3-D Matrix (7777) AI Stock Analysis

• Market Cap: ¥52.85B
• Dividend Yield: N/A
• Average Volume (3M): 4.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• 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: 121,212,750
• 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: 48 Neutral
• Price Target: ¥424.00 ▲(21.84% Upside)

The score is held down primarily by weak financial performance (ongoing losses, high leverage, and negative operating cash flow). Technicals are a partial offset with strong trend strength above major moving averages, though overbought signals increase near-term risk. Valuation is also a drag due to losses (negative P/E) and no dividend support.

Positive Factors

Gross Margin

A high gross margin (~63.8%) indicates strong unit economics and pricing power for its biomaterials. This margin buffer supports sustained investment in R&D and clinical programs, helps absorb input-cost swings, and improves chances of long-term profitability as scale increases.

Revenue Growth

Reported revenue growth near 40% suggests accelerating market adoption of 3‑D Matrix’s products. Continued top-line expansion can fund product development, enhance operating leverage over time, validate commercial demand and improve the odds of reaching sustainable profitability.

Diversified Revenue Model

The company earns revenue via direct product sales, licensing, strategic collaborations and grant funding. Multiple income channels reduce reliance on a single customer or channel, create recurring royalty potential, and provide resilience during clinical/commercial development.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.33 shows significant reliance on debt financing. Elevated leverage increases interest and refinancing risk, constrains strategic flexibility for R&D or commercialization spending, and heightens solvency pressure if operating losses continue.

Negative Operating Cash Flow

Negative operating cash flow indicates core operations are not generating cash. Ongoing cash burn necessitates external financing or debt, which increases liquidity risk, raises financing costs, and can limit the company’s ability to self-fund clinical trials or scale commercial activities.

Persistent Losses

Consistent negative net and EBIT margins show the company hasn’t converted healthy gross margins into operating profits. Continued losses erode return on equity, raise the likelihood of dilution through future capital raises, and challenge long-term sustainability until margins improve.

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

Financial quality is weak: despite modest revenue growth (+4.05%) and a strong gross margin (63.81%), the company shows persistent losses (negative net and EBIT margins), high leverage (debt-to-equity 1.33), and negative operating cash flow, creating elevated solvency and liquidity risk.

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	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	7.64B	6.93B	2.31B	4.59B	1.51B	1.02B
Gross Profit	5.05B	4.42B	1.29B	3.09B	661.01M	304.91M
EBITDA	-725.87M	-2.40B	715.00M	59.13M	843.00M	638.00M
Net Income	-948.45M	-2.50B	-2.45B	-255.50M	-1.89B	-2.01B
Balance Sheet
Total Assets	6.37B	6.51B	5.83B	5.89B	5.61B	3.51B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.58B	1.17B	1.36B	2.85B	1.14B
Total Debt	2.33B	2.94B	4.37B	4.17B	3.67B	1.46B
Total Liabilities	3.68B	4.30B	5.30B	5.53B	4.15B	1.85B
Stockholders Equity	2.69B	2.22B	524.77M	353.31M	1.46B	1.66B
Cash Flow
Free Cash Flow	0.00	-1.73B	-4.60B	-1.90B	-2.92B	-3.28B
Operating Cash Flow	0.00	-1.71B	-4.59B	-1.90B	-2.90B	-3.25B
Investing Cash Flow	0.00	-33.30M	-81.50M	-29.76M	-79.86M	-160.32M
Financing Cash Flow	0.00	2.01B	2.96B	2.06B	4.66B	3.46B

3-D Matrix Technical Analysis

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

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 416.00, below the 50-day MA of 370.08, and above the 200-day MA of 259.45, indicating a bullish trend. The MACD of 25.00 indicates Positive momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 15.51 is Positive, 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	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
7963	74 Outperform	¥9.35B	12.09	―	1.89%	9.47%	37.35%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.73%	0.04%	―
6849	68 Neutral	¥285.97B	15.45	―	1.92%	4.31%	96.31%
4549	66 Neutral	¥78.86B	20.58	―	2.31%	4.36%	79.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7777	48 Neutral	¥52.85B	-471.45	1.45%	―	40.50%	91.59%