Daiwa Computer Co., Ltd. (3816) AI Stock Analysis

Daiwa Computer Co., Ltd.

(TSE/TYO:3816)

Select Model

Rating:70Outperform

Price Target:JPY 1,276.00▲(16.00% Upside)

Action:reiterated

Date:09/06/26

The score is driven primarily by solid financial resilience (very low leverage and growing equity) but offset by a sharp 2026 profitability and operating cash flow deterioration. Technicals are supportive with the stock above major moving averages and positive MACD, while valuation is only moderate with a ~20.7 P/E and a modest ~1.64% dividend yield.

Positive Factors

Very low leverage and rising equityExtremely low leverage and steadily growing equity provide financial resilience and flexibility. This strengthens the company’s ability to fund systems-integration activity, absorb operational volatility, and preserve capital-allocation options without relying heavily on debt.

Negative Factors

Sharp profitability deteriorationThe sharp decline in gross and net margins shows that recent revenue has produced materially less profit. If weaker profitability persists, it could reduce reinvestment capacity, pressure returns, and make earnings more sensitive to project mix and delivery economics.

Daiwa Computer Co., Ltd. (3816) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.27B
Dividend Yield: 1.74%
Average Volume (3M): 928
Price to Earnings (P/E): 19.5
Beta (1Y): 0.31
Revenue Growth: 1.07%
EPS Growth: -47.86%
Country: Japan
Employees: 191
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Daiwa Computer Co., Ltd. Business Overview & Revenue Model

Company Description

Daiwa Computer Co., Ltd. is an information technology enterprise based in Japan. The company offers a broad spectrum of services, including the architectural design of critical business applications and web-based platforms, comprehensive software dev...

How the Company Makes Money

Daiwa Computer makes money primarily by delivering IT services and solutions to customers through (1) systems integration projects and custom software development, where revenue is earned from project-based fees tied to designing/building/implementin...

Daiwa Computer Co., Ltd. Financial Statement Overview

Summary

Financial stability is strong due to extremely low leverage and steadily rising equity, but operating results weakened materially in 2026. Gross and net margins fell sharply, net income dropped (218M vs 418M prior year), and operating cash flow declined to 141M (vs 277M in 2025), creating near-term earnings and cash-generation pressure despite the strong balance sheet.

Income Statement

58Neutral

Balance Sheet

86Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	3.24B	3.24B	3.20B	3.29B	3.01B	2.88B
Gross Profit	806.83M	806.83M	1.05B	1.06B	960.96M	894.76M
EBITDA	299.54M	299.54M	606.82M	604.89M	538.55M	504.39M
Net Income	217.67M	217.67M	417.51M	342.18M	329.00M	339.56M
Balance Sheet
Total Assets	6.42B	6.42B	6.24B	6.12B	5.76B	5.32B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.85B	3.95B	3.88B	3.26B	3.18B
Total Debt	37.66M	37.66M	44.12M	79.61M	85.50M	30.00M
Total Liabilities	857.02M	857.02M	876.45M	1.02B	975.73M	916.13M
Stockholders Equity	5.56B	5.56B	5.37B	5.10B	4.78B	4.41B
Cash Flow
Free Cash Flow	0	118.55M	250.61M	588.46M	318.21M	281.33M
Operating Cash Flow	0	141.05M	277.08M	593.37M	324.42M	283.60M
Investing Cash Flow	0	-127.43M	-87.89M	79.12M	-130.91M	-20.12M
Financing Cash Flow	0	-80.45M	-109.68M	-76.09M	-121.62M	-93.70M

Daiwa Computer Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1100.00

Price Trends

50DMA1112.22Negative

100DMA1107.45Negative

200DMA1111.82Negative

Market Momentum

MACD-3.44Positive

RSI45.42Neutral

STOCH53.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3816, the sentiment is Negative. The current price of 1100.00 is below the 20-day moving average (MA) of 1100.50, below the 50-day MA of 1112.22, and below the 200-day MA of 1111.82, indicating a bearish trend. The MACD of -3.44 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3816.

Daiwa Computer Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3816 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3826	82Outperform	JPY 5.26B	11.55	―	2.73%	13.99%	-36.97%
JP:4491	75Outperform	JPY 5.94B	10.61	―	2.06%	6.46%	38.58%
JP:3816	70Outperform	JPY 4.27B	19.49	4.01%	1.74%	1.07%	-47.86%
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
JP:4019	65Neutral	JPY 5.38B	18.30	―	0.98%	38.22%	27.54%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:7527	43Neutral	JPY 4.87B	148.39	―	―	-0.48%	―

* Technology Sector Average

Performance Comparison

JP:3816 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3816	Daiwa Computer Co., Ltd.	1095.00	-38.95	-3.43%
JP:3826	System Integrator Corp.	477.00	0.38	0.08%
JP:4019	Stamen Co., Ltd.	613.00	-560.86	-47.78%
JP:4491	Computer Management Co., Ltd.	2906.00	332.52	12.92%
JP:5033	Nulab Inc.	1228.00	465.00	60.94%
JP:7527	SystemSoft Corporation	46.00	-24.00	-34.29%

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 06, 2026

Daiwa Computer Co., Ltd. AI Stock Analysis