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Daiichi Cutter Kogyo K.K.
(1716)
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Rating:76Outperform
Price Target:
¥1,645.00
▲(17.33% Upside)
Action:Reiterated
Date:08/19/26
The score is driven mainly by strong financial stability (very low leverage and positive cash generation) and attractive valuation (low P/E and solid dividend yield). Technicals add support with the stock above major moving averages and moderate positive momentum, while the key risk remains the multi-year revenue decline and reduced operating margins versus prior highs.
Positive Factors
Very Low Leverage
Minimal debt and a growing equity base give Daiichi Cutter strong financial flexibility. This reduces refinancing and interest-burden risk while preserving capacity to fund equipment, maintain operations, and withstand fluctuations in construction demand.
Negative Factors
Multi-Year Revenue Decline
A prolonged top-line contraction signals weaker project volume, customer demand, or execution scale. If sustained, lower revenue can reduce operating leverage and limit the company’s ability to grow earnings, invest in capabilities, or expand its market position.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal debt and a growing equity base give Daiichi Cutter strong financial flexibility. This reduces refinancing and interest-burden risk while preserving capacity to fund equipment, maintain operations, and withstand fluctuations in construction demand.
Read all positive factors
Daiichi Cutter Kogyo K.K. (1716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.94B
Dividend Yield3.21%
Average Volume (3M)28.34K
Price to Earnings (P/E)9.8
Beta (1Y)0.31
Revenue Growth-0.69%
EPS Growth20.83%
CountryJP
Employees656
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)142.24
Shares Outstanding12,000,000
10 Day Avg. Volume22,280
30 Day Avg. Volume28,343
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.75
Price to Sales (P/S)0.75
P/FCF Ratio11.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Daiichi Cutter Kogyo K.K. Business Overview & Revenue Model
Company Description
Operating within Japan's construction and civil engineering sectors, Dai-Ichi Cutter Kogyo k.k. delivers a comprehensive array of specialized services. These encompass precision cutting and perforation, including flat, wall, and wire sawing, core ...
How the Company Makes Money
The company primarily makes money by providing fee-based, project-by-project contracting services tied to construction, renovation, and maintenance works. Revenue is earned when Daiichi Cutter Kogyo is engaged as a specialty subcontractor (or cont...
Daiichi Cutter Kogyo K.K. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
71
Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.09B | 20.23B | 20.92B | 22.16B | 20.95B |
| Gross Profit | 6.18B | 5.83B | 6.65B | 7.05B | 6.67B |
| EBITDA | 2.52B | 2.71B | 3.69B | 3.71B | 3.27B |
| Net Income | 1.60B | 1.33B | 1.97B | 1.95B | 1.58B |
Balance Sheet | |||||
| Total Assets | 23.41B | 22.41B | 21.92B | 21.64B | 19.48B |
| Cash, Cash Equivalents and Short-Term Investments | 10.88B | 9.93B | 9.48B | 9.44B | 7.77B |
| Total Debt | 255.83M | 331.48M | 338.38M | 467.47M | 285.43M |
| Total Liabilities | 3.05B | 3.05B | 3.63B | 4.41B | 3.62B |
| Stockholders Equity | 20.23B | 19.23B | 18.16B | 16.62B | 15.02B |
Cash Flow | |||||
| Free Cash Flow | 1.27B | 950.54M | 1.23B | 1.93B | 1.33B |
| Operating Cash Flow | 2.83B | 1.70B | 2.17B | 2.74B | 2.24B |
| Investing Cash Flow | -1.88B | -2.44B | -1.65B | -561.38M | -847.24M |
| Financing Cash Flow | -503.91M | -515.67M | -481.83M | -506.39M | -289.41M |
Daiichi Cutter Kogyo K.K. Technical Analysis
Neutral
1402.00
Price Trends
1402.65
Negative
1391.11
Positive
1397.91
Positive
Market Momentum
-3.05
Positive
47.28
Neutral
23.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1716, the sentiment is Neutral. The current price of 1402 is below the 20-day moving average (MA) of 1425.55, below the 50-day MA of 1402.65, and above the 200-day MA of 1397.91, indicating a neutral trend. The MACD of -3.05 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1716.
Daiichi Cutter Kogyo K.K. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥26.71B | 7.20 | ― | 4.01% | 6.41% | 38.90% | |
76 Outperform | ¥15.94B | 9.84 | ― | 3.21% | -0.69% | 20.83% | |
74 Outperform | ¥17.54B | 7.00 | ― | 1.24% | 11.22% | 499.52% | |
71 Outperform | ¥66.62B | 11.12 | ― | 4.88% | 7.89% | 1.09% | |
68 Neutral | ¥17.65B | 7.53 | ― | 3.61% | -7.50% | 122.97% | |
66 Neutral | ¥40.11B | 14.28 | ― | 3.36% | 3.16% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1716
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.