DLE, Inc. (3686) AI Stock Analysis

• Market Cap: ¥5.69B
• Dividend Yield: N/A
• Average Volume (3M): 160.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -2.84%
• EPS Growth: 36.23%
• Country: JP
• Employees: 125
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -1.50
• Shares Outstanding: 43,448,440
• 10 Day Avg. Volume: 146,490
• 30 Day Avg. Volume: 160,126
• PEG Ratio: -0.25
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -12.31
• 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: 46 Neutral
• Price Target: ¥128.00 ▼(-1.54% Downside)
• Action: Reiterated Date: 12/25/25
• Date: Action: Reiterated 12/25/25

The score is primarily held down by weak financial performance: persistent losses, negative operating metrics, and negative operating/free cash flow outweigh the benefit of low leverage. Technicals are only moderately supportive with neutral RSI and improving short-term trend, while valuation remains challenged due to the negative P/E and lack of dividend data.

Positive Factors

Revenue Growth

The significant revenue growth indicates expanding market presence and successful product adoption, which can drive future profitability.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without high debt burdens.

Strong Equity Base

A strong equity base enhances financial stability and supports long-term growth, providing a buffer against economic uncertainties.

Negative Factors

Negative Profitability

Persistent negative profitability indicates operational inefficiencies and challenges in achieving sustainable margins, impacting long-term viability.

Cash Flow Challenges

Ongoing cash flow challenges can hinder the company's ability to fund operations and growth initiatives, affecting financial health over time.

Negative Operating Metrics

Negative operating metrics suggest inefficiencies and potential difficulties in achieving profitability, which could limit future growth and investment.

DLE, Inc. Business Overview & Revenue Model

Company Description

DLE Inc. engages in the entertainment business in Japan. The company's activities include animation, live entertainment, music, mobile app and game development, and event planning; production management, concept designing, and other activities; and marketing solutions. It is also involved in the movies and television, and fashion businesses; and operation of in-house studios. The company was formerly known as Pasania, Ltd. and changed its name to DLE Inc. in October 2003. DLE Inc. was founded in 2001 and is based in Tokyo, Japan. DLE Inc. operates as a subsidiary of Asahi Broadcasting Group Holdings Corporation.

How the Company Makes Money

DLE, Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and cloud solutions to businesses. The company charges clients a recurring fee for access to its software applications, which often include features such as data analytics, customer relationship management, and enterprise resource planning. Additionally, DLE, Inc. earns income through consulting services that help organizations integrate and optimize their technology solutions. Significant partnerships with other tech firms and service providers enhance its product offerings and broaden its market reach, contributing to its overall earnings. The company also explores opportunities in licensing its technology to third parties, further diversifying its revenue sources.

DLE, Inc. Financial Statement Overview

Summary

Despite a recent revenue increase (+16.03% from 2024 to 2025) and low leverage, the company continues to post net losses with negative EBIT/EBITDA margins and negative operating/free cash flow, indicating weak profitability and ongoing cash burn.

Income Statement

DLE, Inc. has experienced fluctuating revenue growth with a recent increase of 16.03% from 2024 to 2025. However, the company consistently reports negative net income, resulting in a negative net profit margin. The gross profit margin has remained relatively stable, but negative EBIT and EBITDA margins indicate operational challenges and inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is low, indicating limited leverage and a strong equity base. However, the return on equity is negative due to persistent net losses. The equity ratio is high, reflecting a strong capital structure, but the continuous losses may pose long-term sustainability concerns.

Cash Flow

DLE, Inc. has negative operating and free cash flows, indicating cash burn issues. The free cash flow has slightly improved from the previous year, but the operating cash flow to net income ratio remains negative, highlighting cash flow challenges. The company needs to address these issues to ensure financial stability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	1.82B	1.98B	1.71B	2.02B	1.64B	1.12B
Gross Profit	703.79M	745.33M	493.61M	596.34M	566.82M	435.78M
EBITDA	-461.86M	-676.42M	-544.07M	-499.32M	-194.18M	-607.16M
Net Income	-399.45M	-728.50M	-562.13M	-582.32M	-315.16M	-514.51M
Balance Sheet
Total Assets	2.30B	2.63B	3.62B	3.18B	3.58B	3.89B
Cash, Cash Equivalents and Short-Term Investments	1.25B	587.87M	1.01B	1.42B	2.08B	2.59B
Total Debt	29.00M	25.00M	1.00M	12.71M	63.02M	138.34M
Total Liabilities	690.00M	770.20M	672.63M	398.99M	415.38M	508.87M
Stockholders Equity	1.58B	1.81B	2.85B	2.67B	3.14B	3.37B
Cash Flow
Free Cash Flow	0.00	-438.52M	-466.15M	-489.19M	-270.73M	-529.57M
Operating Cash Flow	0.00	-433.61M	-418.41M	-434.51M	-240.94M	-458.53M
Investing Cash Flow	0.00	15.75M	6.01M	-222.52M	-209.39M	-736.52M
Financing Cash Flow	0.00	24.00M	-11.71M	10.00M	-67.65M	-152.26M

DLE, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3686, the sentiment is Negative. The current price of 130 is above the 20-day moving average (MA) of 123.85, above the 50-day MA of 127.66, and below the 200-day MA of 136.72, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3686.

DLE, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥386.03B	15.48	―	0.33%	6.38%	38.69%
5032	71 Outperform	¥237.01B	16.28	―	1.17%	53.21%	65.83%
9602	69 Neutral	¥1.36T	23.78	10.28%	1.12%	10.99%	2.35%
4816	66 Neutral	¥508.67B	20.21	―	1.12%	5.90%	17.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.51B	41.90	―	1.11%	-4.66%	-56.66%
3686	46 Neutral	¥5.69B	-13.67	―	―	-2.84%	36.23%