Daikokuya Holdings Co.Ltd. (6993) AI Stock Analysis

Daikokuya Holdings Co.Ltd.

(TSE/TYO:6993)

Select Model

Rating:37Underperform

Price Target:JPY 73.00▼(-5.19% Downside)

Action:downgraded

Date:10/29/26

The overall score is at the minimum of 37, reflecting severe fundamental and market-driven risks. The most significant factor is the company's deeply negative financial performance, characterized by persistent losses and accelerating cash burn that threaten liquidity. This is compounded by a bearish technical trend, with the stock price in a clear downtrend below all major moving averages. The negative P/E ratio further confirms the lack of earnings power. The only mitigating factor is a recently improved, but still eroding, balance sheet, which is insufficient to offset the overwhelming negative signals.

Positive Factors

Revenue ReboundThe return to revenue growth provides evidence that demand or business activity recovered after two weaker years. If maintained, renewed top-line expansion can improve operating leverage, support reinvestment, and provide a foundation for restoring profitability over the next several quarters.

Negative Factors

Persistent LossesRecurring losses and the sharp deterioration in net margin show that revenue growth has not translated into sustainable earnings. Continued negative profitability reduces internally generated capital, weakens returns, and leaves the business more exposed if operating conditions remain difficult.

Daikokuya Holdings Co.Ltd. (6993) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 57.13B
Dividend Yield: ―
Average Volume (3M): 2.69M
Price to Earnings (P/E): -19.3
Beta (1Y): 1.46
Revenue Growth: 26.18%
EPS Growth: 53.96%
Country: Japan
Employees: 140
Sector: Financial
Sector Strength: 68
Industry: Specialty Retail

Daikokuya Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, Daikokuya Holdings Co.,Ltd. has been in operation since its founding in 1914. The company's business activities are diversified across two main areas: electrical manufacturing and investment. In its electrical segment,...

Daikokuya Holdings Co.Ltd. Financial Statement Overview

Summary

Financial performance is critically weak. The Income Statement (Score 20) shows persistent and widening net losses despite revenue growth. The Cash Flow Statement (Score 15) reveals accelerating cash burn with deeply negative operating and free cash flow. The Balance Sheet (Score 35) is the only relative bright spot due to a conservative debt-to-equity ratio, but equity is eroding from negative returns. The overall financial health is poor and presents a high risk.

Income Statement

20Very Negative

Balance Sheet

35Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.66B	11.47B	10.23B	10.97B	12.45B	17.38B
Gross Profit	3.31B	3.01B	3.06B	3.27B	3.48B	3.60B
EBITDA	-1.56B	-1.98B	-900.48M	-358.72M	118.89M	96.68M
Net Income	-1.67B	-2.05B	-968.05M	-539.66M	-279.36M	-292.62M
Balance Sheet
Total Assets	10.23B	10.07B	6.28B	6.52B	6.71B	7.36B
Cash, Cash Equivalents and Short-Term Investments	2.21B	2.30B	559.23M	948.34M	901.44M	1.04B
Total Debt	3.50B	3.50B	4.45B	4.99B	4.70B	5.10B
Total Liabilities	4.17B	4.11B	5.28B	5.88B	5.67B	5.89B
Stockholders Equity	5.43B	5.35B	423.90M	29.63M	427.19M	879.08M
Cash Flow
Free Cash Flow	0	-3.14B	-1.22B	-508.03M	236.43M	389.50M
Operating Cash Flow	0	-3.12B	-1.19B	-430.28M	254.00M	422.54M
Investing Cash Flow	0	-73.73M	-20.95M	-3.40M	-837.00K	6.63M
Financing Cash Flow	0	4.93B	824.16M	466.06M	-400.01M	-400.02M

Daikokuya Holdings Co.Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price77.00

Price Trends

50DMA85.84Negative

100DMA88.45Negative

200DMA108.08Negative

Market Momentum

MACD-3.05Positive

RSI31.89Neutral

STOCH45.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6993, the sentiment is Negative. The current price of 77.00 is below the 20-day moving average (MA) of 81.85, below the 50-day MA of 85.84, and below the 200-day MA of 108.08, indicating a bearish trend. The MACD of -3.05 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6993.

Daikokuya Holdings Co.Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

JP:6993 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6804	77Outperform	JPY 115.07B	6.18	12.49%	4.89%	40.52%	147.61%
JP:5310	74Outperform	JPY 136.11B	30.52	4.63%	2.23%	-8.46%	-40.41%
JP:6946	69Neutral	JPY 99.05B	19.28	30.34%	0.17%	54.05%	121.12%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JP:6637	67Neutral	JPY 48.47B	10.97	―	1.64%	15.89%	2.08%
JP:6905	60Neutral	JPY 51.46B	-19.22	―	4.40%	17.15%	-463.16%
JP:6993	37Underperform	JPY 57.13B	-19.30	―	―	26.18%	53.96%

* Financial Sector Average

Performance Comparison

JP:6993 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6993	Daikokuya Holdings Co.Ltd.	77.00	37.00	92.50%
JP:6804	Hosiden Corp	2290.00	-66.70	-2.83%
JP:5310	Toyo Tanso Co., Ltd.	6490.00	2000.75	44.57%
JP:6946	Nippon Avionics Co., Ltd.	5910.00	468.35	8.61%
JP:6637	Terasaki Electric Co., Ltd.	3720.00	-1039.56	-21.84%
JP:6905	Cosel Co., Ltd.	1251.00	74.74	6.35%

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: Oct 29, 2026

Daikokuya Holdings Co.Ltd. AI Stock Analysis