Daido Kogyo Co., Ltd. (6373) AI Stock Analysis

• Market Cap: ¥14.85B
• Dividend Yield: 1.83%
• Average Volume (3M): 44.57K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.74
• Revenue Growth: 2.44%
• EPS Growth: 163.48%
• Country: JP
• Employees: 2,480
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 11.11
• Shares Outstanding: 10,924,201
• 10 Day Avg. Volume: 33,140
• 30 Day Avg. Volume: 44,566
• PEG Ratio: 0.03
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 9.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,602.00 ▲(19.82% Upside)

Daido Kogyo Co., Ltd. exhibits strong financial health and robust technical indicators, suggesting a positive outlook. Despite lacking recent earnings call insights, its stable valuation supports a favorable investment perspective in the industrial machinery sector.

Daido Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Daido Kogyo Co., Ltd. (6373) is a Japanese company specializing in the manufacturing of precision machinery and components. The company operates primarily in the automotive, industrial, and electronic equipment sectors, providing high-quality products such as bearings, gears, and other mechanical parts. With a strong emphasis on innovation and technology, Daido Kogyo aims to meet the evolving needs of its diverse clientele by delivering reliable and efficient solutions.

How the Company Makes Money

Daido Kogyo generates revenue through the production and sale of precision machinery components, primarily targeting the automotive and industrial sectors. The company has established multiple revenue streams, including direct sales to manufacturers, long-term contracts with automotive companies, and partnerships with industrial equipment producers. Additionally, Daido Kogyo invests in research and development to create advanced products, which allows it to maintain a competitive edge and attract new clients. The company's ability to adapt to market trends and customer demands contributes significantly to its earnings.

Daido Kogyo Co., Ltd. Financial Statement Overview

Summary

Daido Kogyo Co., Ltd. has demonstrated robust financial performance with improvements in revenue, profitability, and cash flow generation. A solid balance sheet with a healthy equity position and manageable debt levels supports future growth.

Income Statement

Daido Kogyo Co., Ltd. has shown significant revenue growth over the past years, with a notable increase of 2.63% in the latest year. The gross profit margin stands at 19.36%, indicating efficient production processes. Net profit margin improved to 2.07% from a negative position two years prior, showing a turnaround in profitability. EBIT and EBITDA margins are relatively stable at 2.40% and 9.30% respectively, reflecting operational efficiency. However, the company experienced a dip in EBIT margin compared to the previous year.

Balance Sheet

The company's balance sheet reflects strong equity with an equity ratio of 39.49%, signifying a solid financial foundation. The debt-to-equity ratio is 0.80, showcasing a balanced approach to leveraging. Return on equity has improved to 3.88% from negative values, indicating enhanced shareholder value. However, the overall asset base has slightly contracted, which may limit future growth opportunities.

Cash Flow

Operating cash flow has strengthened, with a significant increase to 3.89 times the net income, indicating strong cash generation relative to profit. Free cash flow has transitioned from negative to positive, showing improved cash management. However, the free cash flow growth rate is volatile, showing a high fluctuation over the years, which could pose risks to consistent cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.02B	57.52B	56.04B	55.05B	49.85B	42.48B
Gross Profit	11.50B	11.14B	9.73B	9.94B	9.77B	7.54B
EBITDA	5.45B	5.35B	4.09B	4.03B	5.46B	4.15B
Net Income	887.00M	1.19B	342.00M	-257.00M	2.35B	1.05B
Balance Sheet
Total Assets	77.72B	77.80B	79.12B	73.03B	71.49B	67.91B
Cash, Cash Equivalents and Short-Term Investments	7.77B	8.71B	8.28B	8.29B	11.52B	12.75B
Total Debt	24.46B	24.59B	25.58B	24.88B	25.06B	25.64B
Total Liabilities	42.02B	41.01B	42.44B	40.75B	40.24B	38.81B
Stockholders Equity	30.05B	30.72B	31.16B	26.89B	26.42B	22.99B
Cash Flow
Free Cash Flow	0.00	954.00M	-1.47B	-1.83B	811.00M	1.09B
Operating Cash Flow	0.00	4.64B	2.78B	2.23B	4.06B	3.57B
Investing Cash Flow	0.00	-2.81B	-2.84B	-4.48B	-3.34B	-2.47B
Financing Cash Flow	0.00	-1.70B	-241.00M	-1.38B	-2.12B	3.80B

Daido Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1337.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6373, the sentiment is Positive. The current price of 1337 is below the 20-day moving average (MA) of 1361.60, below the 50-day MA of 1349.68, and above the 200-day MA of 1053.75, indicating a bullish trend. The MACD of 12.99 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6373.

Daido Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6373	―	¥14.85B	15.76	―	1.83%	2.44%	163.48%
6317	―	¥15.27B	5.15	―	3.68%	-6.23%	405.48%
6496	―	¥21.57B	15.12	―	1.66%	34.70%	-8.44%
6262	―	¥16.80B	17.64	―	2.60%	33.05%	―
6203	―	¥17.89B	20.40	―	1.39%	29.02%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	―	¥13.50B	―	―	5.34%	-1.14%	68.17%