Edia Co. Ltd. (3935) AI Stock Analysis

• Market Cap: ¥4.77B
• Dividend Yield: 0.76%
• Average Volume (3M): 122.72K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.79
• Revenue Growth: 26.95%
• EPS Growth: 84.92%
• Country: JP
• Employees: 85
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 7.46
• Shares Outstanding: 6,198,000
• 10 Day Avg. Volume: 160,900
• 30 Day Avg. Volume: 122,723
• PEG Ratio: 0.21
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 11.54
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥870.00 ▼(-8.23% Downside)
• Action: Reiterated Date: 07/16/25
• Date: Action: Reiterated 07/16/25

Edia Co. Ltd. achieves a strong overall stock score based on its excellent financial performance and favorable valuation. The technical analysis suggests bullish momentum, although caution is advised due to overbought indicators. The absence of recent earnings call insights and corporate events does not impact the score significantly.

Positive Factors

Consistent Revenue Growth

Edia's documented multi-year revenue growth and a notable increase from 2024–2025 indicate expanding product adoption and improving monetization. Durable top-line momentum supports reinvestment in live services, IP development and marketing, reducing reliance on short-term hits over the next 2–6 months.

Strong Cash Generation

Robust operating cash flow and rising free cash flow provide durable internal funding for game live-ops, content production and licensing deals. Reliable cash generation improves flexibility to invest in user acquisition and IP, lessening near-term external financing needs.

Prudent Balance Sheet

A favorable debt-to-equity profile and improved ROE reflect conservative leverage and more efficient capital use, giving Edia structural financial flexibility. This balance-sheet strength supports continued content investment and ability to withstand 2–6 month industry cyclicality without urgent refinancing risk.

Negative Factors

Legacy Losses and Fluctuating Debt

Historical losses and swings in debt levels weaken accumulated reserves and can constrain strategic choices. If revenue momentum slows, servicing or refinancing variable debt could pressure cash flow and limit long-term investments in IP and live operations over the coming months.

Volatile Free Cash Flow Growth

Intermittent free cash flow volatility makes budgeting for content launches, marketing and licensing less predictable. That operational variability raises the risk that short-term funding needs or margin targets may be missed, complicating sustained reinvestment in growth initiatives.

Concentration Risk in IP and Titles

Edia's revenue dependence on individual title performance and IP lifecycles creates a hit-driven business model. With a small team scale and concentrated revenue sources, failure to launch or sustain key titles can materially affect revenue and margins across a 2–6 month horizon.

Edia Co. Ltd. Business Overview & Revenue Model

Company Description

Edia Co. Ltd. (3935) is a Japanese company specializing in the development and publishing of mobile and online games. The company operates primarily in the gaming sector, creating engaging content that caters to a diverse audience. Edia focuses on both original titles and collaborations with established franchises, leveraging its expertise to deliver high-quality gaming experiences across various platforms.

How the Company Makes Money

Edia Co. Ltd. generates revenue primarily through the sale of mobile and online games, which includes both one-time purchases and in-game transactions. The company's revenue model is largely based on freemium strategies, where games are offered for free with optional in-app purchases. Key revenue streams include the sale of virtual goods, character upgrades, and seasonal content updates that enhance gameplay. Additionally, Edia may engage in partnerships with other gaming companies or franchises to co-develop titles, which can provide additional revenue through licensing fees and shared profits. Advertising revenue from in-game promotions also contributes to the company's earnings, especially in free-to-play titles.

Edia Co. Ltd. Financial Statement Overview

Summary

Edia Co. Ltd. demonstrates strong financial health with consistent revenue growth and improved profit margins. The balance sheet shows a favorable debt-to-equity ratio, and cash flow generation is robust. However, past losses and fluctuating debt levels pose some risks.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	3.95B	3.61B	3.28B	2.76B	2.49B	2.47B
Gross Profit	2.31B	2.09B	1.81B	1.64B	1.45B	1.43B
EBITDA	366.58M	249.05M	180.72M	180.75M	156.45M	13.14M
Net Income	311.79M	234.02M	150.08M	150.67M	108.10M	-80.66M
Balance Sheet
Total Assets	3.34B	3.00B	2.40B	1.65B	1.55B	1.69B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.77B	1.42B	780.56M	830.22M	896.88M
Total Debt	1.29B	923.30M	672.31M	217.48M	308.47M	506.27M
Total Liabilities	1.93B	1.63B	1.26B	655.96M	682.62M	930.78M
Stockholders Equity	1.41B	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: Neutral
• Last Price: 948.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3935, the sentiment is Neutral. The current price of 948 is above the 20-day moving average (MA) of 739.81, above the 50-day MA of 803.11, and above the 200-day MA of 871.49, indicating a neutral trend. The MACD of -9.65 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 33.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	¥4.77B	11.73	―	0.76%	26.95%	84.92%
3904	66 Neutral	¥7.57B	11.02	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.95B	9.15	―	―	11.15%	―
3928	61 Neutral	¥2.61B	11.18	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3903	46 Neutral	¥17.96B	5.89	―	―	-37.68%	―
3793	42 Neutral	¥11.88B	-6.01	―	―	93.85%	-216.24%

Edia Co. Ltd. Corporate Events

Edia Posts Surge in Nine-Month Profit and Hikes Dividend Outlook

Edia Co., Ltd. reported strong consolidated results for the nine months ended November 30, 2025, with net sales rising 37.8% year-on-year to ¥3,487 million and operating profit more than doubling to ¥369 million. Ordinary profit climbed 130.2% to ¥341 million and profit attributable to owners of parent surged 124.5% to ¥296 million, boosting basic earnings per share to ¥49.35. The company’s financial position also improved, with the equity-to-asset ratio increasing to 53.3%, and it plans to raise total annual dividends for the fiscal year ending February 28, 2026 to a range of ¥11.00–¥13.00 per share, reflecting its earnings strength and shareholder return stance. For the full fiscal year, Edia forecasts continued growth, projecting net sales of ¥4.5–4.7 billion and profit attributable to owners of parent of ¥300–380 million, underscoring management’s confidence in sustained profitability despite acknowledging that actual results may diverge from projections due to various factors.

The most recent analyst rating on (JP:3935) stock is a Buy with a Yen1113.00 price target. To see the full list of analyst forecasts on Edia Co. Ltd. stock, see the JP:3935 Stock Forecast page.