DAIWA TSUSHIN Co.,Ltd (7116) AI Stock Analysis

• Market Cap: ¥2.39B
• Dividend Yield: 3.96%
• Average Volume (3M): 31.57K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.47
• Revenue Growth: 5.78%
• EPS Growth: -224.78%
• Country: JP
• Employees: 115
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -93.02
• Shares Outstanding: 2,707,000
• 10 Day Avg. Volume: 8,970
• 30 Day Avg. Volume: 31,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 69 Neutral
• Price Target: ―

Daiwa Tsushin Co., Ltd. shows solid financial health with strong revenue growth and low leverage. The valuation is attractive, offering a good P/E ratio and a high dividend yield. However, technical indicators suggest caution as the stock price is below key moving averages, indicating potential downward momentum.

DAIWA TSUSHIN Co.,Ltd Business Overview & Revenue Model

Company Description

DAIWA TSUSHIN Co.,Ltd (7116) is a Japanese company primarily engaged in the sales and distribution of electronic and telecommunication products. The company operates within the electronics and communication sectors, offering a variety of products including communication devices, electronic components, and related accessories. Its core services include the supply and installation of these products, catering to a wide range of industries and consumers.

How the Company Makes Money

DAIWA TSUSHIN Co.,Ltd generates revenue through the sale of its diverse range of electronic and telecommunication products. The company earns money by distributing these products to different market segments, including businesses and individual consumers. Key revenue streams include the direct sale of communication devices and electronic components. Additionally, the company may have strategic partnerships with manufacturers or service providers, allowing it to expand its product offerings and enhance its distribution capabilities, thus contributing to its earnings.

DAIWA TSUSHIN Co.,Ltd Financial Statement Overview

Summary

Daiwa Tsushin Co., Ltd. demonstrates solid financial performance with consistent revenue growth and efficient operations. The balance sheet is strong with low leverage, but there's a need to improve profitability metrics such as net profit margin and return on equity. Cash flow has improved, enhancing the company's financial flexibility.

Income Statement

Daiwa Tsushin Co., Ltd. has experienced a healthy revenue growth rate from 2022 to 2024, with a notable increase in total revenue from 2023 to 2024. The company maintains a solid gross profit margin, though the net profit margin has decreased over the years. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position, with an improving equity ratio. The debt-to-equity ratio is favorable, indicating manageable leverage. However, the return on equity has decreased, suggesting a drop in net income generation relative to equity.

Cash Flow

Free cash flow has shown improvement, and the operating cash flow to net income ratio indicates effective cash conversion. Despite previous negative free cash flow, the latest period shows positive growth, suggesting a recovery in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.22B	5.24B	5.16B	4.82B	4.79B	6.74B
Gross Profit	1.67B	1.80B	1.66B	1.61B	1.75B	3.37B
EBITDA	431.20M	517.00M	448.46M	445.77M	683.31M	2.19B
Net Income	250.89M	-163.00M	257.37M	242.81M	394.48M	1.40B
Balance Sheet
Total Assets	3.95B	5.32B	3.99B	3.75B	3.34B	3.90B
Cash, Cash Equivalents and Short-Term Investments	575.00M	777.00M	805.19M	767.65M	399.68M	1.09B
Total Debt	807.00M	1.63B	751.85M	766.05M	952.80M	845.61M
Total Liabilities	1.21B	3.05B	1.30B	1.32B	1.16B	2.11B
Stockholders Equity	2.75B	2.27B	2.68B	2.43B	2.18B	1.79B
Cash Flow
Free Cash Flow	0.00	-748.00M	86.71M	534.56M	-754.39M	1.23B
Operating Cash Flow	0.00	149.00M	170.71M	810.56M	-498.88M	1.24B
Investing Cash Flow	0.00	-1.08B	-46.29M	-256.17M	-288.06M	14.42M
Financing Cash Flow	0.00	801.00M	-88.28M	-186.44M	102.01M	-891.54M

DAIWA TSUSHIN Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 851.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7116, the sentiment is Negative. The current price of 851 is below the 20-day moving average (MA) of 952.70, below the 50-day MA of 906.20, and below the 200-day MA of 920.49, indicating a bearish trend. The MACD of -10.32 indicates Positive momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7116.

DAIWA TSUSHIN Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4754	74 Outperform	¥7.13B	7.35	―	2.21%	5.24%	91.21%
7464	74 Outperform	¥3.29B	13.84	―	5.18%	0.09%	-42.75%
9686	73 Outperform	¥16.09B	10.83	―	3.33%	24.48%	204.62%
7058	72 Outperform	¥4.16B	46.87	―	3.20%	6.83%	-59.50%
7116	69 Neutral	¥2.39B	9.90	―	3.96%	5.78%	-224.78%
4264	66 Neutral	¥8.70B	66.55	―	―	12.33%	-44.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%