ScoreWhy is Digital Arts Inc. ?
1
High Management Efficiency with a high ROE of 22.35%
2
Company has very low debt and has enough cash to service the debt requirements
3
Flat results in Jun 25
- NET SALES(9M) At JPY 7,414 MM has Grown at -9.4%
- ROCE(HY) Lowest at 19.11%
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.91%
4
With ROE of 18.33%, it has a expensive valuation with a 5.94 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.66%, its profits have fallen by -27.4%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 7.66% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Digital Arts Inc. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Digital Arts Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Digital Arts Inc.
6.28%
2.18
40.04%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.09%
EBIT Growth (5y)
14.39%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.03
Sales to Capital Employed (avg)
0.69
Tax Ratio
30.24%
Dividend Payout Ratio
36.51%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
22.35%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
5.94
EV to EBIT
18.69
EV to EBITDA
15.56
EV to Capital Employed
-145.18
EV to Sales
8.54
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
18.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.09% (YoY
CASH AND EQV(HY)
Highest at JPY 36,383 MM
-15What is not working for the Company
NET SALES(9M)
At JPY 7,414 MM has Grown at -9.4%
ROCE(HY)
Lowest at 19.11%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.91%
OPERATING PROFIT(Q)
Lowest at JPY 1,013 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 44.63 %
PRE-TAX PROFIT(Q)
Lowest at JPY 806 MM
NET PROFIT(Q)
Lowest at JPY 556 MM
EPS(Q)
Lowest at JPY 40.09
Here's what is working for Digital Arts Inc.
Cash and Eqv
Highest at JPY 36,383 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.09% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Digital Arts Inc.
Net Sales
At JPY 7,414 MM has Grown at -9.4%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 1,013 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 44.63 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 806 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 556 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 40.09
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Lowest at 7.91%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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