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Daiki Aluminium Industry Co., Ltd. (JP:5702)
:5702
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Daiki Aluminium Industry Co., Ltd. (5702) AI Stock Analysis

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JP:5702

Daiki Aluminium Industry Co., Ltd.

(5702)

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Neutral 59 (OpenAI - 5.2)
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)

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
Mixed fundamentals: revenue grew (+6.1% FY2026 vs. FY2025) and leverage is moderate (debt ~74.4B vs. equity ~76.5B), but profitability has weakened significantly from FY2022–FY2023 highs (net income down to 3.7B in FY2026). The biggest drag is cash flow quality—free cash flow has been negative for three consecutive years (FY2024–FY2026) with large operating cash flow swings, increasing financial risk despite reported profitability.
Income Statement
58
Neutral
Balance Sheet
61
Positive
Cash Flow
33
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue353.98B331.11B299.80B262.67B273.03B236.06B
Gross Profit18.36B15.91B13.43B12.71B22.71B29.04B
EBITDA13.18B11.23B8.86B8.30B17.24B23.57B
Net Income5.38B3.68B698.00M3.24B9.73B14.88B
Balance Sheet
Total Assets199.20B177.86B163.29B138.68B133.22B141.62B
Cash, Cash Equivalents and Short-Term Investments6.92B9.08B7.34B6.38B4.96B4.86B
Total Debt88.47B74.36B67.32B48.29B42.22B58.82B
Total Liabilities120.10B100.76B89.58B66.61B64.84B83.11B
Stockholders Equity78.42B76.46B73.07B71.39B67.63B57.72B
Cash Flow
Free Cash Flow0.00-2.86B-13.95B-2.05B22.10B-19.04B
Operating Cash Flow0.001.87B-10.04B2.80B26.16B-15.62B
Investing Cash Flow0.00-5.18B-4.20B-3.64B-4.58B-3.42B
Financing Cash Flow0.005.08B14.57B2.22B-21.66B17.91B

Daiki Aluminium Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥187.25B9.696.76%3.02%10.03%59.52%
66
Neutral
¥104.66B10.352.98%17.71%109.91%
63
Neutral
¥88.00B9.783.70%2.94%-16.58%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
¥437.28B5.9712.38%1.91%28.03%425.01%
59
Neutral
¥77.20B14.345.10%3.67%13.46%560.67%
47
Neutral
¥104.91B30.721.38%-8.39%-32.87%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5702
Daiki Aluminium Industry Co., Ltd.
1,881.00
781.44
71.07%
JP:5703
Nippon Light Metal Holdings Co
3,035.00
1,058.27
53.54%
JP:5741
UACJ
2,354.00
837.58
55.23%
JP:3036
ALCONIX Corporation
3,450.00
1,380.53
66.71%
JP:5440
Kyoei Steel Ltd.
2,043.00
-138.67
-6.36%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
2,643.00
326.44
14.09%

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.Date of analysis: Aug 17, 2026