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Daiichikosho Co., Ltd. (7458) AI Stock Analysis

JP:7458

Daiichikosho Co., Ltd.

(TSE/TYO:7458)

Select Model
Rating:84Outperform
Price Target:JPY 2,138.00â–²(23.73% Upside)
Action:reiterated
Date:08/18/26

The stock scores strongly overall due to a solid and improving financial profile with recovering margins, growing equity, and reliable operating cash flows, complemented by an attractive valuation with a moderate P/E and decent dividend yield. Technicals further support the score, as the stock trades in a steady uptrend above key moving averages with positive momentum indicators and no signs of overextension.

Positive Factors
Sustained Revenue ExpansionThe substantial multi-year revenue recovery indicates stronger scale and sustained demand across karaoke equipment, content, and venue operations. Continued growth in 2026 suggests the business has maintained its expanded earnings base beyond the post-trough rebound.
Negative Factors
Recent Margin CompressionThe recent decline in net and operating margins signals rising costs, reinvestment demands, or less favorable business mix. If sustained, weaker profitability could limit earnings growth even while revenue continues expanding across the karaoke platform.

Daiichikosho Co., Ltd. (7458) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7458+13.54%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 178.64B
Dividend Yield
4.22%
Average Volume (3M)
330.00K
Price to Earnings (P/E)
11.5
Beta (1Y)
0.24
Revenue Growth
4.38%
EPS Growth
-13.98%
Country
Japan
Employees
3,694
Sector
Consumer Cyclical
Sector Strength
61
Industry
Leisure

Daiichikosho Co., Ltd. Business Overview & Revenue Model

Company Description

Daiichikosho Co., Ltd. is a Japanese enterprise primarily focused on the distribution and leasing of commercial-grade karaoke equipment. The company also provides digital content for online karaoke platforms, offers background music (BGM) broadcastin...

How the Company Makes Money

Daiichikosho primarily monetizes karaoke through two major models: (1) a business-to-business model centered on its karaoke systems and content, and (2) a business-to-consumer model through direct operation of karaoke venues. In the B2B model, the co...

Daiichikosho Co., Ltd. Financial Statement Overview

Summary

Strong recovery from the 2021 downturn with solid revenue growth, improved margins, expanding equity, and consistently positive operating cash flow, offset by recent margin softness and volatile free cash flow.

Income Statement

84Very Positive

Balance Sheet

81Very Positive

Cash Flow

76Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue163.55B162.95B153.02B146.75B128.16B94.79B
Gross Profit56.77B55.41B53.12B51.95B43.70B28.09B
EBITDA41.53B41.69B38.66B31.88B24.48B19.85B
Net Income15.51B15.89B18.18B12.57B8.32B5.20B
Balance Sheet
Total Assets215.96B220.44B209.32B211.39B188.62B180.39B
Cash, Cash Equivalents and Short-Term Investments41.34B48.84B41.95B49.69B71.81B68.21B
Total Debt54.73B54.88B53.59B64.44B44.65B47.81B
Total Liabilities91.13B95.09B91.45B102.39B80.70B75.22B
Stockholders Equity123.58B124.10B116.80B107.96B106.74B103.76B
Cash Flow
Free Cash Flow08.31B9.60B-18.93B17.41B11.90B
Operating Cash Flow025.10B24.66B26.80B24.87B18.16B
Investing Cash Flow0-11.04B-11.45B-55.91B-12.10B-9.30B
Financing Cash Flow0-7.20B-20.90B6.93B-9.49B-8.49B

Daiichikosho Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price1728.00

Price Trends

50DMA1797.21Negative
100DMA1753.22Negative
200DMA1694.73Positive

Market Momentum

MACD-17.88Positive
RSI43.83Neutral
STOCH11.94Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7458, the sentiment is Neutral. The current price of 1728.00 is below the 20-day moving average (MA) of 1742.17, below the 50-day MA of 1797.21, and above the 200-day MA of 1694.73, indicating a neutral trend. The MACD of -17.88 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7458.

Daiichikosho Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7458 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7458JP:745884OutperformJPY 179.41B11.52―4.22%4.38%-13.98%
JP:4680JP:468077OutperformJPY 370.13B20.2720.75%1.41%――
JP:9166JP:916671OutperformJPY 113.83B36.70―0.66%47.16%21.05%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:6412JP:641259NeutralJPY 202.20B17.694.55%3.90%47.13%-26.80%
JP:6425JP:642546NeutralJPY 50.21B-0.23-120.77%―9.25%-752.93%
JP:4343JP:434345NeutralJPY 53.49B17.30―0.92%10.11%―

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%JP:7458JP:6412JP:4680JP:6425JP:4343JP:9166Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7458 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7458Daiichikosho Co., Ltd.1728.00215.1814.22%
JP:6412Heiwa Corporation2050.00122.926.38%
JP:4680ROUND ONE Corporation1280.00188.5117.27%
JP:6425Universal Entertainment Corporation648.00-217.00-25.09%
JP:4343AEON Fantasy Co., Ltd.2704.00-60.11-2.17%
JP:9166GENDA Inc.604.00-130.96-17.82%

Daiichikosho Co., Ltd. Corporate Events

Daiichikosho Lifts Operating Profit but Cuts Full-Year Earnings Outlook

Aug 6, 2026

Daiichikosho reported consolidated net sales of ¥41.16 billion for the quarter ended June 30, 2026, a modest 1.5% year-on-year increase, while operating profit rose 17.6% to ¥4.99 billion and ordinary profit climbed 12.2% to ¥5.13 bill...

Daiichikosho Lifts Earnings Outlook on Strong Karaoke Margin Gains

Aug 6, 2026

Daiichikosho Co., Ltd., a major player in the commercial karaoke and entertainment sector, generates revenue mainly through karaoke equipment sales, rentals, and related services to corporate customers. The company’s profitability is strongly i...

Daiichikosho Finalizes Executive Stock Compensation-Type Options

Jul 15, 2026

Daiichikosho has finalized the issuance details of stock compensation-type stock options for its internal leadership, following a Board resolution from late June 2026. The scheme covers 913 stock acquisition rights tied to 91,300 common shares, alloc...

Daiichikosho Overhauls Auditors and Executive Ranks to Bolster Governance and Operations

Jun 26, 2026

Daiichikosho Co., Ltd. has announced a series of personnel changes approved at its 51st Ordinary General Meeting of Shareholders and subsequent board meeting, reshaping its auditor and officer structure. The company appointed Yuji Otani as Standing C...

Daiichikosho Introduces Long-Term Stock Option Plan for Management

Jun 26, 2026

Daiichikosho Co., Ltd. has approved the issuance of stock compensation-type stock options to its internal directors, executive corporate officers and senior corporate officers, excluding outside and part-time positions. The program is designed to ali...

Daiichikosho Revamps Auditor Lineup Ahead of June Shareholders Meeting

May 25, 2026

Daiichikosho Co., Ltd., listed on the Prime Market of the Tokyo Stock Exchange under securities code 7458, operates in the entertainment and equipment sector, best known in Japan for karaoke-related systems and services. The company focuses on provid...

Daiichikosho Raises Annual Dividend, Adds 55th Anniversary Payout

May 25, 2026

Daiichikosho Co., Ltd. has approved a year-end dividend of ¥39 per share with a record date of March 31, 2026, matching its latest forecast and up from ¥29 in the previous year. The payout, totaling ¥4,031 million and sourced from reta...

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: Aug 17, 2026