Executive Summary
Digital Garage, Inc. operates as a context company in Japan and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -15.1% per year for the next 3 years
Snowflake Analysis
Outstanding track record and good value.
Share Price & News
How has Digital Garage's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DGK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.3%
DGK
1.7%
DE IT
-2.7%
DE Market
1 Year Return
6.2%
DGK
3.0%
DE IT
-20.4%
DE Market
Return vs Industry: DGK exceeded the German IT industry which returned 4.4% over the past year.
Return vs Market: DGK exceeded the German Market which returned -17.2% over the past year.
Shareholder returns
| DGK | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 1.7% | -2.7% |
| 30 Day | -5.6% | -10.8% | -18.4% |
| 90 Day | -25.7% | -12.1% | -26.7% |
| 1 Year | 7.5%6.2% | 3.7%3.0% | -18.1%-20.4% |
| 3 Year | 51.7%47.5% | 79.7%74.2% | -19.1%-25.9% |
| 5 Year | 105.5%92.5% | 164.4%153.0% | -19.5%-30.4% |
Price Volatility Vs. Market
How volatile is Digital Garage's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Digital Garage undervalued compared to its fair value and its price relative to the market?
13.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGK (€28.4) is trading below our estimate of fair value (€31.27)
Significantly Below Fair Value: DGK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DGK is good value based on its PE Ratio (12x) compared to the IT industry average (26.8x).
PE vs Market: DGK is good value based on its PE Ratio (12x) compared to the German market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: DGK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: DGK is good value based on its PB Ratio (2.9x) compared to the DE IT industry average (3.3x).
Next Steps
Future Growth
How is Digital Garage forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-15.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGK's earnings are forecast to decline over the next 3 years (-15.1% per year).
Earnings vs Market: DGK's earnings are forecast to decline over the next 3 years (-15.1% per year).
High Growth Earnings: DGK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: DGK's revenue (89% per year) is forecast to grow faster than the German market (4.1% per year).
High Growth Revenue: DGK's revenue (89% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if DGK's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Digital Garage performed over the past 5 years?
17.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGK has high quality earnings.
Growing Profit Margin: DGK's current net profit margins are higher than last year (7.5%).
Past Earnings Growth Analysis
Earnings Trend: DGK's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: DGK's earnings growth over the past year (164.1%) exceeds its 5-year average (17.2% per year).
Earnings vs Industry: DGK earnings growth over the past year (164.1%) exceeded the IT industry 2.5%.
Return on Equity
High ROE: DGK's Return on Equity (24%) is considered high.
Next Steps
Financial Health
How is Digital Garage's financial position?
Financial Position Analysis
Short Term Liabilities: DGK's short term assets (¥105.4B) exceed its short term liabilities (¥58.3B).
Long Term Liabilities: DGK's short term assets (¥105.4B) exceed its long term liabilities (¥55.9B).
Debt to Equity History and Analysis
Debt Level: DGK's debt to equity ratio (74.9%) is considered high.
Reducing Debt: DGK's debt to equity ratio has increased from 35.8% to 74.9% over the past 5 years.
Debt Coverage: DGK's debt is not well covered by operating cash flow (10.4%).
Interest Coverage: DGK's interest payments on its debt are well covered by EBIT (29.8x coverage).
Balance Sheet
Inventory Level: DGK has a low level of unsold assets or inventory.
Debt Coverage by Assets: DGK's debt is covered by short term assets (assets are 2.6x debt).
Next Steps
Dividend
What is Digital Garage's current dividend yield, its reliability and sustainability?
0.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DGK's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.65%).
High Dividend: DGK's dividend (0.81%) is low compared to the top 25% of dividend payers in the German market (4.87%).
Stability and Growth of Payments
Stable Dividend: DGK is not paying a notable dividend for the German market, therefore no need to check if payments are stable.
Growing Dividend: DGK is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: DGK is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DGK's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Kaoru Hayashi (60yo)
15.42s
Tenure
JP¥235,000,000
Compensation
Mr. Kaoru Hayashi has been the President of econtext Asia Limited since January 24, 2015. Mr. Hayashi serves as the Chief Executive Officer and President at Wheel, Inc. Mr. Hayashi has been Group Chief Exe ...
CEO Compensation Analysis
Compensation vs Market: Kaoru's total compensation ($USD2.18M) is about average for companies of similar size in the German market ($USD1.85M).
Compensation vs Earnings: Kaoru's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 15.42yrs | JP¥235.00m | 16.17% ¥206.3m | |
| Senior Executive Officer | 10.58yrs | no data | 0.025% ¥318.9k | |
| Senior Executive Officer & Director | 9.58yrs | no data | 0.022% ¥274.7k | |
| Senior Executive Officer & Director | 7.58yrs | no data | 0.037% ¥477.1k | |
| Head of Group CEO Division & Director | 1.83yrs | no data | 0.0059% ¥74.9k | |
| Senior Corporate Officer | 3.5yrs | no data | no data | |
| Senior Corporate Officer | 4.75yrs | no data | no data |
4.8yrs
Average Tenure
56yo
Average Age
Experienced Management: DGK's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 15.42yrs | JP¥235.00m | 16.17% ¥206.3m | |
| Senior Executive Officer | 10.58yrs | no data | 0.025% ¥318.9k | |
| Senior Executive Officer & Director | 9.58yrs | no data | 0.022% ¥274.7k | |
| Senior Executive Officer & Director | 7.58yrs | no data | 0.037% ¥477.1k | |
| Head of Group CEO Division & Director | 1.83yrs | no data | 0.0059% ¥74.9k | |
| Co-Founder & Director | 13.83yrs | no data | 0.043% ¥554.8k | |
| Outside Director | 11.58yrs | no data | 0.050% ¥635.2k | |
| Outside Director | 3.58yrs | no data | no data | |
| Director | 24.33yrs | no data | 0.87% ¥11.1m | |
| Outside Director | 3.58yrs | no data | 0.0024% ¥30.5k |
10.1yrs
Average Tenure
60yo
Average Age
Experienced Board: DGK's board of directors are seasoned and experienced ( 10.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Digital Garage, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Digital Garage, Inc.
- Ticker: DGK
- Exchange: BST
- Founded: 1995
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: JP¥150.910b
- Listing Market Cap: JP¥1.276b
- Shares outstanding: 46.01m
- Website: https://www.garage.co.jp/en/
Number of Employees
Location
- Digital Garage, Inc.
- DG Building
- 3-5-7 Ebisu Minami
- Tokyo
- 150-0022
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 4819 | TSE (The Tokyo Stock Exchange) | Yes | Common Shares | JP | JPY | Dec 2000 |
| DLGE.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 2000 |
| DGK | BST (Boerse-Stuttgart) | Yes | Common Shares | DE | EUR | Dec 2000 |
Biography
Digital Garage, Inc. operates as a context company in Japan and internationally. The company operates through four segments: Financial Technology, Marketing Technology, Incubation Technology, and Long-term Incubation. The Financial Technology segment provides payment solutions for the monetization of the Internet business. The Marketing Technology segment engages in marketing promotions; and creates and offers solutions to customer's specific requests. The Incubation Technology segment incubates startups and develops new businesses. The Long-term Incubation segment provides new business foundation in areas, such as medical treatments and biotechnology. Digital Garage, Inc. was founded in 1995 and is headquartered in Tokyo, Japan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/02 04:38 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.