Announcement • Jun 28
Drecom Co.,Ltd. to Report Q1, 2027 Results on Jul 29, 2026 Drecom Co.,Ltd. announced that they will report Q1, 2027 results on Jul 29, 2026 Announcement • May 14
Drecom Co.,Ltd. (TSE:3793) announces an Equity Buyback for 1,524,000 shares, representing 5.27% for ¥500 million. Drecom Co.,Ltd. (TSE:3793) announces a share repurchase program. Under the program, the company will repurchase up to 1,524,000 shares, representing 5.27% of its issued share capital, for ¥500 million. The purpose of the program is promoting improved capital efficiency and strengthening investment in human resources. The shares acquired will be used for stock-based compensation aimed at securing excellent talent for future growth and improving employee engagement. The program will continue through May 12, 2027. As of May 12, 2026, the company had 28,929,817 issued shares (excluding treasury stock) and 516,395 treasury shares. Reported Earnings • May 13
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥7.38 (up from JP¥36.08 loss in FY 2025). Revenue: JP¥17.5b (up 39% from FY 2025). Net income: JP¥213.0m (up JP¥1.25b from FY 2025). Profit margin: 1.2% (up from net loss in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Announcement • May 12
Drecom Co.,Ltd., Annual General Meeting, Jun 23, 2026 Drecom Co.,Ltd., Annual General Meeting, Jun 23, 2026. Reported Earnings • Jan 30
Third quarter 2026 earnings released: EPS: JP¥21.48 (vs JP¥6.93 in 3Q 2025) Third quarter 2026 results: EPS: JP¥21.48 (up from JP¥6.93 in 3Q 2025). Revenue: JP¥5.06b (up 21% from 3Q 2025). Net income: JP¥621.0m (up 212% from 3Q 2025). Profit margin: 12% (up from 4.8% in 3Q 2025). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 103 percentage points per year, which is a significant difference in performance. Announcement • Dec 27
Drecom Co.,Ltd. to Report Q3, 2026 Results on Jan 29, 2026 Drecom Co.,Ltd. announced that they will report Q3, 2026 results on Jan 29, 2026 Reported Earnings • Oct 30
Second quarter 2026 earnings released: JP¥19.53 loss per share (vs JP¥30.32 loss in 2Q 2025) Second quarter 2026 results: JP¥19.53 loss per share (improved from JP¥30.32 loss in 2Q 2025). Revenue: JP¥3.77b (up 99% from 2Q 2025). Net loss: JP¥563.0m (loss narrowed 35% from 2Q 2025). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Announcement • Sep 01
Drecom Co.,Ltd. to Report Q2, 2026 Results on Oct 29, 2025 Drecom Co.,Ltd. announced that they will report Q2, 2026 results on Oct 29, 2025 New Risk • Jul 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥13.5b (US$91.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Market cap is less than US$100m (JP¥13.5b market cap, or US$91.4m). Announcement • Jul 08
Drecom Co.,Ltd. to Report Q1, 2026 Results on Jul 29, 2025 Drecom Co.,Ltd. announced that they will report Q1, 2026 results on Jul 29, 2025 Reported Earnings • Jun 27
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: JP¥36.08 loss per share (down from JP¥3.64 profit in FY 2024). Revenue: JP¥12.7b (up 29% from FY 2024). Net loss: JP¥1.04b (down JP¥1.14b from profit in FY 2024). Revenue missed analyst estimates by 6.3%. Earnings per share (EPS) also missed analyst estimates. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 103 percentage points per year, which is a significant difference in performance. Reported Earnings • May 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: JP¥36.08 loss per share (down from JP¥3.64 profit in FY 2024). Revenue: JP¥12.7b (up 29% from FY 2024). Net loss: JP¥1.04b (down JP¥1.14b from profit in FY 2024). Revenue missed analyst estimates by 6.3%. Earnings per share (EPS) also missed analyst estimates. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Announcement • May 12
Drecom Co.,Ltd., Annual General Meeting, Jun 24, 2025 Drecom Co.,Ltd., Annual General Meeting, Jun 24, 2025. New Risk • Apr 04
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.3b (US$98.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.7% average weekly change). Minor Risk Market cap is less than US$100m (JP¥14.3b market cap, or US$98.4m). New Risk • Mar 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Announcement • Mar 01
Drecom Co.,Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Drecom Co.,Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Reported Earnings • Jan 31
Third quarter 2025 earnings released: EPS: JP¥6.93 (vs JP¥9.30 in 3Q 2024) Third quarter 2025 results: EPS: JP¥6.93 (down from JP¥9.30 in 3Q 2024). Revenue: JP¥4.18b (up 64% from 3Q 2024). Net income: JP¥199.0m (down 25% from 3Q 2024). Profit margin: 4.8% (down from 10% in 3Q 2024). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 121 percentage points per year, which is a significant difference in performance. New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (9.3% average weekly change). Announcement • Nov 30
Drecom Co.,Ltd. to Report Q3, 2025 Results on Jan 30, 2025 Drecom Co.,Ltd. announced that they will report Q3, 2025 results on Jan 30, 2025 Reported Earnings • Oct 31
Second quarter 2025 earnings released: JP¥30.32 loss per share (vs JP¥9.53 profit in 2Q 2024) Second quarter 2025 results: JP¥30.32 loss per share (down from JP¥9.53 profit in 2Q 2024). Revenue: JP¥1.90b (down 31% from 2Q 2024). Net loss: JP¥869.0m (down 420% from profit in 2Q 2024). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥737, the stock trades at a forward P/E ratio of 44x. Average forward P/E is 20x in the Entertainment industry in Japan. Total returns to shareholders of 42% over the past three years. Announcement • Oct 01
Drecom Co.,Ltd. to Report Q2, 2025 Results on Oct 29, 2024 Drecom Co.,Ltd. announced that they will report Q2, 2025 results on Oct 29, 2024 New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (13% average weekly change). Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥623, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 20x in the Entertainment industry in Japan. Total returns to shareholders of 17% over the past three years. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥951, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 20x in the Entertainment industry in Japan. Total returns to shareholders of 82% over the past three years. Reported Earnings • Aug 02
First quarter 2025 earnings released: JP¥5.35 loss per share (vs JP¥15.47 loss in 1Q 2024) First quarter 2025 results: JP¥5.35 loss per share (improved from JP¥15.47 loss in 1Q 2024). Revenue: JP¥2.12b (down 9.5% from 1Q 2024). Net loss: JP¥153.0m (loss narrowed 65% from 1Q 2024). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jun 02
Drecom Co.,Ltd. to Report Q1, 2025 Results on Jul 30, 2024 Drecom Co.,Ltd. announced that they will report Q1, 2025 results on Jul 30, 2024 New Risk • May 16
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 54% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.9% average weekly change). High level of non-cash earnings (54% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (1.1% net profit margin). Reported Earnings • May 16
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥3.64 (down from JP¥40.69 in FY 2023). Revenue: JP¥9.78b (down 9.5% from FY 2023). Net income: JP¥104.0m (down 91% from FY 2023). Profit margin: 1.1% (down from 11% in FY 2023). Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 4.0%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • May 15
Drecom Co.,Ltd., Annual General Meeting, Jun 26, 2024 Drecom Co.,Ltd., Annual General Meeting, Jun 26, 2024. New Risk • Apr 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.3% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Announcement • Mar 28
Drecom Co.,Ltd. to Report Fiscal Year 2024 Results on May 13, 2024 Drecom Co.,Ltd. announced that they will report fiscal year 2024 results on May 13, 2024 Major Estimate Revision • Feb 08
Consensus EPS estimates increase by 380% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥1.25 to JP¥6.00. Revenue forecast steady at JP¥10.1b. Net income forecast to grow 625% next year vs 11% growth forecast for Entertainment industry in Japan. Consensus price target of JP¥900 unchanged from last update. Share price rose 7.5% to JP¥989 over the past week. Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: JP¥9.30 (vs JP¥3.86 in 3Q 2023) Third quarter 2024 results: EPS: JP¥9.30 (up from JP¥3.86 in 3Q 2023). Revenue: JP¥2.55b (down 1.3% from 3Q 2023). Net income: JP¥266.0m (up 142% from 3Q 2023). Profit margin: 10% (up from 4.3% in 3Q 2023). Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Nov 26
Drecom Co.,Ltd. to Report Q3, 2024 Results on Jan 30, 2024 Drecom Co.,Ltd. announced that they will report Q3, 2024 results on Jan 30, 2024 Reported Earnings • Oct 28
Second quarter 2024 earnings released: EPS: JP¥9.53 (vs JP¥18.79 in 2Q 2023) Second quarter 2024 results: EPS: JP¥9.53 (down from JP¥18.79 in 2Q 2023). Revenue: JP¥2.75b (down 4.5% from 2Q 2023). Net income: JP¥272.0m (down 49% from 2Q 2023). Profit margin: 9.9% (down from 19% in 2Q 2023). Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Aug 27
Drecom Co.,Ltd. to Report Q2, 2024 Results on Oct 26, 2023 Drecom Co.,Ltd. announced that they will report Q2, 2024 results on Oct 26, 2023 Major Estimate Revision • Aug 06
Consensus EPS estimates fall by 58%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥10.7b to JP¥10.9b. EPS estimate fell from JP¥31.50 to JP¥13.10 per share. Net income forecast to grow 126% next year vs 13% growth forecast for Entertainment industry in Japan. Consensus price target of JP¥900 unchanged from last update. Share price fell 9.3% to JP¥490 over the past week. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥485, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 19x in the Entertainment industry in Japan. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥333 per share. New Risk • Aug 01
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.1b (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (JP¥14.1b market cap, or US$99.4m). New Risk • Jul 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 58% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Reported Earnings • Jul 28
First quarter 2024 earnings released: JP¥15.47 loss per share (vs JP¥18.32 profit in 1Q 2023) First quarter 2024 results: JP¥15.47 loss per share (down from JP¥18.32 profit in 1Q 2023). Revenue: JP¥2.35b (down 20% from 1Q 2023). Net loss: JP¥441.0m (down 185% from profit in 1Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jul 28
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥36.78 to JP¥31.50. Revenue forecast unchanged from JP¥10.7b at last update. Net income forecast to shrink 23% next year vs 11% growth forecast for Entertainment industry in Japan . Consensus price target of JP¥900 unchanged from last update. Share price fell 18% to JP¥540 over the past week. Major Estimate Revision • Jul 12
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥42.10 to JP¥36.78. Revenue forecast unchanged from JP¥11.9b at last update. Net income forecast to shrink 9.5% next year vs 12% growth forecast for Entertainment industry in Japan . Consensus price target of JP¥900 unchanged from last update. Share price fell 10% to JP¥668 over the past week. Announcement • May 28
Drecom Co.,Ltd. to Report Q1, 2024 Results on Jul 27, 2023 Drecom Co.,Ltd. announced that they will report Q1, 2024 results on Jul 27, 2023 Reported Earnings • May 14
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥40.69 (up from JP¥28.28 in FY 2022). Revenue: JP¥10.8b (up 2.6% from FY 2022). Net income: JP¥1.16b (up 44% from FY 2022). Profit margin: 11% (up from 7.7% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.3%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 2.9% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 2% per year. Announcement • May 13
Drecom Co.,Ltd., Annual General Meeting, Jun 28, 2023 Drecom Co.,Ltd., Annual General Meeting, Jun 28, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.00 per share at 0.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 12 June 2023. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.1%). Major Estimate Revision • Feb 16
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥11.5b to JP¥10.9b. EPS estimate also fell from JP¥50.55 per share to JP¥43.92 per share. Net income forecast to grow 12% next year vs 8.5% growth forecast for Entertainment industry in Japan. Consensus price target down from JP¥920 to JP¥900. Share price was steady at JP¥746 over the past week. Reported Earnings • Jan 31
Third quarter 2023 earnings released: EPS: JP¥3.86 (vs JP¥8.45 in 3Q 2022) Third quarter 2023 results: EPS: JP¥3.86 (down from JP¥8.45 in 3Q 2022). Revenue: JP¥2.58b (down 11% from 3Q 2022). Net income: JP¥110.0m (down 54% from 3Q 2022). Profit margin: 4.3% (down from 8.3% in 3Q 2022). Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Dec 29
Drecom Co.,Ltd. to Report Q3, 2023 Results on Jan 30, 2023 Drecom Co.,Ltd. announced that they will report Q3, 2023 results on Jan 30, 2023 Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Outside Director Katsuhiko Shimizu was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 09
Price target increased to JP¥920 Up from JP¥850, the current price target is provided by 1 analyst. New target price is 18% above last closing price of JP¥782. Stock is up 17% over the past year. The company is forecast to post earnings per share of JP¥49.88 for next year compared to JP¥28.28 last year. Reported Earnings • Oct 28
Second quarter 2023 earnings released: EPS: JP¥18.79 (vs JP¥10.90 in 2Q 2022) Second quarter 2023 results: EPS: JP¥18.79 (up from JP¥10.90 in 2Q 2022). Revenue: JP¥2.87b (up 14% from 2Q 2022). Net income: JP¥535.0m (up 72% from 2Q 2022). Profit margin: 19% (up from 12% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Entertainment industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Oct 01
Drecom Co.,Ltd. Announces the Release of the Co-Op Competitive Action Game for Mobile, GGGGG, Launching on September 30 Drecom Co.,Ltd. announced the release of the co-op competitive action game for mobile, GGGGG (pronounced "Jee-jee-jee-jee-jee", hereinafter referred to as GGGGG), launching on September 30. Introduction to GGGGG: GGGGG is an action game with simple mechanics that can be played both cooperatively and competitively with other players. Players can enjoy a variety of different battle modes, such as the 100-Player Battle Royale, where up to 100 players clash at the same time, or Dungeon Run, in which teams of up to 4 players work together to advance. Basic Controls: Swipe to move, tap to attack, and hold to perform a special move. With simple controls, GGGGG is easy to pick up and impossible to put down. A Variety of Battle Modes: 1. 100-Player Battle Royale (Solo/Duo/Squad). A PvP battle with up to 100 players where one fights to be the final survivor. Destroy blocks and collect power up items to defeat opponents and be the last one standing. 2. Battle Royale (Solo/Duo/Squad). Eight-player PvP battles. Play to the strengths of class and work together with allies to triumph inside the confines of the limited playing field. 3. Dungeon Run (Solo - Squad). Play alone or team up with other players in this PvE mode. Defeat monsters and protect the princess as one makes his way deeper into the dungeon and do battle against powerful bosses. Conquer Dungeon Runs to pick up weapons and elite materials. 4. Private Match (Solo - Squad). Share Party ID to enjoy Battle Royales with family and friends. Unique Characters: Fighter: A good balance of attack power and HP. Knight: High HP and capable of defending themselves and others against enemy attacks. Priest: Acts as support by healing themselves and others. Wizard: Boasts extremely high attack power and ranged attacks. Archer: Excels at attacking from a distance. Thief: Runs circles around the enemy at high speed, all while stealing items. A Range of Skins to Transform Appearance. Heroes, hunters, Dancers, turtles, and more. The combinations are endless! Use favorite skins to stand out on the battlefield. Announcement • Sep 28
Drecom Co.,Ltd. to Report Q2, 2023 Results on Oct 27, 2022 Drecom Co.,Ltd. announced that they will report Q2, 2023 results on Oct 27, 2022 Major Estimate Revision • Aug 31
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥11.8b to JP¥12.2b. EPS estimate increased from JP¥41.75 to JP¥48.67 per share. Net income forecast to grow 38% next year vs 2.3% growth forecast for Entertainment industry in Japan. Consensus price target of JP¥540 unchanged from last update. Share price rose 2.5% to JP¥847 over the past week. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥758, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Entertainment industry in Japan. Total returns to shareholders of 35% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥498 per share. Reported Earnings • Jul 30
First quarter 2023 earnings released: EPS: JP¥18.32 (vs JP¥10.51 in 1Q 2022) First quarter 2023 results: EPS: JP¥18.32 (up from JP¥10.51 in 1Q 2022). Revenue: JP¥2.93b (up 10.0% from 1Q 2022). Net income: JP¥521.0m (up 74% from 1Q 2022). Profit margin: 18% (up from 11% in 1Q 2022). Over the next year, revenue is forecast to grow 10%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jul 02
Drecom Co.,Ltd. to Report Q1, 2023 Results on Jul 28, 2022 Drecom Co.,Ltd. announced that they will report Q1, 2023 results on Jul 28, 2022 Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improved over the past week After last week's 22% share price gain to JP¥616, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Entertainment industry in Japan. Total returns to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥994 per share. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥582, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 20x in the Entertainment industry in Japan. Total returns to shareholders of 27% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥984 per share. Reported Earnings • May 18
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥28.28 (down from JP¥56.97 in FY 2021). Revenue: JP¥10.5b (down 11% from FY 2021). Net income: JP¥807.0m (down 50% from FY 2021). Profit margin: 7.7% (down from 14% in FY 2021). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 24%. Over the next year, revenue is forecast to grow 18%, compared to a 9.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Drecom Co.,Ltd., Annual General Meeting, Jun 24, 2022 Drecom Co.,Ltd., Annual General Meeting, Jun 24, 2022. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Outside Director Katsuhiko Shimizu was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
Drecom Co.,Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Drecom Co.,Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 27% share price gain to JP¥516, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the Entertainment industry in Japan. Total returns to shareholders of 5.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,021 per share. Price Target Changed • Feb 23
Price target decreased to JP¥540 Down from JP¥800, the current price target is an average from 2 analysts. New target price is 36% above last closing price of JP¥397. Stock is down 51% over the past year. The company is forecast to post earnings per share of JP¥37.10 for next year compared to JP¥56.97 last year. Board Change • Feb 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Outside Director Katsuhiko Shimizu was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jan 28
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: JP¥8.45 (down from JP¥16.58 in 3Q 2021). Revenue: JP¥2.89b (down 2.6% from 3Q 2021). Net income: JP¥241.0m (down 49% from 3Q 2021). Profit margin: 8.3% (down from 16% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 18%. Over the next year, revenue is forecast to grow 6.9%, compared to a 4.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Major Estimate Revision • Dec 11
Consensus EPS estimates increase to JP¥36.50 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥10.9b to JP¥11.0b. EPS estimate increased from JP¥32.90 to JP¥36.50 per share. Net income forecast to shrink 21% next year vs 6.2% decline forecast for Entertainment industry in Japan. Consensus price target of JP¥850 unchanged from last update. Share price was steady at JP¥512 over the past week. Reported Earnings • Oct 29
Second quarter 2022 earnings released: EPS JP¥10.90 (vs JP¥12.57 in 2Q 2021) The company reported a poor second quarter result with weaker earnings and revenues, although profit margins were flat. Second quarter 2022 results: Revenue: JP¥2.52b (down 12% from 2Q 2021). Net income: JP¥312.0m (down 13% from 2Q 2021). Profit margin: 12% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥511, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 21x in the Entertainment industry in Japan. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥506 per share. Reported Earnings • Jul 30
First quarter 2022 earnings released: EPS JP¥10.51 (vs JP¥16.42 in 1Q 2021) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥2.66b (down 19% from 1Q 2021). Net income: JP¥300.0m (down 36% from 1Q 2021). Profit margin: 11% (down from 14% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jun 12
Consensus revenue estimates fall to JP¥11.3b The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥13.1b to JP¥11.3b. EPS estimate fell from JP¥44.30 to JP¥43.73 per share. Net income forecast to shrink 23% next year vs 20% growth forecast for Entertainment industry in Japan . Consensus price target of JP¥850 unchanged from last update. Share price rose 3.6% to JP¥660 over the past week. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥56.97 (vs JP¥25.00 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥11.8b (up 17% from FY 2020). Net income: JP¥1.62b (up 128% from FY 2020). Profit margin: 14% (up from 7.0% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥873, the stock is trading at a trailing P/E ratio of 15.4x, up from the previous P/E ratio of 12.9x. This compares to an average P/E of 31x in the Entertainment industry in Japan. Total return to shareholders over the past three years is a loss of 32%. Is New 90 Day High Low • Mar 04
New 90-day low: JP¥736 The company is down 19% from its price of JP¥906 on 04 December 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥709 per share. Reported Earnings • Jan 30
Third quarter 2021 earnings released: EPS JP¥16.58 (vs JP¥6.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥2.97b (up 20% from 3Q 2020). Net income: JP¥473.0m (up 167% from 3Q 2020). Profit margin: 16% (up from 7.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 38%. Over the next year, revenue is forecast to grow 5.2%, compared to a 4.3% growth forecast for the Entertainment industry in Japan. Is New 90 Day High Low • Jan 28
New 90-day low: JP¥749 The company is down 14% from its price of JP¥872 on 30 October 2020. The Japanese market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥440 per share. Announcement • Dec 30
Drecom Co., Ltd. to Report Q3, 2021 Results on Jan 28, 2021 Drecom Co., Ltd. announced that they will report Q3, 2021 results on Jan 28, 2021