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

• Market Cap: ¥1.69B
• 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): -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: 16.98
• 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: ¥516.00 ▼(-12.69% 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

Recurring revenue (subscriptions)

Subscription revenue creates predictable, recurring cash inflows that improve revenue visibility and customer lifetime value. Over 2–6 months this supports retention, lowers acquisition pressure, and helps stabilize top-line volatility from wholesale or seasonal retail cycles.

Multi-channel distribution

A diversified go-to-market mix (DTC online, physical retail, professional partnerships) reduces reliance on any single channel and broadens customer reach. This multi-channel footprint sustains revenue sources, aids inventory turnover, and supports durable market access as channels shift.

Positive operating/free cash flow signals

Positive operating cash flow and a positive free cash flow-to-net-income ratio indicate the business can convert sales into cash despite accounting losses. This cash generation supports near-term operations, deleveraging options, and funding for product development or marketing.

Negative Factors

Declining revenue trend

A sustained top-line decline undermines scale economies and constrains reinvestment. Falling revenues over multiple periods pressure fixed-cost absorption, reduce bargaining power with suppliers and retailers, and make margin recovery and profitable growth harder to achieve.

High financial leverage

Very high debt-to-equity increases interest burden and refinancing risk, limiting strategic flexibility. In a volatile consumer goods market, leverage amplifies downside risk, constrains capital allocation for R&D or marketing, and can force deleveraging at the expense of growth.

Negative profitability and margins

Persistent negative net and operating margins indicate the core business is loss-making after costs. Continued unprofitability erodes equity, limits internal funding for expansion, and requires either structural expense cuts or material revenue improvement to restore sustainable returns.

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.

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	13.28B	17.98B
Gross Profit	3.44B	3.94B	4.26B	4.01B	3.67B
EBITDA	-258.68M	17.38M	-7.33M	395.85M	103.06M
Net Income	-808.61M	-459.06M	-668.05M	89.87M	-124.45M
Balance Sheet
Total Assets	5.65B	7.12B	9.09B	9.32B	10.20B
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	6.11B	7.59B	7.11B	8.02B
Stockholders Equity	198.93M	1.02B	1.50B	2.21B	2.17B
Cash Flow
Free Cash Flow	107.05M	650.05M	-87.33M	874.70M	-430.32M
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: 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 Negative. The current price of 591 is above the 20-day moving average (MA) of 558.40, below the 50-day MA of 599.04, and below the 200-day MA of 664.57, indicating a bearish trend. The MACD of -22.42 indicates Negative momentum. The RSI at 34.45 is Neutral, neither overbought nor oversold. The STOCH value of 52.53 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	¥14.85B	10.54	―	2.22%	26.29%	28.62%
3093	65 Neutral	¥40.35B	9.40	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.79B	13.21	―	1.76%	2.24%	―
3660	59 Neutral	¥41.89B	20.81	14.53%	0.21%	23.01%	34.28%
9557	52 Neutral	¥1.96B	-3.09	―	―	13.90%	-2872.89%
3174	44 Neutral	¥1.69B	-2.91	―	1.06%	-17.99%	-75.96%