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Digital Garage
(4819)
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Rating:52Neutral
Price Target:
¥2,576.00
▲(16.04% Upside)
Action:Reiterated
Date:08/17/26
Overall score is driven primarily by middling financial quality: strong recent revenue growth is offset by volatile profitability and weak/erratic cash-flow reliability. Technicals are slightly supportive but not decisive, while valuation is a clear headwind due to the very high P/E despite a moderate dividend yield.
Positive Factors
Strong Revenue Growth
The 39.5% TTM revenue increase indicates renewed demand for Digital Garage’s services and improved commercial momentum. If sustained, this growth can expand operating scale, support reinvestment in technology and marketing capabilities, and strengthen the company’s position across digital businesses.
Negative Factors
Volatile Profitability
Thin net profitability leaves limited protection if costs rise or revenue growth moderates, while the history of swings from strong profits to sizable losses indicates weak earnings stability. This volatility makes it harder to plan investment, assess normalized earnings, and convert growth into dependable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The 39.5% TTM revenue increase indicates renewed demand for Digital Garage’s services and improved commercial momentum. If sustained, this growth can expand operating scale, support reinvestment in technology and marketing capabilities, and strengthen the company’s position across digital businesses.
Read all positive factors
Digital Garage (4819) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥118.99B
Dividend Yield1.85%
Average Volume (3M)243.12K
Price to Earnings (P/E)86.2
Beta (1Y)0.38
Revenue Growth4.43%
EPS GrowthN/A
CountryJP
Employees1,383
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)29.86
Shares Outstanding48,002,956
10 Day Avg. Volume200,900
30 Day Avg. Volume243,116
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.19
Price to Sales (P/S)2.55
P/FCF Ratio-13.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,860.00Price Target Upside28.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)49
Revenue Forecast (FY)¥41.70B
Digital Garage Business Overview & Revenue Model
Company Description
Digital Garage, Inc. functions as a "context company" with operations extending across Japan and into international markets. The company's activities are organized into four key segments. Its Financial Technology division specializes in providing ...
How the Company Makes Money
Digital Garage’s revenue model is primarily tied to providing services to businesses in the internet and digital marketing value chain. Key money sources typically include (1) service and solution fees from delivering digital advertising/marketing...
Digital Garage Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.33B | 35.19B | 32.20B | 31.38B | 30.07B | 72.95B |
| Gross Profit | 21.89B | 21.90B | 19.25B | 20.70B | 19.98B | 62.44B |
| EBITDA | 4.75B | 2.67B | -5.69B | 10.30B | -5.31B | 31.50B |
| Net Income | 1.37B | 1.28B | -7.19B | 5.81B | -9.32B | 30.33B |
Balance Sheet | ||||||
| Total Assets | 213.12B | 218.70B | 226.34B | 231.43B | 216.28B | 231.61B |
| Cash, Cash Equivalents and Short-Term Investments | 93.58B | 93.97B | 111.29B | 119.14B | 121.01B | 121.36B |
| Total Debt | 60.85B | 62.05B | 65.88B | 73.02B | 59.98B | 58.77B |
| Total Liabilities | 137.54B | 141.01B | 148.65B | 139.29B | 134.30B | 134.39B |
| Stockholders Equity | 73.00B | 75.58B | 75.42B | 89.25B | 80.03B | 95.74B |
Cash Flow | ||||||
| Free Cash Flow | 622.00M | -6.71B | 16.79B | -13.95B | 11.29B | 4.20B |
| Operating Cash Flow | 1.02B | -6.36B | 17.39B | -11.03B | 13.47B | 7.06B |
| Investing Cash Flow | -6.51B | -7.08B | -10.04B | -8.76B | 1.63B | -7.98B |
| Financing Cash Flow | -3.58B | -3.80B | -14.92B | 15.93B | -5.21B | 6.24B |
Digital Garage Technical Analysis
Positive
2220.00
Price Trends
2344.40
Positive
2202.45
Positive
2238.26
Positive
Market Momentum
56.64
Negative
61.00
Neutral
67.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4819, the sentiment is Positive. The current price of 2220 is below the 20-day moving average (MA) of 2453.15, below the 50-day MA of 2344.40, and below the 200-day MA of 2238.26, indicating a bullish trend. The MACD of 56.64 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4819.
Digital Garage Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥24.09B | 14.72 | ― | 1.90% | 16.61% | 15.32% | |
75 Outperform | ¥33.38B | 9.42 | 10.39% | 5.02% | 3.46% | 6.90% | |
74 Outperform | ¥135.47B | 10.81 | 10.11% | 3.83% | 5.64% | -4.56% | |
67 Neutral | ¥24.90B | 22.86 | ― | ― | 27.68% | 126.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | ¥118.99B | 86.24 | 1.81% | 1.85% | 4.43% | ― |
* Technology Sector Average
JP:4819
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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.