Drecom Co., Ltd. (3793) AI Stock Analysis

• Market Cap: ¥15.42B
• Dividend Yield: N/A
• Average Volume (3M): 275.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 29.41%
• EPS Growth: -1104.58%
• Country: JP
• Employees: 369
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -7.36
• Shares Outstanding: 29,340,212
• 10 Day Avg. Volume: 165,350
• 30 Day Avg. Volume: 275,403
• PEG Ratio: 0.44
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.84
• 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: 56 Neutral
• Price Target: ¥568.00 ▲(6.57%Upside)

Drecom Co., Ltd.'s overall stock score is primarily influenced by financial performance, with significant challenges in revenue growth and profitability. Technical analysis provides some positive momentum, though valuation is hampered by a negative P/E ratio. The absence of earnings call and corporate event data limits additional insights.

Drecom Co., Ltd. Business Overview & Revenue Model

Company Description

Drecom Co., Ltd. (3793) is a Japan-based company primarily engaged in the development and operation of mobile games and digital content services. The company operates in two main business segments: the Mobile Games segment, which focuses on planning, developing, and managing games for smartphones and other mobile devices, and the Digital Media segment, which provides digital marketing and advertising solutions. Drecom is known for delivering engaging entertainment experiences and leveraging its expertise in technology and creative content to reach a broad audience.

How the Company Makes Money

Drecom Co., Ltd. generates revenue primarily through its Mobile Games segment by developing and publishing mobile games that are monetized via in-app purchases and advertising. The company earns money from players who make purchases within their games, such as buying virtual currency, items, or upgrades. Additionally, Drecom utilizes advertising within its games, partnering with advertisers to integrate ads that generate income based on user engagement. The Digital Media segment contributes to revenue by offering digital marketing services and solutions, helping businesses reach their target audiences through effective advertising strategies. Strategic partnerships with other gaming and technology companies also play a role in expanding their reach and enhancing their product offerings.

Drecom Co., Ltd. Financial Statement Overview

Summary

Drecom Co., Ltd. faces challenges in maintaining consistent revenue growth and profitability, reflected in its income statement. The balance sheet is stable but shows increasing leverage, and cash flow fluctuations highlight operational inefficiencies.

Income Statement

The income statement shows a mixed performance with fluctuating revenues and declining profitability. Gross profit margin is decreasing, and TTM net profit margin is negative, indicating challenges in maintaining cost efficiency. The revenue growth rate showed volatility, with recent declines suggesting market or operational difficulties.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable equity ratio and manageable debt levels. However, the recent increase in debt-to-equity ratio suggests growing financial leverage, which could pose risks if not managed carefully. The company maintains a solid asset base, supporting future growth opportunities.

Cash Flow

Cash flow analysis indicates fluctuations in free cash flow and operating cash flow. The company has experienced inconsistent free cash flow growth, and recent periods show negative trends. The operating cash flow to net income ratio indicates operational challenges in converting income to cash.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
10.34B	12.66B	9.78B	10.80B	10.53B	11.84B
	Gross Profit
2.94B	3.48B	3.40B	4.56B	3.80B	4.00B
	EBIT
88.25M	112.01M	903.04M	2.28B	1.59B	2.05B
	EBITDA
-492.15M	-514.67M	236.48M	2.12B	1.75B	2.70B
	Net Income Common Stockholders
-816.97M	-1.04B	104.05M	1.16B	807.30M	1.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.36B	3.93B	5.94B	6.04B	4.74B	5.29B
	Total Assets
13.58B	13.51B	14.15B	12.23B	9.65B	9.61B
	Total Debt
5.17B	4.73B	6.47B	3.84B	2.97B	3.19B
	Net Debt
812.00M	800.77M	537.55M	-2.21B	-1.76B	-2.10B
	Total Liabilities
8.66B	8.79B	8.48B	6.60B	5.08B	5.76B
	Stockholders Equity
4.91B	4.72B	5.66B	5.63B	4.57B	3.85B
Cash Flow		Free Cash Flow
0.00	626.38M	-2.48B	639.26M	-171.82M	2.65B
	Operating Cash Flow
0.00	634.08M	-473.24M	2.67B	1.60B	3.20B
	Investing Cash Flow
0.00	-899.38M	-2.05B	-2.02B	-1.77B	-1.14B
	Financing Cash Flow
0.00	-1.74B	2.41B	658.83M	-387.77M	968.89M

Drecom Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 533.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3793, the sentiment is Neutral. The current price of 533 is below the 20-day moving average (MA) of 547.40, above the 50-day MA of 527.88, and below the 200-day MA of 709.14, indicating a neutral trend. The MACD of -2.91 indicates Positive momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3793.

Drecom Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3928	72 Outperform	¥2.19B	11.36		―	0.08%	43.63%
3723	68 Neutral	¥11.22B	20.79		1.83%	-21.03%	-42.64%
Sector *	61 Neutral	$14.79B	5.90	-3.99%	6.20%	2.67%	-30.30%
3793	56 Neutral	¥15.42B	―		―	29.41%	-1104.58%
3911	52 Neutral	¥12.24B	33.04		―	<0.01%	―
3903	48 Neutral	¥26.23B	13.15		―	-12.61%	-314.92%
3667	44 Neutral	¥3.37B	―		―	-8.79%	49.62%