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Dai Nippon Toryo Company, Limited (JP:4611)
:4611
Japanese Market
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Dai Nippon Toryo Company, Limited (4611) AI Stock Analysis

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JP:4611

Dai Nippon Toryo Company, Limited

(4611)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥1,402.00
▲(4.08% Upside)
Action:Downgraded
Date:05/15/26
The score is primarily constrained by weaker fundamentals: a steep 2026 margin/ROE deterioration and persistently negative free cash flow despite a conservative balance sheet. Technicals also lean bearish with the stock below major moving averages and negative MACD. Valuation is somewhat supported by the high dividend yield, but the P/E remains only moderate.
Positive Factors
Conservative leverage / strong balance sheet
Low debt-to-equity and steady equity growth give the company financial resilience, preserving capacity to fund operations, capex, or strategic initiatives without urgent refinancing. This structural strength supports stability over the next several months if cash stress appears.
Negative Factors
Sharp margin deterioration
A collapse in net margins of this magnitude indicates material pressure from costs, pricing, or one-offs, materially reducing profit-generating capacity. If persistent, this will constrain retained earnings, limit reinvestment ability, and pressure returns to shareholders over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage / strong balance sheet
Low debt-to-equity and steady equity growth give the company financial resilience, preserving capacity to fund operations, capex, or strategic initiatives without urgent refinancing. This structural strength supports stability over the next several months if cash stress appears.
Read all positive factors

Dai Nippon Toryo Company, Limited (4611) vs. iShares MSCI Japan ETF (EWJ)

Dai Nippon Toryo Company, Limited Business Overview & Revenue Model

Company Description
Dai Nippon Toryo Company, Limited, established in Osaka, Japan, in 1929, operates globally as a manufacturer and supplier of diverse coatings and jet inks. The company offers a wide array of products, including anticorrosive coatings crucial for p...
How the Company Makes Money
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Dai Nippon Toryo Company, Limited Financial Statement Overview

Summary
Strong balance-sheet resilience (low leverage) is offset by a sharp profitability drop in 2026 (net margin down to ~1.8% from ~13.0% in 2025) and weak cash generation, with negative free cash flow for several consecutive years (2023–2026). Revenue growth rebounded strongly in 2026 (+21.2%), but earnings volatility and poor cash conversion weigh heavily.
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue93.76B72.51B71.94B72.85B66.95B
Gross Profit25.88B22.46B21.80B20.62B19.66B
EBITDA6.91B14.33B9.74B7.38B6.22B
Net Income1.69B9.44B4.60B3.46B2.03B
Balance Sheet
Total Assets137.49B133.34B101.62B92.81B87.70B
Cash, Cash Equivalents and Short-Term Investments11.33B12.65B8.43B6.86B6.78B
Total Debt15.13B12.22B6.10B6.18B5.54B
Total Liabilities60.81B57.17B39.13B37.59B35.71B
Stockholders Equity66.89B65.17B59.71B52.20B49.26B
Cash Flow
Free Cash Flow-1.99B-1.01B-739.00M-1.88B1.87B
Operating Cash Flow3.01B3.57B3.46B1.28B3.36B
Investing Cash Flow-3.40B-364.00M-772.00M-1.45B-966.00M
Financing Cash Flow-189.00M-75.00M-1.66B-473.00M-2.84B

Dai Nippon Toryo Company, Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1347.00
Price Trends
50DMA
1306.06
Positive
100DMA
1294.27
Positive
200DMA
1281.49
Positive
Market Momentum
MACD
23.59
Positive
RSI
50.45
Neutral
STOCH
34.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4611, the sentiment is Neutral. The current price of 1347 is below the 20-day moving average (MA) of 1360.10, above the 50-day MA of 1306.06, and above the 200-day MA of 1281.49, indicating a neutral trend. The MACD of 23.59 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4611.

Dai Nippon Toryo Company, Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥137.12B9.816.23%1.11%3.36%14.17%
69
Neutral
¥2.52T13.2011.64%1.52%11.97%45.59%
69
Neutral
¥555.04B22.133.26%15.83%124.21%
64
Neutral
¥431.63B9.248.14%2.61%-0.45%50.53%
63
Neutral
¥448.05B14.8413.71%3.38%0.16%-12.56%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
52
Neutral
¥39.32B22.893.70%29.30%-82.13%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4611
Dai Nippon Toryo Company, Limited
1,353.00
208.49
18.22%
JP:4613
Kansai Paint Co
2,666.00
706.79
36.07%
JP:4612
Nippon Paint Holdings Co
1,096.50
-83.88
-7.11%
JP:4631
DIC
4,437.00
1,679.09
60.88%
JP:4628
SK Kaken Co
8,910.00
315.50
3.67%
JP:4626
Taiyo Holdings Co., Ltd.
4,778.00
1,658.61
53.17%

Dai Nippon Toryo Company, Limited Corporate Events

Dai Nippon Toryo Completes Treasury Share Disposal for Executive Restricted Stock Plan
Jul 17, 2026
Dai Nippon Toryo Co., Ltd., a major Japanese coatings and paints manufacturer listed on the TSE Prime, produces a variety of industrial and commercial coating products for diverse end markets. Its governance framework places emphasis on aligning e...
Dai Nippon Toryo to Grant Restricted Shares to Executives Under Revamped Incentive Plan
Jun 24, 2026
Dai Nippon Toryo has approved the disposal of 29,099 treasury shares as restricted share-based remuneration to four internal directors and six executive officers, valued at about ¥37.7 million at ¥1,295 per share. The allocation is struc...
Dai Nippon Toryo Plans Profit Rebound After Weak FY2025 Despite Higher Sales
May 21, 2026
Dai Nippon Toryo reported fiscal 2025 net sales of ¥93.8 billion, up 29.3% year on year and slightly above guidance, but operating profit fell 18.3% to ¥3.9 billion and profit attributable to owners of parent plunged 82.1% to ¥1.7 b...
Dai Nippon Toryo Posts Profit Slump Despite Higher Sales, Targets Earnings Rebound in FY 2027
May 13, 2026
Dai Nippon Toryo reported a 29.3% rise in net sales to ¥93.8 billion for the year ended March 31, 2026, but operating profit fell 18.3% and profit attributable to owners of parent plunged 82.1%, squeezed by lower margins despite higher revenu...
Dai Nippon Toryo Sets September Date for Osaka Head Office Relocation
Apr 24, 2026
Dai Nippon Toryo has finalized the timing and details of its head office relocation within Osaka, moving from Minami-Semba to a new address in Hiranomachi, Chuo-ku. The board has set September 24, 2026, as the date on which operations will begin a...
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: May 15, 2026