Dream Vision Co., Ltd. (3185) AI Stock Analysis

• Market Cap: ¥4.21B
• Dividend Yield: N/A
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -11.07%
• EPS Growth: 27.85%
• Country: JP
• Employees: 165
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -5.54
• Shares Outstanding: 18,366,100
• 10 Day Avg. Volume: 673,280
• 30 Day Avg. Volume: 3,355,963
• PEG Ratio: 0.92
• Price to Book (P/B): -4.58
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -5.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ¥221.00 ▲(7.80% Upside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical indicators also suggest a bearish trend, while valuation metrics highlight the stock's unattractiveness due to negative earnings and lack of dividends.

Positive Factors

Stable Gross Margin

A stable gross profit margin indicates durable control over cost of goods sold and core product economics. This preserves unit-level profitability, enabling margin recovery if revenue stabilizes and supporting long-term operating leverage improvements when SG&A is optimized.

Free Cash Flow Coverage

A free cash flow to net income ratio above 1 shows the business can convert operations into cash even with accounting losses. This structural cash-generation ability reduces immediate financing needs and supports working capital and debt service if sustained over multiple quarters.

Positive TTM ROE

Positive trailing ROE suggests the company can generate returns on its equity base, reflecting operational effectiveness. If balance sheet normalization occurs, this indicates underlying profitability potential and management ability to extract returns despite recent headwinds.

Negative Factors

Declining Revenue Trend

Sustained double-digit revenue decline reduces scale and competitive positioning, eroding pricing power and ability to absorb fixed costs. Over several quarters this weakens margins, cash flow and investment capacity, making strategic recovery and growth investments harder to finance.

High Leverage

Significant leverage and a low equity ratio constrain financial flexibility, increase interest burdens and raise refinancing risk. With weak operating cash flow and falling sales, high debt amplifies downside risk and limits the company's ability to invest or respond to market shifts.

Negative Operating Cash Flow

Persistent negative operating cash flow erodes liquidity and forces reliance on external funding or asset sales. Structurally, this undermines the firm's ability to service debt, fund working capital and execute turnaround plans without material balance-sheet repair.

Dream Vision Co., Ltd. Business Overview & Revenue Model

Company Description

Dream Vision Co.,Ltd., together with its subsidiaries, engages in the internet mail order sale of clothing, shoes, and other goods in Japan and internationally. It sells fashion-related products, such as shirts, blouses, shoes, and miscellaneous goods to women of all ages through internet and departmental stores. The company also sells bridal jewelry, such as engagement rings and wedding rings at brick-and-mortar stores, e-commerce sites, street shops, fashion buildings, hotels, etc. In addition, it is also involved in the provision of logistics management and EC business promotion support services; and OEM and production management of toys and miscellaneous goods. The company was incorporated in 1998 and is headquartered in Ikeda, Japan. Dream Vision Co.,Ltd. operates as a subsidiary of Rizap Group, Inc.

How the Company Makes Money

Dream Vision Co., Ltd. generates revenue through multiple streams, including software licensing, subscription services, and direct sales of digital products. The company offers a range of software solutions that cater to various industries, which are monetized through one-time licensing fees and ongoing subscription models. Additionally, Dream Vision Co., Ltd. partners with major entertainment firms to create and distribute digital content, earning revenue through royalties and profit-sharing agreements. The company also capitalizes on its expertise in virtual reality by developing bespoke experiences for clients, which are charged on a project basis. Strategic collaborations with technology firms further enhance its market reach and revenue potential.

Dream Vision Co., Ltd. Financial Statement Overview

Summary

Dream Vision Co., Ltd. is facing significant financial challenges, with declining revenues, negative profitability, high leverage, and negative cash flows. These issues highlight the need for strategic adjustments to improve operational efficiency and reduce debt.

Income Statement

Dream Vision Co., Ltd. has been experiencing declining revenues, with a negative revenue growth rate of -5.95% in the TTM period. The company is also facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively stable, suggesting some control over cost of goods sold, but overall profitability is under pressure.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity is positive in the TTM period, but this is primarily due to negative equity in previous periods. The equity ratio is low, reflecting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis reveals negative operating cash flow and a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.50B	4.66B	5.18B	4.95B	6.02B
Gross Profit	1.90B	2.02B	2.17B	2.49B	2.50B	2.71B
EBITDA	-120.83M	-173.14M	-155.76M	71.56M	111.14M	-346.74M
Net Income	-301.77M	-369.77M	-352.26M	-132.08M	-49.12M	-507.74M
Balance Sheet
Total Assets	2.34B	2.61B	2.66B	3.08B	3.24B	3.47B
Cash, Cash Equivalents and Short-Term Investments	609.64M	445.28M	628.57M	790.34M	1.20B	1.42B
Total Debt	1.35B	2.28B	1.54B	1.96B	2.08B	2.26B
Total Liabilities	2.11B	3.07B	2.37B	2.81B	2.97B	3.27B
Stockholders Equity	231.47M	-462.79M	282.44M	271.67M	271.73M	197.46M
Cash Flow
Free Cash Flow	-94.69M	-375.97M	72.40M	-103.46M	17.79M	67.63M
Operating Cash Flow	-87.69M	-358.00M	80.53M	-78.56M	95.24M	147.78M
Investing Cash Flow	-187.96M	-83.38M	-242.91M	-8.44M	-72.39M	-646.00K
Financing Cash Flow	292.22M	297.92M	-122.41M	-220.97M	-280.03M	423.23M

Dream Vision Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 205.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3185, the sentiment is Neutral. The current price of 205 is below the 20-day moving average (MA) of 226.70, below the 50-day MA of 217.86, and above the 200-day MA of 183.06, indicating a neutral trend. The MACD of 3.71 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3185.

Dream Vision Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3181	80 Outperform	¥3.18B	10.19	―	1.12%	24.10%	-15.55%
3192	73 Outperform	¥1.96B	4.71	―	―	0.06%	―
3138	72 Outperform	¥3.26B	55.66	―	1.63%	2.88%	-69.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.73B	10.68	―	1.76%	2.24%	―
3195	48 Neutral	¥4.24B	26.20	―	―	1.95%	―
3185	39 Underperform	¥4.21B	-13.74	―	―	-11.07%	27.85%