Drecom Co., Ltd. (JP:3793)
:3793
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Drecom Co., Ltd.
(3793)
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Rating:42Neutral
Price Target:
¥389.00
▼(-2.75% Downside)
Action:ReiteratedDate: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
High Revenue Growth
Sustained historical top-line growth indicates the company has generated strong user adoption or successful launches recently. Over a 2–6 month horizon this supports continued investment in live titles and platform features, improving odds of recurring monetization and cross-sell.
Negative Factors
Declining Profitability
Negative trailing margins and deteriorating gross profit reduce internal funding for content development and marketing. Persistently weak profitability forces reliance on external financing or cuts to R&D/ops, harming long‑term product competitiveness and the ability to sustain live services.
Read all positive and negative factors
Positive Factors
Negative Factors
High Revenue Growth
Sustained historical top-line growth indicates the company has generated strong user adoption or successful launches recently. Over a 2–6 month horizon this supports continued investment in live titles and platform features, improving odds of recurring monetization and cross-sell.
Read all positive factors
Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.05B
Dividend YieldN/A
Average Volume (3M)106.72K
Price to Earnings (P/E)4.7
Beta (1Y)0.85
Revenue Growth93.85%
EPS Growth-216.24%
CountryJP
Employees369
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)21.67
Shares Outstanding29,446,213
10 Day Avg. Volume96,340
30 Day Avg. Volume106,716
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)3.48
Price to Sales (P/S)1.30
P/FCF Ratio26.24
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)31.2
Revenue Forecast (FY)¥20.80B
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...
Drecom Co., Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| 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
Positive
400.00
Price Trends
405.44
Positive
414.42
Positive
457.06
Negative
Market Momentum
0.27
Negative
57.74
Neutral
87.27
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 401.75, below the 50-day MA of 405.44, and below the 200-day MA of 457.06, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | ¥9.39B | 9.63 | ― | ― | 11.15% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥41.26B | 9.53 | ― | 4.06% | -15.30% | 39.61% | |
52 Neutral | ¥25.81B | -95.92 | ― | ― | -14.71% | -38.87% | |
48 Neutral | ¥11.24B | 137.85 | ― | ― | 16.70% | 87.76% | |
46 Neutral | ¥18.95B | 9.33 | ― | ― | -37.68% | ― | |
42 Neutral | ¥12.05B | 4.66 | ― | ― | 93.85% | -216.24% |
* 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.