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
Positive results in Dec 25
- RAW MATERIAL COST(Y) Fallen by 0.44% (YoY)
- CASH AND EQV(HY) Highest at JPY 38,946 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 3,158 times
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 -26.22%, its profits have fallen by -27.4%
5
Below par performance in long term as well as near term
- Along with generating -26.22% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
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, Medium Return
Absolute
Risk Adjusted
Volatility
Digital Arts Inc.
-26.22%
0.95
40.08%
Japan Nikkei 225
38.94%
1.30
28.24%
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)
0.68
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
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.44% (YoY
CASH AND EQV(HY)
Highest at JPY 38,946 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3,158 times
NET SALES(Q)
Highest at JPY 2,843 MM
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.77 times
Here's what is working for Digital Arts Inc.
Net Sales
Highest at JPY 2,843 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 38,946 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 3,158 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.44% (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
Depreciation
Highest at JPY 250 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Digital Arts Inc.
Debtors Turnover Ratio
Lowest at 7.77 times
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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