Drecom Co., Ltd. (JP:3793)
:3793
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Drecom Co., Ltd.
(3793)
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Rating:58Neutral
Price Target:
¥464.00
▲(16.00% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by improving financial performance (better cash generation and reduced leverage in 2026) but is held back by volatile and currently thin profitability. Technicals are supportive but appear overbought, while a high P/E with no dividend yield provided weighs on valuation.
Positive Factors
Revenue recovery and growth
The 2026 revenue rebound (~17% YoY) indicates the business can re‑accelerate top‑line growth after a down year. For a live‑service games company, regained player engagement and recurring microtransaction spend improve revenue visibility and support durable monetization over coming quarters.
Negative Factors
Thin, volatile profitability
Earnings swung from a large loss to a small profit and net margins are only ~1%, showing pronounced earnings volatility. Sustained shareholder returns and reinvestment capacity depend on stabilizing margins; recurring profitability remains vulnerable to product success and cost swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and growth
The 2026 revenue rebound (~17% YoY) indicates the business can re‑accelerate top‑line growth after a down year. For a live‑service games company, regained player engagement and recurring microtransaction spend improve revenue visibility and support durable monetization over coming quarters.
Read all positive factors
Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.83B
Dividend YieldN/A
Average Volume (3M)106.72K
Price to Earnings (P/E)52.5
Beta (1Y)0.84
Revenue Growth38.66%
EPS GrowthN/A
CountryJP
Employees369
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-93.37
Shares Outstanding29,446,213
10 Day Avg. Volume96,340
30 Day Avg. Volume106,716
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)2.23
Price to Sales (P/S)0.64
P/FCF Ratio5.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)32.8
Revenue Forecast (FY)¥19.60B
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 from (1) in-game spending (microtransactions) and related live-operations monetization in its mobile/online games, where ongoing content updates and events drive recurring player purchases; and (2) game-related s...
Drecom Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.00B | 17.55B | 12.66B | 9.78B | 10.80B | 10.53B |
| Gross Profit | 4.14B | 5.43B | 3.48B | 3.40B | 4.56B | 3.80B |
| EBITDA | 1.01B | 1.53B | 638.46M | 1.05B | 2.55B | 2.13B |
| Net Income | -2.68B | 213.67M | -1.04B | 104.05M | 1.16B | 807.30M |
Balance Sheet | ||||||
| Total Assets | 10.89B | 11.88B | 13.53B | 14.17B | 12.25B | 9.68B |
| Cash, Cash Equivalents and Short-Term Investments | 3.93B | 6.38B | 3.93B | 5.94B | 6.04B | 4.74B |
| Total Debt | 4.29B | 3.12B | 4.73B | 6.47B | 3.84B | 3.01B |
| Total Liabilities | 7.95B | 6.83B | 8.81B | 8.51B | 6.62B | 5.11B |
| Stockholders Equity | 2.94B | 5.04B | 4.72B | 5.66B | 5.63B | 4.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.18B | 626.38M | -475.64M | 2.64B | 1.53B |
| Operating Cash Flow | 0.00 | 2.20B | 634.08M | -473.24M | 2.67B | 1.60B |
| Investing Cash Flow | 0.00 | 1.87B | -899.38M | -2.05B | -2.02B | -1.77B |
| Financing Cash Flow | 0.00 | -1.62B | -1.74B | 2.41B | 658.83M | -387.77M |
Drecom Co., Ltd. Technical Analysis
Positive
400.00
Price Trends
411.32
Positive
411.46
Positive
442.00
Positive
Market Momentum
12.24
Negative
64.75
Neutral
81.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3793, the sentiment is Positive. The current price of 400 is below the 20-day moving average (MA) of 424.85, below the 50-day MA of 411.32, and below the 200-day MA of 442.00, indicating a bullish trend. The MACD of 12.24 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3793.
Drecom Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥44.42B | 6.92 | ― | 4.06% | 9.32% | 243.34% | |
63 Neutral | ¥8.03B | 13.66 | ― | ― | -21.20% | 141.82% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | ¥12.83B | 52.52 | ― | ― | 38.66% | ― | |
49 Neutral | ¥25.41B | -11.91 | ― | ― | -17.15% | -70.83% | |
46 Neutral | ¥15.68B | 9.33 | ― | ― | -22.53% | ― | |
45 Neutral | ¥9.94B | 11.35 | ― | ― | 7.99% | ― |
* Communication Services Sector Average
JP:3793
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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.