DLE, Inc. (3686) AI Stock Analysis

• Market Cap: ¥6.26B
• Dividend Yield: N/A
• Average Volume (3M): 228.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 1.74%
• EPS Growth: 51.02%
• Country: JP
• Employees: 125
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 43,448,440
• 10 Day Avg. Volume: 290,700
• 30 Day Avg. Volume: 228,653
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥140.00
• Price Target Upside: -2.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥140.00 ▼(-2.78% Downside)

DLE, Inc. is facing significant financial and operational challenges, with consistent losses and cash flow issues being the most impactful factors. The technical analysis indicates weak market momentum, and the valuation metrics suggest overvaluation concerns. Strategic improvements are necessary to enhance financial stability 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. is experiencing revenue growth but faces profitability and cash flow challenges. The company maintains a strong equity position, yet persistent losses and negative cash flows highlight 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.98B	1.71B	2.02B	1.64B	1.12B
Gross Profit	745.33M	551.17M	596.34M	566.82M	435.78M
EBITDA	-676.42M	-544.07M	-499.32M	-194.18M	-607.16M
Net Income	-728.50M	-520.66M	-582.32M	-311.41M	-510.93M
Balance Sheet
Total Assets	2.63B	3.62B	3.18B	3.58B	3.89B
Cash, Cash Equivalents and Short-Term Investments	587.87M	1.01B	1.42B	2.08B	2.59B
Total Debt	25.00M	1.00M	12.71M	63.02M	138.34M
Total Liabilities	770.20M	672.63M	398.99M	415.38M	508.87M
Stockholders Equity	1.81B	2.85B	2.67B	3.14B	3.37B
Cash Flow
Free Cash Flow	-438.52M	-466.15M	-489.19M	-270.73M	-529.57M
Operating Cash Flow	-433.61M	-418.41M	-434.51M	-240.94M	-458.53M
Investing Cash Flow	16.58M	6.01M	-222.52M	-209.39M	-736.52M
Financing Cash Flow	24.00M	-11.71M	10.00M	-67.65M	-152.26M

DLE, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.00
• 50DMA: Negative
• 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:3686, the sentiment is Negative. The current price of 144 is below the 20-day moving average (MA) of 151.70, below the 50-day MA of 156.18, and above the 200-day MA of 134.82, indicating a neutral trend. The MACD of -4.58 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 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	82 Outperform	¥7.94B	7.53		2.70%	0.83%	23.88%
4308	75 Outperform	¥9.20B	16.95		3.78%	5.98%	87.95%
4772	68 Neutral	¥13.79B	16.02		0.84%	1.62%	188.00%
3929	64 Neutral	¥2.95B	12.89		―	-10.99%	―
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
4347	60 Neutral	¥12.55B	34.59		2.34%	2.98%	-22.92%
3686	41 Neutral	¥6.26B	―		―	1.74%	51.02%