Dynapac Co., Ltd. (3947) AI Stock Analysis

• Market Cap: ¥19.47B
• Dividend Yield: 3.56%
• Average Volume (3M): 2.84K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.31
• Revenue Growth: 9.75%
• EPS Growth: 153.81%
• Country: JP
• Employees: 2,281
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Packaging & Containers
• EPS (TTM): 105.90
• Shares Outstanding: 10,322,591
• 10 Day Avg. Volume: 3,100
• 30 Day Avg. Volume: 2,843
• PEG Ratio: 1.10
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Dynapac Co., Ltd. scores well overall due to its strong financial performance and attractive valuation. While the company demonstrates robust revenue and profit growth with low financial risk, challenges in cash flow management and an overbought technical state suggest some caution. The stock's positive momentum and undervalued status are key strengths, making it a solid investment opportunity, albeit with the need for monitoring cash management improvements.

Dynapac Co., Ltd. Business Overview & Revenue Model

Company Description

Dynapac Co., Ltd. (3947) is a Japan-based company engaged in the development, manufacturing, and sales of electronic components. The company's core products include printed circuit boards, electronic packaging materials, and various other electronic components utilized in a wide range of industries, including automotive, telecommunications, and consumer electronics. Dynapac is known for its innovation in electronic technology and its commitment to providing high-quality, reliable products to its clients globally.

How the Company Makes Money

Dynapac Co., Ltd. generates revenue primarily through the sale of its electronic components and solutions. The company's key revenue streams include the manufacturing and distribution of printed circuit boards and electronic packaging materials, which are integral to the production of electronic devices. Dynapac's business model is supported by strategic partnerships with major electronics manufacturers and suppliers, enabling it to maintain a strong presence in both domestic and international markets. Additionally, the company's investment in research and development allows it to continually innovate and offer advanced products that meet the evolving needs of its clients, further driving its revenue growth.

Dynapac Co., Ltd. Financial Statement Overview

Summary

Dynapac Co., Ltd. exhibits strong revenue and profit growth with a solid balance sheet characterized by low leverage and high equity. However, the cash flow challenges, particularly in terms of free cash flow generation, indicate potential areas for improvement in cash management. While the company is on a positive financial trajectory, enhancing operational efficiency and cash conversion will be crucial for sustaining long-term growth.

Income Statement

Dynapac Co., Ltd. demonstrated strong revenue growth, with a 7.8% increase in total revenue from 2023 to 2024. The gross profit margin improved to 19.0%, indicating efficient cost management. The net profit margin also increased to 4.8%, reflecting enhanced profitability. However, the EBIT margin slightly declined to 2.8%, suggesting some operational challenges. Overall, the income statement shows a positive trajectory in revenue and profit growth, although operational efficiency could be improved.

Balance Sheet

The company's balance sheet remains robust with a debt-to-equity ratio of 0.08, indicating low leverage and strong financial stability. The equity ratio is high at 59.9%, showcasing a solid capital structure. Furthermore, the return on equity improved to 6.5%, reflecting effective use of shareholder funds. The balance sheet indicates a strong financial position with low risk, supported by substantial equity and low debt levels.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow, turning negative in 2024. The operating cash flow to net income ratio is relatively low, suggesting challenges in converting accounting profits into cash. On the positive side, the company has maintained a stable operating cash flow, although capital expenditures have increased. The cash flow analysis highlights the need for improved cash management to support sustainable growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
62.53B	58.03B	56.79B	56.30B	52.28B
	Gross Profit
11.88B	10.58B	9.74B	9.62B	8.96B
	EBIT
1.73B	1.93B	1.35B	1.22B	725.34M
	EBITDA
3.96B	4.34B	3.49B	3.91B	3.01B
	Net Income Common Stockholders
2.99B	1.61B	1.61B	1.40B	934.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.92B	6.24B	4.48B	3.26B	2.23B
	Total Assets
76.54B	73.03B	68.05B	66.19B	66.86B
	Total Debt
3.57B	1.38B	1.45B	833.82M	1.94B
	Net Debt
-355.09M	-4.87B	-3.02B	-2.43B	-291.31M
	Total Liabilities
30.49B	30.12B	27.39B	27.02B	27.65B
	Stockholders Equity
45.86B	42.82B	40.59B	39.12B	39.17B
Cash Flow		Free Cash Flow
-1.14B	2.44B	1.14B	2.82B	1.48B
	Operating Cash Flow
1.04B	5.78B	3.07B	4.30B	2.76B
	Investing Cash Flow
-3.96B	-3.40B	-1.81B	-1.59B	-1.59B
	Financing Cash Flow
687.22M	-666.53M	27.31M	-1.67B	-1.02B

Dynapac Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1963.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3947, the sentiment is Positive. The current price of 1963 is above the 20-day moving average (MA) of 1876.35, above the 50-day MA of 1865.76, and above the 200-day MA of 1775.70, indicating a bullish trend. The MACD of 34.44 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3947.

Dynapac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	80 Outperform	¥4.01T	9.16		4.37%	5.97%	13.78%
3947	79 Outperform	¥19.47B	4.82		3.56%	9.75%	153.81%
6356	76 Outperform	¥7.35B	4.74		1.55%	2.21%	13.58%
6331	71 Outperform	¥42.14B	8.41	13.39%	4.02%	15.67%	-36.86%
7012	69 Neutral	¥1.50T	17.00	12.94%	1.61%	15.31%	―
Sector *	62 Neutral	$6.98B	11.38	2.86%	3.90%	2.64%	-22.07%