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

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JP:3793

Drecom Co., Ltd.

(3793)

Rating:42Neutral
Price Target:
¥452.00
▼(-6.03% Downside)
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.

Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)

Drecom Co., Ltd. Business Overview & Revenue Model

Company DescriptionDrecom Co., Ltd. (3793) is a Japanese technology company primarily engaged in the development and operation of mobile and online games. The company operates in multiple sectors, including game development, media content, and advertising. Drecom is known for producing and managing a variety of engaging gaming content and applications, catering to a diverse audience across different platforms.
How the Company Makes MoneyDrecom Co., Ltd. makes money through various revenue streams, primarily focusing on the mobile and online gaming sector. The company generates income through in-app purchases, where users buy virtual goods and services within their games. Additionally, Drecom earns revenue from advertising by integrating ads into their games and media content. Another significant revenue source is licensing agreements, where Drecom licenses its game titles or technology to other companies. Partnerships with other gaming and technology firms also contribute to its revenue, allowing for collaborative projects and shared profits.

Drecom Co., Ltd. Financial Statement Overview

Summary
Drecom Co., Ltd. faces challenges in maintaining consistent revenue growth and profitability. The balance sheet is stable but increasingly leveraged, and cash flow fluctuations highlight potential 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.65B12.66B9.78B10.80B10.53B11.84B
Gross Profit3.48B3.48B3.40B4.56B3.80B4.00B
EBITDA-633.18M-514.67M236.48M2.12B1.75B2.70B
Net Income-1.04B-1.04B104.05M1.16B807.30M1.62B
Balance Sheet
Total Assets13.51B13.51B14.15B12.23B9.65B9.61B
Cash, Cash Equivalents and Short-Term Investments3.93B3.93B5.94B6.04B4.74B5.29B
Total Debt4.73B4.73B6.47B3.84B2.97B3.19B
Total Liabilities8.79B8.79B8.48B6.60B5.08B5.76B
Stockholders Equity4.72B4.72B5.66B5.63B4.57B3.85B
Cash Flow
Free Cash Flow0.00626.38M-2.48B639.26M-171.82M2.65B
Operating Cash Flow0.00634.08M-473.24M2.67B1.60B3.20B
Investing Cash Flow0.00-899.38M-2.05B-2.02B-1.77B-1.14B
Financing Cash Flow0.00-1.74B2.41B658.83M-387.77M968.89M

Drecom Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price481.00
Price Trends
50DMA
518.62
Negative
100DMA
527.47
Negative
200DMA
643.97
Negative
Market Momentum
MACD
-9.03
Positive
RSI
36.73
Neutral
STOCH
8.26
Positive
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 481 is below the 20-day moving average (MA) of 498.45, below the 50-day MA of 518.62, and below the 200-day MA of 643.97, indicating a bearish trend. The MACD of -9.03 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 8.26 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥2.27B17.35
-5.92%-56.33%
68
Neutral
¥14.66B22.26
1.40%1.15%-8.55%
60
Neutral
$46.60B4.09-11.41%4.12%1.85%-42.71%
54
Neutral
¥12.52B8.80
4.13%
50
Neutral
¥30.56B15.04
-25.89%
46
Neutral
¥3.99B
-12.26%44.44%
42
Neutral
¥13.92B
56.97%-780.15%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3793
Drecom Co., Ltd.
481.00
-209.00
-30.29%
JP:3667
enish, Inc.
119.00
-62.00
-34.25%
JP:3723
Nihon Falcom Corporation
1,440.00
359.38
33.26%
JP:3903
gumi, Inc.
611.00
306.00
100.33%
JP:3911
Aiming, Inc.
268.00
44.00
19.64%
JP:3928
Mynet, Inc.
257.00
-95.00
-26.99%
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.Date of analysis: Jul 31, 2025