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DIGITAL PLUS, Inc. (JP:3691)
:3691
Japanese Market
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DIGITAL PLUS, Inc. (3691) AI Stock Analysis

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JP:3691

DIGITAL PLUS, Inc.

(3691)

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Neutral 47 (OpenAI - Gpt-5.6Sol)
Rating:47Neutral
Price Target:
¥1,324.00
▼(-4.27% Downside)
Action:Reiterated
Date:10/31/26
The score is held down primarily by weak technicals (trading below all key moving averages with negative MACD) and balance-sheet risk from elevated leverage. Financial performance is mixed: strong revenue growth, high gross margins, and a sharp rebound to positive free cash flow are positives, but ongoing net losses and profitability volatility limit confidence. Valuation is difficult to support due to negative earnings (negative P/E) and no stated dividend yield.
Positive Factors
Revenue Growth and Gross Margin
Strong top-line growth combined with a high gross margin indicates attractive underlying economics and expanding commercial traction. If maintained, this combination can support reinvestment, improve operating leverage, and provide a durable foundation for stronger earnings over the next several quarters.
Negative Factors
Elevated Leverage
High and rising leverage increases financial risk by placing greater demands on future cash generation and reducing flexibility in capital allocation. It may constrain the company’s ability to absorb weaker results or fund expansion internally, especially while profitability remains unsettled.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Gross Margin
Strong top-line growth combined with a high gross margin indicates attractive underlying economics and expanding commercial traction. If maintained, this combination can support reinvestment, improve operating leverage, and provide a durable foundation for stronger earnings over the next several quarters.
Read all positive factors

DIGITAL PLUS, Inc. (3691) vs. iShares MSCI Japan ETF (EWJ)

DIGITAL PLUS, Inc. Business Overview & Revenue Model

Company Description
DIGITAL PLUS, Inc., based in Tokyo, Japan, is a Japanese company founded in 2005 that specializes in providing solutions in both digital marketing and financial technology (fintech). The organization was previously known as REALWORLD, inc. until i...

DIGITAL PLUS, Inc. Financial Statement Overview

Summary
Revenue growth is strong (+22.6% TTM) and gross margin is high (~76%), with improving operating profitability (EBITDA positive ~6.0% margin). Offsetting this, the company remains net loss-making (~-6.1% net margin) with volatile historical profitability, and the balance sheet is a key risk due to elevated leverage (debt-to-equity ~1.42) and negative ROE (~-2.4%). Cash flow is currently a bright spot with strongly positive operating and free cash flow (~¥2.6B each), though volatility limits confidence.
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue1.47B933.13M838.50M665.46M623.88M303.22M
Gross Profit1.14B697.87M674.07M475.41M571.79M228.06M
EBITDA170.17M-484.00K37.83M-148.37M101.03M-64.05M
Net Income-19.44M-71.25M21.17M-277.02M-201.92M33.39M
Balance Sheet
Total Assets8.32B3.33B2.34B1.69B1.62B1.30B
Cash, Cash Equivalents and Short-Term Investments4.11B1.11B801.22M444.77M921.17M601.74M
Total Debt1.64B1.36B781.74M478.52M279.94M237.98M
Total Liabilities7.49B2.41B1.52B1.16B835.37M457.15M
Stockholders Equity800.64M843.18M720.28M490.33M781.91M840.96M
Cash Flow
Free Cash Flow2.59B-458.38M-17.45M-229.62M69.16M83.16M
Operating Cash Flow2.60B-445.13M-17.13M-229.19M71.01M83.16M
Investing Cash Flow-136.86M46.66M-167.40M-381.60M169.13M-482.90M
Financing Cash Flow602.07M709.84M540.54M131.82M279.29M-84.58M

DIGITAL PLUS, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1383.00
Price Trends
50DMA
1792.22
Negative
100DMA
1646.52
Negative
200DMA
1630.31
Negative
Market Momentum
MACD
-99.00
Positive
RSI
30.16
Neutral
STOCH
15.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3691, the sentiment is Negative. The current price of 1383 is below the 20-day moving average (MA) of 1676.25, below the 50-day MA of 1792.22, and below the 200-day MA of 1630.31, indicating a bearish trend. The MACD of -99.00 indicates Positive momentum. The RSI at 30.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3691.

DIGITAL PLUS, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥30.29B13.39―0.62%12.93%27.79%
78
Outperform
¥5.96B13.56―6.93%-1.51%-34.53%
67
Neutral
¥15.09B10.85―1.68%3.61%―
64
Neutral
¥5.11B16.10――9.66%-14.00%
63
Neutral
¥10.88B16.44――14.00%-71.98%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
47
Neutral
¥5.99B-301.35――67.96%81.44%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3691
DIGITAL PLUS, Inc.
1,344.00
239.00
21.63%
JP:2489
Adways, Inc.
390.00
107.65
38.13%
JP:3922
PR TIMES Corporation
2,230.00
-727.79
-24.61%
JP:6180
GMO Media, Inc.
3,480.00
-2,008.70
-36.60%
JP:6185
SMN Corporation
349.00
-130.00
-27.14%
JP:6562
Geniee, Inc.
899.00
-264.00
-22.70%
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: Oct 31, 2026