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

• Market Cap: ¥1.84B
• Dividend Yield: 2.1%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -19.28%
• EPS Growth: -13.75%
• Country: JP
• Employees: 359
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): -89.82
• Shares Outstanding: 2,591,600
• 10 Day Avg. Volume: 1,990
• 30 Day Avg. Volume: 1,263
• PEG Ratio: 0.05
• Price to Book (P/B): 2.31
• 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: ¥702.00
• Price Target Upside: -1.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ¥705.00 ▼(-1.26%Downside)

The overall stock score is predominantly influenced by the company's financial performance challenges, including declining revenues and high leverage. Technical analysis presents a neutral trend, while valuation concerns persist due to a negative P/E ratio despite a reasonable dividend yield.

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

Company Description

Happiness & D Co., Ltd. (3174) is a company based in Japan that operates within the retail and distribution sectors. The company specializes in the sale of apparel, lifestyle goods, and related products through its chain of retail stores and online platforms. Its product portfolio is designed to cater to a wide range of consumer preferences, focusing on quality, design, and affordability.

How the Company Makes Money

Happiness & D Co., Ltd. generates revenue primarily through the sales of its products. The company operates both physical retail stores and an online shopping platform, ensuring a broad reach to its customer base. Key revenue streams include direct sales of apparel and lifestyle products. Additionally, the company may engage in strategic partnerships with suppliers and designers to offer exclusive product lines, enhancing its market appeal and customer retention. Seasonal promotions and marketing campaigns are also significant factors in driving sales and increasing the company’s earnings.

Happiness & D Co., Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, persistent losses, and high leverage impacting profitability metrics. Recent improvements in operating and free cash flow are positive, but overall financial health is under pressure, requiring strategic adjustments.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	10.78B	12.74B	13.61B	18.31B	17.57B
Gross Profit	4.11B	4.46B	4.54B	4.17B	4.10B
EBITDA	-265.92M	-212.83M	399.36M	84.06M	9.59M
Net Income	-459.06M	-668.05M	89.87M	-124.45M	-189.11M
Balance Sheet
Total Assets	7.05B	9.09B	9.26B	10.13B	10.42B
Cash, Cash Equivalents and Short-Term Investments	981.22M	1.94B	1.82B	2.38B	3.28B
Total Debt	3.98B	5.44B	4.71B	5.75B	5.85B
Total Liabilities	6.04B	7.59B	7.04B	7.96B	8.08B
Stockholders Equity	1.02B	1.50B	2.21B	2.17B	2.34B
Cash Flow
Free Cash Flow	650.05M	-143.63M	849.62M	-431.68M	656.98M
Operating Cash Flow	756.68M	-33.75M	897.24M	-360.30M	700.40M
Investing Cash Flow	-41.83M	-53.58M	-92.93M	-112.79M	-100.38M
Financing Cash Flow	-1.67B	360.95M	-1.36B	-426.81M	94.74M

Happiness & D Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 714.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 714 is above the 20-day moving average (MA) of 712.15, above the 50-day MA of 709.42, and below the 200-day MA of 724.33, indicating a neutral trend. The MACD of 2.80 indicates Negative momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, 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
3192	66 Neutral	¥1.78B	3.03		―	0.31%	―
2673	62 Neutral	¥1.39B	15.88		―	-56.41%	-33.58%
3172	62 Neutral	¥5.00B	15.63		3.41%	-10.86%	-28.97%
Sector *	62 Neutral	AU$2.86B	27.61	4.79%	5.15%	2.38%	-31.70%
3174	49 Neutral	¥1.84B	―		2.10%	-19.28%	-13.75%
3059	47 Neutral	¥4.09B	262.06		2.38%	-2.66%	-4994.64%
3185	47 Neutral	¥2.70B	―		―	-3.37%	2.46%