Edia Co. Ltd. (3935) AI Stock Analysis

• Market Cap: ¥4.76B
• Dividend Yield: 0.91%
• Average Volume (3M): 140.99K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.94
• Revenue Growth: 10.05%
• EPS Growth: 55.47%
• Country: JP
• Employees: 85
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 16.62
• Shares Outstanding: 6,198,000
• 10 Day Avg. Volume: 145,870
• 30 Day Avg. Volume: 140,990
• PEG Ratio: 0.94
• Price to Book (P/B): 5.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 108.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥749.00
• Price Target Upside: -2.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥851.00 ▲(10.81%Upside)

Edia Co. Ltd.'s strong financial performance and solid technical indicators drive a positive stock score. While valuation metrics show a fair price, potential overbought conditions warrant caution.

Edia Co. Ltd. Business Overview & Revenue Model

Company Description

Edia Co. Ltd. (3935) is a Japanese company engaged mainly in the development and distribution of content in the entertainment sector. The company focuses on creating and offering mobile and online games, as well as digital media content. Edia Co. Ltd. leverages its expertise in gaming and digital media to deliver engaging experiences to its users, primarily in the Japanese market.

How the Company Makes Money

Edia Co. Ltd. generates revenue through several streams primarily centered around its gaming and digital media services. The company earns money by developing and distributing mobile and online games, which are monetized through in-app purchases and advertisements. Additionally, Edia Co. Ltd. may partner with other companies to co-develop or distribute games, thus expanding its reach and potential revenue. The company also offers digital media content, which can include e-books, music, and other forms of digital entertainment, contributing to its earnings through direct sales and subscriptions. Strategic partnerships and licensing agreements further enhance their revenue opportunities by tapping into broader market segments and leveraging popular franchises or content.

Edia Co. Ltd. Financial Statement Overview

Summary

Edia Co. Ltd. exhibits strong financial health with consistent revenue growth, improved profit margins, and efficient cash flow management. Despite past losses and fluctuating debt levels, the company's recent financial trajectory is positive.

Income Statement

Edia Co. Ltd. has shown a strong financial performance with consistent revenue growth over the past years, most notably with a significant revenue increase from 2024 to 2025. Gross profit and net profit margins have improved, indicating enhanced operational efficiency. The EBIT and EBITDA margins have also shown positive trends, demonstrating robust core earnings potential. However, the company experienced losses in earlier years, which slightly tempers the overall strong performance.

Balance Sheet

The balance sheet of Edia Co. Ltd. reflects a solid financial position with a favorable debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is stable, and return on equity has improved significantly, showcasing effective use of shareholders' funds. Despite these strengths, the company has had fluctuating debt levels over time, which could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement indicates healthy operating cash flows with consistent growth in free cash flow, reflecting strong cash generation capabilities. The operating cash flow to net income ratio suggests efficient cash management. However, historical volatility in free cash flow growth highlights some operational risks that the company needs to address to ensure sustainable cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.42B	3.61B	3.28B	2.76B	2.49B	2.47B
Gross Profit	1.97B	2.09B	1.81B	1.64B	1.45B	1.43B
EBITDA	254.45M	249.05M	180.72M	180.75M	156.45M	13.14M
Net Income	217.91M	234.02M	150.08M	150.67M	108.10M	-80.66M
Balance Sheet
Total Assets	2.64B	3.00B	2.40B	1.65B	1.55B	1.69B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.77B	1.42B	780.56M	830.22M	896.88M
Total Debt	718.00M	923.30M	672.31M	217.48M	308.47M	506.27M
Total Liabilities	1.40B	1.63B	1.26B	655.96M	682.62M	930.78M
Stockholders Equity	1.24B	1.37B	1.14B	992.16M	869.06M	758.93M
Cash Flow
Free Cash Flow	0.00	240.56M	205.52M	51.35M	133.95M	-32.90M
Operating Cash Flow	0.00	246.83M	234.01M	54.72M	139.26M	13.18M
Investing Cash Flow	0.00	-5.32M	-54.23M	-13.97M	-9.10M	-49.98M
Financing Cash Flow	0.00	112.59M	454.83M	-91.01M	-197.53M	-114.68M

Edia Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 768.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3935, the sentiment is Positive. The current price of 768 is above the 20-day moving average (MA) of 719.55, above the 50-day MA of 655.40, and above the 200-day MA of 492.11, indicating a bullish trend. The MACD of 24.51 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3935.

Edia Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3935	78 Outperform	¥4.76B	20.12		0.91%	10.05%	55.47%
3907	74 Outperform	¥2.61B	9.56		―	1.02%	3129.12%
3928	70 Neutral	¥2.15B	11.09		―	0.08%	43.63%
Sector *	62 Neutral	$40.75B	-1.21	-12.05%	3.97%	2.04%	-69.68%
3851	58 Neutral	¥4.26B	41.88		0.59%	-0.75%	-126.41%
3667	49 Neutral	¥3.89B	―		―	-8.79%	49.62%
3810	43 Neutral	¥6.32B	―		―	-17.67%	26.46%

Edia Co. Ltd. Corporate Events

Edia Co., Ltd. Reports Strong Fiscal Year 2025 Financial Results

Edia Co., Ltd. announced its consolidated financial results for the fiscal year ended February 28, 2025, reporting a significant increase in net sales and profits compared to the previous year. The company achieved a 10.1% rise in net sales and a notable increase in operating profit by 62.6%, reflecting strong business performance. The improved financial results indicate a positive impact on the company’s operations and its positioning within the digital content industry, suggesting potential benefits for stakeholders.