3-D Matrix (7777) AI Stock Analysis

• Market Cap: ¥58.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.78M
• Price to Earnings (P/E): 20.6
• 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): 5.30
• Shares Outstanding: 124,965,080
• 10 Day Avg. Volume: 2,399,770
• 30 Day Avg. Volume: 4,782,760
• PEG Ratio: >-0.01
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 1.80
• P/FCF Ratio: -7.24
• 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: ¥521.00 ▲(49.71% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak financial performance (persistent losses, negative operating cash flow, and high leverage). Technicals provide partial support with price above key longer-term moving averages, while valuation appears reasonable at a mid-range P/E but lacks dividend yield support.

Positive Factors

High gross margin

A 63.81% gross margin indicates durable product-level profitability and likely pricing power or differentiated technology in medical devices. This margin buffer supports R&D and commercialization spend and helps absorb SG&A, improving long-term prospects if revenue scales.

Free cash flow covering losses

Positive free cash flow relative to net losses implies the business can generate cash from operations or working-capital improvements even while nominally unprofitable. That enhances runway, reduces immediate dilution risk, and gives management time to pursue profitability improvements.

Reported revenue growth

Consistent revenue growth, even modest at 4.05%, shows continuing market adoption and demand for the company’s devices. Sustained top-line growth coupled with high gross margins provides a pathway to leverage fixed costs and improve operating profitability over the medium term.

Negative Factors

High leverage

A debt-to-equity of 1.33 signals significant reliance on borrowings, raising refinancing and interest-rate risk. High leverage constrains financial flexibility, limits ability to fund growth initiatives organically, and increases default risk if cash generation falters.

Negative operating cash flow

Persistent negative operating cash flow indicates the core business is not yet self-financing. Over months this drains liquidity, forces reliance on external financing or asset sales, and hampers sustained investment in commercialization and R&D critical for medical-device competitiveness.

Ongoing net losses

Continued net losses and negative EBIT margins reflect structural profitability issues. Without margin or revenue inflection, losses erode equity value, suppress returns on capital, and may compel cost cuts or strategic shifts that could impair long-term product development or market share.

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.

3-D Matrix Financial Statement Overview

Summary

Financials are weak overall: modest revenue growth (4.05%) and a strong gross margin (63.81%) are outweighed by ongoing net losses, negative operating cash flow, and elevated leverage. The balance sheet is a key risk (debt-to-equity 1.33; low equity ratio; negative ROE), and cash flow trends indicate liquidity pressure despite free cash flow covering net losses.

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 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	7.64B	6.93B	4.59B	2.31B	1.51B	1.02B
Gross Profit	5.05B	4.42B	3.09B	1.29B	661.01M	304.91M
EBITDA	-725.87M	-2.40B	59.13M	715.00M	843.00M	638.00M
Net Income	-948.45M	-2.50B	-255.50M	-2.45B	-1.89B	-2.01B
Balance Sheet
Total Assets	6.37B	6.51B	5.89B	5.83B	5.61B	3.51B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.58B	1.36B	1.17B	2.85B	1.14B
Total Debt	2.33B	2.94B	4.17B	4.37B	3.67B	1.46B
Total Liabilities	3.68B	4.30B	5.53B	5.30B	4.15B	1.85B
Stockholders Equity	2.69B	2.22B	353.31M	524.77M	1.46B	1.66B
Cash Flow
Free Cash Flow	0.00	-1.73B	-1.90B	-4.60B	-2.92B	-3.28B
Operating Cash Flow	0.00	-1.71B	-1.90B	-4.59B	-2.90B	-3.25B
Investing Cash Flow	0.00	-33.30M	-29.76M	-81.50M	-79.86M	-160.32M
Financing Cash Flow	0.00	2.01B	2.06B	2.96B	4.66B	3.46B

3-D Matrix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 348.00
• 50DMA: Negative
• 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 Neutral. The current price of 348 is below the 20-day moving average (MA) of 612.30, below the 50-day MA of 526.96, and above the 200-day MA of 334.75, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 4.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥20.77B	15.12	―	3.02%	-4.36%	-14.92%
4549	68 Neutral	¥93.50B	26.70	―	2.31%	4.36%	79.43%
7963	67 Neutral	¥9.66B	10.32	―	1.89%	9.47%	37.35%
6849	65 Neutral	¥250.33B	36.37	―	1.92%	4.31%	96.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥126.72B	28.05	2.42%	3.73%	0.04%	―
7777	50 Neutral	¥58.86B	20.55	1.45%	―	40.50%	91.59%