Double Standard, Inc. (3925) AI Stock Analysis

• Market Cap: ¥22.34B
• Dividend Yield: 3.44%
• Average Volume (3M): 31.26K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.00
• Revenue Growth: -2.41%
• EPS Growth: -18.67%
• Country: JP
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 22.19
• Shares Outstanding: 13,580,000
• 10 Day Avg. Volume: 24,510
• 30 Day Avg. Volume: 31,256
• PEG Ratio: 1.39
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 11.31
• 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: 82 Outperform
• Price Target: ¥2,046.00 ▲(19.37% Upside)

The score is driven primarily by strong financial quality—high margins, zero debt, and solid cash conversion—supported by a positive technical trend. Valuation is reasonable with a moderate P/E and a ~3.4% dividend yield, while uneven revenue/FCF trends and stretched short-term momentum modestly temper the result.

Positive Factors

Strong Profitability

High margins indicate efficient operations and pricing power, supporting sustained profitability and competitive positioning in the market.

Conservative Balance Sheet

A zero-debt position reduces financial risk and interest-rate sensitivity, providing stability and flexibility for future investments.

Solid Cash Generation

Strong cash generation supports operational needs and potential growth investments, indicating robust earnings quality and financial health.

Negative Factors

Decline in Financial Performance

Significant declines in sales and profit suggest challenges in market demand or competition, potentially impacting long-term growth and market position.

Uneven Revenue Growth

Inconsistent revenue growth can hinder strategic planning and investor confidence, affecting the company's ability to sustain long-term expansion.

Volatility in Free Cash Flow

Fluctuations in free cash flow can complicate financial planning and limit the company's ability to fund new projects or return capital to shareholders.

Double Standard, Inc. Business Overview & Revenue Model

Company Description

Double Standard Inc., a business support company, engages in the generation and provision big data solutions for enterprises. The company also provides service planning and system development services using technology cultivated in the data generation process. It offers big data services by utilizing HTML information, image information, database, and analog media; and service planning development services through WEB change detection, real time information acquisition, data analysis support, and other data utilization. Double Standard Inc. was incorporated in 2012 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Double Standard, Inc. Financial Statement Overview

Summary

High-quality fundamentals: strong profitability (gross ~48%, operating ~33%, net ~22%), a very conservative balance sheet with zero debt and strong ROE (~28% most recently), and solid cash generation with operating cash flow exceeding net income (~1.8x). The main constraint is uneven revenue growth and volatility in free cash flow year to year.

Income Statement

Profitability is a clear strength: the latest annual period shows strong margins (gross margin ~48%, operating margin ~33%, net margin ~22%) and earnings have scaled meaningfully versus earlier years. Revenue growth is positive in the most recent year, but the trajectory has been uneven (including a down year in 2023 and only modest growth in 2024), which tempers the score despite excellent operating efficiency.

Balance Sheet

The balance sheet is very conservatively positioned with zero debt across all reported years, limiting financial risk and interest-rate sensitivity. Equity has compounded steadily (supporting a larger asset base), and returns on equity remain strong (roughly high-20s to mid-30s over time, ~28% most recently). The main trade-off is that, with no leverage, future growth depends more heavily on continued operating performance rather than balance-sheet optimization.

Cash Flow

Cash generation is solid: operating cash flow consistently exceeds net income (about 1.8x in the latest year), indicating good earnings quality. Free cash flow is also healthy and generally tracks earnings well (roughly 0.88x of net income most recently), with a sharp rebound in the latest year after a weaker 2024 free-cash-flow year. The primary weakness is volatility in free cash flow growth from year to year, which introduces some forecasting risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.65B	8.00B	7.15B	6.91B	7.08B	4.41B
Gross Profit	3.70B	3.88B	3.32B	2.96B	2.55B	1.74B
EBITDA	2.49B	2.70B	2.38B	2.16B	1.78B	1.13B
Net Income	1.64B	1.78B	1.65B	1.63B	1.08B	747.21M
Balance Sheet
Total Assets	6.30B	7.53B	6.58B	5.61B	4.46B	3.47B
Cash, Cash Equivalents and Short-Term Investments	4.59B	5.35B	4.46B	4.16B	3.14B	2.63B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	517.47M	1.14B	1.02B	948.96M	922.52M	685.91M
Stockholders Equity	5.78B	6.38B	5.45B	4.57B	3.53B	2.78B
Cash Flow
Free Cash Flow	400.12M	1.76B	1.03B	1.39B	1.05B	829.01M
Operating Cash Flow	464.67M	1.99B	1.44B	1.44B	1.15B	850.91M
Investing Cash Flow	-11.05M	-138.81M	-363.51M	126.61M	-265.15M	-69.61M
Financing Cash Flow	-370.60M	-970.45M	-771.55M	-542.74M	-374.99M	-271.61M

Double Standard, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1714.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3925, the sentiment is Negative. The current price of 1714 is above the 20-day moving average (MA) of 1701.60, above the 50-day MA of 1707.46, and above the 200-day MA of 1673.56, indicating a bearish trend. The MACD of -18.08 indicates Positive momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3925.

Double Standard, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3565	83 Outperform	¥19.74B	9.91	―	0.91%	80.11%	169.72%
3925	82 Outperform	¥22.34B	15.02	―	3.44%	-2.41%	-18.67%
4371	78 Outperform	¥20.62B	13.92	―	―	8.79%	1.38%
4053	73 Outperform	¥17.46B	20.33	―	―	9.82%	-32.60%
4498	66 Neutral	¥20.01B	20.53	―	0.90%	17.75%	44.95%
4258	62 Neutral	¥24.65B	35.72	―	―	26.45%	98.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Double Standard, Inc. Corporate Events

Double Standard Plans 2026 Head Office Relocation in Tokyo

Double Standard Inc. has resolved to relocate its head office to the 19th floor of Sumitomo Fudosan Roppongi Central Tower in Minato-ku, Tokyo, with the move planned for July 2026. The relocation aims to secure larger office space to support future business expansion and a growing workforce, while improving operational efficiency and employee engagement through an enhanced work environment; the company is still reviewing the associated costs and does not expect changes to its registered head office address, suggesting limited immediate legal or structural impact despite potential near-term relocation expenses.

The most recent analyst rating on (JP:3925) stock is a Buy with a Yen2025.00 price target. To see the full list of analyst forecasts on Double Standard, Inc. stock, see the JP:3925 Stock Forecast page.

Double Standard Inc. Reports Decline in Financial Performance

Double Standard Inc. reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales decreasing by 16.1% and operating profit falling by 35.3% compared to the previous year. The company anticipates a continued decrease in financial performance for the fiscal year ending March 31, 2026, projecting a 10% drop in net sales and a 19.4% reduction in operating profit, which may impact its market positioning and stakeholder confidence.

Double Standard Inc. Reports Decline in Financial Performance

Double Standard Inc. reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 16.1% and operating profit decreasing by 35.3% compared to the previous year. This downturn reflects challenges in the market and could impact the company’s strategic positioning and stakeholder confidence.