Edia Co. Ltd. (3935) AI Stock Analysis

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Edia Co. Ltd.

(TSE/TYO:3935)

Select Model

Rating:75Outperform

Price Target:JPY 703.00▲(5.71% Upside)

Action:reiterated

Date:11/07/26

The overall score of 75 is driven primarily by the company's exceptional financial turnaround and a highly attractive valuation, marked by strong revenue growth, high margins, and a low P/E ratio of 8.8. A deeply de-risked balance sheet further supports the fundamental strength. However, the score is tempered by notable technical weakness, as the stock is in a pronounced downtrend, although oversold momentum indicators suggest limited further downside risk.

Positive Factors

Revenue Growth and Profit TurnaroundThe sustained recovery from losses to profitability, combined with substantial revenue expansion, indicates that Edia has improved both scale and earnings capacity. Continued growth in the latest period strengthens its ability to fund content development, expand intellectual-property monetization, and support earnings over the next several quarters.

Negative Factors

Profit Margin VariabilityVariable net margins make it harder to assess how durable Edia’s improved earnings will be as its revenue base expands. If profitability does not stabilize, additional sales may translate into less consistent earnings and cash generation, limiting the predictability of returns from future content and IP investments.

Edia Co. Ltd. (3935) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.76B
Dividend Yield: 1.95%
Average Volume (3M): 37.39K
Price to Earnings (P/E): 9.4
Beta (1Y): 0.75
Revenue Growth: 9.28%
EPS Growth: 14.57%
Country: Japan
Employees: 99
Sector: Communication Services
Sector Strength: 60
Industry: Software - Application

Edia Co. Ltd. Business Overview & Revenue Model

Company Description

Edia Co., Ltd. engages in the planning, development and management of mobile content services for smart phones. It operates through following business divisions: Game Service and Life Support Service. The Game Service division offers platform service...

How the Company Makes Money

Edia’s earnings are generated mainly by monetizing entertainment content and intellectual property. Key revenue streams are understood to include: (1) Game/content revenue: income from developing and operating game titles and related digital content,...

Edia Co. Ltd. Financial Statement Overview

Summary

The company demonstrates excellent financial health driven by uninterrupted revenue expansion, a successful turnaround to robust profitability, and significant debt reduction. A minor constraint is that recent cash flow conversion slightly lags the surging net income growth.

Income Statement

85Very Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	4.66B	4.66B	3.61B	3.28B	2.76B	2.49B
Gross Profit	2.77B	2.77B	2.09B	1.81B	1.64B	1.45B
EBITDA	447.47M	449.54M	249.05M	180.72M	180.75M	156.45M
Net Income	476.25M	476.25M	234.02M	150.08M	150.67M	108.10M
Balance Sheet
Total Assets	2.79B	2.79B	3.00B	2.40B	1.65B	2.26B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.34B	1.77B	1.42B	780.56M	830.22M
Total Debt	475.00M	475.00M	923.30M	672.31M	217.48M	308.47M
Total Liabilities	1.17B	1.17B	1.63B	1.26B	655.96M	1.39B
Stockholders Equity	1.62B	1.62B	1.37B	1.14B	992.16M	869.06M
Cash Flow
Free Cash Flow	0	250.73M	240.56M	205.52M	51.35M	133.95M
Operating Cash Flow	0	257.70M	246.83M	234.01M	54.72M	139.26M
Investing Cash Flow	0	-9.80M	-5.32M	-54.23M	-13.97M	-9.10M
Financing Cash Flow	0	-680.09M	112.59M	454.83M	-91.01M	-197.53M

Edia Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price665.00

Price Trends

50DMA711.56Negative

100DMA708.26Negative

200DMA698.40Negative

Market Momentum

MACD-18.54Positive

RSI40.54Neutral

STOCH40.35Neutral

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 665.00 is below the 20-day moving average (MA) of 691.90, below the 50-day MA of 711.56, and below the 200-day MA of 698.40, indicating a bearish trend. The MACD of -18.54 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:3935 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3935	75Outperform	JPY 4.12B	9.38	―	1.95%	9.28%	14.57%
JP:3911	70Outperform	JPY 10.93B	8.90	―	―	-20.04%	-54.97%
JP:3793	68Neutral	JPY 13.16B	4.27	―	―	4.52%	―
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3904	56Neutral	JPY 6.33B	11.68	―	0.99%	20.33%	15.26%
JP:3928	49Neutral	JPY 2.09B	-19.95	―	―	-6.91%	-173.90%
JP:3903	43Neutral	JPY 7.65B	-4.39	―	―	26.98%	-143.29%

* Communication Services Sector Average

Performance Comparison

JP:3935 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3935	Edia Co. Ltd.	665.00	-231.44	-25.82%
JP:3793	Drecom Co., Ltd.	456.00	6.00	1.33%
JP:3903	gumi, Inc.	138.00	-258.00	-65.15%
JP:3904	KAYAC, Inc.	401.00	-82.30	-17.03%
JP:3911	Aiming, Inc.	228.00	1.00	0.44%
JP:3928	Mynet, Inc.	222.00	-39.00	-14.94%

Edia Co. Ltd. Corporate Events

Edia Guides for Profit Recovery and Higher Dividend Despite Weaker First Half

Oct 15, 2026

Edia Co. Ltd. reported consolidated net sales of ¥2,285 million for the six months ended August 31, 2026, down 1.4% year on year, while operating profit fell 26.8% to ¥218 million and profit attributable to owners of parent declined 23.1% to ¥195 mil...

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.

Date of analysis: Nov 07, 2026

Edia Co. Ltd. AI Stock Analysis