Daisui Co., Ltd. (7538) AI Stock Analysis

• Market Cap: ¥4.74B
• Dividend Yield: 1.65%
• Average Volume (3M): 5.94K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.36
• Revenue Growth: 4.32%
• EPS Growth: 24.60%
• Country: JP
• Employees: 424
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 7.28
• Shares Outstanding: 13,774,819
• 10 Day Avg. Volume: 6,300
• 30 Day Avg. Volume: 5,940
• PEG Ratio: 0.21
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -3.21
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥379.00 ▲(4.12% Upside)

Daisui Co., Ltd. benefits from a strong valuation with a low P/E ratio and a decent dividend yield, making it attractive for value investors. Financial performance shows improved profitability, but cash flow issues need addressing. Technical analysis indicates stable price trends without strong momentum. The absence of earnings call and corporate events data limits further insights.

Daisui Co., Ltd. Business Overview & Revenue Model

Company Description

Daisui Co., Ltd. (7538) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality industrial machinery and equipment. The company operates in various sectors, including construction, manufacturing, and environmental solutions, providing innovative products that enhance productivity and sustainability. Daisui's core offerings include hydraulic systems, automation equipment, and specialized machinery tailored to meet the needs of diverse industries.

How the Company Makes Money

Daisui Co., Ltd. generates revenue through multiple channels, primarily from the sale of its industrial machinery and equipment. The company has a diverse revenue model that includes direct sales to large enterprises, government contracts, and partnerships with distributors and retailers in both domestic and international markets. Key revenue streams include the sale of hydraulic systems and automation equipment, which are in high demand across various sectors. Additionally, Daisui may earn income from after-sales services such as maintenance, repairs, and parts replacement. Strategic partnerships with other manufacturers and technology providers also enhance its product offerings and market reach, contributing significantly to its overall earnings.

Daisui Co., Ltd. Financial Statement Overview

Summary

Daisui Co., Ltd. has shown improvements in profitability with positive margins and a strong return on equity. However, significant challenges in cash flow management and decreased cash reserves pose risks to liquidity and sustainable growth.

Income Statement

Daisui Co., Ltd. demonstrated a moderate revenue growth of 0.86% in the latest fiscal year, with a notable improvement from the previous year's negative EBIT and EBITDA margins to positive values of 0.69% and 1% respectively. The gross profit margin remained stable at approximately 6.67%. Net profit margin improved to 1.20%, indicating better profitability after a challenging period. The company managed to recover from losses in prior years, showcasing resilience and operational efficiency improvements.

Balance Sheet

The balance sheet indicates a stable financial structure with a debt-to-equity ratio of 0.26, suggesting a manageable level of leverage. Return on equity (ROE) improved to 10.38%, reflecting enhanced profitability and equity utilization. The equity ratio stands at 46.11%, indicating a solid equity base. However, cash reserves have decreased, which might impact liquidity management.

Cash Flow

Daisui Co., Ltd. faced challenges in cash flow management, with a negative operating cash flow of -1.06 billion yen. Free cash flow also declined significantly to -1.34 billion yen, suggesting potential issues in covering capital expenditures. The operating cash flow to net income ratio was negative, indicating potential inefficiencies in translating earnings into cash. This could pose risks if not addressed promptly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.08B	99.30B	98.46B	98.46B	88.79B	114.24B
Gross Profit	6.58B	6.62B	6.68B	6.77B	5.93B	6.80B
EBITDA	941.00M	994.00M	1.18B	733.00M	194.00M	813.00M
Net Income	1.10B	1.19B	1.01B	701.00M	-18.00M	653.00M
Balance Sheet
Total Assets	24.90B	24.84B	24.75B	22.49B	21.07B	20.16B
Cash, Cash Equivalents and Short-Term Investments	1.95B	3.00B	4.34B	2.93B	2.28B	3.58B
Total Debt	2.80B	3.00B	2.90B	4.10B	3.20B	2.70B
Total Liabilities	13.30B	13.38B	14.70B	14.26B	13.52B	12.49B
Stockholders Equity	11.60B	11.46B	10.04B	8.23B	7.55B	7.67B
Cash Flow
Free Cash Flow	0.00	-1.34B	2.57B	-402.00M	-2.11B	222.00M
Operating Cash Flow	0.00	-1.06B	2.65B	-349.00M	-2.00B	285.00M
Investing Cash Flow	0.00	-296.00M	227.00M	123.00M	280.00M	338.00M
Financing Cash Flow	0.00	12.00M	-1.27B	841.00M	428.00M	-194.00M

Daisui Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 364.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7538, the sentiment is Positive. The current price of 364 is above the 20-day moving average (MA) of 349.05, above the 50-day MA of 348.84, and above the 200-day MA of 329.46, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7538.

Daisui Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7687	75 Outperform	¥3.55B	12.17	―	1.46%	13.82%	23.24%
7538	69 Neutral	¥4.74B	4.37	―	1.65%	4.32%	24.60%
8030	68 Neutral	¥13.98B	5.15	―	3.14%	7.29%	10.64%
7114	67 Neutral	¥3.98B	42.27	―	―	8.54%	-59.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥7.92B	22.34	―	1.00%	5.89%	82.20%
2683	47 Neutral	¥2.55B	114.33	―	1.00%	-1.44%	-61.28%