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Dainichi Co., Ltd.
(5951)
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Rating:75Outperform
Price Target:
¥1,277.00
▲(45.78% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by strong financial stability (near-zero debt) and improving margins, supporting downside resilience. Technicals are bullish but overbought, which tempers the outlook. Valuation is reasonable (P/E ~14, ~2.1% yield) but not a major catalyst.
Positive Factors
Near-zero debt and expanding equity base
The exceptionally conservative balance sheet reduces financial strain and preserves flexibility during weaker operating periods. Near-zero debt limits interest and refinancing exposure, while a growing equity base provides resilience and capacity to support investment without relying heavily on external borrowing.
Negative Factors
Choppy and declining revenue
Limited top-line growth restricts operating leverage and makes improved earnings more dependent on margin gains. A flat-to-declining revenue base also suggests that demand expansion is not yet a durable growth engine, leaving profitability more exposed to product mix and cost conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Near-zero debt and expanding equity base
The exceptionally conservative balance sheet reduces financial strain and preserves flexibility during weaker operating periods. Near-zero debt limits interest and refinancing exposure, while a growing equity base provides resilience and capacity to support investment without relying heavily on external borrowing.
Read all positive factors
Dainichi Co., Ltd. (5951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.84B
Dividend Yield2.47%
Average Volume (3M)24.16K
Price to Earnings (P/E)11.8
Beta (1Y)0.59
Revenue Growth-0.29%
EPS Growth21.56%
CountryJP
Employees466
SectorGeneral
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)93.03
Shares Outstanding19,058,588
10 Day Avg. Volume13,540
30 Day Avg. Volume24,160
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)0.55
Price to Sales (P/S)0.82
P/FCF Ratio12.99
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
Dainichi Co., Ltd. Business Overview & Revenue Model
Company Description
Established in 1964, Dainichi Co., Ltd. is a Japanese firm that designs, produces, and markets a variety of domestic products, including oil, ceramic, and gas fan heaters, humidifiers, and coffee makers, all distributed within Japan. Its main oper...
How the Company Makes Money
Dainichi Co., Ltd. primarily makes money by manufacturing and selling its metal products to customers (typically businesses) and recognizing revenue when these goods are delivered/accepted under customer contracts. Its core revenue stream is produ...
Dainichi Co., Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
91
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.08B | 19.90B | 19.65B | 21.21B | 21.09B |
| Gross Profit | 5.96B | 5.53B | 5.21B | 5.52B | 5.54B |
| EBITDA | 2.47B | 2.03B | 1.91B | 2.31B | 2.32B |
| Net Income | 1.51B | 1.16B | 888.24M | 1.21B | 1.07B |
Balance Sheet | |||||
| Total Assets | 34.24B | 31.91B | 31.18B | 30.46B | 29.13B |
| Cash, Cash Equivalents and Short-Term Investments | 13.34B | 14.09B | 11.57B | 12.21B | 11.90B |
| Total Debt | 3.14M | 4.11M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 4.59B | 3.97B | 4.09B | 4.37B | 4.06B |
| Stockholders Equity | 29.65B | 27.94B | 27.09B | 26.10B | 25.07B |
Cash Flow | |||||
| Free Cash Flow | 1.26B | 2.37B | -267.67M | 1.48B | -319.50M |
| Operating Cash Flow | 2.04B | 2.82B | 111.10M | 2.02B | 546.39M |
| Investing Cash Flow | -4.43B | -2.95B | -893.50M | -1.36B | -2.01B |
| Financing Cash Flow | -356.90M | -356.11M | -355.67M | -355.92M | -355.49M |
Dainichi Co., Ltd. Technical Analysis
Neutral
876.00
Price Trends
1141.28
Negative
1067.63
Positive
1011.09
Positive
Market Momentum
-4.79
Positive
44.62
Neutral
10.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5951, the sentiment is Neutral. The current price of 876 is below the 20-day moving average (MA) of 1209.60, below the 50-day MA of 1141.28, and below the 200-day MA of 1011.09, indicating a neutral trend. The MACD of -4.79 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 10.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5951.
Dainichi Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥17.84B | 11.79 | ― | 2.47% | -0.29% | 21.56% | |
73 Outperform | ¥480.14B | 13.35 | 8.60% | 2.86% | 3.53% | 25.11% | |
68 Neutral | ¥66.03B | 22.46 | 2.20% | 2.30% | -1.15% | 31.88% | |
60 Neutral | ¥6.85B | -8.62 | ― | 2.03% | -4.91% | -129.71% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥27.38B | 25.82 | ― | 2.95% | 0.14% | 41.27% | |
49 Neutral | ¥5.04B | -3.28 | ― | ― | -17.90% | -321.67% |
* General Sector Average
JP:5951
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Dainichi Co., Ltd. Corporate Events
Dainichi Boosts Sales but Stays in the Red, Preserves Strong Equity Base
Jul 31, 2026
Dainichi Co., Ltd. reported net sales of ¥1,784 million for the quarter ended June 2026, an 11.9% increase year on year, but remained in the red with an operating loss of ¥395 million and a net loss of ¥155 million. Despite weaker e...
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.