Daikoku Denki Co., Ltd. (6430) AI Stock Analysis

• Market Cap: ¥32.39B
• Dividend Yield: 4.79%
• Average Volume (3M): 78.93K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.98
• Revenue Growth: 10.69%
• EPS Growth: 2.04%
• Country: JP
• Employees: 644
• Sector: Technology
• Sector Strength: 80
• Industry: Computer Hardware
• EPS (TTM): -24.41
• Shares Outstanding: 14,797,232
• 10 Day Avg. Volume: 77,120
• 30 Day Avg. Volume: 78,930
• PEG Ratio: -0.55
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Daikoku Denki Co., Ltd. is a strong performer with impressive financial health, characterized by significant revenue growth, high profitability, and minimal leverage. The technical analysis presents some cautionary signals, but the company's valuation is compelling with a low P/E ratio and high dividend yield. These factors collectively contribute to a solid overall stock score.

Daikoku Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Daikoku Denki Co., Ltd. develops, manufactures, and sells computer and other information system equipment for pachinko halls in Japan. The company also develops software; and develops, manufactures, and sells units for pachinko and pachislo game machines. In addition, it provides information on pachinko halls and game machines through PC and cell-phone Web sites, and pay TV channels. The company was incorporated in 1947 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Daikoku Denki generates revenue mainly through its two business segments. The Information System Segment offers comprehensive data management and operational support systems to pachinko halls, allowing them to optimize operations and enhance customer experiences. Revenue from this segment is derived from the sale, installation, and maintenance of these systems. The Control System Segment contributes to the company's earnings by supplying essential components for pachinko and pachislot machines, including LCD displays and circuit boards. This segment's revenue comes from the direct sale of these components to manufacturers of gaming machines. Additionally, the company may engage in strategic partnerships and collaborations within the gaming industry to further its technological advancements and market reach.

Daikoku Denki Co., Ltd. Financial Statement Overview

Summary

Daikoku Denki Co., Ltd. exhibits strong financial performance with impressive revenue growth, robust profitability margins, minimal leverage, and healthy cash flows. The company's financial health is well-supported by effective operational management and a stable balance sheet. Potential risks are low, given the strong equity position and efficient cash flow management.

Income Statement

Daikoku Denki Co., Ltd. has demonstrated strong revenue growth, with a significant 69.2% increase in total revenue from the previous year. The company maintains healthy profitability margins, with a gross profit margin of 44.6% and a net profit margin of 15.7%. Additionally, the EBIT margin stands at 22.3% and the EBITDA margin at 25.4%, indicating efficient operational performance.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.00, reflecting minimal leverage and strong financial stability. The equity ratio is 68.7%, showcasing a solid equity position relative to total assets. Return on equity (ROE) is also strong at 20.8%, indicating effective utilization of shareholders' equity to generate profits.

Cash Flow

Daikoku Denki's cash flow is healthy, with a substantial 224.8% growth in free cash flow. The operating cash flow to net income ratio is approximately 1.00, demonstrating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.74, indicating a solid ability to generate free cash flow from earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
57.99B	53.86B	31.82B	24.39B	23.23B	32.92B
	Gross Profit
26.84B	24.98B	14.51B	10.14B	9.39B	12.04B
	EBIT
12.16B	12.00B	4.02B	1.19B	490.90M	1.43B
	EBITDA
13.76B	13.67B	5.75B	3.07B	2.96B	3.79B
	Net Income Common Stockholders
8.41B	8.46B	2.93B	1.23B	612.64M	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.97B	20.43B	17.42B	16.58B	16.24B	15.48B
	Total Assets
60.08B	59.28B	48.30B	41.49B	41.08B	42.70B
	Total Debt
0.00	464.00K	2.00B	2.00B	3.00B	3.30B
	Net Debt
-13.97B	-20.43B	-14.92B	-14.58B	-12.74B	-12.18B
	Total Liabilities
15.07B	18.56B	14.90B	10.35B	10.42B	12.30B
	Stockholders Equity
45.01B	40.72B	33.40B	31.14B	30.66B	30.41B
Cash Flow		Free Cash Flow
0.00	6.30B	1.94B	2.28B	2.22B	3.39B
	Operating Cash Flow
0.00	8.43B	2.98B	3.22B	3.40B	5.01B
	Investing Cash Flow
0.00	-1.73B	-1.98B	-564.73M	-2.24B	-1.69B
	Financing Cash Flow
0.00	-3.18B	-666.28M	-1.81B	-891.66M	-591.90M

Daikoku Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2189.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6430, the sentiment is Negative. The current price of 2189 is below the 20-day moving average (MA) of 2504.85, below the 50-day MA of 2556.53, and below the 200-day MA of 2969.96, indicating a bearish trend. The MACD of -25.13 indicates Positive momentum. The RSI at 25.60 is Positive, neither overbought nor oversold. The STOCH value of 32.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6430.

Daikoku Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	82 Outperform	¥51.43B	6.39		6.41%	29.41%	10.66%
6430	80 Outperform	¥32.39B	4.76		4.79%	10.69%	2.04%
6257	68 Neutral	¥21.46B	8.43		5.31%	0.55%	-24.89%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%