITAL HEARTS HOLDINGS Co., Ltd. has endorsed a management buyout led by Sandbox K.K., a newly established vehicle fully owned and directed by the company’s chairman and largest shareholder, Eiichi Miyazawa. The board has resolved to support t...
Digital Hearts Scraps FY2027 Dividends and Shareholder Perks Ahead of MBO Tender Offer
Digital Hearts Holdings has revised its dividend forecast for the fiscal year ending March 31, 2027, deciding to pay no interim or year-end dividends, conditional on the successful completion of a tender offer by Sandbox K.K. The board said the move...
DIGITAL HEARTS HOLDINGS Posts Q1 Profit Decline, Scraps Dividend While Keeping Full-Year Outlook
DIGITAL HEARTS HOLDINGS reported first-quarter consolidated net sales of ¥9.85 billion, up 5% year on year, but saw operating income fall 11.7% to ¥624 million and profit attributable to owners of parent decline 22.7% to ¥358 million,...
DIGITAL HEARTS HOLDINGS Updates Segment Reporting in Q1 FY2026 Results
DIGITAL HEARTS HOLDINGS released presentation materials for the three months ended June 30, 2026, outlining its financial performance by business segment. The company noted that net sales figures include inter-segment transactions and that segment in...
Digital Hearts Holdings Overhauls Governance With New Audit and Supervisory Committee
Digital Hearts Holdings plans to shift its governance structure from a company with an Audit and Supervisory Board to one with an Audit and Supervisory Committee, pending shareholder approval at its June 25, 2026 general meeting. The company aims to...
DIGITAL HEARTS HOLDINGS Plans Governance Shift and Adds Investment Business to Charter
DIGITAL HEARTS HOLDINGS Co., Ltd. plans to partially amend its Articles of Incorporation, subject to shareholder approval at the June 25, 2026 annual meeting, to support a transition to a company with an Audit and Supervisory Committee. The move will...
DIGITAL HEARTS HOLDINGS to Maintain Restricted Stock Plan Amid Governance Shift
DIGITAL HEARTS HOLDINGS plans to continue its restricted stock compensation plan as it transitions to a Company with an Audit and Supervisory Committee, subject to shareholder approval at the June 25, 2026 general meeting. The plan targets internal d...
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 11, 2026