DLE, Inc. (3686) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: N/A
• Average Volume (3M): 160.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 1.74%
• EPS Growth: 51.02%
• Country: JP
• Employees: 125
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ¥118.00 ▼(-6.35% Downside)

DLE, Inc. is currently facing significant financial and operational challenges, as reflected in its low financial performance score. The technical analysis also indicates a bearish trend, with the stock trading below key moving averages and weak momentum indicators. The negative P/E ratio and lack of dividend yield further contribute to the low valuation score. Overall, the stock's outlook is concerning, with strategic improvements needed to enhance its financial health and market performance.

DLE, Inc. Business Overview & Revenue Model

Company Description

DLE, Inc. (3686) operates primarily in the technology and digital content sectors, offering a variety of services and products that cater to both individual consumers and businesses. The company specializes in the development and distribution of digital content, including media, entertainment, and educational resources, leveraging cutting-edge technology to enhance user experience and engagement.

How the Company Makes Money

DLE, Inc. generates revenue through multiple streams, including the sale of digital content and subscription services. The company partners with content creators and distributors to offer a diverse range of products and services to its customer base. Additionally, DLE, Inc. monetizes its platform through advertising, leveraging user data to provide targeted marketing solutions for businesses. Key partnerships with technology companies and content providers enhance its offerings, contributing significantly to its earnings.

DLE, Inc. Financial Statement Overview

Summary

DLE, Inc. faces significant financial challenges, with consistent losses impacting profitability and cash flow. Despite a strong equity position with low leverage, negative margins and cash flow issues suggest operational inefficiencies. Strategic changes are needed to improve financial health and ensure long-term viability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.98B	1.71B	2.02B	1.64B	1.12B
Gross Profit	704.79M	745.33M	493.61M	596.34M	566.82M	435.78M
EBITDA	-676.42M	-676.42M	-544.07M	-499.32M	-194.18M	-607.16M
Net Income	-759.84M	-728.50M	-562.13M	-582.32M	-315.16M	-514.51M
Balance Sheet
Total Assets	2.63B	2.63B	3.62B	3.18B	3.58B	3.89B
Cash, Cash Equivalents and Short-Term Investments	587.87M	587.87M	1.01B	1.42B	2.08B	2.59B
Total Debt	25.00M	25.00M	1.00M	12.71M	63.02M	138.34M
Total Liabilities	770.20M	770.20M	672.63M	398.99M	415.38M	508.87M
Stockholders Equity	1.81B	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: 126.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 126 is below the 20-day moving average (MA) of 127.25, below the 50-day MA of 135.78, and below the 200-day MA of 137.76, indicating a bearish trend. The MACD of -3.13 indicates Negative momentum. The RSI at 39.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.32 is Neutral, 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
4317	―	¥9.20B	7.65	―	2.24%	4.44%	29.38%
4308	―	¥9.30B	16.99	―	3.77%	5.98%	87.95%
4772	―	¥14.02B	16.15	―	0.87%	1.62%	188.00%
3929	―	¥3.03B	13.25	―	―	-10.99%	―
4347	―	¥12.27B	32.57	―	2.30%	2.98%	-22.92%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3686	―	¥5.39B	―	―	―	1.74%	51.02%