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DAI-DAN Co., Ltd. (1980) AI Stock Analysis

JP:1980

DAI-DAN Co., Ltd.

(TSE/TYO:1980)

Select Model
Rating:78Outperform
Price Target:JPY 3,597.00â–²(27.87% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by strong financial performance—improving margins/ROE and very low leverage—tempered by revenue softness in 2026 and historically variable cash flows. Technicals are constructive (price above key moving averages) but momentum is mixed due to a slightly negative MACD. Valuation is supportive with a reasonable P/E and a ~3% dividend yield.

Positive Factors
Improving ProfitabilityThe substantial improvement in net and operating margins indicates stronger earnings conversion and better project economics. If maintained, higher profitability can support reinvestment, strengthen resilience against cost pressure, and lift the company’s earnings power over the next several quarters.
Negative Factors
2026 Revenue DeclineThe latest contraction shows that revenue growth is not yet consistently durable, even after several years of expansion. Continued top-line softness could reduce operating leverage, limit scale benefits, and make it harder for improved margins to translate into sustained earnings growth.

DAI-DAN Co., Ltd. (1980) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:1980+26.58%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 363.94B
Dividend Yield
3.48%
Average Volume (3M)
631.92K
Price to Earnings (P/E)
13.7
Beta (1Y)
1.53
Revenue Growth
-7.49%
EPS Growth
14.33%
Country
Japan
Employees
2,568
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

DAI-DAN Co., Ltd. Business Overview & Revenue Model

Company Description

Dai-Dan Co., Ltd., established in Osaka, Japan in 1903 (and known as Osaka Denki Danbo Co., Ltd. until 1987), serves as a leading specialist in the design, oversight, and construction of essential building infrastructure throughout Japan. Their core...

How the Company Makes Money

DAI-DAN primarily makes money by contracting building-equipment (MEP) projects and recognizing revenue from those contracts as work progresses and/or upon completion, depending on contract terms and applicable accounting. Its key revenue stream is co...

DAI-DAN Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: profitability and returns improved materially (net margin ~10% and EBIT margin ~13% in 2026; ROE ~20.5%), and the balance sheet is conservatively positioned with very low leverage (debt-to-equity ~0.03). Offsetting factors are an -8% revenue decline in 2026 and historically volatile cash flows (negative OCF in 2022 and negative FCF in 2024) despite excellent 2026 cash generation (FCF ~ net income).

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue257.68B256.23B262.73B197.43B185.96B162.93B
Gross Profit57.48B54.51B40.33B25.45B22.14B20.27B
EBITDA40.12B39.17B25.30B14.11B10.39B8.86B
Net Income26.46B26.77B17.44B9.09B6.63B5.78B
Balance Sheet
Total Assets217.73B232.07B218.59B162.67B150.20B140.64B
Cash, Cash Equivalents and Short-Term Investments82.58B83.20B51.76B22.70B25.38B16.07B
Total Debt3.34B3.52B23.60B3.16B3.62B3.90B
Total Liabilities84.94B99.19B109.38B68.68B67.78B63.40B
Stockholders Equity130.32B130.47B107.02B93.75B82.24B77.08B
Cash Flow
Free Cash Flow057.64B12.06B-1.03B14.13B-12.94B
Operating Cash Flow058.44B12.40B596.00M15.94B-11.72B
Investing Cash Flow0415.00M-832.00M-603.00M-4.73B-873.00M
Financing Cash Flow0-28.50B16.04B-2.83B-2.22B-3.21B

DAI-DAN Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2813.00

Price Trends

50DMA2867.31Negative
100DMA2750.20Positive
200DMA2768.36Positive

Market Momentum

MACD24.49Positive
RSI42.44Neutral
STOCH54.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1980, the sentiment is Neutral. The current price of 2813.00 is below the 20-day moving average (MA) of 3013.60, below the 50-day MA of 2867.31, and above the 200-day MA of 2768.36, indicating a neutral trend. The MACD of 24.49 indicates Positive momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1980.

DAI-DAN Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:1980 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1980JP:198078OutperformJPY 383.42B13.75―3.48%-7.49%14.33%
JP:1941JP:194177OutperformJPY 278.29B14.638.01%2.77%8.69%-4.66%
JP:1959JP:195977OutperformJPY 549.41B11.81―3.22%5.31%51.56%
JP:1934JP:193473OutperformJPY 169.83B13.22―3.15%-2.22%5.62%
JP:1721JP:172172OutperformJPY 645.00B16.5310.02%2.43%3.87%27.14%
JP:1951JP:195164NeutralJPY 501.04B15.09―2.97%17.67%26.12%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

0%20%40%60%JP:1980JP:1941JP:1721JP:1951JP:1934JP:1959Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:1980 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1980DAI-DAN Co., Ltd.2813.00606.7827.50%
JP:1941CHUDENKO CORPORATION5060.00968.9723.69%
JP:1721COMSYS Holdings Corporation5558.001763.4446.47%
JP:1951Kyowa Exeo Corporation2524.50363.4916.82%
JP:1934Yurtec Corporation2480.0062.112.57%
JP:1959Kraftia Corporation7755.00-184.89-2.33%

DAI-DAN Co., Ltd. Corporate Events

DAI-DAN Boosts Q1 Orders and Profit on Large-Scale Construction Projects

Aug 5, 2026

DAI-DAN Co., Ltd. reported a sharp year-on-year increase in construction orders received for the first quarter of the period ending March 2027, driven mainly by large-scale projects. Consolidated performance showed strong growth in both completed and...

DAI-DAN Posts Steady Q1 Growth and Confirms FY2027 Outlook

Aug 5, 2026

DAI-DAN reported first-quarter consolidated net sales of ¥61.6 billion, up 2.4% year on year, with operating and ordinary profit rising more than 12%, while profit attributable to owners of parent slipped 4.6% as last year’s earnings were...

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: Aug 17, 2026