3-D Matrix (7777) AI Stock Analysis

• Market Cap: ¥82.48B
• Dividend Yield: N/A
• Average Volume (3M): 4.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 40.50%
• EPS Growth: 91.59%
• Country: JP
• Employees: 106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 124,027,000
• 10 Day Avg. Volume: 2,399,770
• 30 Day Avg. Volume: 4,782,760
• PEG Ratio: 0.38
• Price to Book (P/B): 24.87
• Price to Sales (P/S): 1.91
• P/FCF Ratio: -4.61
• 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: 50 Neutral
• Price Target: ¥665.00 ▲(91.09% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial performance (persistent losses, negative operating cash flow, and high leverage). Technicals provide meaningful support due to strong upward momentum, but overbought signals add near-term risk. Valuation is not supportive given the negative P/E and lack of dividend data.

Positive Factors

Diversified Revenue Model

A multi‑stream revenue model (product sales, licensing, partnerships, grants) reduces dependence on any single channel, supports recurring royalty income, and creates multiple pathways to commercial scale. This durable diversification helps stabilize cash flows as product adoption expands.

High Gross Margin

A gross margin near 64% indicates strong unit economics and potential pricing power for proprietary biomaterials. High gross margins provide a buffer to absorb R&D and SG&A while enabling scalable margin expansion if operating leverage improves and production efficiencies are realized.

Strategic Focus in Regenerative Medicine

Concentration in regenerative medicine targets secular growth markets driven by aging populations and unmet clinical needs. A focused product set in wound healing, orthopedics, and drug delivery positions the company to benefit from long‑term structural demand and potential high barriers to entry.

Negative Factors

High Leverage

A debt/equity ratio of 1.33 signals significant reliance on debt financing. For a company still posting losses, elevated leverage raises refinancing and interest risks, limits flexibility for R&D or commercial investments, and amplifies downside in adverse market conditions.

Negative Operating Cash Flow

Sustained negative operating cash flow undermines liquidity and forces dependence on external funding. Over the medium term this can constrain product development, commercialization timing and may require dilutive financing or higher debt, impairing long‑term capital allocation options.

Persistent Net Losses & Negative Margins

Ongoing net losses and negative profit margins indicate the company has not yet converted attractive gross margins into net profitability. Persistent losses erode equity, limit reinvestment capacity, and increase the time and capital required to reach sustained profitability and positive returns for shareholders.

3-D Matrix Business Overview & Revenue Model

Company Description

3-D Matrix, Ltd. develops self-assembling peptide technology. It offers PuraMatrix, a self-assembling peptide hydrogel for use in the fields of regenerative medicine, cell therapy, drug delivery technology, and surgical treatment. The company was founded in 2004 and is based in Tokyo, Japan.

How the Company Makes Money

3-D Matrix generates revenue primarily through the sale of its proprietary biomaterials and tissue engineering products to hospitals, research institutions, and pharmaceutical companies. The company’s revenue model includes direct sales of its products, licensing agreements for its technology, and collaborations with industry partners for research and development projects. Key revenue streams include product sales from its various biomaterial offerings, royalties from licensed technologies, and income from strategic partnerships that facilitate product development and market expansion. Additionally, funding from grants and investments in research initiatives further contributes to the company's financial growth.

3-D Matrix Financial Statement Overview

Summary

Weak overall fundamentals driven by ongoing net losses, negative margins, and negative operating cash flow. Some revenue growth (4.05%) and a strong gross margin (63.81%) help, but high leverage (debt-to-equity 1.33) and low financial stability keep the score low.

Income Statement

The company has shown some revenue growth over the years, with a 4.05% increase in the latest period. However, profitability remains a significant concern, with negative net profit margins and EBIT margins indicating ongoing operational challenges. The gross profit margin is relatively healthy at 63.81%, but the consistent net losses highlight the need for improved cost management and revenue generation.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 1.33, indicating significant reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting potential financial instability and risk in meeting long-term obligations.

Cash Flow

Cash flow analysis shows negative operating cash flow, which is a concern for sustainability. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is covering net losses. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight liquidity challenges and the need for improved cash management.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	7.64B	6.93B	4.59B	1.51B	1.02B	672.42M
Gross Profit	5.05B	4.42B	3.09B	661.01M	304.91M	111.98M
EBITDA	-725.87M	-2.40B	59.13M	843.00M	638.00M	-559.00M
Net Income	-948.45M	-2.50B	-255.50M	-1.89B	-2.01B	-3.10B
Balance Sheet
Total Assets	6.37B	6.51B	5.89B	5.61B	3.51B	3.12B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.58B	1.36B	2.85B	1.14B	1.06B
Total Debt	2.33B	2.94B	4.17B	3.67B	1.46B	1.80B
Total Liabilities	3.68B	4.30B	5.53B	4.15B	1.85B	2.64B
Stockholders Equity	2.69B	2.22B	353.31M	1.46B	1.66B	473.02M
Cash Flow
Free Cash Flow	0.00	-1.73B	-1.90B	-2.92B	-3.28B	-2.21B
Operating Cash Flow	0.00	-1.71B	-1.90B	-2.90B	-3.25B	-2.19B
Investing Cash Flow	0.00	-33.30M	-29.76M	-79.86M	-160.32M	-112.79M
Financing Cash Flow	0.00	2.01B	2.06B	4.66B	3.46B	1.57B

3-D Matrix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 348.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7777, the sentiment is Positive. The current price of 348 is below the 20-day moving average (MA) of 537.10, below the 50-day MA of 450.72, and above the 200-day MA of 300.70, indicating a bullish trend. The MACD of 47.89 indicates Negative momentum. The RSI at 74.56 is Negative, neither overbought nor oversold. The STOCH value of 81.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7777.

3-D Matrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥22.50B	17.62	―	3.02%	-4.36%	-14.92%
4549	68 Neutral	¥103.52B	27.01	―	2.31%	4.36%	79.43%
7963	67 Neutral	¥10.42B	11.78	―	1.89%	9.47%	37.35%
6849	65 Neutral	¥290.48B	22.94	―	1.92%	4.31%	96.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥139.40B	39.27	4.32%	3.73%	0.04%	―
7777	50 Neutral	¥82.48B	-719.07	1.45%	―	40.50%	91.59%