Double Standard, Inc. (3925) AI Stock Analysis

• Market Cap: ¥20.06B
• Dividend Yield: 3.44%
• Average Volume (3M): 31.26K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.92
• Revenue Growth: -2.41%
• EPS Growth: -18.67%
• Country: JP
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 21.48
• 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: ¥1,754.00 ▲(2.33% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

High Profitability

Sustained high gross, operating and net margins indicate durable pricing power and efficient operations. Over 2-6 months this supports cash flow resilience, higher reinvestment potential and the ability to fund dividends or strategic initiatives without relying on external financing.

Conservative Balance Sheet

Zero reported debt materially reduces financial risk and interest-rate sensitivity, preserving capital flexibility. This conservative position bolsters resilience to downturns, lowers refinancing risk and supports steady operations and shareholder distributions over the medium term.

Strong Cash Generation

Consistent OCF well above net income signals high earnings quality and reliable internal funding. This durable cash conversion enables self-funded capex, dividends and strategic reinvestment, reducing dependence on markets for financing over the next several quarters.

Negative Factors

Uneven Revenue Trend

An inconsistent top-line trajectory complicates medium-term planning and obscures sustainable growth potential. Periodic revenue declines reduce visibility into demand durability, making multi-quarter forecasting and investment decisions more uncertain for management and investors.

Free Cash Flow Volatility

Material year-to-year swings in free cash flow increase forecasting risk and constrain the company's ability to commit to predictable dividends, buybacks or multi-year investments. This volatility can force more conservative capital allocation and limit strategic flexibility.

Growth Dependent on Operating Performance

The lack of leverage reduces financial risk but limits tools to accelerate expansion (M&A or funded capex). Sustained growth therefore hinges on organic operational improvements, increasing execution risk and making scale-up slower if organic demand softens.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1521.90, above the 50-day MA of 1642.34, and above the 200-day MA of 1675.00, indicating a bearish trend. The MACD of -47.04 indicates Negative momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, 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
3925	82 Outperform	¥20.06B	20.19	―	3.44%	-2.41%	-18.67%
4371	74 Outperform	¥17.58B	13.43	―	―	8.79%	1.38%
3676	73 Outperform	¥19.60B	7.63	―	2.36%	-2.68%	-12.83%
6050	69 Neutral	¥18.58B	43.69	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3968	56 Neutral	¥18.10B	17.48	―	1.72%	26.24%	29.73%
5246	43 Neutral	¥17.58B	-19.37	―	―	37.36%	-37605.91%

Double Standard, Inc. Corporate Events

Double Standard Posts Profit Decline but Lifts Dividend as Full-Year Outlook Softens

Double Standard Inc. reported a 13.8% year-on-year decline in net sales to ¥4.86 billion for the nine months ended December 31, 2025, with operating profit down 36.0% to ¥1.19 billion and profit attributable to owners of parent dropping 37.1% to ¥801 million. Despite weaker earnings and lower basic earnings per share, the company preserved a strong balance sheet with a 92.3% equity ratio and is maintaining its guidance for full-year declines in revenue and profit while planning to raise the annual dividend from ¥60 to ¥70 per share, signaling continued shareholder returns.

For the full fiscal year ending March 31, 2026, Double Standard forecasts net sales of ¥7.2 billion, down 10.0% from the prior year, and a near-20% contraction in operating profit to ¥2.1 billion, with basic earnings per share expected at ¥107.73. The combination of profit compression and a higher dividend suggests management is confident in cash generation capacity and capital strength, though the projected downturn indicates operating headwinds that stakeholders will watch closely for their impact on the company’s growth trajectory and competitive position.

The most recent analyst rating on (JP:3925) stock is a Buy with a Yen1723.00 price target. To see the full list of analyst forecasts on Double Standard, Inc. stock, see the JP:3925 Stock Forecast page.

Double Standard Releases Q3 FY2026 Results and Full-Year Outlook

Double Standard, Inc. has released materials covering its consolidated financial results for the third quarter of the fiscal year ending March 2026, along with an overview of its business and reference data. The company also presented its forecast for the full fiscal year, suggesting that investors and other stakeholders will be able to assess recent performance alongside management’s outlook and operational context.

The most recent analyst rating on (JP:3925) stock is a Buy with a Yen2090.00 price target. To see the full list of analyst forecasts on Double Standard, Inc. stock, see the JP:3925 Stock Forecast page.

Double Standard Profits Slide but Firm Lifts Dividend Outlook

Double Standard Inc. reported a 13.8% year-on-year decline in net sales to ¥4.86 billion for the nine months ended December 31, 2025, with operating profit down 36.0% to ¥1.19 billion and profit attributable to owners falling 37.1% to ¥801 million, reflecting a significant earnings contraction. Despite weaker profitability, the company’s equity ratio improved to 92.3% as total assets declined, and it maintained its full-year forecast calling for a 10.0% drop in sales and an 18.3% fall in profit, while planning to raise the annual dividend from ¥60 to a forecast ¥70 per share, signaling confidence in shareholder returns even amid a softer earnings environment.

The most recent analyst rating on (JP:3925) stock is a Buy with a Yen2090.00 price target. To see the full list of analyst forecasts on Double Standard, Inc. stock, see the JP:3925 Stock Forecast page.

Double Standard 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.