Daytona Corporation (7228) AI Stock Analysis

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Daytona Corporation

(TSE/TYO:7228)

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Rating:64Neutral

Price Target:JPY 4,194.00▼(-4.14% Downside)

Action:downgraded

Date:11/06/26

The overall score of 64 reflects a company with a strong balance sheet and very attractive valuation, offset by weak technical momentum and softening financial performance. The primary strengths are the low P/E ratio and high dividend yield, supported by a robust, debt-light balance sheet. The main detractor is the bearish technical picture, with the stock trading below key moving averages and showing negative momentum. Recent declines in revenue and cash flow add a note of caution, but the company's financial stability and low valuation provide a solid foundation.

Positive Factors

Conservative Balance SheetThe sharply lower debt-to-equity ratio indicates a strengthening capital structure and gives Daytona greater flexibility through auto-parts industry cycles. Growing equity and limited leverage can support continued investment while reducing the financial strain associated with weaker operating periods.

Negative Factors

Choppy Revenue GrowthRepeated revenue declines after the strong 2021–2022 expansion indicate that Daytona's demand and growth trajectory have become less consistent. Persistent top-line softness could limit operating leverage, reduce reinvestment capacity, and make future earnings improvement more dependent on margin or cost actions.

Daytona Corporation (7228) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 10.63B
Dividend Yield: 3.07%
Average Volume (3M): 2,411
Price to Earnings (P/E): 7.2
Beta (1Y): 0.26
Revenue Growth: 5.92%
EPS Growth: 23.21%
Country: Japan
Employees: 206
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Daytona Corporation Business Overview & Revenue Model

Company Description

Established in Shizuoka, Japan, in 1972, Daytona Corporation specializes in the comprehensive lifecycle management of motorcycle parts and accessories. This includes everything from market research, planning, and development to rigorous testing, proc...

Daytona Corporation Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a major strength (Score: 88) with very low debt and strong equity growth, providing stability. However, the income statement (Score: 62) shows volatile revenue and margin compression, and the cash flow statement (Score: 58) indicates a recent decline in operating cash flow. The overall financial foundation is solid, but recent softening in profitability and cash generation tempers the score.

Income Statement

62Positive

Balance Sheet

88Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.89B	14.38B	14.58B	13.96B	14.59B	12.54B
Gross Profit	5.68B	5.33B	5.60B	5.45B	5.86B	5.21B
EBITDA	2.01B	1.85B	1.98B	1.97B	2.35B	2.12B
Net Income	1.27B	1.15B	1.21B	1.18B	1.43B	1.32B
Balance Sheet
Total Assets	12.59B	11.65B	10.94B	10.34B	9.64B	8.17B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.55B	2.34B	1.73B	1.13B	1.35B
Total Debt	862.89M	852.47M	1.05B	1.34B	1.53B	1.30B
Total Liabilities	2.68B	2.21B	2.30B	2.68B	2.90B	2.72B
Stockholders Equity	9.87B	9.40B	8.60B	7.64B	6.72B	5.44B
Cash Flow
Free Cash Flow	0	759.52M	1.19B	1.07B	-100.10M	593.90M
Operating Cash Flow	0	837.52M	1.43B	1.22B	-4.23M	752.54M
Investing Cash Flow	0	-226.35M	-252.64M	-164.22M	-278.26M	-172.69M
Financing Cash Flow	0	-502.60M	-576.33M	-486.49M	39.43M	-538.56M

Daytona Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price4375.00

Price Trends

50DMA4033.30Positive

100DMA3948.60Positive

200DMA3861.47Positive

Market Momentum

MACD101.33Negative

RSI72.29Negative

STOCH84.54Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7228, the sentiment is Positive. The current price of 4375.00 is above the 20-day moving average (MA) of 4065.25, above the 50-day MA of 4033.30, and above the 200-day MA of 3861.47, indicating a bullish trend. The MACD of 101.33 indicates Negative momentum. The RSI at 72.29 is Negative, neither overbought nor oversold. The STOCH value of 84.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7228.

Daytona Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7228 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7219	77Outperform	JPY 3.40B	5.72	―	4.39%	10.16%	66.99%
JP:7217	71Outperform	JPY 4.41B	8.58	―	3.40%	10.57%	148.78%
JP:7551	66Neutral	JPY 10.36B	11.19	―	4.08%	3.08%	-30.94%
JP:7228	64Neutral	JPY 10.35B	7.15	―	3.07%	5.92%	23.21%
JP:7247	63Neutral	JPY 11.44B	8.55	―	4.42%	7.94%	-52.23%
JP:7297	58Neutral	JPY 5.95B	11.73	―	3.94%	1.24%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7228 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7228	Daytona Corporation	4375.00	605.00	16.05%
JP:7217	Tein, Inc.	470.00	94.79	25.26%
JP:7219	HKS Co., Ltd.	2440.00	291.91	13.59%
JP:7247	Mikuni Corporation	339.00	6.29	1.89%
JP:7297	Car Mate Mfg. Co Ltd	838.00	24.74	3.04%
JP:7551	Weds Co., Ltd.	662.00	55.30	9.11%

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: Nov 05, 2026

Daytona Corporation AI Stock Analysis