Ankündigung • 10h
Digital Garage, Inc. Announces Personnel Changes, Effective August 1, 2026 Digital Garage, Inc. approved personnel changes at the Board of Directors' meeting on July 31, 2026. Junichi Nakajima has been appointed as Head of Group CEO Div. Head of Corporate Strategy Office, Group CEO Div and Hiroyuki Nozaki has been ceased to be Head of Group CEO Div. Effective Date is August 1, 2026. Ankündigung • Jul 07
Digital Garage, Inc. to Report Q1, 2027 Results on Aug 13, 2026 Digital Garage, Inc. announced that they will report Q1, 2027 results on Aug 13, 2026 New Risk • Jul 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 41% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to €10.70, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 15x in the IT industry in Germany. Total loss to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €13.37 per share. Buy Or Sell Opportunity • May 31
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at €10.70. The fair value is estimated to be €13.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.1% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Valuation Update With 7 Day Price Move • May 21
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to €11.30, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 15x in the IT industry in Germany. Total loss to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €13.27 per share. Reported Earnings • May 18
Full year 2026 earnings released: EPS: JP¥27.96 (vs JP¥155 loss in FY 2025) Full year 2026 results: EPS: JP¥27.96 (up from JP¥155 loss in FY 2025). Revenue: JP¥35.2b (up 9.4% from FY 2025). Net income: JP¥1.28b (up JP¥8.47b from FY 2025). Profit margin: 3.6% (up from net loss in FY 2025). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Ankündigung • May 14
Digital Garage, Inc., Annual General Meeting, Jun 24, 2026 Digital Garage, Inc., Annual General Meeting, Jun 24, 2026. Ankündigung • May 12
Digital Garage, Inc. (TSE:4819), BPEA Private Equity Fund IX managed by EQT Private Capital Asia proposed to acquire 61.9% Kakaku.com, Inc. (TSE:2371) from Digital Garage, Inc. (TSE:4819) and others for approximately ¥370 billion Digital Garage, Inc. (TSE:4819), BPEA Private Equity Fund IX managed by EQT Private Capital Asia proposed to acquire 61.9% Kakaku.com, Inc. (TSE:2371) for approximately ¥370 billion from Digital Garage, Inc. (TSE:4819) and others on May 12, 2026. A cash consideration valued at ¥3000 per share will be paid by BPEA Private Equity Fund IX and EQT Private Capital Asia. In addition, major shareholders Digital Garage and KDDI, who together hold 38.1% of the shares, have entered into agreements with EQT and will dispose of their shares through a share buyback by Kakaku.com after the Tender Offer. As of May 13, 2026, the proposal was revised setting the assumed tender offer price at ¥3232 per share on the premise of examining an assumed transaction structure similar to that for effecting a going private transaction with respect to the shares of Kakaku.com, as presented in the tender offer registration statement.
The transaction is subject to approval from regulatory body. The transaction received approval from target board. Kakaku's board of directors and special committee unanimously expressed support for the deal and recommended acceptance of the offer. Ankündigung • May 09
Digital Garage, Inc. to Report Fiscal Year 2026 Results on May 14, 2026 Digital Garage, Inc. announced that they will report fiscal year 2026 results on May 14, 2026 New Risk • Apr 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Paying a dividend despite having no free cash flows. High level of non-cash earnings (119% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.3% average weekly change). Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €14.30, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 15x in the IT industry in Germany. Total loss to shareholders of 51% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥47.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 2.3%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (3.0%). New Risk • Feb 15
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 45% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Paying a dividend despite having no free cash flows. High level of non-cash earnings (45% accrual ratio). Reported Earnings • Feb 15
Third quarter 2026 earnings released: EPS: JP¥44.48 (vs JP¥72.93 in 3Q 2025) Third quarter 2026 results: EPS: JP¥44.48 (down from JP¥72.93 in 3Q 2025). Revenue: JP¥10.6b (up 13% from 3Q 2025). Net income: JP¥2.04b (down 39% from 3Q 2025). Profit margin: 19% (down from 36% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 30% to €12.90. The fair value is estimated to be €16.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 42% in 2 years. Earnings are forecast to grow by 114% in the next 2 years. Ankündigung • Dec 24
Digital Garage, Inc. to Report Q3, 2026 Results on Feb 12, 2026 Digital Garage, Inc. announced that they will report Q3, 2026 results on Feb 12, 2026 Buy Or Sell Opportunity • Dec 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to €16.30. The fair value is estimated to be €20.48, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.5% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Declared Dividend • Nov 16
Dividend of JP¥47.00 announced Shareholders will receive a dividend of JP¥47.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 269%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (17% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 83% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Nov 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to €17.40. The fair value is estimated to be €21.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Ankündigung • Sep 27
Digital Garage, Inc. to Report Q2, 2026 Results on Nov 13, 2025 Digital Garage, Inc. announced that they will report Q2, 2026 results on Nov 13, 2025 Ankündigung • Sep 22
Resona Holdings, Inc. (TSE:8308) completed the acquisition of additional 17.9% stake in Digital Garage, Inc. (TSE:4819) from Oasis Management Company Ltd. Resona Holdings, Inc. (TSE:8308) entered into a share transfer agreement to acquire additional 17.9% stake in Digital Garage, Inc. (TSE:4819) from Oasis Management Company Ltd. on July 31, 2025. Before completion, Resona Holdings, Inc. held 12.42% stake and Oasis Management Company Ltd. held 18.52% stake in Digital Garage, Inc. After completion, Resona Holdings, Inc. will hold 30.95% stake and Oasis Management Company Ltd. will no longer hold any stake in Digital Garage, Inc.
The expected completion of the transaction is from late August 2025 to late September 2025.
Resona Holdings, Inc. (TSE:8308) completed the acquisition of additional 17.9% stake in Digital Garage, Inc. (TSE:4819) from Oasis Management Company Ltd. on September 22, 2025. Reported Earnings • Aug 08
First quarter 2026 earnings released: JP¥14.68 loss per share (vs JP¥67.04 profit in 1Q 2025) First quarter 2026 results: JP¥14.68 loss per share (down from JP¥67.04 profit in 1Q 2025). Revenue: JP¥8.34b (down 20% from 1Q 2025). Net loss: JP¥673.0m (down 121% from profit in 1Q 2025). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Reported Earnings • Jul 02
Full year 2025 earnings released: JP¥155 loss per share (vs JP¥127 profit in FY 2024) Full year 2025 results: JP¥155 loss per share (down from JP¥127 profit in FY 2024). Revenue: JP¥32.2b (up 2.6% from FY 2024). Net loss: JP¥7.19b (down 224% from profit in FY 2024). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Ankündigung • Jun 30
Ceres Inc. (TSE:3696) acquired 19.14% stake in CyberBuzz, Inc. (TSE:7069) from Digital Garage, Inc. (TSE:4819). Ceres Inc. (TSE:3696) acquired 19.14% stake in CyberBuzz, Inc. (TSE:7069) from Digital Garage, Inc. (TSE:4819) on June 30, 2025. As a result of this transfer, Digital Garage will no longer be one of our other affiliates or major shareholders. Masashi Tanaka, who was appointed from Digital Garage as an outside director of the Company, will resign as of June 30, 2025 in connection with this transfer.
Ceres Inc. (TSE:3696) completed the acquisition of 19.14% stake in CyberBuzz, Inc. (TSE:7069) from Digital Garage, Inc. (TSE:4819) on June 30, 2025. Ankündigung • Jun 27
Digital Garage, Inc. Appoints Hiroyuki Nozaki as Head of Group CEO Division, Effective August 1, 2025 Digital Garage, Inc. Announces executive change: Name: Hiroyuki Nozaki: New position: Corporate Officer, Head of Group CEO Division, Deputy Head of Corporate Division . Current Position: Corporate Officer, Deputy Head of Corporate Division. Effective Date: August 1, 2025. Ankündigung • May 31
Digital Garage, Inc. to Report Q1, 2026 Results on Aug 07, 2025 Digital Garage, Inc. announced that they will report Q1, 2026 results on Aug 07, 2025 Reported Earnings • May 15
Full year 2025 earnings released: JP¥155 loss per share (vs JP¥127 profit in FY 2024) Full year 2025 results: JP¥155 loss per share (down from JP¥127 profit in FY 2024). Revenue: JP¥32.2b (up 2.6% from FY 2024). Net loss: JP¥7.19b (down 224% from profit in FY 2024). Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Ankündigung • May 13
Digital Garage, Inc., Annual General Meeting, Jun 26, 2025 Digital Garage, Inc., Annual General Meeting, Jun 26, 2025. Ankündigung • Mar 27
Digital Garage, Inc. to Report Fiscal Year 2025 Results on May 13, 2025 Digital Garage, Inc. announced that they will report fiscal year 2025 results on May 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥53.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 0.9%. Lower than top quartile of German dividend payers (4.4%). Lower than average of industry peers (2.3%). Ankündigung • Feb 12
Digital Garage, Inc. (TSE:4819) acquired an additional unknown stake in Pocket Change Inc. Digital Garage, Inc. (TSE:4819) acquired an additional unknown stake in Pocket Change Inc. on February 10, 2025.
Digital Garage, Inc. (TSE:4819) completed the acquisition of additional unknown stake in Pocket Change Inc. on February 10, 2025. Reported Earnings • Feb 11
Third quarter 2025 earnings released: EPS: JP¥72.93 (vs JP¥26.78 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥72.93 (up from JP¥26.78 loss in 3Q 2024). Revenue: JP¥9.42b (up 100% from 3Q 2024). Net income: JP¥3.34b (up JP¥4.54b from 3Q 2024). Profit margin: 36% (up from net loss in 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Ankündigung • Jan 03
Digital Garage, Inc. to Report Q3, 2025 Results on Feb 10, 2025 Digital Garage, Inc. announced that they will report Q3, 2025 results on Feb 10, 2025 New Risk • Nov 14
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 10
Second quarter 2025 earnings released: JP¥254 loss per share (vs JP¥33.68 profit in 2Q 2024) Second quarter 2025 results: JP¥254 loss per share (down from JP¥33.68 profit in 2Q 2024). Revenue: JP¥4.46b (down 41% from 2Q 2024). Net loss: JP¥11.8b (down JP¥13.3b from profit in 2Q 2024). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 67 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €20.60, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 15x in the IT industry in Germany. Total loss to shareholders of 49% over the past three years. Reported Earnings • Aug 12
First quarter 2025 earnings released: EPS: JP¥67.04 (vs JP¥88.96 in 1Q 2024) First quarter 2025 results: EPS: JP¥67.04 (down from JP¥88.96 in 1Q 2024). Revenue: JP¥10.4b (down 4.5% from 1Q 2024). Net income: JP¥3.17b (down 23% from 1Q 2024). Profit margin: 30% (down from 38% in 1Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. New Risk • Aug 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Shareholders have been diluted in the past year (2.7% increase in shares outstanding). New Risk • Aug 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (7.2% average weekly change). Ankündigung • Jun 28
Digital Garage, Inc. to Report Q1, 2025 Results on Aug 08, 2024 Digital Garage, Inc. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • Jun 27
Full year 2024 earnings released: EPS: JP¥127 (vs JP¥193 loss in FY 2023) Full year 2024 results: EPS: JP¥127 (up from JP¥193 loss in FY 2023). Revenue: JP¥31.4b (up 25% from FY 2023). Net income: JP¥5.81b (up JP¥14.9b from FY 2023). Profit margin: 19% (up from net loss in FY 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 37 percentage points per year, which is a significant difference in performance. Ankündigung • Jun 20
Digital Garage, Inc. (TSE:4819) announces an Equity Buyback for 2,200,000 shares, representing 4.64% for ¥4,000 million. Digital Garage, Inc. (TSE:4819) announces a share repurchase program. Under the program, the company will repurchase up to 2,200,000 shares, representing 4.64% of its issued share capital, for ¥4,000 million. The purpose of the program is to actively return profits to shareholders based on the progress of our business. The share repurchase program will run until January 31, 2025. As of March 31, 2024, the company had 47,379,729 shares issued (excluding treasury stock) and 239,371 shares in treasury. Ankündigung • May 11
Digital Garage, Inc., Annual General Meeting, Jun 21, 2024 Digital Garage, Inc., Annual General Meeting, Jun 21, 2024. Reported Earnings • May 11
Full year 2024 earnings released: EPS: JP¥127 (vs JP¥193 loss in FY 2023) Full year 2024 results: EPS: JP¥127 (up from JP¥193 loss in FY 2023). Revenue: JP¥31.4b (up 25% from FY 2023). Net income: JP¥5.81b (up JP¥14.9b from FY 2023). Profit margin: 19% (up from net loss in FY 2023). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 42 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to €15.30, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 14x in the IT industry in Germany. Total loss to shareholders of 54% over the past three years. Ankündigung • Apr 03
Digital Garage, Inc. (TSE:4819) completed the acquisition of 20% stake in Resona Kessai Service Co.,Ltd. from Resona Holdings, Inc. (TSE:8308). Digital Garage, Inc. (TSE:4819) has reached a basic agreement to acquire 20% stake in Resona Kessai Service Co.,Ltd. from Resona Holdings, Inc. (TSE:8308) on December 22, 2023. Resona and Digital Garage plans to discuss separately and reach an agreement on the terms and conditions of such share acquisition. BofA Securities acted as exclusive financial advisor to Resona Holdings.
Digital Garage, Inc. (TSE:4819) completed the acquisition of 20% stake in Resona Kessai Service Co.,Ltd. from Resona Holdings, Inc. (TSE:8308) on April 1, 2024. Ankündigung • Mar 29
Digital Garage, Inc. Announces Management Appointments, Effective April 1, 2024 At the Board of Directors meeting on March 29, 2024, Digital Garage Inc. resolved to make corporate officer appointments and personnel changes. Daniel Brandt appointed as Corporate Officer and Chief Investor Relations Officer (CIRO) and responsible for investor relations. Lisa Katayama appointed as Corporate Officer and Chief Transformation Officer (CTrO) and responsible for corporate transformation. Effective date on April 1, 2024. Ankündigung • Mar 28
Digital Garage, Inc. to Report Fiscal Year 2024 Results on May 09, 2024 Digital Garage, Inc. announced that they will report fiscal year 2024 results on May 09, 2024 Upcoming Dividend • Mar 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (2.2%). New Risk • Mar 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (5.3% increase in shares outstanding). Declared Dividend • Feb 25
Dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 28th March 2024 Payment date: 26th June 2024 Dividend yield will be 198%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (51% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 22% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 45% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 11
Third quarter 2024 earnings released: JP¥26.79 loss per share (vs JP¥76.80 loss in 3Q 2023) Third quarter 2024 results: JP¥26.79 loss per share (improved from JP¥76.80 loss in 3Q 2023). Revenue: JP¥4.72b (down 23% from 3Q 2023). Net loss: JP¥1.20b (loss narrowed 67% from 3Q 2023). Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Ankündigung • Dec 28
Digital Garage, Inc. to Report Q3, 2024 Results on Feb 08, 2024 Digital Garage, Inc. announced that they will report Q3, 2024 results on Feb 08, 2024 New Risk • Dec 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.4% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). New Risk • Nov 10
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.9% net profit margin). Buying Opportunity • Oct 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be €24.33, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Ankündigung • Sep 28
Digital Garage, Inc. to Report Q2, 2024 Results on Nov 09, 2023 Digital Garage, Inc. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥88.96 (vs JP¥158 in 1Q 2023) First quarter 2024 results: EPS: JP¥88.96 (down from JP¥158 in 1Q 2023). Revenue: JP¥10.9b (down 19% from 1Q 2023). Net income: JP¥4.10b (down 45% from 1Q 2023). Profit margin: 38% (down from 55% in 1Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Ankündigung • Jun 29
Digital Garage, Inc. to Report Q1, 2024 Results on Aug 09, 2023 Digital Garage, Inc. announced that they will report Q1, 2024 results on Aug 09, 2023 Ankündigung • Jun 06
Digital Garage, Inc. (TSE:4819) announces an Equity Buyback for 1,600,000 shares, representing 3.47% for ¥5,000 million. Digital Garage, Inc. (TSE:4819) announces a share repurchase program. Under the program, the company will repurchase up to 1,600,000 shares, representing 3.47% of its issued share capital, for ¥5,000 million. The purpose of the program is to improve company's corporate value and implement flexible capital policy. The share repurchase program will run until November 30, 2023. As of March 31, 2023, the company had 46,072,674 shares issued (excluding treasury stock) and 1,534,826 shares in treasury. Ankündigung • May 16
Digital Garage, Inc. Announces Dividend for the Fiscal Year Ended March 31, 2023, Payable on June 26, 2023 Digital Garage, Inc. announced dividend of JPY 37.00 per share for the fiscal year ended March 31, 2023 against JPY 35.00 per share paid a year ago. Scheduled date to commence dividend payments is June 26, 2023. Reported Earnings • May 14
Full year 2023 earnings released: JP¥193 loss per share (vs JP¥655 profit in FY 2022) Full year 2023 results: JP¥193 loss per share (down from JP¥655 profit in FY 2022). Revenue: JP¥25.1b (down 53% from FY 2022). Net loss: JP¥9.06b (down 130% from profit in FY 2022). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 3% per year. Ankündigung • May 13
Digital Garage, Inc., Annual General Meeting, Jun 23, 2023 Digital Garage, Inc., Annual General Meeting, Jun 23, 2023. Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥76.80 loss per share (vs JP¥93.32 profit in 3Q 2022) Third quarter 2023 results: JP¥76.80 loss per share (down from JP¥93.32 profit in 3Q 2022). Revenue: JP¥6.13b (down 42% from 3Q 2022). Net loss: JP¥3.61b (down 184% from profit in 3Q 2022). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Ankündigung • Dec 29
Digital Garage, Inc. to Report Q3, 2023 Results on Feb 10, 2023 Digital Garage, Inc. announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: JP¥250 loss per share (vs JP¥329 profit in 2Q 2022) Second quarter 2023 results: JP¥250 loss per share (down from JP¥329 profit in 2Q 2022). Net loss: JP¥11.8b (down 178% from profit in 2Q 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 11% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 13
Second quarter 2023 earnings released: JP¥250 loss per share (vs JP¥329 profit in 2Q 2022) Second quarter 2023 results: JP¥250 loss per share (down from JP¥329 profit in 2Q 2022). Net loss: JP¥11.8b (down 178% from profit in 2Q 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 11% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Ankündigung • Nov 12
Digital Garage, Inc. (TSE:4819) announces an Equity Buyback for 1,600,000 shares, representing 3.39% for ¥5,000 million. Digital Garage, Inc. (TSE:4819) announces a share repurchase program. Under the program, the company will repurchase up to 1,600,000 shares, representing 3.39% of its issued share capital, for a total consideration of ¥5,000 million. The purpose of the program is to enhance shareholder returns and implement a flexible capital policy that responds to changes in the business environment. The share repurchase program will run until April 30, 2023. As of September 30, 2022, the company had 47,239,815 shares issued and 358,885 shares in treasury. Ankündigung • Sep 28
Digital Garage, Inc. to Report Q2, 2023 Results on Nov 11, 2022 Digital Garage, Inc. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥158 (vs JP¥72.56 in 1Q 2022) First quarter 2023 results: EPS: JP¥158 (up from JP¥72.56 in 1Q 2022). Revenue: JP¥13.5b (up 37% from 1Q 2022). Net income: JP¥7.47b (up 123% from 1Q 2022). Profit margin: 55% (up from 34% in 1Q 2022). Over the next year, revenue is expected to shrink by 20% compared to a 16% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Ankündigung • Jun 29
Digital Garage, Inc. to Report Q1, 2023 Results on Aug 10, 2022 Digital Garage, Inc. announced that they will report Q1, 2023 results on Aug 10, 2022 Reported Earnings • Jun 25
Full year 2022 earnings released Full year 2022 results: Revenue: JP¥53.1b (up 48% from FY 2021). Net income: JP¥30.3b (up 210% from FY 2021). Profit margin: 57% (up from 27% in FY 2021). Over the next year, revenue is expected to shrink by 8.1% compared to a 17% growth forecast for the industry in Germany. Reported Earnings • May 16
Full year 2022 earnings released: EPS: JP¥655 (vs JP¥213 in FY 2021) Full year 2022 results: EPS: JP¥655 (up from JP¥213 in FY 2021). Revenue: JP¥53.1b (up 48% from FY 2021). Net income: JP¥30.3b (up 210% from FY 2021). Profit margin: 57% (up from 27% in FY 2021). The increase in margin was primarily driven by higher revenue. Over the next year, revenue is expected to shrink by 19% compared to a 18% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Ankündigung • May 14
Digital Garage, Inc., Annual General Meeting, Jun 22, 2022 Digital Garage, Inc., Annual General Meeting, Jun 22, 2022. Ankündigung • Apr 05
Digital Garage, Inc. to Report Fiscal Year 2022 Results on May 12, 2022 Digital Garage, Inc. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 5.6% but the company is paying out more than the cash it is generating. Trailing yield: 0.7%. Lower than top quartile of German dividend payers (3.6%). Lower than average of industry peers (1.0%). Reported Earnings • Feb 11
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: JP¥93.32 (up from JP¥49.71 in 3Q 2021). Revenue: JP¥10.6b (up 27% from 3Q 2021). Net income: JP¥4.31b (up 88% from 3Q 2021). Profit margin: 41% (up from 27% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Over the next year, revenue is forecast to grow 8.6%, compared to a 18% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Ankündigung • Dec 24
Digital Garage, Inc. announced that it expects to receive ¥1.352575 billion in funding from Toshiba Tec Corporation Digital Garage, Inc. announced a private placement of 295,000 common share at an issue price of ¥4,585 per share for gross proceeds of ¥1,352,575,000 on December 23, 2021. The transaction includes participation form Toshiba Tec Corporation. The shares are issued through third party allotment method. The transaction was approved by board of directors the investor. The transaction is expected to close January 11, 2022. The company will pay ¥5,000,000 as issue expenses. The entered into agreement with the investor. Reported Earnings • Nov 14
Second quarter 2022 earnings released: EPS JP¥329 (vs JP¥82.07 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥15.9b (up 41% from 2Q 2021). Net income: JP¥15.2b (up 301% from 2Q 2021). Profit margin: 95% (up from 34% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 28
Full year 2021 earnings released: EPS JP¥213 (vs JP¥161 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥36.0b (up 17% from FY 2020). Net income: JP¥9.79b (up 32% from FY 2020). Profit margin: 27% (up from 24% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 4% per year. Reported Earnings • May 15
Full year 2021 earnings released: EPS JP¥213 (vs JP¥161 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥36.0b (up 17% from FY 2020). Net income: JP¥9.79b (up 32% from FY 2020). Profit margin: 27% (up from 24% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥32.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 24 June 2021. Trailing yield: 0.7%. Lower than top quartile of German dividend payers (3.3%). Lower than average of industry peers (1.1%). Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥49.71 (vs JP¥48.99 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: JP¥8.36b (up 11% from 3Q 2020). Net income: JP¥2.29b (up 1.6% from 3Q 2020). Profit margin: 27% (down from 30% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Jan 27
New 90-day low: €28.60 The company is down 4.0% from its price of €29.80 on 28 October 2020. The German market is up 16% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €23.90 per share. Ankündigung • Jan 07
Digital Garage, Inc. to Report Q3, 2021 Results on Feb 10, 2021 Digital Garage, Inc. announced that they will report Q3, 2021 results on Feb 10, 2021 Reported Earnings • Nov 15
Second quarter 2021 earnings released: EPS JP¥82.07 The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: JP¥11.3b (up 12% from 2Q 2020). Net income: JP¥3.78b (up 3.6% from 2Q 2020). Profit margin: 34% (down from 36% in 2Q 2020). The decrease in margin was driven by higher expenses. Is New 90 Day High Low • Nov 11
New 90-day high: €32.00 The company is up 16% from its price of €27.60 on 13 August 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 23% over the same period. Is New 90 Day High Low • Oct 25
New 90-day high: €30.20 The company is up 1.0% from its price of €29.80 on 27 July 2020. The German market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.72 per share. Ankündigung • Oct 04
Digital Garage, Inc. to Report First Half, 2021 Results on Nov 13, 2020 Digital Garage, Inc. announced that they will report first half, 2021 results on Nov 13, 2020 
