DD GROUP Co., Ltd. (3073) AI Stock Analysis

• Market Cap: ¥30.71B
• Dividend Yield: N/A
• Average Volume (3M): 170.55K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.79
• Revenue Growth: 3.73%
• EPS Growth: -23.54%
• Country: JP
• Employees: 1,191
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Restaurants
• EPS (TTM): 36.34
• Shares Outstanding: 18,455,019
• 10 Day Avg. Volume: 426,070
• 30 Day Avg. Volume: 170,549
• PEG Ratio: -0.52
• Price to Book (P/B): 4.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,607.00
• Price Target Upside: -5.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: ¥1,865.00 ▲(10.03%Upside)

The overall stock score of 69.9 is primarily driven by strong financial performance and favorable valuation metrics. Technical analysis shows bullish trends but indicates potential overbought conditions. The lack of dividend yield and reliance on debt financing are notable risks.

DD GROUP Co., Ltd. Business Overview & Revenue Model

Company Description

DD GROUP Co., Ltd. (3073) operates primarily in the food and beverage industry, with a focus on the management and operation of restaurants and food-related businesses. The company is known for its diverse portfolio of dining establishments, offering a range of culinary experiences from casual dining to specialized cuisine. Its core services include restaurant management, food production, and distribution.

How the Company Makes Money

DD GROUP Co., Ltd. generates revenue through the operation of its various restaurants, where it earns income from food and beverage sales. The company also engages in food production and distribution, supplying products to its own establishments and potentially to other businesses. Key revenue streams include restaurant sales, catering services, and potentially franchising fees if applicable. Significant partnerships with suppliers or culinary brands could also contribute to cost efficiencies and enhanced brand recognition, thus supporting the company's earnings.

DD GROUP Co., Ltd. Financial Statement Overview

Summary

DD GROUP Co., Ltd. demonstrates a solid financial performance with notable improvements in profitability and cash flow generation. The company has successfully navigated past financial difficulties and is on a positive growth trajectory. However, the reliance on debt financing remains a potential risk that requires careful monitoring.

Income Statement

DD GROUP Co., Ltd. has shown a strong recovery in its income statement with consistent revenue growth over the past few years. The gross profit margin and net profit margin have improved significantly, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, showcasing operational efficiency. However, the net income has fluctuated, primarily due to previous periods of negative earnings.

Balance Sheet

The company's balance sheet reflects a stable financial position with an improving debt-to-equity ratio, indicating better leverage management. The return on equity has improved as net income has become positive, demonstrating better returns for shareholders. However, the equity ratio is relatively low, suggesting a high reliance on debt financing, which could pose risks in adverse economic conditions.

Cash Flow

DD GROUP Co., Ltd.'s cash flow statement shows positive trends with significant free cash flow generation and a healthy operating cash flow to net income ratio, indicating strong cash conversion. The free cash flow growth rate is positive, highlighting effective capital expenditure management. However, fluctuations in financing cash flows suggest potential challenges in managing financial obligations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.58B	37.08B	32.23B	19.35B	23.48B
Gross Profit	29.72B	29.09B	25.20B	14.97B	18.07B
EBITDA	4.48B	3.46B	1.31B	-6.38B	-9.25B
Net Income	2.40B	3.42B	875.00M	-354.00M	-8.51B
Balance Sheet
Total Assets	31.31B	34.29B	35.25B	35.74B	31.31B
Cash, Cash Equivalents and Short-Term Investments	7.48B	10.59B	12.04B	8.35B	4.26B
Total Debt	16.58B	18.92B	22.80B	22.95B	24.26B
Total Liabilities	22.56B	24.55B	28.91B	30.49B	31.61B
Stockholders Equity	8.09B	9.08B	5.57B	4.53B	-976.05M
Cash Flow
Free Cash Flow	2.70B	2.62B	3.94B	-2.37B	-8.25B
Operating Cash Flow	3.55B	3.40B	4.50B	-1.98B	-6.84B
Investing Cash Flow	-803.00M	-981.00M	-505.00M	1.30B	-1.20B
Financing Cash Flow	-5.67B	-4.12B	-204.00M	4.68B	5.76B

DD GROUP Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1695.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3073, the sentiment is Positive. The current price of 1695 is above the 20-day moving average (MA) of 1529.65, above the 50-day MA of 1433.64, and above the 200-day MA of 1346.19, indicating a bullish trend. The MACD of 77.06 indicates Negative momentum. The RSI at 80.40 is Negative, neither overbought nor oversold. The STOCH value of 99.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3073.

DD GROUP Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3073	70 Neutral	¥30.71B	13.55		―	3.73%	-23.54%
7678	67 Neutral	¥23.02B	38.72		―	―	―
9979	65 Neutral	¥25.35B	19.47		1.16%	4.95%	-10.76%
3178	64 Neutral	¥24.46B	22.73		0.79%	1.92%	14.66%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
2882	62 Neutral	¥23.59B	69.16		0.26%	6.23%	-4.80%
9850	50 Neutral	¥22.10B	34.04		0.62%	13.61%	-40.79%

DD GROUP Co., Ltd. Corporate Events

DD GROUP Co., Ltd. Endorses Management Buyout Offer

DD GROUP Co., Ltd. has announced its board’s decision to support a tender offer by PCGVI-1 Inc., a move that is part of a management buyout strategy. This decision, which includes a recommendation for shareholders to tender their shares, is expected to lead to the delisting of the company’s stock, impacting its market presence and shareholder dynamics.

PCGVI-1 Inc. Launches Tender Offer to Acquire DD Group Co., Ltd.

PCGVI-1 Inc. has announced a tender offer to acquire all common stock of DD Group Co., Ltd., listed on the Tokyo Stock Exchange. This move, backed by Polaris Capital Group, aims to privatize DD Group, enhancing its strategic positioning and potentially impacting stakeholders through increased control and operational flexibility.

DD GROUP Revises Dividend Forecast and Ends Shareholder Benefits Amid Tender Offer

DD GROUP Co., Ltd. announced a revision of its dividend forecast, deciding not to pay interim and fiscal year-end dividends for the fiscal year ending February 2026, contingent on the successful completion of a tender offer by PCGVI-1 Inc. Additionally, the company will abolish its shareholder benefit program. These decisions are part of a strategic move as the company supports the tender offer, which could lead to the delisting of its shares, impacting shareholder returns and company operations.

DD Group Co., Ltd. Unveils FY2/2026 Q1 Financial Results with Strategic Focus on Innovation

DD Group Co., Ltd. has released its first quarter financial results for FY2/2026, highlighting its strategic focus on creativity and innovation to strengthen its brand presence. The company’s medium-term management plan aims to expand beyond its current operations, potentially impacting its market positioning and stakeholder engagement positively.

DD Group Co., Ltd. Announces FY2/2025 Financial Results

DD Group Co., Ltd. has announced its FY2/2025 financial results, emphasizing its commitment to delivering customer delight through innovative and stylish offerings. The company aims to strengthen its brand presence by focusing on creativity and innovation, which could enhance its market positioning and stakeholder engagement.