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Drecom Co., Ltd. (JP:3793)
:3793
Japanese Market

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

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JP

Drecom Co., Ltd.

(3793)

Rating:56Neutral
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. (3793) vs. iShares MSCI Japan ETF (EWJ)

Drecom Co., Ltd. Business Overview & Revenue Model

Company DescriptionDrecom 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 MoneyDrecom 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
45
Neutral
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
60
Neutral
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
55
Neutral
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
10.34B12.66B9.78B10.80B10.53B11.84B
Gross Profit
2.94B3.48B3.40B4.56B3.80B4.00B
EBIT
88.25M112.01M903.04M2.28B1.59B2.05B
EBITDA
-492.15M-514.67M236.48M2.12B1.75B2.70B
Net Income Common Stockholders
-816.97M-1.04B104.05M1.16B807.30M1.62B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.36B3.93B5.94B6.04B4.74B5.29B
Total Assets
13.58B13.51B14.15B12.23B9.65B9.61B
Total Debt
5.17B4.73B6.47B3.84B2.97B3.19B
Net Debt
812.00M800.77M537.55M-2.21B-1.76B-2.10B
Total Liabilities
8.66B8.79B8.48B6.60B5.08B5.76B
Stockholders Equity
4.91B4.72B5.66B5.63B4.57B3.85B
Cash FlowFree Cash Flow
0.00626.38M-2.48B639.26M-171.82M2.65B
Operating Cash Flow
0.00634.08M-473.24M2.67B1.60B3.20B
Investing Cash Flow
0.00-899.38M-2.05B-2.02B-1.77B-1.14B
Financing Cash Flow
0.00-1.74B2.41B658.83M-387.77M968.89M

Drecom Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price533.00
Price Trends
50DMA
527.88
Positive
100DMA
669.66
Negative
200DMA
709.14
Negative
Market Momentum
MACD
-2.91
Positive
RSI
47.50
Neutral
STOCH
31.73
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥2.19B11.36
0.08%43.63%
68
Neutral
¥11.22B20.79
1.83%-21.03%-42.64%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
56
Neutral
¥15.42B
29.41%-1104.58%
52
Neutral
¥12.24B33.04
<0.01%
48
Neutral
¥26.23B13.15
-12.61%-314.92%
44
Neutral
¥3.37B
-8.79%49.62%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3793
Drecom Co., Ltd.
538.00
-192.00
-26.30%
JP:3667
enish, Inc.
104.00
-144.00
-58.06%
JP:3723
Nihon Falcom Corporation
1,108.00
12.65
1.15%
JP:3903
gumi, Inc.
540.00
208.00
62.65%
JP:3911
Aiming, Inc.
260.00
32.00
14.04%
JP:3928
Mynet, Inc.
253.00
-77.00
-23.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.