Major Estimate Revision • May 30
Consensus revenue estimates fall by 19% The consensus outlook for revenues in fiscal year 2027 has deteriorated. 2027 revenue forecast decreased from JP¥14.9b to JP¥12.1b. EPS estimate fell from JP¥384 to JP¥286 per share. Net income forecast to grow 12% next year vs 12% growth forecast for Software industry in Japan. Consensus price target of JP¥7,600 unchanged from last update. Share price fell 4.1% to JP¥3,980 over the past week. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to JP¥4,020, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Software industry in Japan. Total loss to shareholders of 21% over the past three years. Announcement • May 12
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 166,000 shares, representing 1.23% for ¥1,000 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase up to 166,000 shares, representing 1.23% of its total shares outstanding (excluding treasury shares), for a total of ¥1,000 million. The purpose of repurchase program is to improve capital efficiency and to provide returns to shareholders. The repurchase program is valid till August 17, 2026. As of May 10, 2025, the company had 13,444,585 shares outstanding (excluding treasury shares) and had 688,415 shares in treasury. New Risk • May 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 7.8% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.8% average weekly change). Reported Earnings • May 08
Full year 2026 earnings: EPS and revenues miss analyst expectations Full year 2026 results: EPS: JP¥254 (up from JP¥233 in FY 2025). Revenue: JP¥10.8b (up 8.5% from FY 2025). Net income: JP¥3.43b (up 7.7% from FY 2025). Profit margin: 32% (in line with FY 2025). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 24 June 2026. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.3%). New Risk • Feb 04
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.8% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 31
Third quarter 2026 earnings released: EPS: JP¥68.17 (vs JP¥55.49 in 3Q 2025) Third quarter 2026 results: EPS: JP¥68.17 (up from JP¥55.49 in 3Q 2025). Revenue: JP¥2.84b (up 17% from 3Q 2025). Net income: JP¥920.0m (up 22% from 3Q 2025). Profit margin: 32% (up from 31% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has remained flat. Announcement • Jan 07
Digital Arts Inc. to Report Q3, 2026 Results on Jan 30, 2026 Digital Arts Inc. announced that they will report Q3, 2026 results on Jan 30, 2026 Declared Dividend • Dec 04
First half dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 30th March 2026 Payment date: 24th June 2026 Dividend yield will be 1.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (36% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 99% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Dec 01
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to JP¥6,990. The fair value is estimated to be JP¥8,948, 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. Earnings per share has grown by 7.5%. Revenue is forecast to grow by 59% in 2 years. Earnings are forecast to grow by 78% in the next 2 years. Buy Or Sell Opportunity • Nov 15
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.4% to JP¥7,150. The fair value is estimated to be JP¥8,938, 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. Earnings per share has grown by 7.5%. Revenue is forecast to grow by 59% in 2 years. Earnings are forecast to grow by 78% in the next 2 years. Reported Earnings • Oct 31
Second quarter 2026 earnings released: EPS: JP¥62.86 (vs JP¥60.94 in 2Q 2025) Second quarter 2026 results: EPS: JP¥62.86 (up from JP¥60.94 in 2Q 2025). Revenue: JP¥2.72b (up 4.5% from 2Q 2025). Net income: JP¥852.0m (up 2.3% from 2Q 2025). Profit margin: 31% (in line with 2Q 2025). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 12% per year. Announcement • Oct 31
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 60,000 shares, representing 0.44% for ¥500 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase up to 60,000 shares, representing 0.44% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to improve capital efficiency and to provide returns to shareholders. The repurchase program is valid till February 6, 2026. As of October 31, 2025, the company had 13,506,485 shares outstanding (excluding treasury shares) and had 626,515 shares in treasury. Announcement • Sep 30
Digital Arts Inc. to Report Q2, 2026 Results on Oct 30, 2025 Digital Arts Inc. announced that they will report Q2, 2026 results on Oct 30, 2025 Reported Earnings • Aug 02
First quarter 2026 earnings released: EPS: JP¥40.96 (vs JP¥42.47 in 1Q 2025) First quarter 2026 results: EPS: JP¥40.96 (down from JP¥42.47 in 1Q 2025). Revenue: JP¥2.27b (up 1.6% from 1Q 2025). Net income: JP¥556.0m (down 4.8% from 1Q 2025). Profit margin: 25% (down from 26% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Jul 11
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. This is currently the only risk that has been identified for the company. Reported Earnings • Jun 25
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥233 (down from JP¥315 in FY 2024). Revenue: JP¥9.98b (down 13% from FY 2024). Net income: JP¥3.18b (down 27% from FY 2024). Profit margin: 32% (down from 38% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 3.9%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 10.0% growth forecast for the Software 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 only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jun 04
Digital Arts Inc. to Report Q1, 2026 Results on Jul 31, 2025 Digital Arts Inc. announced that they will report Q1, 2026 results on Jul 31, 2025 Reported Earnings • May 09
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥233 (down from JP¥315 in FY 2024). Revenue: JP¥9.98b (down 13% from FY 2024). Net income: JP¥3.18b (down 27% from FY 2024). Profit margin: 32% (down from 38% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 3.9%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 9.9% growth forecast for the Software 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 fallen by 2% per year, which means it is significantly lagging earnings. Announcement • May 08
Digital Arts Inc., Annual General Meeting, Jun 23, 2025 Digital Arts Inc., Annual General Meeting, Jun 23, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 25 June 2025. Payout ratio is a comfortable 25% and the cash payout ratio is 84%. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.6%). Announcement • Mar 01
Digital Arts Inc. to Report Fiscal Year 2025 Results on May 08, 2025 Digital Arts Inc. announced that they will report fiscal year 2025 results on May 08, 2025 New Risk • Feb 12
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 5.1% 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 (5.1% average weekly change). Large one-off items impacting financial results. Announcement • Feb 10
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 90,000 shares, representing 0.66% for ¥500 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase up to 90,000 shares, representing 0.66% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to improve capital efficiency and to provide returns to shareholders. The repurchase program is valid till May 12, 2025. As of February 10, 2025, the company had 13,641,604 shares outstanding (excluding treasury shares) and had 491,396 shares in treasury. Reported Earnings • Feb 01
Third quarter 2025 earnings released: EPS: JP¥55.49 (vs JP¥46.41 in 3Q 2024) Third quarter 2025 results: EPS: JP¥55.49 (up from JP¥46.41 in 3Q 2024). Revenue: JP¥2.44b (down 12% from 3Q 2024). Net income: JP¥757.0m (up 18% from 3Q 2024). Profit margin: 31% (up from 23% in 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Nov 30
Digital Arts Inc. to Report Q3, 2025 Results on Jan 31, 2025 Digital Arts Inc. announced that they will report Q3, 2025 results on Jan 31, 2025 Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: JP¥60.94 (vs JP¥65.13 in 2Q 2024) Second quarter 2025 results: EPS: JP¥60.94 (down from JP¥65.13 in 2Q 2024). Revenue: JP¥2.60b (down 14% from 2Q 2024). Net income: JP¥833.0m (down 8.2% from 2Q 2024). Profit margin: 32% (up from 30% in 2Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.2%). Announcement • Aug 27
Digital Arts Inc. to Report Q2, 2025 Results on Oct 31, 2024 Digital Arts Inc. announced that they will report Q2, 2025 results on Oct 31, 2024 Buy Or Sell Opportunity • Aug 10
Now 20% overvalued Over the last 90 days, the stock has fallen 5.4% to JP¥3,945. The fair value is estimated to be JP¥3,286, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to decline by 7.4% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥3,800, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the Software industry in Japan. Total loss to shareholders of 50% over the past three years. Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥42.47 (vs JP¥43.80 in 1Q 2024) First quarter 2025 results: EPS: JP¥42.47 (down from JP¥43.80 in 1Q 2024). Revenue: JP¥2.23b (down 12% from 1Q 2024). Net income: JP¥584.0m (down 4.9% from 1Q 2024). Profit margin: 26% (up from 24% in 1Q 2024). Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. New Risk • Jul 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 5.3% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.3% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥4,510, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 20x in the Software industry in Japan. Total loss to shareholders of 44% over the past three years. Announcement • Jun 13
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 140,000 shares, representing 1.02% for ¥500 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase up to 140,000 shares, representing 1.02% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to improve capital efficiency and to provide returns to shareholders. The repurchase program is valid till September 12, 2024. As of June 12, 2024, the company had 13,753,370 shares outstanding (excluding treasury shares) and had 379,630 shares in treasury. Announcement • Jun 02
Digital Arts Inc. to Report Q1, 2025 Results on Jul 31, 2024 Digital Arts Inc. announced that they will report Q1, 2025 results on Jul 31, 2024 Announcement • May 10
Digital Arts Inc., Annual General Meeting, Jun 24, 2024 Digital Arts Inc., Annual General Meeting, Jun 24, 2024. Reported Earnings • May 09
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥315 (up from JP¥218 in FY 2023). Revenue: JP¥11.5b (up 10% from FY 2023). Net income: JP¥4.38b (up 43% from FY 2023). Profit margin: 38% (up from 29% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 42%. Revenue is forecast to grow 4.2% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 21
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 37% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.3%). Announcement • Mar 02
Digital Arts Inc. to Report Fiscal Year 2024 Results on May 08, 2024 Digital Arts Inc. announced that they will report fiscal year 2024 results on May 08, 2024 Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥4,220, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 24x in the Software industry in Japan. Total loss to shareholders of 59% over the past three years. Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥46.41 (vs JP¥48.22 in 3Q 2023) Third quarter 2024 results: EPS: JP¥46.41 (down from JP¥48.22 in 3Q 2023). Revenue: JP¥2.76b (up 7.2% from 3Q 2023). Net income: JP¥641.0m (down 5.3% from 3Q 2023). Profit margin: 23% (down from 26% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software 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 fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Nov 26
Digital Arts Inc. to Report Q3, 2024 Results on Jan 31, 2024 Digital Arts Inc. announced that they will report Q3, 2024 results on Jan 31, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥65.13 (vs JP¥60.97 in 2Q 2023) Second quarter 2024 results: EPS: JP¥65.13 (up from JP¥60.97 in 2Q 2023). Revenue: JP¥3.02b (up 12% from 2Q 2023). Net income: JP¥907.0m (up 6.0% from 2Q 2023). Profit margin: 30% (down from 32% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥40.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (1.7%). Announcement • Aug 27
Digital Arts Inc. to Report Q2, 2024 Results on Oct 31, 2023 Digital Arts Inc. announced that they will report Q2, 2024 results on Oct 31, 2023 New Risk • Aug 03
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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.3% average weekly change). Reported Earnings • Aug 01
First quarter 2024 earnings released: EPS: JP¥43.80 (vs JP¥50.00 in 1Q 2023) First quarter 2024 results: EPS: JP¥43.80 (down from JP¥50.00 in 1Q 2023). Revenue: JP¥2.54b (up 6.5% from 1Q 2023). Net income: JP¥614.0m (down 13% from 1Q 2023). Profit margin: 24% (down from 29% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Aug 01
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 200,000 shares, representing 1.43% for ¥1,000 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 1.43% of its total shares outstanding (excluding treasury shares), for a total of ¥1,000 million. The purpose of repurchase program is to return profits to shareholders and improve the capital efficiency. The repurchase program is valid till December 31, 2023. As of July 7, 2023, the company had 13,951,867 shares outstanding (excluding treasury shares) and had 181,133 shares in treasury. Announcement • May 28
Digital Arts Inc. to Report Q1, 2024 Results on Jul 31, 2023 Digital Arts Inc. announced that they will report Q1, 2024 results on Jul 31, 2023 Reported Earnings • May 10
Full year 2023 earnings released: EPS: JP¥218 (vs JP¥207 in FY 2022) Full year 2023 results: EPS: JP¥218 (up from JP¥207 in FY 2022). Revenue: JP¥10.4b (up 15% from FY 2022). Net income: JP¥3.06b (up 5.6% from FY 2022). Profit margin: 29% (down from 32% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Software industry in Japan. 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 11% per year, which means it is significantly lagging earnings. Announcement • May 10
Digital Arts Inc. (TSE:2326) announces an Equity Buyback for 120,000 shares, representing 0.85% for ¥500 million. Digital Arts Inc. (TSE:2326) announces a share repurchase program. Under the program, the company will repurchase 120,000 shares, representing 0.85% of its share capital, for ¥500 million. The program is aimed at improving capital efficiency and returning profits to shareholders. The program will run until July 7, 2023. As of April 30, 2023, the company had 14,039,167 shares outstanding (excluding treasury shares) and 93,833 shares in treasury. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 22 June 2023. Payout ratio is a comfortable 34% 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%). Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥48.22 (vs JP¥46.17 in 3Q 2022) Third quarter 2023 results: EPS: JP¥48.22 (up from JP¥46.17 in 3Q 2022). Revenue: JP¥2.57b (up 21% from 3Q 2022). Net income: JP¥677.0m (up 4.5% from 3Q 2022). Profit margin: 26% (down from 30% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Nov 27
Digital Arts Inc. to Report Q3, 2023 Results on Jan 31, 2023 Digital Arts Inc. announced that they will report Q3, 2023 results on Jan 31, 2023 Board Change • Nov 16
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. 4 non-independent directors. Independent Outside Director Chise Kuwayama was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Second quarter 2023 earnings released: EPS: JP¥60.97 (vs JP¥66.06 in 2Q 2022) Second quarter 2023 results: EPS: JP¥60.97 (down from JP¥66.06 in 2Q 2022). Revenue: JP¥2.70b (up 2.5% from 2Q 2022). Net income: JP¥856.0m (down 7.7% from 2Q 2022). Profit margin: 32% (down from 35% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Japan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buying Opportunity • Nov 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be JP¥7,559, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 22% in 2 years. Earnings is forecast to grow by 7.8% in the next 2 years. Buying Opportunity • Oct 13
Now 22% undervalued Over the last 90 days, the stock is up 9.4%. The fair value is estimated to be JP¥8,251, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 22% in 2 years. Earnings is forecast to grow by 7.8% in the next 2 years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.8%). Announcement • Aug 28
Digital Arts Inc. to Report Q2, 2023 Results on Oct 31, 2022 Digital Arts Inc. announced that they will report Q2, 2023 results on Oct 31, 2022 Reported Earnings • Jul 31
First quarter 2023 earnings released: EPS: JP¥50.00 (vs JP¥36.06 in 1Q 2022) First quarter 2023 results: EPS: JP¥50.00 (up from JP¥36.06 in 1Q 2022). Revenue: JP¥2.39b (up 24% from 1Q 2022). Net income: JP¥702.0m (up 39% from 1Q 2022). Profit margin: 29% (up from 26% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 9.8%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 26
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥207 (up from JP¥147 in FY 2021). Revenue: JP¥9.05b (up 33% from FY 2021). Net income: JP¥2.90b (up 41% from FY 2021). Profit margin: 32% (up from 30% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 1.7%. Over the next year, revenue is forecast to grow 13%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Jun 01
Digital Arts Inc. to Report Q1, 2023 Results on Jul 29, 2022 Digital Arts Inc. announced that they will report Q1, 2023 results on Jul 29, 2022 Announcement • May 12
Digital Arts Inc., Annual General Meeting, Jun 21, 2022 Digital Arts Inc., Annual General Meeting, Jun 21, 2022. Reported Earnings • May 11
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥207 (up from JP¥147 in FY 2021). Revenue: JP¥9.05b (up 33% from FY 2021). Net income: JP¥2.90b (up 41% from FY 2021). Profit margin: 32% (up from 30% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 1.7%. Over the next year, revenue is forecast to grow 13%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Independent Outside Director Chise Kuwayama was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
Digital Arts Inc. to Report Fiscal Year 2022 Results on May 10, 2022 Digital Arts Inc. announced that they will report fiscal year 2022 results on May 10, 2022 Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥7,540, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 20x in the Software industry in Japan. Total loss to shareholders of 16% over the past three years. Reported Earnings • Feb 02
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥46.17 (up from JP¥32.44 in 3Q 2021). Revenue: JP¥2.13b (up 29% from 3Q 2021). Net income: JP¥648.0m (up 42% from 3Q 2021). Profit margin: 30% (up from 28% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 33%. Over the next year, revenue is forecast to grow 12%, compared to a 16% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.3%). Reported Earnings • Aug 03
First quarter 2022 earnings released: EPS JP¥36.06 (vs JP¥23.83 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥1.92b (up 36% from 1Q 2021). Net income: JP¥506.0m (up 52% from 1Q 2021). Profit margin: 26% (up from 24% in 1Q 2021). The increase in margin was driven by higher revenue. 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 17% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS JP¥147 (vs JP¥114 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥6.83b (up 21% from FY 2020). Net income: JP¥2.06b (up 30% from FY 2020). Profit margin: 30% (up from 28% 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 8% per year whereas the company’s share price has increased by 12% per year. Reported Earnings • May 09
Full year 2021 earnings released: EPS JP¥147 (vs JP¥114 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥6.83b (up 21% from FY 2020). Net income: JP¥2.06b (up 30% from FY 2020). Profit margin: 30% (up from 28% 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 8% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 22 June 2021. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.3%). Announcement • Mar 06
Digital Arts Inc. to Report Fiscal Year 2021 Results on May 07, 2021 Digital Arts Inc. announced that they will report fiscal year 2021 results on May 07, 2021 Is New 90 Day High Low • Feb 22
New 90-day high: JP¥10,990 The company is up 19% from its price of JP¥9,260 on 24 November 2020. The Japanese market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥4,758 per share. Reported Earnings • Feb 02
Third quarter 2021 earnings released: EPS JP¥32.44 (vs JP¥27.29 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: JP¥1.65b (up 20% from 3Q 2020). Net income: JP¥455.0m (up 19% from 3Q 2020). Profit margin: 28% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 02
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) exceeded analyst estimates by 12%. Over the next year, revenue is forecast to grow 38%, compared to a 12% growth forecast for the Software industry in Japan. Is New 90 Day High Low • Jan 13
New 90-day high: JP¥10,000 The company is up 22% from its price of JP¥8,170 on 15 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥3,404 per share. Announcement • Jan 08
Digital Arts Inc. to Report Q3, 2021 Results on Jan 29, 2021 Digital Arts Inc. announced that they will report Q3, 2021 results on Jan 29, 2021 Is New 90 Day High Low • Dec 25
New 90-day high: JP¥9,580 The company is up 14% from its price of JP¥8,420 on 25 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥3,394 per share. Price Target Changed • Dec 01
Price target raised to JP¥9,200 Up from JP¥8,400, the current price target is an average from 2 analysts. The new target price is close to the current share price of JP¥8,860. As of last close, the stock is up 38% over the past year. Announcement • Oct 04
Digital Arts Inc. to Report Q2, 2021 Results on Oct 30, 2020 Digital Arts Inc. announced that they will report Q2, 2021 results on Oct 30, 2020