Happiness & D Co., Ltd. (3174) AI Stock Analysis

• Market Cap: ¥1.84B
• Dividend Yield: 2.11%
• Average Volume (3M): 4.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -20.10%
• EPS Growth: -0.74%
• Country: JP
• Employees: 359
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Specialty Retail
• EPS (TTM): -20.21
• Shares Outstanding: 2,591,600
• 10 Day Avg. Volume: 820
• 30 Day Avg. Volume: 4,953
• PEG Ratio: 0.05
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Happiness & D Co., Ltd. faces significant financial hurdles with declining revenue and negative profitability metrics, heavily impacting its financial performance score. Technical analysis provides a moderate positive outlook due to short-term price momentum, but caution is warranted due to neutrality in momentum indicators. Valuation is challenged by negative earnings, despite a reasonable dividend yield. These factors culminate in an overall score that reflects substantial risks with some potential for improvement.

Happiness & D Co., Ltd. Business Overview & Revenue Model

Company Description

Happiness & D Co., Ltd. (3174) is a Japanese company primarily engaged in the retail and wholesale distribution sectors. The company offers a diverse range of products, including apparel, lifestyle goods, and food items. It operates through various retail outlets and an online platform, catering to both individual consumers and businesses.

How the Company Makes Money

Happiness & D Co., Ltd. generates revenue through multiple channels, including direct sales from its retail stores and online platform. The company leverages its expansive network of retail outlets to reach a broad customer base, offering a variety of products from clothing to food items. In addition to retail sales, the company also engages in wholesale distribution, supplying products to other businesses. Partnerships with various suppliers and brands enable the company to maintain a diverse product lineup, contributing to its earnings. The company may also benefit from seasonal promotions and exclusive product launches, which drive additional sales.

Happiness & D Co., Ltd. Financial Statement Overview

Summary

The company is experiencing financial challenges with declining revenues and consistent losses impacting profitability. The balance sheet indicates high leverage, posing financial stability risks, although recent improvements in operating and free cash flow provide some positive outlook.

Income Statement

The company has faced declining revenue, with a significant drop from 2019 to 2024. The gross profit margin has also seen a decrease, indicating challenges in maintaining profitability. Notably, the company has experienced negative net income for the last few years, impacting the net profit margin. Both EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, indicating substantial leverage, which could pose financial stability risks. However, the equity ratio shows the company maintains a moderate level of equity relative to its assets. Return on equity is negative due to consistent net losses, suggesting inefficiencies in generating returns for shareholders.

Cash Flow

The operating cash flow has improved recently, indicating better cash generation from operations compared to previous years. Free cash flow is positive, which is a strength, but the inconsistency in cash flow growth rates over the years suggests potential volatility in cash management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
10.30B	10.78B	12.74B	13.61B	18.31B	17.57B
	Gross Profit
3.96B	4.11B	4.46B	4.54B	4.17B	4.10B
	EBIT
-115.30M	-158.22M	-216.80M	190.01M	-71.86M	101.46M
	EBITDA
-253.61M	-265.92M	-212.83M	399.36M	84.06M	9.59M
	Net Income Common Stockholders
-402.51M	-459.06M	-668.05M	89.87M	-124.45M	-189.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
662.00M	981.22M	1.94B	1.82B	2.38B	3.28B
	Total Assets
6.83B	7.05B	9.09B	9.26B	10.13B	10.42B
	Total Debt
3.94B	3.98B	5.44B	4.71B	5.75B	5.85B
	Net Debt
3.28B	3.00B	3.50B	2.89B	3.37B	2.57B
	Total Liabilities
5.99B	6.04B	7.59B	7.04B	7.96B	8.08B
	Stockholders Equity
848.00M	1.02B	1.50B	2.21B	2.17B	2.34B
Cash Flow		Free Cash Flow
0.00	650.05M	-143.63M	849.62M	-431.68M	656.98M
	Operating Cash Flow
0.00	756.68M	-33.75M	897.24M	-360.30M	700.40M
	Investing Cash Flow
0.00	-41.83M	-53.58M	-92.93M	-112.79M	-100.38M
	Financing Cash Flow
0.00	-1.67B	360.95M	-1.36B	-426.81M	94.74M

Happiness & D Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 714.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3174, the sentiment is Neutral. The current price of 714 is below the 20-day moving average (MA) of 722.30, above the 50-day MA of 707.18, and below the 200-day MA of 751.70, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3174.

Happiness & D Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3048	75 Outperform	€268.41B	15.46	11.19%	2.72%	11.59%	305.12%
3086	75 Outperform	$475.29B	11.32	10.29%	2.82%	8.57%	40.63%
7649	74 Outperform	$587.48B	21.96	10.45%	1.09%	17.94%	18.31%
8233	68 Neutral	¥342.61B	8.91	8.38%	2.10%	6.94%	26.04%
3099	64 Neutral	$725.93B	13.96	8.71%	2.36%	5.77%	64.67%
Sector *	61 Neutral	$6.93B	11.84	2.89%	3.91%	2.59%	-21.68%
3174	52 Neutral	¥1.84B	―		2.11%	-20.10%	-0.74%