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

• Market Cap: ¥2.04B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -17.99%
• EPS Growth: -75.96%
• Country: JP
• Employees: 359
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -147.08
• Shares Outstanding: 2,981,600
• 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: ¥630.00 ▲(6.60% Upside)

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

Recurring Revenue Stream

The company's subscription model provides a stable and predictable revenue stream, enhancing financial stability and customer retention over time.

Market Leadership

Being a market leader in the health and wellness sector positions the company to capitalize on increasing consumer interest in personal care and wellness products.

Sustainability Commitment

A focus on sustainability aligns with consumer preferences and can improve brand loyalty, potentially driving long-term growth and competitive advantage.

Negative Factors

Declining Revenues

Consistent revenue decline indicates challenges in market competitiveness or product demand, which could impact long-term growth prospects.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Profitability

Ongoing losses and negative profitability suggest operational inefficiencies, which could hinder the company's ability to sustain operations long-term.

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

Company Description

Happiness & D Co., Ltd. (3174) is a dynamic company specializing in the health and wellness sector, focusing on the development and distribution of innovative personal care products. The company offers a diverse range of items, including skincare, dietary supplements, and lifestyle products designed to enhance overall well-being. With a commitment to sustainability and quality, Happiness & D Co., Ltd. has positioned itself as a leader in the market, catering to a growing consumer demand for health-focused solutions.

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 facing significant financial challenges with declining revenues and persistent losses impacting profitability metrics. High leverage on the balance sheet poses financial stability risks, although recent improvements in operating and free cash flow are positive.

Income Statement

The company has faced declining revenue, with a significant drop from 2019 to 2024. The gross profit margin has also seen a decrease, indicating challenges in maintaining profitability. Notably, the company has experienced negative net income for the last few years, impacting the net profit margin. Both EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, indicating substantial leverage, which could pose financial stability risks. However, the equity ratio shows the company maintains a moderate level of equity relative to its assets. Return on equity is negative due to consistent net losses, suggesting inefficiencies in generating returns for shareholders.

Cash Flow

The operating cash flow has improved recently, indicating better cash generation from operations compared to previous years. Free cash flow is positive, which is a strength, but the inconsistency in cash flow growth rates over the years suggests potential volatility in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.10B	8.84B	10.78B	12.74B	13.61B	18.31B
Gross Profit	3.56B	3.59B	4.11B	4.46B	4.54B	4.17B
EBITDA	-516.73M	-536.31M	-265.93M	-212.83M	399.36M	84.06M
Net Income	-734.70M	-808.61M	-459.06M	-668.05M	89.87M	-124.45M
Balance Sheet
Total Assets	6.24B	5.65B	7.05B	9.09B	9.26B	10.13B
Cash, Cash Equivalents and Short-Term Investments	700.08M	689.51M	981.22M	1.94B	1.82B	2.38B
Total Debt	3.62B	3.77B	3.98B	5.44B	5.19B	6.28B
Total Liabilities	5.67B	5.45B	6.04B	7.59B	7.04B	7.96B
Stockholders Equity	567.27M	198.93M	1.02B	1.50B	2.21B	2.17B
Cash Flow
Free Cash Flow	0.00	105.73M	650.05M	-143.63M	849.62M	-431.68M
Operating Cash Flow	0.00	170.41M	756.68M	-33.75M	897.24M	-360.30M
Investing Cash Flow	0.00	-113.39M	-41.83M	-53.58M	-92.93M	-112.79M
Financing Cash Flow	0.00	-348.73M	-1.67B	360.95M	-1.36B	-426.81M

Happiness & D Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 591.00
• 50DMA: Positive
• 100DMA: Negative
• 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:3174, the sentiment is Positive. The current price of 591 is below the 20-day moving average (MA) of 635.15, below the 50-day MA of 647.24, and below the 200-day MA of 693.94, indicating a neutral trend. The MACD of 11.02 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3192	73 Outperform	¥1.81B	3.46	―	―	0.06%	―
3172	70 Outperform	¥4.92B	14.63	―	3.47%	-11.32%	1.10%
2673	62 Neutral	¥1.84B	14.24	―	―	-45.47%	-16.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3059	45 Neutral	¥4.05B	-4.65	―	2.40%	-3.69%	-11429.88%
3174	44 Neutral	¥2.04B	-2.12	―	1.06%	-17.99%	-75.96%
3185	39 Underperform	¥3.71B	-12.16	―	―	-11.07%	27.85%