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

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Daiwa Computer Co., Ltd.

(TSE/TYO:3816)

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Rating:62Neutral

Price Target:JPY 1,230.00▲(9.53% Upside)

Action:reiterated

Date:09/06/26

The overall score of 62 reflects a company with a very strong financial foundation but weakening operational momentum. The primary support comes from a pristine balance sheet and bullish technical trends. The main detractor is the significant deterioration in profitability and cash flow generation, which creates a cautious outlook and tempers the score.

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 4.38B
Dividend Yield: 1.69%
Average Volume (3M): 1,175
Price to Earnings (P/E): 20.0
Beta (1Y): 0.35
Revenue Growth: 1.07%
EPS Growth: -47.86%
Country: Japan
Employees: 196
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 performance is mixed. A fortress balance sheet (Score 85) with negligible debt provides excellent stability. However, this is offset by weak income (Score 45) and cash flow (Score 40) results, driven by declining revenue, compressed margins, and a sharp drop in operating cash flow.

Income Statement

45Neutral

Balance Sheet

85Very Positive

Cash Flow

40Negative

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 SentimentPositive

Last Price1123.00

Price Trends

50DMA1107.96Positive

100DMA1109.52Positive

200DMA1112.04Positive

Market Momentum

MACD2.94Negative

RSI55.27Neutral

STOCH94.20Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3816, the sentiment is Positive. The current price of 1123.00 is above the 20-day moving average (MA) of 1103.70, above the 50-day MA of 1107.96, and above the 200-day MA of 1112.04, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 94.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79Outperform	JPY 5.29B	11.63	―	2.71%	13.99%	-36.97%
JP:4491	75Outperform	JPY 5.68B	10.30	―	2.16%	7.70%	32.16%
JP:4019	65Neutral	JPY 5.27B	17.91	―	1.00%	38.22%	27.54%
JP:3816	62Neutral	JPY 4.38B	19.99	4.01%	1.69%	1.07%	-47.86%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:5033	59Neutral	JPY 7.75B	46.70	―	―	7.04%	-67.36%
JP:7527	43Neutral	JPY 4.76B	145.16	―	―	16.20%	―

* 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.	1123.00	-25.70	-2.24%
JP:3826	System Integrator Corp.	480.00	36.66	8.27%
JP:4019	Stamen Co., Ltd.	600.00	-359.80	-37.49%
JP:4491	Computer Management Co., Ltd.	2780.00	217.30	8.48%
JP:5033	Nulab Inc.	1195.00	430.00	56.21%
JP:7527	SystemSoft Corporation	45.00	-25.00	-35.71%

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