Daiwa House Industry Co (1925) AI Stock Analysis

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Daiwa House Industry Co

(TSE/TYO:1925)

Select Model

Rating:68Neutral

Price Target:JPY 2,369.00▲(2.84% Upside)

Action:downgraded

Date:09/30/26

Solid financial performance with revenue and profit growth is the primary driver, reinforced by attractive low P/E and high yield. Weak technical momentum caps the score.

Positive Factors

Improving profitabilitySteady revenue growth alongside wider gross and operating margins indicates improving operating performance across the group. A solid 2026 net margin also provides earnings resilience, supporting reinvestment and competitiveness across housing, development, leasing, and management activities.

Negative Factors

Rising leverageThe marked increase in debt relative to equity indicates greater reliance on borrowing and reduces balance-sheet flexibility. Higher leverage could constrain investment choices and make the company more vulnerable if the property cycle weakens or funding costs rise over the next several quarters.

Daiwa House Industry Co (1925) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.03B
Dividend Yield: 5.90%
Average Volume (3M): 4.06M
Price to Earnings (P/E): 8.3
Beta (1Y): 0.46
Revenue Growth: 4.66%
EPS Growth: 16.74%
Country: Japan
Employees: 55,712
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

Daiwa House Industry Co Business Overview & Revenue Model

Company Description

Daiwa House Industry Co., Ltd. is a leading global entity engaged in a broad spectrum of construction and development activities. The company's operations are segmented across various areas including individual residences, rental accommodations, cond...

How the Company Makes Money

Daiwa House Industry primarily makes money through a mix of (1) development/construction sales and (2) recurring real estate leasing income, supplemented by property management and related services. Key revenue streams include: (a) Housing business:...

Daiwa House Industry Co Financial Statement Overview

Summary

Consistent revenue growth from 4.12T to 5.57T and net income rise to 350B with margin gains, offset by debt-to-equity increase to 1.10 and inconsistent cash flows.

Income Statement

85Very Positive

Balance Sheet

72Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	5.41T	5.43T	5.58T	5.20T	4.91T	4.44T
Gross Profit	1.11T	1.10T	1.22T	992.41B	955.20B	864.68B
EBITDA	685.36B	678.07B	727.10B	557.36B	581.73B	481.95B
Net Income	306.44B	325.06B	350.57B	298.75B	308.40B	225.27B
Balance Sheet
Total Assets	7.36T	7.05T	8.41T	6.53T	6.14T	5.52T
Cash, Cash Equivalents and Short-Term Investments	348.46B	333.60B	434.57B	450.58B	361.66B	345.20B
Total Debt	2.68T	2.46T	3.21T	2.22T	1.97T	1.55T
Total Liabilities	4.62T	4.33T	5.39T	4.01T	3.75T	3.41T
Stockholders Equity	2.65T	2.61T	2.90T	2.44T	2.28T	2.02T
Cash Flow
Free Cash Flow	0	38.77B	-304.56B	-53.75B	-256.22B	-74.55B
Operating Cash Flow	0	420.56B	189.28B	302.29B	230.30B	336.44B
Investing Cash Flow	0	-481.09B	-716.62B	-305.80B	-503.32B	-440.92B
Financing Cash Flow	0	-56.96B	621.63B	92.78B	285.59B	-2.08B

Daiwa House Industry Co Technical Analysis

Technical Analysis SentimentPositive

Last Price2303.50

Price Trends

50DMA2253.18Positive

100DMA2234.15Positive

200DMA2341.45Negative

Market Momentum

MACD17.92Negative

RSI58.26Neutral

STOCH57.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1925, the sentiment is Positive. The current price of 2303.50 is above the 20-day moving average (MA) of 2240.65, above the 50-day MA of 2253.18, and below the 200-day MA of 2341.45, indicating a neutral trend. The MACD of 17.92 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 57.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1925.

Daiwa House Industry Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:1925 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1814	77Outperform	JPY 41.16B	7.66	―	5.48%	23.50%	120.22%
JP:1925	68Neutral	JPY 3.01T	8.30	12.78%	5.90%	4.66%	16.74%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:3299	62Neutral	JPY 37.29B	8.01	―	7.90%	-2.46%	-26.95%
JP:8897	59Neutral	JPY 53.48B	7.59	9.01%	6.68%	24.52%	5.03%
JP:8871	58Neutral	JPY 83.35B	10.21	6.08%	5.26%	14.17%	37.02%

* Real Estate Sector Average

Performance Comparison

JP:1925 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1925	Daiwa House Industry Co	2303.50	-246.91	-9.68%
JP:8871	GOLDCREST Co	2470.00	-676.14	-21.49%
JP:8897	Takara Leben Co., Ltd.	404.00	47.74	13.40%
JP:1814	DAISUE CONSTRUCTION CO., LTD.	3885.00	328.40	9.23%
JP:3299	Mugen Estate Co., Ltd.	1531.00	-366.41	-19.31%

Daiwa House Industry Co Corporate Events

Daiwa House Completes Restricted Stock Issuance for Management Compensation

Aug 25, 2026

Daiwa House Industry has completed payment procedures for a new share issuance tied to restricted stock compensation plans for its management. The issuance consists of 193,904 common shares, with a total value of about 881.3 million yen, aimed at dir...

Daiwa House lifts FY2027 earnings and dividend outlook amid solid start

Aug 6, 2026

Daiwa House Industry raised its consolidated earnings forecast for the fiscal year ending March 2027, projecting net sales of ¥5.9 trillion and net income attributable to owners of the parent of ¥266 billion, reflecting solid first-quarter...

Daiwa House lifts Q1 profits, revises dividend and guidance ahead of stock split

Aug 6, 2026

Daiwa House Industry reported solid first-quarter results for the fiscal year ending March 31, 2027, with net sales rising 9.0% year-on-year to ¥1.41 trillion and net income attributable to owners of the parent up 9.1% to ¥83.2 billion. Tot...

Daiwa House to Issue New Restricted Shares for Director and Executive Pay

Jul 9, 2026

Daiwa House Industry has approved the issuance of 193,904 new common shares as restricted stock and performance-linked stock compensation for 60 internal directors and executive officers, with a total value of about ¥881 million. This move is pa...

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.

Date of analysis: Sep 30, 2026

Daiwa House Industry Co AI Stock Analysis