Digital Garage
Market Cap
US$1.7b
Last Updated
2020/02/21 01:07 UTC
Data Sources
Company Financials +
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
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.F | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.7% | 0.06% |
| 30 Day | -5.3% | 4.4% | 1.7% |
| 90 Day | 8.1% | 15.9% | 9.0% |
| 1 Year | 43.9%43.9% | 38.3%36.9% | 21.8%19.3% |
| 3 Year | n/a | 110.3%101.2% | 49.5%39.9% |
| 5 Year | n/a | 151.1%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 15.3yrs | JP¥235.00m | 16.17% ¥270.8m | |
| Senior Executive Officer | 10.4yrs | no data | 0.025% ¥418.7k | |
| Senior Executive Officer & Director | 9.4yrs | no data | 0.022% ¥360.4k | |
| Senior Executive Officer & Director | 7.4yrs | no data | 0.037% ¥626.1k | |
| Head of Group CEO Division & Director | 1.7yrs | no data | 0.0059% ¥98.3k | |
| Senior Corporate Officer | 3.3yrs | no data | no data | |
| Senior Corporate Officer | 4.6yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 15.3yrs | JP¥235.00m | 16.17% ¥270.8m | |
| Senior Executive Officer | 10.4yrs | no data | 0.025% ¥418.7k | |
| Senior Executive Officer & Director | 9.4yrs | no data | 0.022% ¥360.4k | |
| Senior Executive Officer & Director | 7.4yrs | no data | 0.037% ¥626.1k | |
| Head of Group CEO Division & Director | 1.7yrs | no data | 0.0059% ¥98.3k | |
| Co-Founder & Director | 13.7yrs | no data | 0.043% ¥728.1k | |
| Outside Director | 11.4yrs | no data | 0.050% ¥833.6k | |
| Outside Director | 3.4yrs | no data | no data | |
| Director | 24.2yrs | no data | 0.87% ¥14.5m | |
| Outside Director | 3.4yrs | no data | 0.0024% ¥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
| 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 | 2020/02/21 01:07 |
| End of Day Share Price | 2020/02/07 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.