DDC Enterprise Ltd. (DDC) AI Stock Analysis

• Market Cap: $60.45M
• Dividend Yield: N/A
• Average Volume (3M): 120.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 48
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 22,660,530
• 10 Day Avg. Volume: 141,848
• 30 Day Avg. Volume: 120,407
• PEG Ratio: <0.01
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: 8.45
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: -3.56
• 1Y Price Target: $9.00
• Price Target Upside: 250.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $2.50 ▼(-2.72% Downside)

The score is driven down primarily by weak financial performance (ongoing losses, high leverage/negative equity, and negative operating cash flow). Technicals are mixed with only modest short-term support versus a weak longer-term trend, and valuation cannot be assessed well due to missing P/E and dividend yield.

Positive Factors

Diversified revenue streams

Multiple revenue streams (software projects, subscriptions, maintenance, logistics services) create durable cash-generation channels and reduce single-market dependency. Recurring subscription and maintenance fees plus service contracts support steadier revenues and cross-selling over months.

Cross-sector market exposure

Serving e-commerce, manufacturing and retail spreads demand exposure and aligns with structural digitization and supply-chain modernization trends. Broad end-market exposure supports revenue resilience and multiple growth levers as different sectors expand at varied paces.

Positive revenue growth and gross margin improvement

Sustained revenue growth with modest gross margin improvement shows operational progress and potential for scaling core offerings. If the company can continue improving gross margins while controlling overhead, that trajectory supports durable progress toward profitability.

Negative Factors

Persistent losses and negative margins

Ongoing net losses and negative EBIT margins indicate the business cannot currently generate operating profits. Persistent unprofitability erodes capital, limits reinvestment ability, and raises risk that operations require continual external funding over the medium term.

High leverage and negative equity

Extremely high leverage and negative equity create structural financial vulnerability. Heavy debt servicing reduces flexibility for strategic investments, raises default risk in downturns, and constrains management's ability to fund growth or absorb shocks without external support.

Negative operating cash flow

Negative operating cash flow and declining free-cash-flow growth signal weak cash-generation from core operations. This forces reliance on financing, limits capacity to invest or pay down debt, and creates ongoing liquidity risk over the next several months if not reversed.

DDC Enterprise Ltd. Business Overview & Revenue Model

Company Description

DDC Enterprise Limited provides ready-to-heat, ready-to-cook, and plant-based meal products. It also provides advertising services; and marketplace, advertising, and content distribution and placement services to third-party brands and products. The company was incorporated in 2012 and is based in Sheung Wan, Hong Kong.

How the Company Makes Money

DDC generates revenue through multiple streams, primarily by offering customized software solutions and logistics services to businesses across different industries. The company charges clients for software development projects, maintenance contracts, and subscription fees for its inventory management systems. Additionally, DDC earns money through logistics services, including freight forwarding, warehousing, and distribution. Significant partnerships with key players in the tech and logistics sectors enhance DDC's market reach and allow for collaborative projects that further boost its earnings.

DDC Enterprise Ltd. Financial Statement Overview

Summary

Weak financial health: persistent losses and negative profit/EBIT margins, high leverage with negative equity, and negative operating cash flow that raises liquidity risk.

Income Statement

DDC Enterprise Ltd. shows a concerning financial trajectory with negative net profit margins and EBIT margins over the years, indicating consistent losses. Despite a positive revenue growth rate in recent years, the company struggles with profitability, as evidenced by its declining EBIT and EBITDA margins. The gross profit margin has improved slightly, but the overall financial health remains weak due to persistent net losses.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio exceeding 4, indicating significant reliance on debt financing. The negative return on equity reflects the company's inability to generate profits from shareholders' investments. The equity ratio is low, suggesting potential financial instability. Overall, the balance sheet highlights significant financial risk due to high debt levels and negative equity.

Cash Flow

Cash flow analysis shows negative operating cash flow, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with reported losses. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight ongoing cash flow difficulties, posing risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	205.48M	273.33M	205.48M	179.59M	205.18M	169.14M
Gross Profit	51.46M	77.64M	51.46M	43.93M	36.46M	27.84M
EBITDA	-143.34M	-128.43M	-134.66M	-84.76M	-429.91M	-102.50M
Net Income	-155.38M	-170.20M	-155.38M	-122.03M	-454.35M	-113.50M
Balance Sheet
Total Assets	440.94M	485.22M	440.94M	255.38M	228.50M	130.82M
Cash, Cash Equivalents and Short-Term Investments	182.88M	191.01M	182.88M	26.80M	13.49M	24.47M
Total Debt	181.47M	192.46M	181.47M	206.71M	144.26M	188.15M
Total Liabilities	373.69M	402.95M	373.69M	1.74B	1.41B	782.74M
Stockholders Equity	45.61M	47.43M	45.61M	-1.50B	-1.19B	-656.49M
Cash Flow
Free Cash Flow	-37.27M	-113.29M	-37.27M	-37.27M	-91.60M	-49.30M
Operating Cash Flow	-37.08M	-112.91M	-37.08M	-37.08M	-91.43M	-48.75M
Investing Cash Flow	-444.63K	-10.86M	-444.63K	-444.63K	-8.36M	-13.01M
Financing Cash Flow	51.35M	104.27M	51.35M	51.35M	115.76M	76.85M

DDC Enterprise Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDC, the sentiment is Negative. The current price of 2.57 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 2.84, and below the 200-day MA of 7.59, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 9.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDC.

DDC Enterprise Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$462.58M	31.85	9.52%	―	6.62%	-7.85%
LFVN	66 Neutral	$69.98M	7.15	33.31%	2.81%	16.77%	143.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FTLF	55 Neutral	$153.64M	22.79	17.77%	―	12.44%	-20.33%
LSF	52 Neutral	$32.49M	-15.47	-14.63%	―	17.73%	-34.71%
HAIN	45 Neutral	$112.30M	-0.20	-75.51%	―	-10.13%	-532.32%
DDC	43 Neutral	$60.45M	―	―	―	―	―