Why is Digital Arts Inc. ?
1
With ROE of 19.11%, it has a fair valuation with a 2.90 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 -40.27%, its profits have fallen by -24%
How much should you buy?
- 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, Low Return
Absolute
Risk Adjusted
Volatility
Digital Arts Inc.
-40.27%
0.60
44.76%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
11.02%
EBIT Growth (5y)
12.38%
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)
0.64
Tax Ratio
29.19%
Dividend Payout Ratio
37.47%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
22.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.90
EV to EBIT
6.58
EV to EBITDA
5.51
EV to Capital Employed
-16.97
EV to Sales
2.97
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
19.11%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
CASH AND EQV(HY)
Highest at JPY 47,033 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -131.6 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3,544 times
DEBTORS TURNOVER RATIO(HY)
Highest at 9.01 times
NET SALES(Q)
At JPY 2,711 MM has Grown at 19.43%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Digital Arts Inc.
Net Sales
At JPY 2,711 MM has Grown at 19.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 47,033 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -131.6 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3,544 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.01 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Digital Arts Inc.
Non Operating Income
Highest at JPY 0.02 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






