Reported Earnings • May 16
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: JP¥52.97 (up from JP¥28.23 in FY 2025). Revenue: JP¥38.9b (down 2.1% from FY 2025). Net income: JP¥1.18b (up 88% from FY 2025). Profit margin: 3.0% (up from 1.6% in FY 2025). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 38%. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Ankündigung • May 13
DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 25, 2026 DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 25, 2026. Ankündigung • May 07
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥13.50 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 11 June 2026. Payout ratio is a comfortable 72% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.8%). Ankündigung • Mar 20
DIGITAL HEARTS HOLDINGS Co., Ltd. (TSE:3676) agreed to acquire an additional 28.38% stake in G-angle Co., Ltd. from Kazumasa Takahashi and Gonta Terada. DIGITAL HEARTS HOLDINGS Co., Ltd. (TSE:3676) agreed to acquire an additional 28.38% stake in G-angle Co., Ltd. from Kazumasa Takahashi and Gonta Terada on March 19, 2026. Upon completion, DIGITAL HEARTS HOLDINGS Co., Ltd. will own 33.48% stake in G-angle Co., Ltd. If the alliance between G-angle and DIGITAL HEARTS progresses as initially expected and the anticipated synergies are realized, and if the effects of the alliance are confirmed in terms of business performance and other factors by 2028, and no issues are identified through further due diligence or other reviews, DIGITAL HEARTS HOLDINGS plans to acquire all of the remaining 1,684 shares of G-angle.
For the period ending December 31, 2025, G-Angle Co., Ltd. reported total revenue of ¥2.24 billion, EBIT of ¥123 million and net income of ¥102 million. As of December 31, 2025, G-Angle Co., Ltd. reported total assets of ¥884 million and total common equity of ¥317 million.
The conclusion of the share transfer agreement is schedule to take place on March 19, 2026. The expected completion of the transaction is March 31, 2026. New Risk • Feb 07
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.8% Last year net profit margin: 4.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥29.82 (vs JP¥41.04 in 3Q 2025) Third quarter 2026 results: EPS: JP¥29.82 (down from JP¥41.04 in 3Q 2025). Revenue: JP¥9.98b (down 5.1% from 3Q 2025). Net income: JP¥665.0m (down 27% from 3Q 2025). Profit margin: 6.7% (down from 8.7% in 3Q 2025). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Declared Dividend • Dec 06
First half dividend of JP¥11.50 announced Shareholders will receive a dividend of JP¥11.50. Ex-date: 30th March 2026 Payment date: 11th June 2026 Dividend yield will be 2.5%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (53% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 11% 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 143% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Ankündigung • Nov 29
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q3, 2026 Results on Feb 05, 2026 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q3, 2026 results on Feb 05, 2026 Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥13.15 (vs JP¥10.91 in 2Q 2025) Second quarter 2026 results: EPS: JP¥13.15 (up from JP¥10.91 in 2Q 2025). Revenue: JP¥9.73b (down 3.4% from 2Q 2025). Net income: JP¥293.1m (up 21% from 2Q 2025). Profit margin: 3.0% (up from 2.4% in 2Q 2025). Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Ankündigung • Sep 01
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q2, 2026 Results on Nov 06, 2025 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q2, 2026 results on Nov 06, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥20.78 (vs JP¥9.51 in 1Q 2025) First quarter 2026 results: EPS: JP¥20.78 (up from JP¥9.51 in 1Q 2025). Revenue: JP¥9.38b (down 4.6% from 1Q 2025). Net income: JP¥463.0m (up 119% from 1Q 2025). Profit margin: 4.9% (up from 2.2% in 1Q 2025). Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 21
Final dividend of JP¥11.50 announced Shareholders will receive a dividend of JP¥11.50. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 2.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has increased by an average of 11% 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 149% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 4 highly experienced directors. Independent Outside Director Emiko Murei was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Ankündigung • May 31
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Price Target Changed • May 20
Price target decreased by 21% to JP¥1,500 Down from JP¥1,900, the current price target is provided by 1 analyst. New target price is 73% above last closing price of JP¥868. Stock is down 14% over the past year. The company is forecast to post earnings per share of JP¥80.80 for next year compared to JP¥28.23 last year. Reported Earnings • May 15
Full year 2025 earnings released: EPS: JP¥28.23 (vs JP¥7.90 in FY 2024) Full year 2025 results: EPS: JP¥28.23 (up from JP¥7.90 in FY 2024). Revenue: JP¥39.7b (up 2.5% from FY 2024). Net income: JP¥629.0m (up 257% from FY 2024). Profit margin: 1.6% (up from 0.5% in FY 2024). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Ankündigung • May 13
DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 26, 2025 DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 26, 2025. New Risk • Apr 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.0% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥815, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 17x in the IT industry in Japan. Total loss to shareholders of 49% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥12.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 11 June 2025. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.4%). Ankündigung • Mar 04
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report fiscal year 2025 results at 3:00 PM, Tokyo Standard Time on May 13, 2025 Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥41.01 (vs JP¥16.16 in 3Q 2024) Third quarter 2025 results: EPS: JP¥41.01 (up from JP¥16.16 in 3Q 2024). Revenue: JP¥10.5b (up 5.1% from 3Q 2024). Net income: JP¥914.0m (up 154% from 3Q 2024). Profit margin: 8.7% (up from 3.6% in 3Q 2024). Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. New Risk • Feb 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 Japanese stocks, typically moving 6.0% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,049, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 33% over the past three years. Ankündigung • Dec 12
Universal Inc. agreed to acquire Identity Inc. from DIGITAL HEARTS HOLDINGS Co., Ltd. (TSE:3676) for ¥2.0 billion. Universal Inc. agreed to acquire Identity Inc. from DIGITAL HEARTS HOLDINGS Co., Ltd. (TSE:3676) for ¥2.0 billion on December 11, 2024. Universal Inc shall acquire 0.03 million shares of Identity Inc for cash.
For the period ending March 31, 2024, Identity Inc. reported total revenue of ¥3.74 billion, EBIT of ¥126 million and net income of ¥120 million. As of March 31, 2024, Identity Inc. reported total assets of ¥784 million and total common equity of ¥364 million.
The expected completion of the transaction is December 25, 2024. Declared Dividend • Dec 06
First half dividend of JP¥10.50 announced Dividend of JP¥10.50 is the same as last year. Ex-date: 28th March 2025 Payment date: 11th June 2025 Dividend yield will be 2.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 11% 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 161% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Ankündigung • Nov 30
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q3, 2025 Results on Feb 06, 2025 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Major Estimate Revision • Nov 27
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥42.9b to JP¥42.0b. EPS estimate also fell from JP¥84.95 per share to JP¥75.48 per share. Net income forecast to grow 91% next year vs 17% growth forecast for IT industry in Japan. Consensus price target of JP¥1,800 unchanged from last update. Share price was steady at JP¥806 over the past week. Major Estimate Revision • Nov 20
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥44.0b to JP¥41.7b. EPS estimate also fell from JP¥91.70 per share to JP¥71.80 per share. Net income forecast to grow 87% next year vs 16% growth forecast for IT industry in Japan. Consensus price target down from JP¥1,900 to JP¥1,800. Share price was steady at JP¥817 over the past week. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥10.91 (vs JP¥34.76 loss in 2Q 2024) Second quarter 2025 results: EPS: JP¥10.91 (up from JP¥34.76 loss in 2Q 2024). Revenue: JP¥10.1b (up 7.4% from 2Q 2024). Net income: JP¥243.1m (up JP¥1.02b from 2Q 2024). Profit margin: 2.4% (up from net loss in 2Q 2024). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 32% per year, which means it has not declined as severely as earnings. New Risk • Nov 08
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 Japanese stocks, typically moving 5.7% 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: Minor Risks Dividend is not well covered by earnings (dividend per share is over 9x earnings per share). Share price has been volatile over the past 3 months (5.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Upcoming Dividend • Sep 20
Upcoming dividend of JP¥10.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Ankündigung • Aug 26
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q2, 2025 Results on Nov 07, 2024 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q2, 2025 results on Nov 07, 2024 Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥9.51 (vs JP¥15.19 in 1Q 2024) First quarter 2025 results: EPS: JP¥9.51 (down from JP¥15.19 in 1Q 2024). Revenue: JP¥9.84b (up 5.8% from 1Q 2024). Net income: JP¥211.9m (down 37% from 1Q 2024). Profit margin: 2.2% (down from 3.6% in 1Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Declared Dividend • Jul 11
Final dividend of JP¥10.50 announced Dividend of JP¥10.50 is the same as last year. Ex-date: 27th September 2024 Payment date: 5th December 2024 Dividend yield will be 1.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (49% cash payout ratio). The dividend has increased by an average of 11% 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. New Risk • Jul 05
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 Japanese stocks, typically moving 5.3% 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: Minor Risks Dividend is not well covered by earnings (266% payout ratio). Share price has been volatile over the past 3 months (5.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Ankündigung • Jun 06
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q1, 2025 Results on Aug 08, 2024 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 11
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥7.90 (down from JP¥36.47 in FY 2023). Revenue: JP¥38.8b (up 6.2% from FY 2023). Net income: JP¥176.0m (down 78% from FY 2023). Profit margin: 0.5% (down from 2.2% in FY 2023). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 65%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Ankündigung • May 11
DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 27, 2024 DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥10.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 12 June 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Ankündigung • Feb 27
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q4, 2024 Results on May 09, 2024 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q4, 2024 results on May 09, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥16.16 (vs JP¥20.37 in 3Q 2023) Third quarter 2024 results: EPS: JP¥16.16 (down from JP¥20.37 in 3Q 2023). Revenue: JP¥10.00b (up 7.3% from 3Q 2023). Net income: JP¥360.0m (down 20% from 3Q 2023). Profit margin: 3.6% (down from 4.8% in 3Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Ankündigung • Nov 28
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q3, 2024 Results on Feb 08, 2024 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q3, 2024 results on Feb 08, 2024 New Risk • Nov 28
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 Japanese stocks, typically moving 5.6% 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: Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (5.6% average weekly change). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Reported Earnings • Nov 10
Second quarter 2024 earnings released: JP¥34.76 loss per share (vs JP¥24.65 profit in 2Q 2023) Second quarter 2024 results: JP¥34.76 loss per share (down from JP¥24.65 profit in 2Q 2023). Revenue: JP¥9.37b (up 2.0% from 2Q 2023). Net loss: JP¥774.0m (down 245% from profit in 2Q 2023). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥10.50 per share at 2.1% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 06 December 2023. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.5%). Ankündigung • Aug 28
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q2, 2024 Results on Nov 09, 2023 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥15.20 (vs JP¥19.23 in 1Q 2023) First quarter 2024 results: EPS: JP¥15.20 (down from JP¥19.23 in 1Q 2023). Revenue: JP¥9.30b (up 11% from 1Q 2023). Net income: JP¥338.3m (down 19% from 1Q 2023). Profit margin: 3.6% (down from 5.0% in 1Q 2023). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 13% per year. New Risk • Jul 28
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 Japanese stocks, typically moving 5.2% 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: Minor Risks Share price has been volatile over the past 3 months (5.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.2% net profit margin). Shareholders have been diluted in the past year (2.9% increase in shares outstanding). Ankündigung • Jun 17
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,282, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 63% over the past three years. Ankündigung • May 12
DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 27, 2023 DIGITAL HEARTS HOLDINGS Co., Ltd., Annual General Meeting, Jun 27, 2023. Agenda: Annual General Meeting. Price Target Changed • Apr 21
Price target increased by 13% to JP¥3,000 Up from JP¥2,650, the current price target is provided by 1 analyst. New target price is 107% above last closing price of JP¥1,452. Stock is down 14% over the past year. The company is forecast to post earnings per share of JP¥85.50 for next year compared to JP¥82.31 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.50 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 12 June 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,498, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 61% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,280 per share. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥20.37 (vs JP¥20.62 in 3Q 2022) Third quarter 2023 results: EPS: JP¥20.37. Revenue: JP¥9.32b (up 20% from 3Q 2022). Net income: JP¥450.0m (flat on 3Q 2022). Profit margin: 4.8% (down from 5.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Buying Opportunity • Feb 01
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 6.5%. The fair value is estimated to be JP¥2,384, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 29% in 2 years. Earnings is forecast to grow by 63% in the next 2 years. Ankündigung • Dec 02
DIGITAL HEARTS HOLDINGS Co., Ltd. to Report Q3, 2023 Results on Feb 09, 2023 DIGITAL HEARTS HOLDINGS Co., Ltd. announced that they will report Q3, 2023 results on Feb 09, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥24.65 (vs JP¥19.89 in 2Q 2022) Second quarter 2023 results: EPS: JP¥24.65 (up from JP¥19.89 in 2Q 2022). Revenue: JP¥9.19b (up 24% from 2Q 2022). Net income: JP¥534.0m (up 24% from 2Q 2022). Profit margin: 5.8% (in line with 2Q 2022). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥24.65 (vs JP¥19.89 in 2Q 2022) Second quarter 2023 results: EPS: JP¥24.65 (up from JP¥19.89 in 2Q 2022). Revenue: JP¥9.19b (up 24% from 2Q 2022). Net income: JP¥534.0m (up 24% from 2Q 2022). Profit margin: 5.8% (in line with 2Q 2022). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.50 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.7%). Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥19.24 (vs JP¥22.53 in 1Q 2022) First quarter 2023 results: EPS: JP¥19.24 (down from JP¥22.53 in 1Q 2022). Revenue: JP¥8.37b (up 37% from 1Q 2022). Net income: JP¥416.1m (down 15% from 1Q 2022). Profit margin: 5.0% (down from 8.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 17%, compared to a 11% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jul 06
Price target decreased to JP¥2,650 Down from JP¥3,000, the current price target is an average from 2 analysts. New target price is 48% above last closing price of JP¥1,787. Stock is up 19% over the past year. The company is forecast to post earnings per share of JP¥103 for next year compared to JP¥82.31 last year. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,776, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 18x in the IT industry in Japan. Total returns to shareholders of 73% over the past three years. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,829, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 19x in the IT industry in Japan. Total returns to shareholders of 86% over the past three years. Price Target Changed • Apr 27
Price target increased to JP¥3,000 Up from JP¥1,600, the current price target is provided by 1 analyst. New target price is 72% above last closing price of JP¥1,743. Stock is up 17% over the past year. The company is forecast to post earnings per share of JP¥83.20 for next year compared to JP¥45.13 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Takashi Yanagiya was the last independent director to join the board, commencing their role in 2014. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥7.50 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 09 June 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.5%). Reported Earnings • Feb 09
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥20.62 (up from JP¥20.31 in 3Q 2021). Revenue: JP¥7.75b (up 34% from 3Q 2021). Net income: JP¥446.0m (up 1.6% from 3Q 2021). Profit margin: 5.8% (down from 7.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 17%, compared to a 7.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 5% per year. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥19.89 (vs JP¥11.87 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥7.40b (up 36% from 2Q 2021). Net income: JP¥430.0m (up 68% from 2Q 2021). Profit margin: 5.8% (up from 4.7% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,798, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 24x in the IT industry in Japan. Total returns to shareholders of 14% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥7.50 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 04 December 2021. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.2%). Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥2,240, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 26x in the IT industry in Japan. Total returns to shareholders of 46% over the past three years. 