Digital Arts Inc.
Digital Arts Inc. Fundamental Analysis
Digital Arts Inc. (2326.T) shows moderate financial fundamentals with a PE ratio of 21.61, profit margin of 31.65%, and ROE of 19.20%. The company generates $10.5B in annual revenue with weak year-over-year growth of -13.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2326.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent2326.T demonstrates superior asset utilization.
Valuation Score
Moderate2326.T shows balanced valuation metrics.
Growth Score
Weak2326.T faces weak or negative growth trends.
Financial Health Score
Excellent2326.T maintains a strong and stable balance sheet.
Profitability Score
Moderate2326.T maintains healthy but balanced margins.
Key Financial Metrics
Is 2326.T Expensive or Cheap?
P/E Ratio
2326.T trades at 21.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 2326.T's PEG of 4.00 indicates potential overvaluation.
Price to Book
The market values Digital Arts Inc. at 4.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.96 times EBITDA. This signals the market has high growth expectations.
How Well Does 2326.T Make Money?
Net Profit Margin
For every $100 in sales, Digital Arts Inc. keeps $31.65 as profit after all expenses.
Operating Margin
Core operations generate 45.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.20 in profit for every $100 of shareholder equity.
ROA
Digital Arts Inc. generates $13.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Digital Arts Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Digital Arts Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
2326.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How 2326.T Stacks Against Its Sector Peers
| Metric | 2326.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.61 | 34.43 | Better (Cheaper) |
| ROE | 19.20% | 1135.00% | Weak |
| Net Margin | 31.65% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 3.33 | 5.77 | Strong Liquidity |
| ROA | 13.98% | -310462.00% (disorted) | Strong |
2326.T outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Digital Arts Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
101.37%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
5.47%
Industry Style: Growth, Innovation, High Beta
Growing