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Drecom Co., Ltd.
(3793)
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Rating:70Outperform
Price Target:
¥573.00
▲(43.25% Upside)
Action:Upgraded
Date:08/17/26
The score is led by improving fundamentals (stronger 2026 revenue growth, cash flow recovery, and lower leverage) and supportive technical momentum with the stock trading above major moving averages. The main constraint is financial volatility and still-thin profitability with compressed gross margins, while valuation looks favorable given the low P/E.
Positive Factors
Revenue Recovery
The strong 2026 rebound shows the business can re-accelerate after weaker periods. Sustained growth in digital entertainment revenue would improve operating leverage and provide a stronger base for future content investment.
Negative Factors
Thin Profitability
Despite revenue recovery, Drecom remains only marginally profitable and earnings have been volatile. Thin profits leave limited protection against weaker user spending, higher development costs or underperformance of major live-service titles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The strong 2026 rebound shows the business can re-accelerate after weaker periods. Sustained growth in digital entertainment revenue would improve operating leverage and provide a stronger base for future content investment.
Read all positive factors
Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.13B
Dividend YieldN/A
Average Volume (3M)106.72K
Price to Earnings (P/E)6.4
Beta (1Y)1.01
Revenue Growth16.24%
EPS GrowthN/A
CountryJP
Employees275
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)80.96
Shares Outstanding29,451,212
10 Day Avg. Volume96,340
30 Day Avg. Volume106,716
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)2.23
Price to Sales (P/S)0.64
P/FCF Ratio5.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)20.7
Revenue Forecast (FY)¥18.30B
Drecom Co., Ltd. Business Overview & Revenue Model
Company Description
Drecom Co.,Ltd. is a Japanese company, based in Tokyo, that specializes in the ideation and development of content for smartphones. Its operations encompass both the gaming and media sectors. The firm commenced its business activities in 2001....
How the Company Makes Money
Drecom primarily makes money by developing and operating mobile/online games and monetizing them through in-game purchases (e.g., virtual items, gacha/loot-style mechanics where applicable, and other digital content) and other player spending with...
Drecom Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.44B | 17.55B | 12.66B | 9.78B | 10.80B | 10.53B |
| Gross Profit | 5.73B | 5.43B | 3.48B | 3.40B | 4.56B | 3.80B |
| EBITDA | 2.02B | 1.53B | 638.46M | 1.05B | 2.55B | 2.13B |
| Net Income | 2.34B | 213.67M | -1.04B | 104.05M | 1.16B | 807.30M |
Balance Sheet | ||||||
| Total Assets | 11.07B | 11.88B | 13.53B | 14.17B | 12.25B | 9.68B |
| Cash, Cash Equivalents and Short-Term Investments | 5.45B | 6.38B | 3.93B | 5.94B | 6.04B | 4.74B |
| Total Debt | 2.69B | 3.12B | 4.73B | 6.47B | 3.84B | 3.01B |
| Total Liabilities | 5.80B | 6.83B | 8.81B | 8.51B | 6.62B | 5.11B |
| Stockholders Equity | 5.27B | 5.04B | 4.72B | 5.66B | 5.63B | 4.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.18B | 626.38M | -475.64M | 2.64B | 1.53B |
| Operating Cash Flow | 0.00 | 2.20B | 634.08M | -473.24M | 2.67B | 1.60B |
| Investing Cash Flow | 0.00 | 1.87B | -899.38M | -2.05B | -2.02B | -1.77B |
| Financing Cash Flow | 0.00 | -1.62B | -1.74B | 2.41B | 658.83M | -387.77M |
Drecom Co., Ltd. Technical Analysis
Positive
400.00
Price Trends
435.70
Positive
426.37
Positive
421.40
Positive
Market Momentum
20.71
Negative
75.03
Negative
95.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3793, the sentiment is Positive. The current price of 400 is below the 20-day moving average (MA) of 467.95, below the 50-day MA of 435.70, and below the 200-day MA of 421.40, indicating a bullish trend. The MACD of 20.71 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 95.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3793.
Drecom Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥46.56B | 7.27 | ― | 4.06% | 31.30% | 923.93% | |
70 Outperform | ¥15.13B | 6.44 | ― | ― | 16.24% | ― | |
61 Neutral | ¥8.59B | 13.39 | ― | ― | -23.76% | -54.87% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥15.25B | 9.95 | ― | ― | 2.70% | -28.19% | |
50 Neutral | ¥15.80B | -35.49 | ― | ― | 2.67% | -203.45% | |
42 Neutral | ¥16.21B | 19.58 | ― | ― | 10.54% | ― |
* Communication Services Sector Average
JP:3793
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.