Digital Arts Inc
Digital Arts Inc provides software solutions and IT services, primarily generating revenue through software sales and related services.
Business. Digital Arts Inc (2326.T) is a software company operating within the Technology sector, specifically focused on Software & IT Services. The firm generates revenue through a subscription-based model, aligning with industry standards for SaaS businesses. As no specific operating segments or geographic breakdowns are provided, the company is described at the industry level. It is primarily listed under the ticker 2326.T.
Analyst recommendations
2 analysts · consensus BuyAt a glance
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- Peers
- EarningsQ2 2026 earnings (expected)2026-07-28 · estimated · ServiceNow (NOW)
- EarningsQ2 2026 earnings (expected)2026-08-28 · estimated · Salesforce (CRM)
- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Digital Arts Inc (2326.T) is a software company operating within the Technology sector, specifically focused on Software & IT Services. The firm generates revenue through a subscription-based model, aligning with industry standards for SaaS businesses. As no specific operating segments or geographic breakdowns are provided, the company is described at the industry level. It is primarily listed under the ticker 2326.T.
Digital Arts Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥17.05 billion, representing 79.4% of total assets. The company operates with no long-term debt and a debt-to-equity ratio of 0.0, indicating a conservative capital structure. The current ratio of 3.51 further supports its ability to meet short-term obligations.
Profitability metrics show a return on equity (ROE) of 3.66% and a return on assets (ROA) of 2.72%, both below the typical thresholds for high-performing software firms. The price-to-earnings (P/E) ratio of 94.69 is significantly higher than the industry median, suggesting potential overvaluation relative to earnings.
The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks and limits growth opportunities outside its primary market.
Outlook data indicates a projected revenue growth of 12.3% for the current fiscal year and 10.1% for the next fiscal year. However, the high P/E ratio and low ROE suggest that earnings growth may not be sufficient to justify the current valuation.
Risk assessment reveals low liquidity and dilution risks, with no immediate filing-based flags detected. The absence of long-term debt and the high cash reserves mitigate financial risk. However, the high P/E ratio and low ROE indicate potential earnings volatility and inefficiency in capital use.
Recent events include analyst estimates with a mean price target of ¥11,550 and a median price target of ¥11,550. The mean recommendation is 2.00, indicating a "Buy" rating, with two "Buy" and no "Strong Buy" recommendations. These estimates suggest a potential upside from the current market price of ¥4,120.
- Digital Arts Inc has a strong liquidity position with no long-term debt and a high current ratio.
- The company's ROE and ROA are below industry benchmarks, indicating suboptimal capital efficiency.
- Revenue is concentrated in a single segment, increasing market-specific risk.
- Analysts project moderate revenue growth but assign a high P/E ratio, suggesting potential overvaluation.
- The company faces no immediate liquidity or dilution risks, but earnings growth may not justify the current valuation.
Bull / Bear case
Generated · model-assistedAnalysts project 222% upside to a mean price target of 11,550 JPY, signaling strong market confidence in future performance.
The company maintains zero long-term debt across all reported periods, eliminating interest expense risks and ensuring financial stability.
Revenue grew at a 4.6% CAGR over four years, indicating consistent top-line expansion despite recent fiscal year volatility.
Return on equity of 3.7% lags significantly behind major peers like Microsoft, suggesting less efficient capital utilization.
Only two analysts cover the stock, creating a wide price target range and potential for limited market scrutiny.
In focus — financials by report
Revenue ¥3.00B, +10,8% YoY; Operating income +2,5% YoY.
- ▍Revenue ¥3.00B, +10,8% YoY
- ▍Operating income +2,5% YoY
- ▍Net income +9,0% YoY
- ▍Net margin 36.6%
Revenue ¥2.84B, +16,7% YoY; Operating income +20,9% YoY.
- ▍Revenue ¥2.84B, +16,7% YoY
- ▍Operating income +20,9% YoY
- ▍Net income +21,5% YoY
- ▍Net margin 32.4%
Revenue ¥2.72B, +4,5% YoY; Operating income +1,0% YoY.
- ▍Revenue ¥2.72B, +4,5% YoY
- ▍Operating income +1,0% YoY
- ▍Net income +2,3% YoY
- ▍Net margin 31.3%
Revenue ¥2.27B, +1,6% YoY; Operating income −5,1% YoY.
- ▍Revenue ¥2.27B, +1,6% YoY
- ▍Operating income −5,1% YoY
- ▍Net income −5,0% YoY
- ▍Net margin 24.5%
Revenue ¥2.71B; Operating income ¥1.41B.
- ▍Revenue ¥2.71B
- ▍Operating income ¥1.41B
- ▍Net margin 37.2%
Revenue ¥2.44B; Operating income ¥1.09B.
- ▍Revenue ¥2.44B
- ▍Operating income ¥1.09B
- ▍Net margin 31.1%
Revenue ¥2.60B; Operating income ¥1.21B.
- ▍Revenue ¥2.60B
- ▍Operating income ¥1.21B
- ▍Net margin 32.0%
Revenue ¥2.23B; Operating income ¥838.0M.
- ▍Revenue ¥2.23B
- ▍Operating income ¥838.0M
- ▍Net margin 26.2%
Revenue ¥10.84B, +8,6% YoY; Operating income +5,1% YoY.
- ▍Revenue ¥10.84B, +8,6% YoY
- ▍Operating income +5,1% YoY
- ▍Net income +7,7% YoY
- ▍Free cash flow −0,7% YoY
- ▍Net margin 31.6%
Revenue ¥9.98B, −13,3% YoY; Operating income −28,3% YoY.
- ▍Revenue ¥9.98B, −13,3% YoY
- ▍Operating income −28,3% YoY
- ▍Net income −27,3% YoY
- ▍Free cash flow −38,8% YoY
- ▍Net margin 31.9%
Revenue ¥11.51B, +10,3% YoY; Operating income +44,0% YoY.
- ▍Revenue ¥11.51B, +10,3% YoY
- ▍Operating income +44,0% YoY
- ▍Net income +42,9% YoY
- ▍Free cash flow +55,7% YoY
- ▍Net margin 38.0%
Revenue ¥10.44B, +15,3% YoY; Operating income +7,0% YoY.
- ▍Revenue ¥10.44B, +15,3% YoY
- ▍Operating income +7,0% YoY
- ▍Net income +5,5% YoY
- ▍Free cash flow +2,6% YoY
- ▍Net margin 29.4%
Valuation TTM
Revenue by segment
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Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 394,30 |
| Revenue | —no estimate | —no estimate | 15,0B JPY |
| Operating income | —no estimate | —no estimate | —no estimate |
Options
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consensus EPS · 26-week trendSell-side observations
Themes
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Risk factors
- No immediate filing-based liquidity or dilution flags were detected.
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- Digital Arts Inc Market data — financials · 2026-05-26
- Digital Arts Inc Market data — analyst estimates · 2026-05-26