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

• Market Cap: ¥11.30B
• Dividend Yield: N/A
• Average Volume (3M): 106.72K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.74
• Revenue Growth: 93.85%
• EPS Growth: -216.24%
• Country: JP
• Employees: 369
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 21.67
• Shares Outstanding: 29,446,213
• 10 Day Avg. Volume: 96,340
• 30 Day Avg. Volume: 106,716
• PEG Ratio: 0.01
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 26.24
• 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
• EPS Forecast (FY): -60.7
• Revenue Forecast (FY): ¥17.50B

• Rating: 42 Neutral
• Price Target: ¥373.00 ▼(-6.75% Downside)
• Action: Reiterated Date: 07/31/25
• Date: Action: Reiterated 07/31/25

The most significant factors affecting Drecom Co., Ltd.'s stock score are its financial performance and technical analysis. The company's financial statements reveal challenges in revenue growth and profitability, along with increased leverage. Technically, the stock is in a bearish trend, trading below major moving averages, with an oversold RSI but negative MACD momentum. The valuation is impacted by a negative P/E ratio, reflecting current losses.

Positive Factors

Strong historical revenue growth

A reported revenue growth rate of ~71.7% indicates Drecom has achieved substantial top-line expansion recently, implying successful product launches or stronger monetization. Over 2-6 months this supports improved market traction and potential operating leverage if revenue momentum is sustained.

Negative Factors

Inconsistent cash generation

Operating and free cash flows have been volatile with recent negative trends, indicating the company struggles to reliably convert earnings into cash. This undermines internal funding for content and user acquisition, increasing reliance on external financing and limiting strategic flexibility over coming quarters.

Drecom Co., Ltd. Business Overview & Revenue Model

Company Description

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....

How the Company Makes Money

Drecom primarily generates revenue through the development and operation of mobile/online games and digital content services. Its earnings are typically driven by (1) in-game monetization (e.g., purchases of virtual items and other pay-to-play fea...

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Drecom primarily generates revenue through the development and operation of mobile/online games and digital content services. Its earnings are typically driven by (1) in-game monetization (e.g., purchases of virtual items and other pay-to-play fea...

Drecom Co., Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.00B	12.66B	9.78B	10.80B	10.53B	11.84B
Gross Profit	4.14B	3.48B	3.40B	4.56B	3.80B	4.00B
EBITDA	1.01B	638.46M	1.05B	2.55B	2.13B	2.71B
Net Income	-2.68B	-1.04B	104.05M	1.16B	807.30M	1.62B
Balance Sheet
Total Assets	10.89B	13.53B	14.17B	12.25B	9.68B	9.62B
Cash, Cash Equivalents and Short-Term Investments	3.93B	3.93B	5.94B	6.04B	4.74B	5.29B
Total Debt	4.29B	4.73B	6.47B	3.84B	3.01B	3.20B
Total Liabilities	7.95B	8.81B	8.51B	6.62B	5.11B	5.76B
Stockholders Equity	2.94B	4.72B	5.66B	5.63B	4.57B	3.85B
Cash Flow
Free Cash Flow	0.00	626.38M	-475.64M	2.64B	1.53B	3.18B
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: Negative
• Last Price: 400.00
• 50DMA: Negative
• 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 Negative. The current price of 400 is below the 20-day moving average (MA) of 400.65, below the 50-day MA of 410.26, and below the 200-day MA of 461.33, indicating a bearish trend. The MACD of -2.41 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3793.

Drecom Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3911	62 Neutral	¥9.15B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥41.75B	9.53	―	4.06%	-15.30%	39.61%
3656	52 Neutral	¥26.98B	-95.92	―	―	-14.71%	-38.87%
4175	48 Neutral	¥10.66B	137.85	―	―	16.70%	87.76%
3903	46 Neutral	¥16.56B	9.33	―	―	-37.68%	―
3793	42 Neutral	¥11.30B	4.66	―	―	93.85%	-216.24%