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Daiki Aluminium Industry Co., Ltd.
(5702)
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Rating:59Neutral
Price Target:
¥1,938.00
▼(-0.62% Downside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak and inconsistent cash generation (multiple years of negative free cash flow) and materially lower profitability versus prior peaks, despite modest recent revenue growth and manageable leverage. Offsetting this, the stock shows strong technical momentum (though somewhat stretched) and a reasonable valuation supported by a ~3% dividend yield.
Positive Factors
Recycled Aluminum Position
Its secondary-aluminum model converts scrap into industrial alloy inputs, giving the company an established value-adding role in a recycling chain. This can support ongoing relevance as manufacturers use aluminum components, although profitability still depends on spreads and processing costs.
Negative Factors
Persistent Negative Free Cash Flow
Three consecutive years of negative free cash flow weaken the quality of reported earnings and may limit self-funded investment or shareholder returns. Operating cash flow also swung sharply, indicating that working-capital and operating cash conversion remain unreliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Recycled Aluminum Position
Its secondary-aluminum model converts scrap into industrial alloy inputs, giving the company an established value-adding role in a recycling chain. This can support ongoing relevance as manufacturers use aluminum components, although profitability still depends on spreads and processing costs.
Read all positive factors
Daiki Aluminium Industry Co., Ltd. (5702) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥77.20B
Dividend Yield2.82%
Average Volume (3M)84.57K
Price to Earnings (P/E)14.3
Beta (1Y)0.97
Revenue Growth13.46%
EPS Growth560.67%
CountryJP
Employees1,275
SectorBasic Materials
Sector Strength58
IndustryAluminum
Share Statistics
EPS (TTM)135.95
Shares Outstanding43,629,234
10 Day Avg. Volume121,780
30 Day Avg. Volume84,566
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.73
Price to Sales (P/S)0.17
P/FCF Ratio-19.44
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
Daiki Aluminium Industry Co., Ltd. Business Overview & Revenue Model
Company Description
Daiki Aluminium Industry Co., Ltd. operates comprehensively in the production, processing, marketing, and distribution of aluminum alloy products, serving both the Japanese domestic market and international clients. Its diverse product portfolio i...
How the Company Makes Money
Daiki Aluminium Industry primarily makes money by purchasing aluminum scrap and other recyclable aluminum materials, processing them through sorting/pre-treatment and melting/refining operations, and selling the resulting secondary aluminum alloy ...
Daiki Aluminium Industry Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
61
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 353.98B | 331.11B | 299.80B | 262.67B | 273.03B | 236.06B |
| Gross Profit | 18.36B | 15.91B | 13.43B | 12.71B | 22.71B | 29.04B |
| EBITDA | 13.18B | 11.23B | 8.86B | 8.30B | 17.24B | 23.57B |
| Net Income | 5.38B | 3.68B | 698.00M | 3.24B | 9.73B | 14.88B |
Balance Sheet | ||||||
| Total Assets | 199.20B | 177.86B | 163.29B | 138.68B | 133.22B | 141.62B |
| Cash, Cash Equivalents and Short-Term Investments | 6.92B | 9.08B | 7.34B | 6.38B | 4.96B | 4.86B |
| Total Debt | 88.47B | 74.36B | 67.32B | 48.29B | 42.22B | 58.82B |
| Total Liabilities | 120.10B | 100.76B | 89.58B | 66.61B | 64.84B | 83.11B |
| Stockholders Equity | 78.42B | 76.46B | 73.07B | 71.39B | 67.63B | 57.72B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.86B | -13.95B | -2.05B | 22.10B | -19.04B |
| Operating Cash Flow | 0.00 | 1.87B | -10.04B | 2.80B | 26.16B | -15.62B |
| Investing Cash Flow | 0.00 | -5.18B | -4.20B | -3.64B | -4.58B | -3.42B |
| Financing Cash Flow | 0.00 | 5.08B | 14.57B | 2.22B | -21.66B | 17.91B |
Daiki Aluminium Industry Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥187.25B | 9.69 | 6.76% | 3.02% | 10.03% | 59.52% | |
66 Neutral | ¥104.66B | 10.35 | ― | 2.98% | 17.71% | 109.91% | |
63 Neutral | ¥88.00B | 9.78 | ― | 3.70% | 2.94% | -16.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥437.28B | 5.97 | 12.38% | 1.91% | 28.03% | 425.01% | |
59 Neutral | ¥77.20B | 14.34 | 5.10% | 3.67% | 13.46% | 560.67% | |
47 Neutral | ¥104.91B | 30.72 | ― | 1.38% | -8.39% | -32.87% |
* Basic Materials Sector Average
JP:5702
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Daiki Aluminium Industry Co., Ltd. Corporate Events
Daiki Aluminium to Dispose Treasury Shares for Performance-Linked Executive Stock Plan
Aug 10, 2026
Daiki Aluminium Industry will dispose of 129,000 treasury shares at ¥1,797 each, totaling about ¥231.8 million, to fund a performance-linked share-based remuneration plan for internal directors and executive officers. The shares, represe...
Daiki Aluminium Industry Posts Strong Q1 and Keeps Aggressive Dividend Outlook
Aug 10, 2026
Daiki Aluminium Industry reported a strong first quarter for the fiscal year ending March 31, 2027, with net sales rising 30.6% year on year to ¥97.6 billion and operating profit surging 146.1% to ¥3.7 billion. Profit attributable to own...
Daiki Aluminium Raises Earnings Outlook and Hikes Dividend on Strong Aluminium Margins
Aug 5, 2026
Daiki Aluminium Industry Co., Ltd. sharply upgraded its forecasts for the fiscal year ending March 31, 2027, citing higher net sales from increased volumes and selling prices and stronger profitability from a widening spread between product prices...
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.