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Dai Nippon Toryo Company, Limited
(4611)
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Rating:58Neutral
Price Target:
¥2,012.00
▲(49.37% Upside)
Action:Reiterated
Date:10/28/26
The score is held back mainly by weak recent profitability and persistently negative free cash flow despite strong revenue growth and a conservative balance sheet. Technicals are supportive due to a strong uptrend, but the very high RSI suggests the move may be overextended. Valuation is reasonable with a ~3% yield, but not compelling enough to offset the cash-flow and margin concerns.
Positive Factors
Strong Revenue Growth
The 21.2% revenue increase shows strong demand momentum across the company’s markets and provides a larger sales base for future operating leverage. If growth persists, it can support broader customer penetration, improve scale, and help offset periods of weaker profitability.
Negative Factors
Sharp Margin Compression
The steep decline in net margin indicates that recent revenue growth is not translating reliably into earnings. Weaker pricing or mix, higher costs, or one-off pressure could continue to reduce profit conversion, limiting reinvestment capacity and making results less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The 21.2% revenue increase shows strong demand momentum across the company’s markets and provides a larger sales base for future operating leverage. If growth persists, it can support broader customer penetration, improve scale, and help offset periods of weaker profitability.
Read all positive factors
Dai Nippon Toryo Company, Limited (4611) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥54.82B
Dividend Yield3%
Average Volume (3M)54.63K
Price to Earnings (P/E)22.0
Beta (1Y)0.91
Revenue Growth25.27%
EPS Growth-70.96%
CountryJP
Employees2,522
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)88.13
Shares Outstanding29,710,678
10 Day Avg. Volume59,200
30 Day Avg. Volume54,626
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.52
Price to Sales (P/S)0.37
P/FCF Ratio-17.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
The company primarily makes money by selling coatings and paint products to customers in construction/architectural markets and industrial end markets. Revenue is generated through (1) product sales of architectural/building coatings (e.g., protec...
Dai Nippon Toryo Company, Limited Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.87B | 93.76B | 72.51B | 71.94B | 72.85B | 66.95B |
| Gross Profit | 27.35B | 25.88B | 22.46B | 21.80B | 20.62B | 19.66B |
| EBITDA | 8.95B | 6.91B | 14.33B | 9.74B | 7.38B | 6.22B |
| Net Income | 2.52B | 1.69B | 9.44B | 4.60B | 3.46B | 2.03B |
Balance Sheet | ||||||
| Total Assets | 140.34B | 137.49B | 133.34B | 101.62B | 92.81B | 87.70B |
| Cash, Cash Equivalents and Short-Term Investments | 10.42B | 11.33B | 12.65B | 8.43B | 6.86B | 6.78B |
| Total Debt | 16.73B | 15.13B | 12.22B | 6.10B | 6.18B | 5.54B |
| Total Liabilities | 64.02B | 60.81B | 57.17B | 39.13B | 37.59B | 35.71B |
| Stockholders Equity | 66.56B | 66.89B | 65.17B | 59.71B | 52.20B | 49.26B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.99B | -1.01B | -739.00M | -1.88B | 1.87B |
| Operating Cash Flow | 0.00 | 3.01B | 3.57B | 3.46B | 1.28B | 3.36B |
| Investing Cash Flow | 0.00 | -3.40B | -364.00M | -772.00M | -1.45B | -966.00M |
| Financing Cash Flow | 0.00 | -189.00M | -75.00M | -1.66B | -473.00M | -2.84B |
Dai Nippon Toryo Company, Limited Technical Analysis
Positive
1347.00
Price Trends
1575.26
Positive
1464.46
Positive
1380.31
Positive
Market Momentum
42.80
Negative
82.52
Negative
67.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4611, the sentiment is Positive. The current price of 1347 is below the 20-day moving average (MA) of 1612.85, below the 50-day MA of 1575.26, and below the 200-day MA of 1380.31, indicating a bullish trend. The MACD of 42.80 indicates Negative momentum. The RSI at 82.52 is Negative, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4611.
Dai Nippon Toryo Company, Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥2.90T | 14.72 | 10.80% | 1.28% | 16.22% | 34.06% | |
74 Outperform | ¥154.33B | 9.37 | 8.48% | 1.35% | 8.62% | 68.78% | |
73 Outperform | ¥546.50B | 19.61 | ― | 3.27% | 18.43% | 149.34% | |
69 Neutral | ¥466.08B | 8.26 | 12.05% | 4.47% | 6.29% | 101.67% | |
67 Neutral | ¥494.95B | 17.42 | 10.26% | 3.85% | 2.53% | -14.17% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ¥54.82B | 21.96 | ― | 3.00% | 25.27% | -70.96% |
* Basic Materials Sector Average
JP:4611
Dai Nippon Toryo Company, Limited
1,935.00
703.55
57.13%
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Dai Nippon Toryo Company, Limited Corporate Events
Dai Nippon Toryo Lifts Earnings Forecasts on Coatings Recovery and Price Hikes
Oct 27, 2026
Dai Nippon Toryo Co., Ltd., a Japanese paint and coatings producer listed on the TSE Prime market, derives a significant portion of its revenue from its domestic coatings business, particularly structural coatings. The firm has recently restored J...
Dai Nippon Toryo Books ¥410 Million Gain After Divesting Chinese Subsidiary
Oct 27, 2026
Dai Nippon Toryo Co., Ltd. has completed the transfer of all equity interests in its consolidated subsidiary DNT (Zhejiang) Co., Ltd., finalizing the consideration and registration procedures under an agreement initially announced in February 2026...
Dai Nippon Toryo Posts Strong Q1 on Coatings Sales, Keeps FY2026 Guidance Intact
Aug 7, 2026
Dai Nippon Toryo reported a strong start to fiscal 2026, as higher sales volumes in its Coatings business more than offset various cost increases, driving a sharp year-on-year rise in operating profit and profit attributable to owners of the paren...
Dai Nippon Toryo Delivers Sharp Profit Rebound in First Quarter of FY2026
Aug 7, 2026
Dai Nippon Toryo reported a strong rebound for the quarter ended June 30, 2026, with net sales up 13.9% year on year to ¥25.4 billion and operating profit surging 162.5% to ¥1.85 billion. Ordinary profit climbed 158.7% to ¥2.19 bill...
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.