Edia Co. Ltd. (3935) AI Stock Analysis

• Market Cap: ¥5.70B
• Dividend Yield: 0.76%
• Average Volume (3M): 122.72K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.90
• Revenue Growth: 26.95%
• EPS Growth: 84.92%
• Country: JP
• Employees: 85
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 21.13
• 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: ¥1,026.00 ▲(8.23% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which are critical for sustaining long-term business success.

Cash Generation

Strong cash generation capabilities ensure the company can fund operations, invest in growth opportunities, and manage debt effectively.

Profit Margins

Improved profit margins reflect better cost management and pricing power, enhancing the company's competitive position and profitability.

Negative Factors

Fluctuating Debt Levels

Fluctuating debt levels can lead to financial instability, increasing the risk of cash flow strain and limiting strategic flexibility.

Past Losses

Historical losses may indicate potential vulnerabilities in the business model or market conditions, affecting investor confidence and long-term growth prospects.

Operational Risks

Volatility in cash flow growth suggests potential operational inefficiencies, which could impact the company's ability to sustain cash generation and fund future growth.

Edia Co. Ltd. Business Overview & Revenue Model

Company Description

Edia Co., Ltd. engages in the intellectual property (IP) and publishing businesses in Japan, North America, Asia, and internationally. The company engages in the IP licensing business comprising planning, development, and operation of game applications; planning, production, sales, and distribution of game, and anime-related music and drama CDs; planning, development, and provision of practical service content and applications for mobile devices; production and sales of anime and game-related goods, and online lottery services. It also publishes light novels, comics, and e-books. The company was incorporated in 1999 and is based in Tokyo, Japan.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 948.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 948 is above the 20-day moving average (MA) of 942.15, above the 50-day MA of 923.74, and above the 200-day MA of 811.54, indicating a neutral trend. The MACD of -1.46 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥5.70B	14.89	―	0.76%	26.95%	84.92%
3928	65 Neutral	¥2.18B	18.00	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3907	58 Neutral	¥2.02B	6.42	―	1.36%	2.33%	―
3851	51 Neutral	¥3.93B	-18.94	―	0.64%	-13.35%	-258.79%
3810	41 Neutral	¥21.00B	-3.62	―	―	-15.04%	25.50%
3667	37 Underperform	¥1.94B	-1.75	―	―	-22.21%	32.20%

Edia Co. Ltd. Corporate Events

Edia Co., Ltd. Reports Strong Financial Growth and Upward Forecast Revisions

Edia Co., Ltd. reported a significant increase in its financial performance for the six months ending August 31, 2025, with net sales rising by 37.1% and operating profit by 129.5% compared to the same period last year. The company has revised its earnings forecasts upwards, indicating strong future growth prospects, which may positively impact its market position and stakeholder confidence.