DIC (4631) AI Stock Analysis

• Market Cap: $340.76B
• Dividend Yield: 2.79%
• Average Volume (3M): 302.14K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.62
• Revenue Growth: -0.63%
• EPS Growth: N/A
• Country: JP
• Employees: 21,184
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 73.86
• Shares Outstanding: 95,156,906
• 10 Day Avg. Volume: 329,700
• 30 Day Avg. Volume: 302,143
• PEG Ratio: -0.10
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 93.63
• Enterprise Value/Market Cap: 2.07
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: $3,700.86
• Price Target Upside: 3.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥3,250.00 ▼(-9.34% Downside)

DIC's strong valuation metrics and positive technical indicators drive its stock score, partially offset by the need for improved profitability margins and cash flow efficiency.

DIC Business Overview & Revenue Model

Company Description

DIC Corporation manufactures and sells printing inks, organic pigments, and polyphenylene sulfide (PPS) compounds worldwide. It operates through three segments: Packaging & Graphic, Color & Display, and Functional Products. The Packaging & Graphic segment offers printing materials, including gravure, flexo, metal decoration, security, jet, offset, and news inks; packaging adhesives; coextruded multilayer films; and polystyrene, as well as other products and solutions for packaging applications. The Color & Display segment provides color material products, such as organic pigments, pigments for color filters, effect pigments, pigments for cosmetics, health foods, and natural colorants; and display materials comprising liquid crystal materials. The Functional Products segment offers performance materials that include coating, UV-curable, waterborne, acrylic, polyurethane, epoxy, phenolic, polyester/alkyd, unsaturated polyester, and other resins, as well as fluorochemicals, modifiers, alkylphenols, metal carboxylates, sulphur chemicals, and textile printing agents/leather colorants. It also provides composite materials, which comprise PPS and functional compounds, masterbatch for fibers/films, industrial adhesive and magnetic tapes, hollow fiber membrane modules, building material, decorative papers and sheets, decorative films, and plastic pallets; and DLP 3D printing materials and blue green Algal Polysaccharide. DIC Corporation offers its products to electronics, automotive, packaging, healthcare, color, display, house equipment/infrastructure, and functional material industries. The company was formerly known as Dainippon Ink and Chemicals, Incorporated and changed its name to DIC Corporation in April 2008. DIC Corporation was founded in 1908 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DIC generates revenue primarily through the sale of printing inks, which serve a wide range of industries, including publishing and packaging. The company also earns income from its organic pigments used in plastics, coatings, and cosmetics, which are essential for various consumer products. Additionally, DIC's revenue model includes providing customized solutions and value-added services to its clients, enhancing customer loyalty and driving repeat business. Significant partnerships with major brands and manufacturers in the packaging and printing sectors further bolster DIC's earnings, as they rely on the company's innovative products to enhance their own offerings. Moreover, DIC's strategic investments in research and development ensure a steady pipeline of new products, allowing the company to maintain a competitive edge in the market and attract new customers.

DIC Financial Statement Overview

Summary

DIC has shown a solid revenue growth trajectory and recovery in profitability, supported by stable balance sheet metrics. However, the net profit margin and operating cash flow have room for improvement.

Income Statement

DIC demonstrated a solid performance in the latest fiscal year, with a gross profit margin of 20.74% and an EBIT margin of 4.16%, indicating efficient cost management. The company also achieved a revenue growth rate of 3.12%, reflecting a positive sales trajectory. However, the net profit margin of 1.99% could be improved, and there's a notable recovery from a negative net income in the previous year.

Balance Sheet

DIC maintains a stable balance sheet with a debt-to-equity ratio of 1.21, which shows a moderate level of leverage. The equity ratio stands at 32.74%, indicating a solid capital structure. Return on Equity (ROE) at 5.31% shows room for improvement in generating returns for shareholders.

Cash Flow

The company has shown a significant decline in operating cash flow compared to the previous year. Free cash flow has shown growth, but the operating cash flow to net income ratio of 2.17 suggests current earnings are well-supported by cash flow. The free cash flow to net income ratio at 0.16 indicates limited cash flow generated relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06T	1.07T	1.04T	1.05T	855.38B	701.22B
Gross Profit	225.87B	222.20B	186.38B	199.22B	177.32B	156.79B
EBITDA	99.81B	100.09B	37.90B	88.47B	72.34B	72.39B
Net Income	27.99B	21.31B	-39.86B	17.61B	4.37B	13.23B
Balance Sheet
Total Assets	1.20T	1.23T	1.24T	1.26T	1.07T	817.95B
Cash, Cash Equivalents and Short-Term Investments	57.35B	61.87B	87.53B	63.38B	38.25B	44.88B
Total Debt	467.43B	484.33B	528.96B	509.33B	384.21B	266.74B
Total Liabilities	789.67B	805.82B	845.62B	840.55B	690.47B	466.59B
Stockholders Equity	396.13B	401.42B	363.94B	387.00B	345.93B	318.49B
Cash Flow
Free Cash Flow	0.00	3.42B	31.02B	-37.46B	6.17B	20.46B
Operating Cash Flow	0.00	46.21B	89.09B	7.93B	44.81B	54.46B
Investing Cash Flow	0.00	-17.08B	-66.46B	-73.16B	-147.61B	-33.04B
Financing Cash Flow	0.00	-62.59B	-2.92B	83.95B	99.55B	6.34B

DIC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4631, the sentiment is Positive. The current price of 3585 is below the 20-day moving average (MA) of 3644.95, above the 50-day MA of 3527.26, and above the 200-day MA of 3129.71, indicating a neutral trend. The MACD of 18.85 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 36.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4631.

DIC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	77 Outperform	$356.32B	8.47	11.71%	4.46%	1.29%	-22.20%
4626	77 Outperform	¥428.83B	38.86	―	2.52%	8.56%	1.27%
4631	74 Outperform	$340.76B	12.18	7.05%	2.79%	-0.63%	―
4205	72 Outperform	¥321.53B	12.87	7.18%	4.29%	5.34%	-19.93%
4203	68 Neutral	€429.24B	22.39	6.78%	1.92%	4.13%	-11.82%
4118	67 Neutral	$264.59B	11.68	4.90%	3.57%	3.80%	-11.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

DIC Corporate Events

DIC Corporation Announces Increased Year-End Dividend Forecast

DIC Corporation has revised its year-end dividend forecast for fiscal year 2025, increasing it significantly due to successful asset reduction efforts. The company plans to distribute a total annual dividend of ¥200.00 per share, including a special dividend, as part of its strategy to provide additional returns to shareholders and optimize management resources.

The most recent analyst rating on (JP:4631) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.

DIC Corporation Reports Mixed Financial Results for H1 FY2025

DIC Corporation reported a decrease in net sales for the first half of FY2025, attributed to a slowdown in pigment and ink shipments due to concerns over U.S. tariffs. Despite this, the company saw an increase in operating income due to successful cost reductions and sales price revisions, particularly in its overseas pigments business. The company has revised its full-term net sales forecast downward but expects operating income to exceed initial forecasts. Additionally, DIC plans to increase dividends to shareholders, reflecting its cash allocation policies.

The most recent analyst rating on (JP:4631) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.

DIC Corporation Reports Mixed Financial Results and Dividend Increase for H1 2025

DIC Corporation reported its consolidated financial results for the first half of 2025, showing a decline in net sales by 2.9% compared to the previous year, while operating income increased by 22.9%. The company also announced a revision in its year-end dividend forecast, indicating an increase in ordinary and special dividends, reflecting a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:4631) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.