DLE, Inc. (3686) AI Stock Analysis

• Market Cap: ¥6.14B
• Dividend Yield: N/A
• Average Volume (3M): 251.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 16.03%
• EPS Growth: -27.98%
• Country: JP
• Employees: 125
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -14.35
• Shares Outstanding: 43,254,940
• 10 Day Avg. Volume: 435,540
• 30 Day Avg. Volume: 251,966
• PEG Ratio: -0.21
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.35
• 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

• Rating: 47 Neutral
• Price Target: ¥139.00 ▼(-2.11%Downside)

DLE, Inc. faces significant financial challenges with persistent losses and negative cash flows, which weigh heavily on its overall score. While technical analysis shows positive momentum, the unattractive valuation due to ongoing financial losses limits the stock's appeal. Improvements in profitability and cash flow generation are crucial.

DLE, Inc. Business Overview & Revenue Model

Company Description

DLE, Inc. (3686) is a Japanese company primarily engaged in the entertainment sector. The company specializes in producing and distributing animated content, with a focus on digital animation. DLE, Inc. creates original animated series and films, and collaborates with various partners to bring its content to a global audience. The company also explores opportunities in the licensing and merchandising of its intellectual properties.

How the Company Makes Money

DLE, Inc. generates revenue through multiple streams primarily centered around its animated content. Key revenue sources include the production and distribution of animated series and films, which are sold to broadcasters and streaming platforms both in Japan and internationally. The company also earns income from licensing its original content for use in various media formats, as well as through merchandising deals that leverage its popular animated characters. Additionally, DLE, Inc. engages in partnerships and collaborations with other entertainment entities to expand its reach and monetize its intellectual properties more effectively.

DLE, Inc. Financial Statement Overview

Summary

DLE, Inc. is growing its revenue but is struggling significantly with profitability and cash flow. Despite a strong equity position, negative net income and cash flow issues highlight operational inefficiencies and financial risks.

Income Statement

DLE, Inc. shows a consistent increase in revenue over the years, indicating growth in its core operations. However, the company has been struggling with profitability, as evidenced by negative net income and significant EBIT losses. The gross profit margin remains relatively stable, but the net profit margin is deeply negative, showcasing ongoing challenges in managing operational costs.

Balance Sheet

The company's balance sheet reflects a strong equity position, with a healthy equity ratio indicating financial stability. However, the persistent negative net income impacts the return on equity, which remains unfavorable. The debt-to-equity ratio is low, suggesting limited leverage risk, which is a positive aspect amidst overall financial challenges.

Cash Flow

DLE, Inc. has faced significant cash flow issues, as seen in consistently negative operating and free cash flows. The company's ability to generate cash from operations is weak, and this poses a risk to its financial flexibility. The free cash flow to net income ratio is also negative, highlighting the company’s ongoing struggles with cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.91B	1.98B	1.71B	2.02B	1.64B	1.12B
Gross Profit	578.95M	745.33M	551.17M	596.34M	566.82M	435.78M
EBITDA	-671.49M	-676.42M	-544.07M	-499.32M	-194.18M	-607.16M
Net Income	-646.52M	-728.50M	-520.66M	-582.32M	-311.41M	-510.93M
Balance Sheet
Total Assets	2.81B	2.63B	3.62B	3.18B	3.58B	3.89B
Cash, Cash Equivalents and Short-Term Investments	720.00M	587.87M	1.01B	1.42B	2.08B	2.59B
Total Debt	20.00M	25.00M	1.00M	12.71M	63.02M	138.34M
Total Liabilities	859.00M	770.20M	672.63M	398.99M	415.38M	508.87M
Stockholders Equity	1.89B	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	16.58M	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: Positive
• Last Price: 142.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 142 is below the 20-day moving average (MA) of 149.15, above the 50-day MA of 140.90, and above the 200-day MA of 129.01, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 8.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3686.

DLE, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4308	75 Outperform	¥9.23B	16.75		3.77%	4.74%	84.68%
4347	74 Outperform	¥13.50B	40.20		2.15%	9.55%	-49.89%
4317	72 Outperform	¥6.49B	8.38		3.31%	-6.82%	-4.67%
4772	68 Neutral	¥12.86B	20.50		0.90%	-4.12%	115.46%
3929	65 Neutral	¥2.94B	15.05		―	-20.82%	―
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
3686	47 Neutral	¥6.14B	―		―	16.03%	-27.98%