Daido Metal Co., Ltd. (7245) AI Stock Analysis

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Daido Metal Co., Ltd.

(TSE/TYO:7245)

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Rating:65Neutral

Price Target:JPY 1,089.00▲(2.54% Upside)

Action:downgraded

Date:11/11/26

The overall score of 65 reflects a tension between strong fundamentals and weak market sentiment. The company's financial performance is healthy, with improving margins and a robust balance sheet, and the valuation is compelling with a low P/E and high dividend yield. However, these positives are significantly offset by a deeply bearish technical picture, where the stock is in a sustained downtrend with weak momentum, indicating the market is currently pricing in significant near-term headwinds or cyclical concerns.

Positive Factors

Revenue and earnings recoveryRevenue has expanded from 104.0B in FY2022 to 142.0B in FY2026, while TTM revenue reached 143.8B and net income recovered to 4.8B. This combination indicates broader operating scale and restored profitability, giving the business a stronger base for sustained earnings over coming quarters.

Negative Factors

Thin and pressured marginsTTM operating margin is about 5.2% and net margin about 3.4%, leaving limited room to absorb cost or demand pressure. Operating profit also fell from 8.37B in FY2026 annual to 6.98B TTM, suggesting that recent revenue scale has not translated into consistently expanding profitability.

Daido Metal Co., Ltd. (7245) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 49.21B
Dividend Yield: 3.47%
Average Volume (3M): 349.28K
Price to Earnings (P/E): 10.4
Beta (1Y): 1.51
Revenue Growth: 5.29%
EPS Growth: 70.66%
Country: Japan
Employees: 7,267
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

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

Company Description

Daido Metal Co., Ltd., founded in 1939 and headquartered in Nagoya, Japan, is a global enterprise that manufactures and sells a comprehensive range of bearings and related industrial solutions. Operating across Japan, North America, Europe, Asia, and...

Daido Metal Co., Ltd. Financial Statement Overview

Summary

Daido Metal shows solid financial health with consistent revenue growth, improving profitability, reduced leverage, and strong operating cash flow. The recovery from a prior loss and growing equity base are positives, though inconsistent free cash flow conversion slightly tempers the score.

Income Statement

75Positive

Balance Sheet

78Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	143.83B	142.01B	136.30B	128.74B	115.48B	104.02B
Gross Profit	34.71B	34.18B	32.17B	31.30B	26.17B	26.76B
EBITDA	18.14B	19.14B	18.79B	16.46B	12.77B	15.01B
Net Income	4.83B	4.40B	2.72B	2.57B	-2.21B	1.90B
Balance Sheet
Total Assets	210.13B	209.43B	196.66B	188.37B	173.32B	166.16B
Cash, Cash Equivalents and Short-Term Investments	28.18B	29.47B	29.15B	30.96B	24.11B	23.02B
Total Debt	63.82B	65.89B	65.79B	63.38B	61.93B	57.13B
Total Liabilities	118.93B	118.01B	114.56B	109.64B	102.86B	97.45B
Stockholders Equity	81.84B	82.09B	72.75B	68.82B	61.14B	60.34B
Cash Flow
Free Cash Flow	5.43B	4.09B	342.00M	8.67B	-162.00M	6.27B
Operating Cash Flow	14.76B	13.72B	10.92B	16.66B	5.00B	13.21B
Investing Cash Flow	-7.05B	-7.82B	-8.39B	-8.30B	-6.34B	-8.07B
Financing Cash Flow	-7.57B	-4.77B	-2.39B	-2.50B	790.00M	-5.08B

Daido Metal Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1062.00

Price Trends

50DMA1147.38Negative

100DMA1277.64Negative

200DMA1134.09Negative

Market Momentum

MACD-37.72Positive

RSI41.88Neutral

STOCH39.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7245, the sentiment is Negative. The current price of 1062.00 is below the 20-day moving average (MA) of 1107.20, below the 50-day MA of 1147.38, and below the 200-day MA of 1134.09, indicating a bearish trend. The MACD of -37.72 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7245.

Daido Metal Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7245 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7296	77Outperform	JPY 199.65B	9.28	―	5.25%	10.24%	30.00%
JP:7246	75Outperform	JPY 84.97B	9.65	8.11%	4.97%	11.43%	84.06%
JP:5970	72Outperform	JPY 91.87B	6.13	―	4.68%	4.78%	34.18%
JP:7278	66Neutral	JPY 192.46B	15.77	6.44%	6.14%	0.21%	0.59%
JP:7245	65Neutral	JPY 49.21B	10.39	6.14%	3.47%	5.29%	70.66%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7220	47Neutral	JPY 157.31B	82.52	―	1.62%	3.60%	-81.10%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7245 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7245	Daido Metal Co., Ltd.	1062.00	111.30	11.71%
JP:7246	Press Kogyo Co., Ltd.	920.00	224.70	32.32%
JP:7278	Exedy Corporation	5320.00	280.12	5.56%
JP:5970	G-Tekt Corporation	2161.00	334.90	18.34%
JP:7220	Musashi Seimitsu Industry Co., Ltd.	2186.00	-703.19	-24.34%
JP:7296	F.C.C.Co., Ltd.	4270.00	1176.76	38.04%

Daido Metal Co., Ltd. Corporate Events

Daido Metal Finalizes Adjusted Treasury Stock Disposal for Employee Incentive Plan

Oct 27, 2026

Daido Metal has completed the payment procedures for a disposal of treasury stock used as a restricted stock incentive for its employee shareholders association, following a board resolution passed in March 2026. The program is designed to strengthen...

Daido Metal to Liquidate U.K. Subsidiary in Global Sales Restructuring

Sep 25, 2026

Daido Metal Co., Ltd. has decided to liquidate its wholly owned U.K. subsidiary Daido Metal Europe Limited as part of a broader reorganization of its overseas sales network. The move follows the transfer of DME’s European sales functions to Daido Met...

Daido Metal Completes ¥1 Billion Share Buyback Program

Sep 1, 2026

Daido Metal Co., Ltd. has completed a share buyback authorized by its board in March 2026, acquiring 191,100 shares of common stock for 254,518,400 yen between August 1 and August 31 via market purchases on the Tokyo Stock Exchange. Including this la...

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 11, 2026

Daido Metal Co., Ltd. AI Stock Analysis