Daiki Axis Co., Ltd. (4245) AI Stock Analysis

Daiki Axis Co., Ltd.

(TSE/TYO:4245)

Select Model

Rating:57.7Neutral

Price Target:JPY 804.00▲(11.36% Upside)

Action:reiterated

Date:02/18/26

The overall score of 57.7 reflects mixed signals. Financial performance is the primary drag due to thin margins and high leverage, offset by positive technical momentum and a fair valuation. The stock's technical strength suggests short-term upside, but investors should monitor the company's ability to improve profitability and cash flow generation.

Positive Factors

Steady revenue growthConsistent top-line growth across 2021–2025, including a stronger uptick in 2024–2025, indicates durable demand and improving project execution. Over 2–6 months this supports predictable backlog conversion, strengthens operational planning, and underpins longer-term cash generation potential.

Negative Factors

Elevated leverageA debt-heavy capital structure (debt > equity; D/E ~1.5–1.8) materially reduces financial flexibility and raises interest-rate and refinancing sensitivity. Over months this limits ability to invest, absorb project overruns, or pursue growth without adding risk or additional funding.

Daiki Axis Co., Ltd. (4245) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.60B
Dividend Yield: 3.32%
Average Volume (3M): 13.25K
Price to Earnings (P/E): 11.4
Beta (1Y): 0.46
Revenue Growth: 5.72%
EPS Growth: 219.73%
Country: Japan
Employees: 1,088
Sector: Industrials
Sector Strength: 63
Industry: Waste Management

Daiki Axis Co., Ltd. Business Overview & Revenue Model

Company Description

Daiki Axis Co., Ltd., established in 1958 and headquartered in Matsuyama, Japan, specializes in the development, construction, and upkeep of diverse wastewater management systems for both domestic and international markets. Their offerings encompass...

How the Company Makes Money

Daiki Axis generates revenue primarily by selling and supporting decentralized wastewater treatment solutions and related environmental infrastructure services. Key revenue streams include: (1) Product sales: revenue from the manufacture and sale of...

Daiki Axis Co., Ltd. Financial Statement Overview

Summary

Revenue growth is solid, but thin margins and high leverage (debt/equity 1.83x) constrain profitability and cash flow. Net income fluctuates, and free cash flow is often negative, limiting financial flexibility.

Income Statement

52Neutral

Balance Sheet

48Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	50.43B	48.32B	46.86B	42.68B	39.48B	37.82B
Gross Profit	11.04B	10.43B	10.22B	8.87B	8.17B	7.86B
EBITDA	3.02B	2.37B	2.26B	1.75B	1.71B	2.05B
Net Income	841.00M	461.00M	352.00M	205.00M	574.00M	610.00M
Balance Sheet
Total Assets	37.61B	38.05B	36.85B	34.07B	31.91B	32.25B
Cash, Cash Equivalents and Short-Term Investments	8.58B	7.92B	8.21B	6.95B	7.27B	6.30B
Total Debt	17.77B	17.63B	16.72B	16.06B	14.06B	12.95B
Total Liabilities	27.30B	28.41B	27.39B	24.54B	22.38B	23.41B
Stockholders Equity	10.31B	9.64B	9.46B	9.52B	9.52B	8.84B
Cash Flow
Free Cash Flow	0	-64.00M	1.96B	-22.00M	-93.00M	-166.89M
Operating Cash Flow	0	1.85B	3.20B	1.33B	1.26B	520.63M
Investing Cash Flow	0	-2.92B	-2.04B	-2.44B	-1.55B	-1.51B
Financing Cash Flow	0	608.00M	157.00M	574.00M	790.00M	-703.80M

Daiki Axis Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price722.00

Price Trends

50DMA717.54Positive

100DMA693.71Positive

200DMA689.82Positive

Market Momentum

MACD1.68Positive

RSI53.85Neutral

STOCH43.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4245, the sentiment is Positive. The current price of 722.00 is above the 20-day moving average (MA) of 721.20, above the 50-day MA of 717.54, and above the 200-day MA of 689.82, indicating a bullish trend. The MACD of 1.68 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4245.

Daiki Axis Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:4245 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5698	80Outperform	JPY 18.98B	7.42	―	3.96%	-9.49%	118.07%
JP:9336	76Outperform	JPY 399.57B	24.13	―	1.40%	13.76%	18.44%
JP:9793	72Outperform	JPY 161.97B	15.71	12.40%	2.44%	3.67%	13.39%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:4245	58Neutral	JPY 9.60B	11.39	―	3.32%	5.72%	219.73%
JP:2195	52Neutral	JPY 6.33B	20.24	―	1.54%	0.03%	-16.01%
JP:4657	43Neutral	JPY 2.06B	16.78	―	1.86%	-8.39%	1657.23%

* Industrials Sector Average

Performance Comparison

JP:4245 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4245	Daiki Axis Co., Ltd.	722.00	59.81	9.03%
JP:9793	Daiseki Co	3405.00	229.70	7.23%
JP:2195	Amita Holdings Co., Ltd.	325.00	12.41	3.97%
JP:4657	Environmental Control Center Co., Ltd.	431.00	12.61	3.01%
JP:5698	Envipro Holdings, Inc.	632.00	142.32	29.06%
JP:9336	Daiei Kankyo Co., Ltd.	4000.00	619.73	18.33%

Daiki Axis Co., Ltd. Corporate Events

Daiki Axis Posts Lower Q1 Profit but Keeps 2026 Forecasts and Dividend Plan Intact

May 14, 2026

Daiki Axis reported consolidated net sales of ¥13.28 billion for the three months ended March 31, 2026, up 3.7% year on year, while operating profit fell 16.6% to ¥619 million and profit attributable to owners of parent declined 13.6% to &#...

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 04, 2026

Daiki Axis Co., Ltd. AI Stock Analysis