Happiness & D Co., Ltd. (3174) AI Stock Analysis

• Market Cap: ¥1.81B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -17.99%
• EPS Growth: -75.96%
• Country: JP
• Employees: 359
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -59.68
• Shares Outstanding: 3,191,600
• 10 Day Avg. Volume: 2,400
• 30 Day Avg. Volume: 1,866
• PEG Ratio: -0.03
• Price to Book (P/B): 9.14
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 17.19
• 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: 44 Neutral
• Price Target: ¥553.00 ▼(-6.43% Downside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenues and high leverage. Technical analysis indicates a neutral market position, while valuation metrics suggest limited attractiveness due to ongoing losses.

Positive Factors

Diversified revenue channels & recurring subscriptions

A multi-channel sales model with direct-to-consumer, wholesale and subscription revenue supports durable demand and smoother cash flows. Recurring subscriptions reduce reliance on one-off sales, aiding customer retention and predictable revenue over the next several quarters.

Health & wellness product portfolio aligned with structural demand

Operating in the expanding health and wellness segment provides structural tailwinds. A diverse portfolio across personal care and supplements positions the company to capture sustained consumer spending shifts toward wellness and premium care products.

Positive operating cash flow and free cash flow capability

Positive operating cash flow and FCF to net income indicate the business can convert sales into cash even while unprofitable on paper. This cash generation supports near-term operations, inventory funding and modest reinvestment without immediate capital raises.

Negative Factors

Declining revenue trend

A significant year-over-year revenue decline erodes scale economics and makes marketing and R&D less efficient. Continued top-line contraction can reduce bargaining power with retailers and slow subscription growth, pressuring margins and long-term competitiveness.

High financial leverage

Very high debt-to-equity heightens refinancing and interest risk, limiting strategic flexibility. If earnings remain weak, debt servicing could crowd out investment, force asset sales or trigger renegotiations, damaging long-term growth prospects and stability.

Persistent negative profitability margins

Sustained negative margins imply the core business isn't covering operating costs after scale. Continued losses reduce retained capital for product development and marketing, increasing reliance on external financing and constraining durable improvements to competitiveness.

Happiness & D Co., Ltd. Business Overview & Revenue Model

Company Description

Happiness and D Co.,Ltd. operates and manages select shops under Happiness and GINZA Happiness names in shopping centers in Japan. It offers bags and wallets; watches; jewelry/accessories comprising rings, necklaces, bracelets, and earrings; and gift goods, including perfumes, sunglasses, ties/belts/cufflinks/tie bars, kitchen/interior goods, stationery/smoking tools, etc. The company also engages in the development of original brand products. It also offers the products through online stores. The company was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Happiness & D Co., Ltd. generates revenue primarily through the sale of its personal care and wellness products across various distribution channels, including online retail, brick-and-mortar stores, and partnerships with health and wellness professionals. The company's revenue model is supported by direct-to-consumer sales, as well as wholesale arrangements with retailers. Additionally, the company benefits from subscription services for its products, creating a recurring revenue stream. Strategic partnerships with influencers and wellness brands further enhance brand visibility and drive sales, contributing significantly to the company's overall earnings.

Happiness & D Co., Ltd. Financial Statement Overview

Summary

The company is experiencing significant financial challenges, with declining revenues, negative profitability, and high leverage. The negative net profit margin and high debt-to-equity ratio highlight financial instability and operational difficulties.

Income Statement

The company has experienced declining revenues over the past few years, with a negative revenue growth rate of -2.87% in the most recent year. Gross profit margins have been relatively stable, but the net profit margin is negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio of 18.97, indicating significant financial risk. Return on equity is negative, suggesting that the company is not generating profits from its equity base. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow is positive but low relative to net income, indicating potential cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite losses. However, free cash flow growth has been inconsistent.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	8.84B	10.78B	12.74B	13.61B	18.31B
Gross Profit	3.59B	4.11B	4.46B	4.54B	4.17B
EBITDA	-536.31M	-265.93M	-212.83M	399.36M	84.06M
Net Income	-808.61M	-459.06M	-668.05M	89.87M	-124.45M
Balance Sheet
Total Assets	5.65B	7.05B	9.09B	9.26B	10.13B
Cash, Cash Equivalents and Short-Term Investments	689.51M	981.22M	1.94B	1.82B	2.38B
Total Debt	3.77B	3.98B	5.44B	5.19B	6.28B
Total Liabilities	5.45B	6.04B	7.59B	7.04B	7.96B
Stockholders Equity	198.93M	1.02B	1.50B	2.21B	2.17B
Cash Flow
Free Cash Flow	105.73M	650.05M	-143.63M	849.62M	-431.68M
Operating Cash Flow	170.41M	756.68M	-33.75M	897.24M	-360.30M
Investing Cash Flow	-113.39M	-41.83M	-53.58M	-92.93M	-112.79M
Financing Cash Flow	-348.73M	-1.67B	360.95M	-1.36B	-426.81M

Happiness & D Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 591.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3174, the sentiment is Negative. The current price of 591 is below the 20-day moving average (MA) of 622.70, below the 50-day MA of 637.06, and below the 200-day MA of 676.97, indicating a bearish trend. The MACD of -6.64 indicates Positive momentum. The RSI at 30.28 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3174.

Happiness & D Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	78 Outperform	¥15.85B	18.48	―	2.22%	26.29%	28.62%
3093	65 Neutral	¥45.48B	14.84	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.71B	10.64	―	1.76%	2.24%	―
3660	59 Neutral	¥48.32B	17.51	14.53%	0.21%	23.01%	34.28%
9557	52 Neutral	¥2.02B	-6.03	―	―	13.90%	-2872.89%
3174	44 Neutral	¥1.81B	-1.80	―	1.06%	-17.99%	-75.96%