Daidoh Limited (3205) AI Stock Analysis

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Daidoh Limited

(TSE/TYO:3205)

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Rating:57Neutral

Price Target:JPY 775.00▲(2.38% Upside)

Action:reiterated

Date:08/17/26

The score is primarily held back by mixed financial quality—thin operating margins, rising leverage, and persistently negative free cash flow despite the 2026 earnings rebound. Valuation is a key positive (low P/E and high dividend yield), while technicals are modestly constructive in the near term but still weak versus the 200-day trend.

Positive Factors

Revenue reboundThe latest annual period shows a meaningful revenue recovery, indicating renewed demand across the business. Sustained growth would improve operating leverage and provide a broader base for rebuilding profitability, although consistency remains important.

Negative Factors

Thin operating profitabilityVery low operating margins leave limited protection against wage, logistics, energy, procurement, or maintenance cost increases. Historical volatility and multiple loss-making periods also indicate that the recent earnings recovery may not yet represent a stable underlying profit structure.

Daidoh Limited (3205) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 20.76B
Dividend Yield: 6.61%
Average Volume (3M): 88.77K
Price to Earnings (P/E): 10.4
Beta (1Y): 1.06
Revenue Growth: 35.02%
EPS Growth: ―
Country: Japan
Employees: 722
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Manufacturers

Daidoh Limited Business Overview & Revenue Model

Company Description

Founded in Tokyo, Japan, in 1879, Daidoh Limited is a prominent company engaged in the development and retail of ready-to-wear apparel and fashion accessories for both men and women across the Japanese market. Its extensive product offerings include...

How the Company Makes Money

Daidoh Limited primarily makes money by selling beverages (and related products) through its vending-machine channel and associated route-sales operations. Revenue is generated when end-customers purchase products from Daidoh-operated vending machine...

Daidoh Limited Financial Statement Overview

Summary

Income statement shows a strong rebound in 2026 (revenue up ~14.6% and net income back to profit) with consistently healthy gross margins (~51–54%). However, operating profitability is thin (~1.1% EBIT margin) and results have been volatile across years. Balance sheet leverage has increased (debt-to-equity ~1.36 in 2026), and cash flow is the key weakness: operating cash flow is modest versus earnings and free cash flow remains consistently negative, increasing financing risk.

Income Statement

58Neutral

Balance Sheet

54Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	32.50B	32.50B	28.61B	28.70B	28.22B	24.61B
Gross Profit	16.87B	16.87B	15.50B	14.92B	14.32B	12.95B
EBITDA	2.08B	2.05B	-1.90B	798.00M	10.70B	-2.21B
Net Income	1.89B	1.89B	-2.48B	292.00M	6.76B	-3.54B
Balance Sheet
Total Assets	36.94B	36.94B	37.40B	40.88B	40.42B	31.80B
Cash, Cash Equivalents and Short-Term Investments	7.44B	7.44B	7.88B	5.38B	13.55B	5.47B
Total Debt	13.85B	13.85B	14.04B	14.78B	11.83B	13.51B
Total Liabilities	25.13B	25.13B	25.20B	26.23B	25.91B	24.08B
Stockholders Equity	10.16B	10.16B	11.54B	13.98B	13.87B	7.05B
Cash Flow
Free Cash Flow	0	-189.00M	-338.00M	-12.44B	-691.00M	-1.27B
Operating Cash Flow	0	423.00M	500.00M	-1.88B	19.00M	-481.00M
Investing Cash Flow	0	2.86B	2.80B	-7.90B	10.22B	132.00M
Financing Cash Flow	0	-3.71B	-905.00M	1.49B	-2.37B	-2.01B

Daidoh Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price757.00

Price Trends

50DMA739.04Positive

100DMA736.92Positive

200DMA807.55Negative

Market Momentum

MACD1.99Negative

RSI58.63Neutral

STOCH85.04Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3205, the sentiment is Positive. The current price of 757.00 is above the 20-day moving average (MA) of 741.95, above the 50-day MA of 739.04, and below the 200-day MA of 807.55, indicating a neutral trend. The MACD of 1.99 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3205.

Daidoh Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3205 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3569	75Outperform	JPY 193.41B	13.30	9.85%	2.24%	16.78%	5.60%
JP:3201	72Outperform	JPY 127.59B	13.06	―	2.31%	-0.33%	40.20%
JP:3104	70Outperform	JPY 102.76B	15.93	―	2.62%	14.36%	22.61%
JP:3110	67Neutral	JPY 485.30B	10.16	27.15%	1.35%	14.06%	232.41%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3002	59Neutral	JPY 128.62B	25.26	4.97%	3.39%	-3.94%	113.82%
JP:3205	57Neutral	JPY 19.26B	10.39	―	6.61%	35.02%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:3205 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3205	Daidoh Limited	757.00	-268.73	-26.20%
JP:3002	Gunze	4390.00	632.93	16.85%
JP:3110	Nitto Boseki Co	2654.50	-171.33	-6.06%
JP:3569	Seiren Co	3620.00	641.67	21.54%
JP:3104	Fujibo Holdings, Inc.	2940.00	684.29	30.34%
JP:3201	Japan Wool Textile Co., Ltd.	2076.00	461.60	28.59%

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

Daidoh Limited AI Stock Analysis