DreamArts Corp. (4811) AI Stock Analysis

• Market Cap: ¥14.22B
• Dividend Yield: 1.06%
• Average Volume (3M): 11.84K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.79
• Revenue Growth: 16.64%
• EPS Growth: 87.19%
• Country: JP
• Employees: 272
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 44.96
• Shares Outstanding: 3,871,560
• 10 Day Avg. Volume: 8,900
• 30 Day Avg. Volume: 11,843
• PEG Ratio: 0.75
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 10.16
• 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): 22,893.97
• Revenue Forecast (FY): ¥860.83B

• Rating: 68 Neutral
• Price Target: ¥4,191.00 ▲(8.29% Upside)

DreamArts Corp. exhibits strong financial performance with robust revenue growth and profitability, which is the most significant factor driving the score. However, the technical analysis indicates a bearish trend, which weighs on the overall score. The valuation is reasonable, providing a balanced view of the stock's potential.

DreamArts Corp. Business Overview & Revenue Model

Company Description

DreamArts Corp. (4811) is a leading company in the digital arts and creative solutions sector, specializing in innovative design software, artistic tools, and multimedia content creation. The company serves a broad range of industries, including entertainment, advertising, and education, providing products that empower creators and enhance artistic expression. DreamArts Corp. is known for its user-friendly platforms that integrate advanced technology with artistic functionalities, catering to both professionals and hobbyists alike.

How the Company Makes Money

DreamArts Corp. generates revenue through a diversified model that includes direct sales of its software products, subscription services for ongoing access to its tools and resources, and in-app purchases for additional features and content. Key revenue streams include the sale of licenses for its flagship software packages, monthly or annual subscription fees for cloud-based services, and partnerships with educational institutions that integrate its tools into their curricula. Furthermore, the company has established significant partnerships with creative agencies and production companies, enabling co-branded offerings and expanding its market reach. These collaborations, along with a growing user base in the digital arts space, contribute to the company's robust earnings.

DreamArts Corp. Financial Statement Overview

Summary

DreamArts Corp. presents a strong financial position with impressive growth in revenue and profitability, underpinned by low leverage and efficient cash generation. Despite a minor decline in free cash flow growth, the company's financial health remains robust, with a balanced approach to equity and debt financing supporting sustainable growth.

Income Statement

DreamArts Corp. shows strong revenue growth with a Revenue Growth Rate of 13.35% in the latest year. The Gross Profit Margin stands at 57.06%, indicating healthy profitability. The Net Profit Margin improved to 10.95%, showcasing effective cost management. With an EBIT Margin of 15.36% and EBITDA Margin of 18.91%, the company demonstrates solid operational efficiency.

Balance Sheet

The company's Balance Sheet reflects robustness with a Debt-to-Equity Ratio of 0.13, suggesting low leverage. Return on Equity is strong at 23.87%, highlighting efficient use of equity. An Equity Ratio of 48.79% suggests moderate reliance on equity financing, indicating a well-balanced capital structure.

Cash Flow

Operating Cash Flow shows a healthy generation at 1.82 times the Net Income, indicating effective cash conversion. Free Cash Flow to Net Income Ratio of 1.77 reflects ample free cash flow generation. However, the Free Cash Flow Growth Rate of -4.38% indicates a slight decline in free cash flow over the year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.43B	5.03B	4.44B	3.67B	2.94B
Gross Profit	3.29B	2.87B	2.37B	1.84B	1.35B
EBITDA	1.30B	947.61M	742.46M	366.32M	122.63M
Net Income	779.55M	551.34M	424.29M	127.13M	10.88M
Balance Sheet
Total Assets	5.65B	4.73B	3.95B	2.43B	2.02B
Cash, Cash Equivalents and Short-Term Investments	4.48B	3.57B	2.84B	1.27B	924.69M
Total Debt	0.00	300.00M	300.00M	300.00M	450.00M
Total Liabilities	3.03B	2.42B	2.13B	1.57B	1.31B
Stockholders Equity	2.62B	2.31B	1.82B	853.92M	710.07M
Cash Flow
Free Cash Flow	0.00	976.00M	1.02B	485.50M	3.51M
Operating Cash Flow	0.00	1.00B	1.18B	721.30M	132.09M
Investing Cash Flow	0.00	-201.00M	-162.39M	-235.61M	-132.58M
Financing Cash Flow	0.00	-77.00M	538.27M	-149.98M	-205.04M

DreamArts Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3870.00
• 50DMA: Negative
• 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:4811, the sentiment is Neutral. The current price of 3870 is below the 20-day moving average (MA) of 3892.50, below the 50-day MA of 4072.00, and above the 200-day MA of 3277.99, indicating a neutral trend. The MACD of -66.78 indicates Positive momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 38.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4811.

DreamArts Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3914	72 Outperform	¥22.82B	61.81	―	―	3.17%	-16.66%
5582	70 Outperform	¥11.83B	39.51	―	―	24.90%	-26.71%
4811	68 Neutral	¥14.22B	19.14	―	1.06%	16.64%	87.19%
3850	65 Neutral	¥19.77B	29.08	―	0.94%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	60 Neutral	¥11.49B	-27.59	―	―	6.29%	-180.52%
3695	56 Neutral	¥8.40B	48.35	―	6.00%	14.59%	-71.29%