DDC Enterprise Ltd. (DDC) AI Stock Analysis

• Market Cap: $86.99M
• Dividend Yield: N/A
• Average Volume (3M): 120.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.61
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 48
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.88
• Shares Outstanding: 9,999,199
• 10 Day Avg. Volume: 141,848
• 30 Day Avg. Volume: 120,407
• PEG Ratio: <0.01
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -0.41
• 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: $30.00
• Price Target Upside: 316.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $7.50 ▲(4.17% Upside)

DDC's overall stock score is heavily impacted by its poor financial performance, characterized by high leverage and negative cash flow. Technical analysis indicates bearish momentum, further weighing down the score. The absence of valuation metrics and earnings call data limits a comprehensive assessment.

DDC Enterprise Ltd. Business Overview & Revenue Model

Company Description

DDC Enterprise Limited provides ready-to-heat, ready-to-cook, and plant-based meal products. It also provides advertising services; and marketplace, advertising, and content distribution and placement services to third-party brands and products. The company was incorporated in 2012 and is based in Sheung Wan, Hong Kong.

How the Company Makes Money

DDC generates revenue through a multifaceted approach, primarily by offering software development services tailored to meet the needs of various industries. This includes custom software solutions, mobile application development, and IT consulting. Additionally, DDC earns income from its logistics sector by managing supply chain operations for clients, where it charges fees for transportation, warehousing, and inventory management services. Their manufacturing division contributes to revenue through the production of specialized components and products, often under contract with larger corporations. Significant partnerships with technology firms and logistics companies enhance DDC's market reach and capabilities, allowing the company to benefit from shared resources and expanded service offerings, further bolstering its financial performance.

DDC Enterprise Ltd. Financial Statement Overview

Summary

DDC Enterprise Ltd. faces significant financial challenges, with persistent losses, high leverage, and negative cash flow indicators. The income statement shows declining profitability, the balance sheet is burdened by high debt, and cash flow issues pose liquidity risks.

Income Statement

DDC Enterprise Ltd. shows a concerning financial trajectory with negative net profit margins and EBIT margins over the years, indicating consistent losses. Despite a positive revenue growth rate in recent years, the company struggles with profitability, as evidenced by its declining EBIT and EBITDA margins. The gross profit margin has improved slightly, but the overall financial health remains weak due to persistent net losses.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio exceeding 4, indicating significant reliance on debt financing. The negative return on equity reflects the company's inability to generate profits from shareholders' investments. The equity ratio is low, suggesting potential financial instability. Overall, the balance sheet highlights significant financial risk due to high debt levels and negative equity.

Cash Flow

Cash flow analysis shows negative operating cash flow, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with reported losses. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight ongoing cash flow difficulties, posing risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.42M	273.33M	205.48M	179.59M	205.18M	169.14M
Gross Profit	23.40M	77.64M	51.46M	43.93M	36.46M	27.84M
EBITDA	-8.00M	-128.43M	-134.66M	-84.76M	-429.91M	-102.50M
Net Income	-12.08M	-170.20M	-155.38M	-122.03M	-454.35M	-113.50M
Balance Sheet
Total Assets	280.30M	485.22M	440.94M	255.38M	228.50M	130.82M
Cash, Cash Equivalents and Short-Term Investments	22.28M	191.01M	182.88M	26.80M	13.49M	24.47M
Total Debt	243.34M	192.46M	181.47M	206.71M	144.26M	188.15M
Total Liabilities	1.89B	402.95M	373.69M	1.74B	1.41B	782.74M
Stockholders Equity	-1.63B	47.43M	45.61M	-1.50B	-1.19B	-656.49M
Cash Flow
Free Cash Flow	-24.88M	-113.29M	-37.27M	-37.27M	-91.60M	-49.30M
Operating Cash Flow	-24.72M	-112.91M	-37.08M	-37.08M	-91.43M	-48.75M
Investing Cash Flow	-7.33M	-10.86M	-444.63K	-444.63K	-8.36M	-13.01M
Financing Cash Flow	26.89M	104.27M	51.35M	51.35M	115.76M	76.85M

DDC Enterprise Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.20
• 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 DDC, the sentiment is Negative. The current price of 7.2 is below the 20-day moving average (MA) of 8.44, below the 50-day MA of 10.29, and below the 200-day MA of 7.79, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 6.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDC.

DDC Enterprise Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SOWG	50 Neutral	$9.67M	6.01	-45.00%	―	-77.72%	-282.16%
SRXH	48 Neutral	$7.93M	0.13	―	―	-8.12%	―
FAMI	46 Neutral	$2.39M	-0.20	-3.22%	―	-49.19%	-394.71%
DDC	43 Neutral	$86.99M	―	―	―	―	―
IMG	39 Underperform	$46.61M	―	―	―	-80.00%	72.04%
STKH	33 Underperform	$2.53M	―	-136.13%	―	―	―

DDC Enterprise Ltd. Corporate Events

DDC Enterprise Expands Bitcoin Holdings with Recent Acquisition

On October 15, 2025, DDC Enterprise Limited acquired an additional 25 BTC, increasing its total Bitcoin holdings to 1,083 BTC. This move underscores DDC’s strategy of disciplined Bitcoin accumulation, which has resulted in a 263% yield in the second half of the year. The acquisition is part of DDC’s broader strategy to leverage market fluctuations for strategic advantage, enhancing shareholder value by increasing the Bitcoin held per 1,000 shares to approximately 0.108309 BTC. This acquisition reflects the company’s commitment to long-term value creation and prudent balance sheet management, as stated by CEO Norma Ka Yin Chu.

DDC Enterprise Secures $124 Million for Bitcoin Treasury Expansion

On October 8, 2025, DDC Enterprise Limited announced it secured $124 million in equity financing through subscription agreements with eight investors, including PAG Pegasus Fund and Mulana Investment Management. This investment round, which includes a personal $3 million investment from Founder and CEO Norma Chu, supports DDC’s Bitcoin treasury strategy, aiming to position the company as a leader in institutional Bitcoin treasuries. The capital raised will further strengthen DDC’s market position, with the investors’ capital committed to a 180-day lock-up period, reflecting confidence in the company’s strategic direction.

DDC Enterprise Ltd. Strengthens Advisory Board and Secures Financial Agreement

DDC Enterprise Ltd. recently appointed Dave Chapman and Jay Steinback to its Advisory Board on September 25, 2025. Chapman brings extensive expertise in the digital asset and fintech sectors, while Steinback offers a wealth of experience in retail, real estate, and technology. These appointments are expected to bolster DDC’s strategic direction and innovation capabilities. Additionally, on September 26, 2025, DDC entered into a Waiver and Forbearance Agreement with its purchasers and Anson Investments Master Fund L.P., addressing breaches under its senior secured convertible notes. This agreement includes amendments to conversion price formulas and warrant issuance, aiming to stabilize the company’s financial position and reassure stakeholders.

DDC Enterprise Reports Record Profit and Bitcoin Strategy Success

DDC Enterprise Limited announced its unaudited financial results for the first half of 2025, reporting a record net profit of $5.2 million, a significant turnaround from a net loss of the same amount in the previous year. This improvement is attributed to enhanced gross profit margins, disciplined cost control, and gains from Bitcoin holdings. The company has also scaled back its U.S. operations due to profitability issues while forming a joint venture in China expected to generate $15 million in profit over five years. Additionally, DDC has increased its shareholder equity by 202% and continues to execute its Bitcoin accumulation strategy, holding a total of 1,008 BTC as of the reporting date.

DDC Enterprise Announces Leadership Changes and New Advisory Board Appointment

On August 15, 2025, DDC Enterprise Limited announced changes in its leadership structure. Kyle Guse was appointed to the Advisory Board, while he stepped down from his role as Chief Legal Officer. The company has not yet appointed a new Chief Legal Officer but has established an Outside General Counsel through a committee arrangement with Loeb & Loeb LLP, involving Lawrence Venick, Robert Caldwell, and Anna Chau. These changes could impact the company’s legal strategy and advisory capabilities, potentially influencing its operations and stakeholder relations.