DIGITAL HEARTS HOLDINGS Co., Ltd. AI Stock Analysis
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DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) AI Stock Analysis
DIGITAL HEARTS HOLDINGS Co., Ltd.
(TSE/TYO:3676)
The score is primarily supported by strong and improving cash-flow generation and a generally manageable balance sheet. It is held back by uneven profitability and slowing/declining revenue momentum, while technicals and valuation appear broadly neutral to moderately supportive rather than strongly positive.
DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 23.41B
- Dividend Yield
- 2.48%
- Average Volume (3M)
- 202.28K
- Price to Earnings (P/E)
- 19.3
- Beta (1Y)
- 0.56
- Revenue Growth
- 1.78%
- EPS Growth
- 30.06%
- 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
Cash flow is a clear positive (consistently positive operating cash flow and a strong free-cash-flow rebound in 2025), and leverage looks manageable with debt-to-equity improving to ~0.59 in 2025. Offsetting this, profitability and returns have been volatile (net margin swung sharply and ROE variability is highlighted), and revenue momentum has weakened with a sharp growth slowdown/decline into 2026.
Income Statement
56NeutralBalance Sheet
67PositiveCash Flow
74Positive| 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 1050.00 is below the 20-day moving average (MA) of 1052.50, below the 50-day MA of 1053.62, and above the 200-day MA of 888.59, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.60 is Neutral, 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:444281Outperform
JP:449873Outperform
JP:396866Neutral- JP:367663Neutral
JP:605062Neutral
JP:365746Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4442 | 81Outperform | JPY 9.53B | 20.85 | ― | 0.91% | 9.86% | -35.09% |
| JP:4498 | 73Outperform | JPY 30.34B | 23.85 | ― | 0.66% | 10.51% | 29.95% |
| JP:3968 | 66Neutral | JPY 29.00B | 12.27 | ― | 2.01% | 52.56% | 326.22% |
| JP:3676 | 63Neutral | JPY 22.71B | 19.34 | ― | 2.48% | 1.78% | 30.06% |
| JP:6050 | 62Neutral | JPY 12.47B | 23.14 | ― | 3.48% | -0.24% | -42.15% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:3657 | 46Neutral | JPY 11.92B | -4.51 | ― | 4.73% | -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. | 1050.00 | 86.29 | 8.95% | |
| JP:3657 | Pole To Win Holdings.Inc. | 338.00 | 23.67 | 7.53% | |
| JP:3968 | Segue Group Co., Ltd. | 798.00 | 171.85 | 27.44% | |
| JP:4442 | VALTES HOLDINGS CO. LTD. | 441.00 | -5.06 | -1.13% | |
| JP:4498 | Cybertrust Japan Co.Ltd. | 1815.00 | 516.60 | 39.79% | |
| JP:6050 | E-Guardian Inc. | 1091.00 | -573.47 | -34.45% |
DIGITAL HEARTS HOLDINGS Co., Ltd. Corporate Events
Digital Hearts Reports First-Half Revenue and Profit Growth
DIGITAL HEARTS HOLDINGS reported first-half fiscal 2026 net sales of ¥19.833 billion, operating income of ¥788 million, and profit attributable to owners of ¥1.389 billion. Revenue growth was supported by steady domestic debugging demand, strong orde...
DIGITAL HEARTS Reports Mixed First-Half Results and No Dividend
DIGITAL HEARTS HOLDINGS Co., Ltd. reported consolidated net sales of ¥19.833 billion for the six months ended September 30, 2026, up 3.8% year on year. Operating income fell 3.4% to ¥1.389 billion and ordinary income declined 6.8% to ¥1.325 billion,...
DIGITAL HEARTS HOLDINGS to Cancel 6.66% of Treasury Shares Ahead of Share Consolidation
DIGITAL HEARTS HOLDINGS has resolved to cancel 1,591,998 treasury shares, representing 6.66 percent of its issued shares, with a planned cancellation date of December 14, 2026. This step is part of a broader capital reorganization that includes a pro...
Digital Hearts Sets Extraordinary Meeting as It Moves Toward TSE Delisting
DIGITAL HEARTS HOLDINGS Co., Ltd. has resolved to convene an extraordinary shareholders’ meeting on November 20, 2026, to vote on a share consolidation, abolishing provisions on the number of shares per unit, and amending its Articles of Incorporatio...
Sandbox K.K. Becomes Parent Company of Digital Hearts Through Successful Tender Offer
Digital Hearts Holdings has announced that a tender offer for its common shares launched by Sandbox K.K. on August 7, 2026, was successfully completed on September 24, 2026, with 11,187,236 shares tendered, surpassing the minimum acceptance threshold...
Digital Hearts Sets Record Date for Extraordinary Shareholders’ Meeting Linked to MBO
Digital Hearts Holdings has set September 30, 2026 as the record date to determine shareholders eligible to vote at a potential extraordinary shareholders’ meeting expected around mid-November. The notice will be made via electronic public disclosure...
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: Nov 12, 2026