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

• Market Cap: ¥26.23B
• Dividend Yield: N/A
• Average Volume (3M): 40.02K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.86
• Revenue Growth: 4.04%
• EPS Growth: -28.64%
• Country: JP
• Employees: 1,191
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Restaurants
• EPS (TTM): 42.08
• Shares Outstanding: 18,455,019
• 10 Day Avg. Volume: 47,080
• 30 Day Avg. Volume: 40,023
• PEG Ratio: -0.05
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.32
• 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

• Rating: 75 Outperform
• Price Target: ¥1,607.00 ▲(11.29%Upside)

The overall stock score reflects strong technical analysis indicators and solid financial performance, offset by some concerns in valuation and the potential risk due to debt reliance.

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 income statement shows consistent revenue growth and improved margins, while the balance sheet reflects better leverage management. However, the reliance on debt financing remains a potential risk.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.20B	38.58B	37.08B	32.23B	19.35B	23.48B
Gross Profit	29.89B	29.72B	29.09B	25.20B	14.97B	18.07B
EBITDA	3.80B	4.48B	3.46B	1.31B	-6.38B	-9.25B
Net Income	3.29B	2.40B	3.42B	875.00M	-354.00M	-8.51B
Balance Sheet
Total Assets	34.44B	31.31B	34.29B	35.25B	35.74B	31.31B
Cash, Cash Equivalents and Short-Term Investments	9.81B	7.48B	10.59B	12.04B	8.35B	4.26B
Total Debt	16.64B	16.58B	18.92B	22.80B	22.95B	24.26B
Total Liabilities	23.11B	22.56B	24.55B	28.91B	30.49B	31.61B
Stockholders Equity	10.66B	8.09B	9.08B	5.57B	4.53B	-976.05M
Cash Flow
Free Cash Flow	0.00	2.70B	2.62B	3.94B	-2.37B	-8.25B
Operating Cash Flow	0.00	3.55B	3.40B	4.50B	-1.98B	-6.84B
Investing Cash Flow	0.00	-803.00M	-981.00M	-505.00M	1.30B	-1.20B
Financing Cash Flow	0.00	-5.67B	-4.12B	-204.00M	4.68B	5.76B

DD GROUP Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1444.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1444 is above the 20-day moving average (MA) of 1428.85, above the 50-day MA of 1359.26, and above the 200-day MA of 1329.80, indicating a bullish trend. The MACD of 29.29 indicates Positive momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 is Neutral, 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
7678	78 Outperform	¥23.36B	39.30		―	―	―
3073	75 Outperform	¥26.23B	11.43		―	4.04%	-28.64%
9979	65 Neutral	¥23.67B	19.91		1.06%	4.87%	-12.32%
3178	64 Neutral	¥23.75B	22.06		0.82%	1.92%	14.66%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
2882	58 Neutral	¥23.23B	26.12		0.29%	3.93%	―
9850	50 Neutral	¥21.25B	32.73		0.64%	13.61%	-40.79%

DD GROUP Co., Ltd. Corporate Events

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.

DD GROUP Announces No Dividend on Common Stock Amid Economic Uncertainty

DD GROUP Co., Ltd. announced that there will be no dividend on common stock for the fiscal year ending February 2025, while a dividend of 4,000 yen per share will be paid on preferred stock. The decision reflects the company’s cautious approach amid uncertain economic conditions, including rising costs and regulatory changes, which are expected to impact business performance. The company aims to enhance corporate value and resume dividends in the future.