DREAMBED CO.,LTD. (7791) AI Stock Analysis

• Market Cap: ¥3.67B
• Dividend Yield: 3.66%
• Average Volume (3M): 5.71K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.34
• Revenue Growth: 15.75%
• EPS Growth: 44.95%
• Country: JP
• Employees: 363
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 32.14
• Shares Outstanding: 4,152,820
• 10 Day Avg. Volume: 1,780
• 30 Day Avg. Volume: 5,706
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,008.00
• Price Target Upside: 13.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,008.00 ▲(13.13% Upside)

Dreambed Co., Ltd. demonstrates strong financial health with robust revenue growth and solid operational margins. The stock's valuation is attractive with a low P/E ratio and a high dividend yield. However, technical indicators suggest the stock is currently overbought, which could lead to a short-term pullback. Overall, the stock presents a strong investment opportunity, with financial performance and valuation being the most significant factors.

DREAMBED CO.,LTD. Business Overview & Revenue Model

Company Description

DREAMBED CO.,LTD. (7791) is a Japanese company that specializes in the manufacturing and sale of bedding products. The company is known for producing high-quality mattresses, bedding accessories, and related furnishings. It caters to both individual consumers and businesses, offering products designed to enhance sleep quality and comfort. DREAMBED CO.,LTD. operates within the home furnishings and sleep solutions sector, continuously innovating to meet the evolving needs of its customer base.

How the Company Makes Money

DREAMBED CO.,LTD. generates revenue primarily through the sale of its bedding products, including mattresses and accessories, to both retail and commercial clients. The company may also engage in partnerships with hospitality businesses, supplying bedding solutions to hotels and resorts, which can be a significant revenue stream. Additionally, DREAMBED CO.,LTD. might leverage collaborations with other retailers or distributors to expand its market reach. The company's earnings are influenced by factors such as product quality, brand reputation, and the overall demand for bedding products in the markets it serves.

DREAMBED CO.,LTD. Financial Statement Overview

Summary

Dreambed Co., Ltd. shows robust revenue growth and maintains healthy gross and operational margins, although net profitability could be enhanced. The balance sheet is stable with manageable debt levels and a solid equity base. Cash flows are stable, although there is variability in free cash flow generation. Overall, the financial health of the company is strong, with opportunities for further profitability improvements.

Income Statement

Dreambed Co., Ltd. experienced strong revenue growth of 18.54% in the latest year, with a gross profit margin of 52.14% and a net profit margin of 3.61%. EBIT and EBITDA margins are at 5.17% and 8.33% respectively, reflecting solid operational efficiency. However, net profit margins are relatively low, indicating potential for improvement in net profitability.

Balance Sheet

The company demonstrates a moderate debt-to-equity ratio of 0.87, suggesting manageable leverage. Return on Equity (ROE) is 9.21%, indicating decent profitability relative to equity. The equity ratio stands at 40.00%, reflecting a stable equity base amidst its asset structure. However, there is room for improved equity efficiency.

Cash Flow

Operating cash flow to net income ratio is moderately strong at 1.16, indicating good cash conversion from net income. The free cash flow to net income ratio is 0.50, reflecting reasonable free cash generation. Despite challenges in consistent free cash flow growth, the cash flow position remains stable overall.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.51B	11.51B	9.71B	9.84B	9.45B	8.98B
Gross Profit	6.00B	6.00B	4.97B	4.95B	4.90B	4.72B
EBITDA	936.42M	958.29M	789.08M	901.44M	843.45M	932.77M
Net Income	414.27M	415.09M	254.93M	442.13M	446.03M	521.50M
Balance Sheet
Total Assets	11.27B	11.27B	10.76B	9.65B	8.26B	7.08B
Cash, Cash Equivalents and Short-Term Investments	797.13M	797.13M	706.40M	542.23M	1.10B	633.26M
Total Debt	3.90B	3.90B	3.80B	3.10B	1.98B	2.33B
Total Liabilities	6.76B	6.76B	6.54B	5.60B	4.46B	4.88B
Stockholders Equity	4.51B	4.51B	4.22B	4.05B	3.80B	2.21B
Cash Flow
Free Cash Flow	0.00	209.45M	-301.13M	-1.41B	-292.65M	170.52M
Operating Cash Flow	0.00	481.80M	1.08B	490.99M	504.91M	349.66M
Investing Cash Flow	0.00	-335.57M	-1.47B	-1.94B	-821.66M	-170.05M
Financing Cash Flow	0.00	-55.50M	551.71M	892.20M	782.53M	-22.25M

DREAMBED CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 891.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7791, the sentiment is Positive. The current price of 891 is below the 20-day moving average (MA) of 895.65, above the 50-day MA of 858.42, and above the 200-day MA of 784.32, indicating a neutral trend. The MACD of 10.40 indicates Positive momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7791.

DREAMBED CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	80 Outperform	4.32B	7.15	21.11%	1.40%	0.28%	-27.08%
7791	75 Outperform	¥3.67B	8.14		3.66%	15.75%	44.95%
7840	75 Outperform	44.68B	16.07	7.25%	3.01%	0.19%	-9.79%
7898	74 Outperform	8.35B	4.07	3.98%	2.68%	0.90%	0.00%
7887	72 Outperform	7.36B	13.76	0.41%	2.00%	7.48%	10.02%
6612	50 Neutral	7.05B	-19.42	1.54%	―	-16.75%	45.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%