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DLE, Inc.
(3686)
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Rating:41Neutral
Price Target:
¥58.00
▼(-55.38% Downside)
Action:Reiterated
Date:07/28/26
The score is primarily held down by weak financial performance, driven by persistent operating losses and ongoing negative operating/free cash flow alongside declining equity. Technicals also weigh heavily, with the stock trading well below major moving averages, signaling a sustained downtrend. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Low leverage / financial flexibility
Historically low leverage through FY2022–FY2025 provides durable financial flexibility: it reduces near-term solvency risk, makes incremental borrowing or restructuring easier, and lengthens runway while management works to restore profitability, a lasting advantage vs highly levered peers.
Negative Factors
Chronic negative cash flow
Persistent negative operating and free cash flow across all reported years is a structural weakness: it forces reliance on external financing or asset sales, limits reinvestment, increases dilution risk, and materially constrains the firm's ability to scale or withstand further revenue shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / financial flexibility
Historically low leverage through FY2022–FY2025 provides durable financial flexibility: it reduces near-term solvency risk, makes incremental borrowing or restructuring easier, and lengthens runway while management works to restore profitability, a lasting advantage vs highly levered peers.
Read all positive factors
DLE, Inc. (3686) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.69B
Dividend YieldN/A
Average Volume (3M)160.13K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-26.06%
EPS Growth33.51%
CountryJP
Employees63
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-11.43
Shares Outstanding43,448,440
10 Day Avg. Volume146,490
30 Day Avg. Volume160,126
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)3.35
Price to Sales (P/S)3.04
P/FCF Ratio-6.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DLE, Inc. Business Overview & Revenue Model
Company Description
DLE Inc. is a multifaceted Japanese entertainment company, engaging in a wide array of activities. Its core operations encompass animation production, live entertainment events, and musical endeavors, alongside the creation of mobile applications ...
DLE, Inc. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
18
Very Negative
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.46B | 1.98B | 1.71B | 2.02B | 1.64B |
| Gross Profit | 562.27M | 745.33M | 493.61M | 596.34M | 566.82M |
| EBITDA | -563.83M | -413.48M | -608.21M | -286.90M | -195.57M |
| Net Income | -498.00M | -728.50M | -562.13M | -582.32M | -315.16M |
Balance Sheet | |||||
| Total Assets | 1.83B | 2.63B | 3.62B | 3.18B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 818.33M | 587.87M | 1.01B | 1.42B | 2.08B |
| Total Debt | 300.00M | 25.00M | 1.00M | 12.71M | 63.02M |
| Total Liabilities | 498.63M | 770.20M | 744.90M | 398.99M | 415.38M |
| Stockholders Equity | 1.33B | 1.81B | 2.81B | 2.67B | 3.14B |
Cash Flow | |||||
| Free Cash Flow | -670.41M | -437.65M | -341.68M | -397.24M | -236.05M |
| Operating Cash Flow | -665.35M | -432.74M | -335.80M | -393.92M | -234.66M |
| Investing Cash Flow | 543.99M | 15.75M | 6.01M | -191.41M | -205.32M |
| Financing Cash Flow | 402.45M | 24.00M | -11.71M | -20.20M | -71.72M |
DLE, Inc. Technical Analysis
Negative
130.00
Price Trends
73.94
Negative
90.08
Negative
107.06
Negative
Market Momentum
-4.52
Positive
23.69
Positive
15.56
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 67.05, above the 50-day MA of 73.94, and above the 200-day MA of 107.06, indicating a bearish trend. The MACD of -4.52 indicates Positive momentum. The RSI at 23.69 is Positive, neither overbought nor oversold. The STOCH value of 15.56 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥431.78B | 16.15 | ― | 0.33% | 3.01% | 47.37% | |
77 Outperform | ¥159.93B | 11.30 | ― | 1.17% | 29.87% | 22.94% | |
75 Outperform | ¥1.28T | 26.53 | 9.32% | 1.48% | 16.81% | 25.25% | |
73 Outperform | ¥613.74B | 23.21 | ― | 1.12% | -1.08% | 9.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | ¥21.44B | 32.16 | ― | 1.11% | -3.66% | -23.42% | |
41 Neutral | ¥2.69B | -5.42 | ― | ― | -26.06% | 33.51% |
* Communication Services Sector Average
JP:3686
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.