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Daiwa Cycle Co., Ltd.
(5888)
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Rating:75Outperform
Price Target:
¥3,157.00
▼(-13.39% Downside)
Action:Upgraded
Date:08/21/26
The score is driven primarily by strong financial performance (rapid growth, improving earnings, and a debt-free balance sheet) and supported by attractive valuation (low P/E and a reasonable dividend yield). Offsetting these positives, technical indicators are mixed with weaker medium-to-long trend signals and negative MACD, and cash-flow consistency remains a key operational watch-out.
Positive Factors
Strong Revenue Growth
The sustained revenue expansion indicates stronger market reach and store-level demand. Continued growth provides operating leverage and supports investment in the company’s bicycle retail, accessory, maintenance, and repair offerings.
Negative Factors
Volatile Cash Conversion
Uneven cash conversion means reported earnings may not translate reliably into funds available for expansion or shareholder returns. Working-capital swings and investment needs could constrain financial flexibility during growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sustained revenue expansion indicates stronger market reach and store-level demand. Continued growth provides operating leverage and supports investment in the company’s bicycle retail, accessory, maintenance, and repair offerings.
Read all positive factors
Daiwa Cycle Co., Ltd. (5888) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.02B
Dividend Yield2.41%
Average Volume (3M)4.38K
Price to Earnings (P/E)8.3
Beta (1Y)0.34
Revenue Growth13.70%
EPS Growth1.25%
CountryJP
Employees758
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)350.37
Shares Outstanding2,758,600
10 Day Avg. Volume2,380
30 Day Avg. Volume4,380
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)1.59
Price to Sales (P/S)0.47
P/FCF Ratio39.32
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)362.6
Revenue Forecast (FY)¥23.80B
Daiwa Cycle Co., Ltd. Business Overview & Revenue Model
Company Description
Daiwa Cycle Co.,Ltd. sells bicycles, and bicycles parts and accessories primarily in Japan. The company offers city, electric assist, children’s, girls, boys, kids, and mini cycles; sport and training bikes; and electric scooters. It also provides...
How the Company Makes Money
Daiwa Cycle primarily makes money through retail sales and service income generated at its bicycle stores. Key revenue streams include (1) sales of bicycles (including new bicycles and potentially category-specific models offered in-store), (2) sa...
Daiwa Cycle Co., Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.87B | 21.11B | 18.35B | 15.34B | 13.09B | 11.46B |
| Gross Profit | 9.30B | 9.01B | 7.97B | 6.58B | 5.61B | 4.81B |
| EBITDA | 1.66B | 1.63B | 1.53B | 939.36M | 720.25M | 324.39M |
| Net Income | 964.40M | 948.55M | 898.25M | 501.37M | 413.93M | 139.02M |
Balance Sheet | ||||||
| Total Assets | 10.33B | 9.58B | 8.60B | 7.37B | 5.52B | 4.79B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 2.02B | 2.22B | 1.68B | 501.93M | 526.37M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 3.78B | 3.27B | 3.07B | 2.62B | 2.31B | 1.99B |
| Stockholders Equity | 6.55B | 6.31B | 5.53B | 4.75B | 3.22B | 2.80B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 254.97M | 862.03M | 423.46M | 158.99M | -545.04M |
| Operating Cash Flow | 0.00 | 732.26M | 1.15B | 687.87M | 377.28M | -261.36M |
| Investing Cash Flow | 0.00 | -1.27B | -495.00M | -535.02M | -403.68M | -347.60M |
| Financing Cash Flow | 0.00 | -167.90M | -122.15M | 1.03B | 0.00 | -13.35M |
Daiwa Cycle Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥9.53B | 7.61 | ― | 3.34% | -1.38% | 1.69% | |
75 Outperform | ¥8.02B | 8.30 | ― | 2.41% | 13.70% | 1.25% | |
74 Outperform | ¥14.57B | 17.82 | ― | 1.13% | -11.21% | 326.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥5.39B | 11.45 | ― | 2.85% | 9.28% | -9.18% | |
58 Neutral | ¥6.11B | 19.03 | ― | 3.46% | -4.43% | ― | |
52 Neutral | ¥10.47B | -66.54 | ― | 3.03% | 1.52% | -207.24% |
* Consumer Cyclical Sector Average
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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.