High Recent Revenue GrowthA reported revenue growth rate of ~71.7% indicates the company can scale top-line quickly when titles gain traction. Sustained higher revenue growth supports reinvestment in live-service content, marketing and R&D, strengthening long-term product pipelines and monetization potential.

Reasonable Balance Sheet And Asset BaseManagement maintains a solid asset base and a reasonable equity ratio, providing capacity to fund development or absorb operational shocks. A manageable debt profile increases strategic optionality for partnerships, IP investments and new game launches over multiple quarters.

Recurring, Diversified Game Monetization ModelDrecom's business centers on live-service mobile/online games and related content, producing recurring in-game purchases plus licensing and service revenues. This multi-channel revenue mix supports more predictable lifetime value per title and allows portfolio diversification across IP and services.

Bears Say

Declining Profitability And Negative MarginsDecreasing gross margins and a trailing twelve‑month net loss signal structural cost pressure or monetization weakening. Negative margins limit retained earnings and constrain the company’s ability to self‑fund growth initiatives, making scalability and long‑term profitability uncertain.

Volatile And Inconsistent Cash GenerationInconsistent operating and free cash flow, including recent negative trends, undermines the firm’s capacity to fund live ops, marketing and development without external financing. Persistent cash volatility raises execution risk for multi‑quarter game roadmaps and content cadence.

Rising Financial LeverageAn increasing debt‑to‑equity ratio points to higher leverage which can compress flexibility and raise interest burden if continued. In cyclical game markets, higher leverage amplifies downside risk and may force prioritization of short‑term cash needs over long‑term product investment.

3793 FAQ

What was Drecom Co., Ltd.’s price range in the past 12 months?

Drecom Co., Ltd. lowest stock price was ¥392.00 and its highest was ¥1064.00 in the past 12 months.

What is Drecom Co., Ltd.’s market cap?

Drecom Co., Ltd.’s market cap is ¥11.59B.

When is Drecom Co., Ltd.’s upcoming earnings report date?

Drecom Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 88 days.

How were Drecom Co., Ltd.’s earnings last quarter?

Drecom Co., Ltd. released its earnings results on Jan 29, 2026. The company reported ¥21.67 earnings per share for the quarter, beating the consensus estimate of N/A by ¥21.67.

Is Drecom Co., Ltd. overvalued?

According to Wall Street analysts Drecom Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Drecom Co., Ltd. pay dividends?

Drecom Co., Ltd. pays a Annually dividend of ¥5 which represents an annual dividend yield of N/A. See more information on Drecom Co., Ltd. dividends here

What is Drecom Co., Ltd.’s EPS estimate?

Drecom Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Drecom Co., Ltd. have?

Drecom Co., Ltd. has 29,446,213 shares outstanding.

What happened to Drecom Co., Ltd.’s price movement after its last earnings report?

Drecom Co., Ltd. reported an EPS of ¥21.67 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.478%.

Which hedge fund is a major shareholder of Drecom Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3793

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Drecom Co., Ltd.

Drecom Co.,Ltd. plans and develops content for smartphones in Japan. It engages in games and media business. The company was founded in 2001 and is headquartered in Tokyo, Japan.