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

JP:7791

DREAMBED CO.,LTD.

(TSE/TYO:7791)

Select Model
Rating:63Neutral
Price Target:JPY 857.00â–²(7.39% Upside)
Action:reiterated
Date:08/11/26

DREAMBED CO.,LTD. earns a moderate overall score, heavily anchored by its highly attractive valuation and strong dividend yield. However, the score is held back by significant fundamental weaknesses, particularly poor cash flow generation and rising debt levels, alongside bearish price trends and technical momentum.

Positive Factors
Revenue ReboundThe return to revenue growth over 2025–2026 indicates improving demand and market reach. If sustained, this provides a stronger base for operating leverage and supports the company’s ability to rebuild earnings after the weaker 2024 period.
Negative Factors
Weak Cash ConversionPersistently volatile free cash flow means reported profits are not consistently converting into usable cash. Working-capital swings or lumpy investment needs can constrain dividends, debt reduction, and business reinvestment over the next several years.

DREAMBED CO.,LTD. (7791) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:7791-0.19%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 3.24B
Dividend Yield
4.64%
Average Volume (3M)
2,801
Price to Earnings (P/E)
7.5
Beta (1Y)
0.33
Revenue Growth
5.93%
EPS Growth
-3.93%
Country
Japan
Employees
376
Sector
General
Sector Strength
55
Industry
Furnishings, Fixtures & Appliances

DREAMBED CO.,LTD. Business Overview & Revenue Model

Company Description

Dreambed Co.,Ltd. focuses on the production and distribution of bedding, upholstered furniture, and various home interior items. Their extensive product line encompasses a diverse range of sleep solutions, including mattresses, bed frames, functional...

How the Company Makes Money

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DREAMBED CO.,LTD. Financial Statement Overview

Summary

The company presents a mixed financial profile. While it demonstrates steady revenue growth, healthy gross margins around 51-52%, and steady equity expansion, these strengths are significantly undermined by weak cash flow conversion, declining operating cash flows, and chronic negative free cash flow.

Income Statement

72Positive

Balance Sheet

65Positive

Cash Flow

40Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue12.33B12.17B11.51B9.71B9.84B9.45B
Gross Profit6.45B6.37B5.92B4.85B4.87B4.82B
EBITDA1.07B1.11B944.48M528.60M689.83M844.63M
Net Income434.74M479.74M415.09M254.93M442.13M446.03M
Balance Sheet
Total Assets11.45B11.51B11.38B10.85B9.74B8.37B
Cash, Cash Equivalents and Short-Term Investments668.17M649.98M797.13M706.40M542.23M1.10B
Total Debt4.41B4.43B3.90B3.80B3.10B1.98B
Total Liabilities6.56B6.67B6.87B6.63B5.69B4.56B
Stockholders Equity4.89B4.84B4.51B4.22B4.05B3.80B
Cash Flow
Free Cash Flow0-237.50M209.45M-275.64M-1.41B-285.45M
Operating Cash Flow0110.51M481.80M1.08B490.99M504.91M
Investing Cash Flow0-586.20M-335.57M-1.47B-1.94B-821.66M
Financing Cash Flow0328.53M-55.50M551.71M892.20M782.53M

DREAMBED CO.,LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price798.00

Price Trends

50DMA809.67Negative
100DMA803.37Negative
200DMA803.07Negative

Market Momentum

MACD-4.40Positive
RSI43.96Neutral
STOCH52.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7791, the sentiment is Negative. The current price of 798.00 is below the 20-day moving average (MA) of 806.95, below the 50-day MA of 809.67, and below the 200-day MA of 803.07, indicating a bearish trend. The MACD of -4.40 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 52.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7791.

DREAMBED CO.,LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7791 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7840JP:784067NeutralJPY 43.54B14.50―3.25%3.77%8.09%
JP:7887JP:788765NeutralJPY 7.10B4.03―2.82%27.96%217.85%
JP:7791JP:779163NeutralJPY 3.30B7.52―4.64%5.93%-3.93%
JP:4235JP:423557NeutralJPY 10.52B12.83―5.53%7.01%17.77%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 8.36B-4.31―2.69%2.16%-194.33%
JP:7822JP:782249NeutralJPY 10.70B-4.13―4.20%4.67%-9195.72%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7791JP:4235JP:7822JP:7840JP:7887JP:7898Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7791 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7791DREAMBED CO.,LTD.798.00-6.30-0.78%
JP:4235Ultrafabrics Holdings Co.,Ltd.631.00-111.61-15.03%
JP:7822Eidai Co., Ltd.238.0019.068.71%
JP:7840France Bed Holdings Co., Ltd.1261.00-20.35-1.59%
JP:7887Nankai Plywood Co., Ltd.1418.00-60.52-4.09%
JP:7898Wood One Co., Ltd.893.0054.186.46%
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: Aug 11, 2026