DEMAE-CAN (2484) AI Stock Analysis

• Market Cap: ¥15.97B
• Dividend Yield: N/A
• Average Volume (3M): 397.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -21.21%
• EPS Growth: -58.33%
• Country: JP
• Employees: 388
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -14.98
• Shares Outstanding: 112,380,430
• 10 Day Avg. Volume: 478,030
• 30 Day Avg. Volume: 397,053
• PEG Ratio: -0.07
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -3.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥124.00 ▼(-23.93% Downside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is held down primarily by weak financial performance—ongoing losses, declining revenue, and persistent negative operating/free cash flow—despite low leverage. Technical indicators are moderately supportive in the short term, but the longer-term trend remains down, and valuation is difficult to support with a negative P/E and no dividend yield provided.

Positive Factors

Conservative balance sheet / very low leverage

Extremely low debt lowers financial risk and gives management durable flexibility to support operations, pursue restructuring, or absorb continued losses without immediate solvency pressure. This structural strength lengthens the runway for a strategic turnaround or reinvestment.

Improving cash burn trajectory

Material reduction in cash outflows versus prior years signals progress in cost controls or working-capital management. While still negative, this durable trend eases near-term liquidity strain, reducing reliance on immediate external financing and creating time to execute operational fixes.

Established IT distribution and retail business

A focused business model in IT hardware distribution benefits from recurring technology refresh cycles and broad channel demand. That structural industry positioning supports steady addressable demand and provides a clear commercial focus for product and service optimization over the medium term.

Negative Factors

Recurring operating and net losses

Persistent operating and net losses across reported years indicate chronic profitability issues. Sustained negative margins erode retained earnings and limit capital available for investment, making long-term recovery dependent on material structural changes to revenue mix or cost base.

Consistently negative operating and free cash flow

Ongoing negative OCF and FCF — including a large outflow in 2025 — constrain the company's ability to self-fund operations or capex. This persistent cash burn forces reliance on external financing or asset disposals, reducing strategic optionality and increasing execution risk for turnaround plans.

Contracting revenue and declining equity

Material top-line decline and falling shareholders' equity signal shrinking scale and eroded balance-sheet buffer. Reduced revenue magnifies fixed-cost leverage, hurts margins, and makes restoring profitability harder without new growth drivers or structural cost reductions.

DEMAE-CAN Business Overview & Revenue Model

Company Description

DEMAE-CAN Co., Ltd. is a leading Japanese online food delivery service company that operates a platform connecting consumers with a wide range of restaurants and food establishments. The company provides a convenient and efficient way for customers to order meals from various cuisines through its user-friendly website and mobile application. DEMAE-CAN is recognized for its expansive network, offering access to a diverse selection of dining options and ensuring timely and reliable delivery services.

How the Company Makes Money

DEMAE-CAN generates revenue primarily through commissions and fees collected from partner restaurants for each order facilitated through its platform. The company charges restaurants a percentage of the order value as a commission, which is a significant revenue stream. Additionally, DEMAE-CAN may charge delivery fees to consumers, which can vary based on factors like distance and order size. The company also benefits from premium listing fees where restaurants pay for enhanced visibility on the platform. Strategic partnerships with various restaurants and delivery service providers further contribute to its earnings, allowing DEMAE-CAN to expand its reach and improve service efficiency.

DEMAE-CAN Financial Statement Overview

Summary

Weak operating fundamentals: revenue is contracting and the company remains unprofitable with recurring losses, while operating and free cash flow are negative across all years (including significant cash burn in 2025). A key offset is the conservatively levered balance sheet with very low debt, but equity has declined and returns remain negative.

Income Statement

Revenue has contracted recently (2025 revenue down ~6.5% after a roughly flat 2024), and profitability remains weak with recurring operating and net losses across all reported years. While losses improved materially versus 2022–2023, margins are still negative and gross margin compressed sharply in 2025 versus 2024, signaling ongoing pressure on unit economics and/or costs.

Balance Sheet

The balance sheet is conservatively levered with extremely low debt relative to equity in every year provided, which lowers financial risk and provides flexibility. However, repeated losses are translating into consistently negative returns on equity, and equity has declined from 2022 to 2025, indicating that profitability (not leverage) is the key constraint.

Cash Flow

Cash generation is a major weak spot: operating cash flow and free cash flow are negative in every year shown, including ~-¥5.0B in 2025. Cash burn has improved substantially from the severe outflows in 2022–2023, but the business still has not demonstrated an ability to fund operations internally.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	39.72B	50.41B	51.42B	47.31B	28.95B
Gross Profit	4.57B	11.61B	10.51B	-1.91B	12.00B
EBITDA	-4.97B	-5.99B	-12.12B	-36.07B	-21.76B
Net Income	-4.97B	-3.71B	-12.15B	-36.22B	-21.87B
Balance Sheet
Total Assets	38.85B	47.94B	54.75B	69.19B	20.38B
Cash, Cash Equivalents and Short-Term Investments	28.54B	34.51B	40.91B	53.26B	10.20B
Total Debt	29.00M	0.00	98.00M	514.00K	20.27M
Total Liabilities	10.22B	11.39B	12.41B	14.97B	13.50B
Stockholders Equity	28.63B	36.55B	42.34B	54.23B	6.88B
Cash Flow
Free Cash Flow	-4.97B	-4.58B	-12.29B	-40.16B	-18.80B
Operating Cash Flow	-4.97B	-4.58B	-12.29B	-39.99B	-16.42B
Investing Cash Flow	-2.00M	2.19B	-64.00M	50.47M	-2.35B
Financing Cash Flow	-1.00B	-4.00B	0.00	83.00B	-3.18M

DEMAE-CAN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 163.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2484, the sentiment is Positive. The current price of 163 is above the 20-day moving average (MA) of 133.25, above the 50-day MA of 135.14, and below the 200-day MA of 172.62, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2484.

DEMAE-CAN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9997	71 Outperform	¥95.62B	8.50	6.96%	2.98%	1.15%	86.72%
2751	64 Neutral	¥47.62B	26.20	―	0.26%	15.30%	-15.97%
4385	63 Neutral	¥606.27B	20.63	31.11%	―	4.83%	106.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4449	57 Neutral	¥30.82B	32.87	―	0.82%	49.28%	-117.98%
2484	46 Neutral	¥15.97B	-2.59	-15.09%	―	-21.21%	-58.33%
4755	41 Neutral	$1.80T	-10.07	-21.14%	―	11.45%	42.34%