Drecom Co., Ltd. AI Stock Analysis
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Drecom Co., Ltd. (3793) AI Stock Analysis
Drecom Co., Ltd.
(TSE/TYO:3793)
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.
Drecom Co., Ltd. (3793) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 12.90B
- Dividend Yield
- ―
- Average Volume (3M)
- 113.20K
- Price to Earnings (P/E)
- 4.3
- Beta (1Y)
- 0.94
- Revenue Growth
- 4.52%
- EPS Growth
- ―
- Country
- Japan
- Employees
- 275
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Electronic Gaming & Multimedia
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 within...
Drecom Co., Ltd. Financial Statement Overview
Summary
2026 shows a clear recovery with revenue up ~17% YoY, materially improved operating/free cash flow, and reduced leverage (debt-to-equity down to ~0.62). Offsetting this, profitability remains thin (~1% net margin) and volatile versus the stronger 2021–2023 period, with gross margin compressed (~31% in 2026 vs low-40% in 2023), keeping the score mid-range.
Income Statement
58NeutralBalance Sheet
63PositiveCash Flow
70Positive| 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 | 2.18B | 626.38M | -475.64M | 2.64B | 1.53B |
| Operating Cash Flow | 0 | 2.20B | 634.08M | -473.24M | 2.67B | 1.60B |
| Investing Cash Flow | 0 | 1.87B | -899.38M | -2.05B | -2.02B | -1.77B |
| Financing Cash Flow | 0 | -1.62B | -1.74B | 2.41B | 658.83M | -387.77M |
Drecom Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3793, the sentiment is Neutral. The current price of 457.00 is below the 20-day moving average (MA) of 492.35, below the 50-day MA of 516.82, and above the 200-day MA of 443.28, indicating a neutral trend. The MACD of -25.25 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 40.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3793.
Drecom Co., Ltd. Peers Comparison
Overall Rating
JP:391170Outperform- JP:379370Outperform
JP:393268Neutral
JP:390343Neutral
JP:417542Neutral
JP:365641Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3911 | 70Outperform | JPY 11.12B | 9.29 | ― | ― | -20.04% | -54.97% |
| JP:3793 | 70Outperform | JPY 12.87B | 4.28 | ― | ― | 4.52% | ― |
| JP:3932 | 68Neutral | JPY 54.71B | 7.39 | ― | 9.21% | 31.30% | 923.93% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:3903 | 43Neutral | JPY 8.09B | -4.64 | ― | ― | 26.98% | -143.29% |
| JP:4175 | 42Neutral | JPY 12.72B | -16.07 | ― | ― | -1.75% | -617.20% |
| JP:3656 | 41Neutral | JPY 11.97B | 14.26 | ― | ― | 10.54% | ― |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3793 | Drecom Co., Ltd. | 457.00 | -1.00 | -0.22% | |
| JP:3656 | KLab Inc. | 147.00 | -93.00 | -38.75% | |
| JP:3903 | gumi, Inc. | 148.00 | -282.00 | -65.58% | |
| JP:3911 | Aiming, Inc. | 232.00 | -3.00 | -1.28% | |
| JP:3932 | Akatsuki, Inc. | 1303.00 | 425.34 | 48.46% | |
| JP:4175 | coly Inc. | 2270.00 | 253.00 | 12.54% |
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.
Date of analysis: Aug 17, 2026