Recurring Live-service RevenueLive-service and in-game monetization create recurring revenue streams tied to player engagement and content longevity. This model supports predictable lifetime value, enables ongoing monetization from existing titles, and provides a durable foundation for reinvesting in new content and platform capabilities.

Solid Asset Base & Equity RatioA stable balance sheet with a reasonable equity ratio and solid asset base provides financial cushion across development cycles. This structural strength supports capital allocation for title development, platform investment or partnerships without immediate liquidity strain in typical conditions.

Strong Topline GrowthReported revenue growth near 72% indicates robust topline expansion, suggesting successful launches or improved monetization. Sustained top-line momentum supports scale economics, better funding for live-ops and R&D, and a stronger position for licensing and partnership opportunities over the medium term.

Bears Say

Declining ProfitabilityDecreasing gross margins and a negative trailing net margin show the company is not reliably converting revenue into profit. Persistent negative profitability erodes retained capital, reduces ability to self-fund development and marketing, and pressures long-term sustainability without corrective measures.

Rising Financial LeverageAn increasing debt-to-equity ratio indicates rising leverage, which heightens fixed interest obligations and reduces financial flexibility. For a hit-driven gaming business with revenue volatility, higher leverage raises refinancing and covenant risk and can constrain investments in content and user acquisition.

Weak Cash ConversionInconsistent free cash flow and weak operating cash conversion indicate difficulty turning earnings into usable cash. This forces reliance on external financing, risks underfunding live-ops and content updates, and reduces the company’s ability to sustain long-term product support during revenue slowdowns.

3793 FAQ

What was Drecom Co., Ltd.’s price range in the past 12 months?

Drecom Co., Ltd. lowest stock price was ¥392.00 and its highest was ¥1064.00 in the past 12 months.

What is Drecom Co., Ltd.’s market cap?

Drecom Co., Ltd.’s market cap is ¥11.56B.

When is Drecom Co., Ltd.’s upcoming earnings report date?

Drecom Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 91 days.

How were Drecom Co., Ltd.’s earnings last quarter?

Drecom Co., Ltd. released its earnings results on Jan 29, 2026. The company reported ¥21.67 earnings per share for the quarter, beating the consensus estimate of N/A by ¥21.67.

Is Drecom Co., Ltd. overvalued?

According to Wall Street analysts Drecom Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Drecom Co., Ltd. pay dividends?

Drecom Co., Ltd. pays a Annually dividend of ¥5 which represents an annual dividend yield of N/A. See more information on Drecom Co., Ltd. dividends here

What is Drecom Co., Ltd.’s EPS estimate?

Drecom Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Drecom Co., Ltd. have?

Drecom Co., Ltd. has 29,446,213 shares outstanding.

What happened to Drecom Co., Ltd.’s price movement after its last earnings report?

Drecom Co., Ltd. reported an EPS of ¥21.67 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.478%.

Which hedge fund is a major shareholder of Drecom Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3793

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Drecom Co., Ltd.

Drecom Co.,Ltd. plans and develops content for smartphones in Japan. It engages in games and media business. The company was founded in 2001 and is headquartered in Tokyo, Japan.