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

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Daiki Aluminium Industry Co., Ltd.

(TSE/TYO:5702)

Select Model

Rating:59Neutral

Price Target:JPY 1,586.00▲(4.48% Upside)

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

Recycling-focused business modelA focus on recycled secondary aluminum gives the company an established role in industrial supply chains and aligns its operations with ongoing demand for processed alloy materials. Serving automotive and other manufacturing customers provides a broad commercial base for the business model.

Negative Factors

Persistent negative free cash flowThree consecutive years of negative free cash flow show that reported profitability has not translated consistently into cash available for investment or shareholder returns. This can increase dependence on financing and reduce the company’s ability to absorb operating pressure without adjusting capital allocation.

Daiki Aluminium Industry Co., Ltd. (5702) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 63.55B
Dividend Yield: 4.94%
Average Volume (3M): 279.88K
Price to Earnings (P/E): 11.2
Beta (1Y): 1.04
Revenue Growth: 25.82%
EPS Growth: 12523.08%
Country: Japan
Employees: 1,275
Sector: Basic Materials
Sector Strength: 61
Industry: Aluminum

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 incl...

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

58Neutral

Balance Sheet

61Positive

Cash Flow

33Negative

Financial statement breakdown
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	-2.86B	-13.95B	-2.05B	22.10B	-19.04B
Operating Cash Flow	0	1.87B	-10.04B	2.80B	26.16B	-15.62B
Investing Cash Flow	0	-5.18B	-4.20B	-3.64B	-4.58B	-3.42B
Financing Cash Flow	0	5.08B	14.57B	2.22B	-21.66B	17.91B

Daiki Aluminium Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1518.00

Price Trends

50DMA1688.38Negative

100DMA1634.65Negative

200DMA1553.97Negative

Market Momentum

MACD-46.21Positive

RSI38.58Neutral

STOCH53.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5702, the sentiment is Negative. The current price of 1518.00 is below the 20-day moving average (MA) of 1576.30, below the 50-day MA of 1688.38, and below the 200-day MA of 1553.97, indicating a bearish trend. The MACD of -46.21 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 53.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5702.

Daiki Aluminium Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5702 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5703	73Outperform	JPY 157.47B	7.41	8.64%	4.09%	13.54%	66.34%
JP:5440	67Neutral	JPY 73.58B	9.65	―	5.27%	6.83%	-31.05%
JP:5741	65Neutral	JPY 346.53B	4.47	21.40%	3.73%	31.61%	324.48%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:5702	59Neutral	JPY 63.55B	11.19	7.24%	4.94%	25.82%	12523.08%
JP:3036	59Neutral	JPY 98.64B	7.36	―	2.94%	32.80%	184.34%
JP:5726	47Neutral	JPY 103.64B	88.97	―	0.77%	-15.15%	-84.26%

* Basic Materials Sector Average

Performance Comparison

JP:5702 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5702	Daiki Aluminium Industry Co., Ltd.	1518.00	481.17	46.41%
JP:5703	Nippon Light Metal Holdings Co	2567.00	379.13	17.33%
JP:5741	UACJ Corp	1877.00	-134.22	-6.67%
JP:3036	ALCONIX Corporation	3270.00	1159.85	54.97%
JP:5440	Kyoei Steel Ltd.	1708.00	-487.64	-22.21%
JP:5726	OSAKA Titanium Technologies Co., Ltd.	2341.00	143.99	6.55%

Daiki Aluminium Industry Co., Ltd. Corporate Events

Daiki Aluminium Reports Six-Month Consolidated Results

Nov 11, 2026

Daiki Aluminium Industry Co., Ltd., listed on the Tokyo Stock Exchange, reported consolidated net sales of ¥213,393 million for the six months ended September 30, 2026, up 41.8% from the previous corresponding period. Operating profit rose 332.6% to...

Daiki Aluminium Resets Treasury Share Disposal for Executive Stock Compensation Trust

Aug 20, 2026

Daiki Aluminium Industry has revised the timing and structure of a planned disposal of treasury shares linked to its performance-based share remuneration plan for executives. The original disposal, announced on August 10, 2026, was cancelled after 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: Aug 17, 2026

Daiki Aluminium Industry Co., Ltd. AI Stock Analysis