Dynic Corporation (3551) AI Stock Analysis

• Market Cap: ¥8.20B
• Dividend Yield: 3.1%
• Average Volume (3M): 32.59K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.76
• Revenue Growth: 4.18%
• EPS Growth: 23.01%
• Country: JP
• Employees: 1,131
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 62.94
• Shares Outstanding: 8,504,747
• 10 Day Avg. Volume: 22,960
• 30 Day Avg. Volume: 32,586
• PEG Ratio: 0.09
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 52.57
• 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: ¥1,049.00
• Price Target Upside: 8.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,049.00 ▲(8.37% Upside)

Dynic Corporation's strong technical momentum and attractive valuation are the primary drivers of its high stock score. Financial performance is robust, although there are concerns about cash flow management. The lack of recent earnings call data or corporate events means these factors did not influence the score.

Dynic Corporation Business Overview & Revenue Model

Company Description

Dynic Corporation produces and sells fabric and apparel products in Japan. It provides publishing, stationery, and fancy products; print media supplies; nonwoven fabric products; industrial products; special embossed products; foils, films, and paper products; and environmentally friendly products, as well as products for home. The company also offers book binding cloth, cloth for stationery paper goods, various bags/backpacks/purses made from simulated leather, computer ribbons, fine films, cloth for magnetic passbooks, various types of printing materials, business card and postcard printers, and moisture getters for organic ELs. In addition, it provides materials for automobile interiors, filters, fusible interlinings for clothing, tarpaulins, and aluminum foils and composite films for food containers, as well as interior decorating items, including carpets and wallpapers. The company was formerly known as Nippon Cloth Industry Co., Ltd. and changed its name to Dynic Corporation in 1974. Dynic Corporation was founded in 1919 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Dynic Corporation generates revenue primarily through the sale of its diverse product offerings. The company's key revenue streams include industrial tapes used for various applications in manufacturing and construction, ink ribbons for printing purposes, and synthetic leather materials used in automotive interiors and consumer goods. Dynic leverages its extensive distribution network and strategic partnerships to reach a broad customer base across different sectors, ensuring a steady flow of income. Moreover, the company invests in research and development to innovate and improve its product lines, thus maintaining a competitive edge in the market.

Dynic Corporation Financial Statement Overview

Summary

Dynic Corporation exhibits positive growth trends with significant improvements in revenue and profit margins. The balance sheet reflects a stable financial position with moderate leverage and strong equity. However, cash flow management requires attention to enhance free cash flow generation.

Income Statement

Dynic Corporation demonstrates strong revenue growth with a 4.68% increase from the previous year. The Gross Profit Margin improved to 19.74%, indicating better cost management. The Net Profit Margin rose to 2.98%, reflecting enhanced profitability. However, the EBIT and EBITDA margins show room for improvement at 4.85% and 8.23%, respectively.

Balance Sheet

The company's Debt-to-Equity Ratio of 0.75 suggests moderate leverage, indicating a balanced capital structure. Return on Equity improved to 4.95%, showing increased efficiency in generating profit from equity. The Equity Ratio of 43.52% indicates a solid equity base, supporting financial stability.

Cash Flow

Free Cash Flow experienced a decline, emphasizing potential cash flow management issues. The Operating Cash Flow to Net Income Ratio of 0.96 suggests close alignment between cash and reported earnings, while the Free Cash Flow to Net Income Ratio of 0.09 highlights challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.38B	44.07B	42.10B	41.55B	38.95B	35.87B
Gross Profit	8.78B	8.70B	7.42B	7.19B	7.40B	6.69B
EBITDA	3.47B	3.63B	3.16B	2.51B	3.08B	2.80B
Net Income	1.30B	1.32B	847.54M	519.89M	960.51M	925.19M
Balance Sheet
Total Assets	61.24B	61.09B	59.97B	57.63B	54.19B	52.13B
Cash, Cash Equivalents and Short-Term Investments	4.57B	4.30B	4.67B	4.06B	3.99B	2.92B
Total Debt	19.87B	20.38B	20.07B	20.68B	19.60B	19.61B
Total Liabilities	34.65B	34.49B	35.30B	34.41B	32.59B	31.49B
Stockholders Equity	26.59B	26.59B	24.39B	22.91B	21.27B	20.30B
Cash Flow
Free Cash Flow	0.00	120.16M	1.90B	-792.30M	901.36M	487.76M
Operating Cash Flow	0.00	1.26B	3.03B	574.79M	2.34B	1.88B
Investing Cash Flow	0.00	-1.14B	-1.45B	-438.45M	-1.57B	-1.30B
Financing Cash Flow	0.00	-534.05M	-1.09B	439.57M	-261.57M	-1.17B

Dynic Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 968.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3551, the sentiment is Positive. The current price of 968 is below the 20-day moving average (MA) of 985.40, above the 50-day MA of 958.10, and above the 200-day MA of 822.81, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3551.

Dynic Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3551	80 Outperform	¥8.20B	6.23	―	3.10%	4.18%	23.01%
3958	66 Neutral	¥3.21B	12.87	―	3.23%	-3.07%	-37.00%
7805	64 Neutral	¥3.21B	7.21	―	2.01%	-1.00%	105.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7919	63 Neutral	¥3.23B	6.44	―	3.99%	2.39%	-8.65%
7850	62 Neutral	¥2.46B	7.70	―	2.38%	2.78%	16.45%
7916	61 Neutral	¥4.68B	29.07	―	3.27%	-0.55%	―