Digital Arts Inc. Fundamental Analysis
Digital Arts Inc. (2326.T) shows moderate financial fundamentals with a PE ratio of 13.92, profit margin of 31.63%, and ROE of 19.42%. The company generates $10.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 2326.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent2326.T demonstrates superior asset utilization.
Valuation Score
Excellent2326.T trades at attractive valuation levels.
Growth Score
Moderate2326.T shows steady but slowing expansion.
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 13.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2326.T's PEG of 1.57 indicates fair valuation.
Price to Book
The market values Digital Arts Inc. at 2.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.16 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 $31.63 as profit after all expenses.
Operating Margin
Core operations generate 44.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.42 in profit for every $100 of shareholder equity.
ROA
Digital Arts Inc. generates $12.30 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
13.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How 2326.T Stacks Against Its Sector Peers
| Metric | 2326.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.92 | 41.62 | Better (Cheaper) |
| ROE | 19.42% | 778.00% | Weak |
| Net Margin | 31.63% | 10827298377.00% | Weak |
| Debt/Equity | 0.00 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 2.68 | 5.29 | Strong Liquidity |
| ROA | 12.30% | 151.00% | Weak |
2326.T outperforms its industry in 3 out of 6 key metrics, 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
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta