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Drecom Co., Ltd.
(3793)
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Rating:58Neutral
Price Target:
¥407.00
▲(1.75% 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
Improved Cash Generation
The company reported materially improved operating and free cash flow in 2026 after prior negative or weak years. Strong cash conversion increases funding for live‑ops and content, lowers reliance on external funding, and provides durable flexibility to invest in recurring revenue drivers.
Negative Factors
Thin, Volatile Profitability
Earnings have swung from a large loss in 2025 to a small profit in 2026 and net margins are currently around ~1%. Such volatility and low margins constrain retained earnings, make reinvestment plans harder, and leave operating leverage fragile over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
The company reported materially improved operating and free cash flow in 2026 after prior negative or weak years. Strong cash conversion increases funding for live‑ops and content, lowers reliance on external funding, and provides durable flexibility to invest in recurring revenue drivers.
Read all positive factors
Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.64B
Dividend YieldN/A
Average Volume (3M)106.72K
Price to Earnings (P/E)56.1
Beta (1Y)0.85
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. is a Japanese company, based in Tokyo, that specializes in the ideation and development of content for smartphones. Its operations encompass both the gaming and media sectors. The firm commenced its business activities in 2001....
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
Neutral
400.00
Price Trends
413.36
Negative
408.80
Negative
425.54
Negative
Market Momentum
-4.59
Negative
53.22
Neutral
66.79
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 400 is above the 20-day moving average (MA) of 397.40, below the 50-day MA of 413.36, and below the 200-day MA of 425.54, indicating a neutral trend. The MACD of -4.59 indicates Negative momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 66.79 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥41.88B | 7.41 | ― | 4.06% | 9.32% | 243.27% | |
66 Neutral | ¥9.20B | 10.35 | ― | ― | -21.20% | 141.82% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | ¥11.64B | 56.08 | ― | ― | 38.66% | ― | |
54 Neutral | ¥12.67B | 8.26 | ― | ― | 2.70% | -30.63% | |
51 Neutral | ¥12.90B | -28.98 | ― | ― | 2.67% | -203.45% | |
42 Neutral | ¥16.13B | -2.56 | ― | ― | -17.15% | -70.83% |
* 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.