OTCPK:DLGE.F

Stock Analysis Report

Executive Summary

Digital Garage, Inc. operates as a context company in Japan and internationally.


Snowflake Analysis

Solid track record and fair 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: DLGE.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

DLGE.F

0.7%

US IT

0.06%

US Market


1 Year Return

43.9%

DLGE.F

36.9%

US IT

19.3%

US Market

Return vs Industry: DLGE.F exceeded the US IT industry which returned 36.9% over the past year.

Return vs Market: DLGE.F exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

DLGE.FIndustryMarket
7 Day0%0.7%0.06%
30 Day-5.3%4.4%1.7%
90 Day8.1%15.9%9.0%
1 Year43.9%43.9%38.3%36.9%21.8%19.3%
3 Yearn/a110.3%101.2%49.5%39.9%
5 Yearn/a151.1%128.7%73.1%54.1%

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?

14.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DLGE.F ($39.13) is trading above our estimate of fair value ($32.6)

Significantly Below Fair Value: DLGE.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DLGE.F is good value based on its PE Ratio (14.2x) compared to the IT industry average (31.8x).

PE vs Market: DLGE.F is good value based on its PE Ratio (14.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: DLGE.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DLGE.F is good value based on its PB Ratio (3.5x) compared to the US IT industry average (4.4x).


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: DLGE.F's earnings are forecast to decline over the next 3 years (-15.1% per year).

Earnings vs Market: DLGE.F's earnings are forecast to decline over the next 3 years (-15.1% per year).

High Growth Earnings: DLGE.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DLGE.F's revenue (89% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DLGE.F'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 DLGE.F'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: DLGE.F has a high level of non-cash earnings.

Growing Profit Margin: DLGE.F's current net profit margins are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: DLGE.F's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: DLGE.F's earnings growth over the past year (164.1%) exceeds its 5-year average (17.2% per year).

Earnings vs Industry: DLGE.F earnings growth over the past year (164.1%) exceeded the IT industry 13.7%.


Return on Equity

High ROE: DLGE.F's Return on Equity (24%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Digital Garage's financial position?


Financial Position Analysis

Short Term Liabilities: DLGE.F's short term assets (¥105.4B) exceed its short term liabilities (¥58.3B).

Long Term Liabilities: DLGE.F's short term assets (¥105.4B) exceed its long term liabilities (¥55.9B).


Debt to Equity History and Analysis

Debt Level: DLGE.F's debt to equity ratio (74.9%) is considered high.

Reducing Debt: DLGE.F's debt to equity ratio has increased from 35.8% to 74.9% over the past 5 years.

Debt Coverage: DLGE.F's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: DLGE.F's interest payments on its debt are well covered by EBIT (29.8x coverage).


Balance Sheet

Inventory Level: DLGE.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: DLGE.F'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?

0.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLGE.F's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DLGE.F's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: DLGE.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: DLGE.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DLGE.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DLGE.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Kaoru Hayashi (60yo)

15.3yrs

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 ($USD2.10M) is below average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Kaoru's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kaoru Hayashi
Group CEO15.3yrsJP¥235.00m16.17% ¥270.8m
Makoto Soda
Senior Executive Officer10.4yrsno data0.025% ¥418.7k
Keizo Odori
Senior Executive Officer & Director9.4yrsno data0.022% ¥360.4k
Masashi Tanaka
Senior Executive Officer & Director7.4yrsno data0.037% ¥626.1k
Masahito Okuma
Head of Group CEO Division & Director1.7yrsno data0.0059% ¥98.3k
Naohiko Iwai
Senior Corporate Officer3.3yrsno datano data
Hiroki Yokota
Senior Corporate Officer4.6yrsno datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: DLGE.F's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kaoru Hayashi
Group CEO15.3yrsJP¥235.00m16.17% ¥270.8m
Makoto Soda
Senior Executive Officer10.4yrsno data0.025% ¥418.7k
Keizo Odori
Senior Executive Officer & Director9.4yrsno data0.022% ¥360.4k
Masashi Tanaka
Senior Executive Officer & Director7.4yrsno data0.037% ¥626.1k
Masahito Okuma
Head of Group CEO Division & Director1.7yrsno data0.0059% ¥98.3k
Joichi Ito
Co-Founder & Director13.7yrsno data0.043% ¥728.1k
Kenji Fujiwara
Outside Director11.4yrsno data0.050% ¥833.6k
Junji Inoue
Outside Director3.4yrsno datano data
Yasuyuki Rokuyata
Director24.2yrsno data0.87% ¥14.5m
Makoto Sakai
Outside Director3.4yrsno data0.0024% ¥40.0k

9.9yrs

Average Tenure

60yo

Average Age

Experienced Board: DLGE.F's board of directors are considered experienced (9.9 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: DLGE.F
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥187.486b
  • Listing Market Cap: JP¥1.675b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4819TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 2000
DLGE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2000
DGKBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:07
End of Day Share Price2020/02/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.