Daiko Denshi Tsushin,Ltd. (8023) AI Stock Analysis

• Market Cap: ¥15.05B
• Dividend Yield: 4.4%
• Average Volume (3M): 42.85K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.66
• Revenue Growth: -5.42%
• EPS Growth: -29.21%
• Country: JP
• Employees: 1,294
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -9.84
• Shares Outstanding: 13,868,408
• 10 Day Avg. Volume: 44,690
• 30 Day Avg. Volume: 42,853
• PEG Ratio: -0.93
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,201.00 ▲(8.00% Upside)

The overall stock score of 72 reflects a balanced view of Daiko Denshi Tsushin, Ltd.'s financial stability and attractive valuation, offset by technical indicators suggesting bearish momentum. The strong balance sheet and low leverage are significant strengths, while declining profitability and cash flow generation pose risks. The stock's valuation and dividend yield are positive factors, but technical analysis indicates caution in the short term.

Daiko Denshi Tsushin,Ltd. Business Overview & Revenue Model

Company Description

Daiko Denshi Tsushin, Ltd. (8023) is a Japanese company that operates primarily in the electronics and telecommunications sectors. The company specializes in the development, manufacturing, and distribution of electronic components, communication equipment, and advanced technology solutions. Its core products include various semiconductor devices, telecommunications infrastructure, and related services that cater to both consumer and industrial markets.

How the Company Makes Money

Daiko Denshi Tsushin, Ltd. generates revenue through multiple streams, primarily from the sale of electronic components and telecommunications equipment. The company has established partnerships with major technology firms and telecommunications operators, allowing it to secure long-term contracts and projects. Additionally, it earns income from providing maintenance and technical support services for its products. The increasing demand for advanced communication technologies, including 5G infrastructure and IoT devices, plays a significant role in driving the company's revenue growth. Furthermore, Daiko Denshi Tsushin leverages research and development to innovate new products, creating additional revenue opportunities through patents and licensing agreements.

Daiko Denshi Tsushin,Ltd. Financial Statement Overview

Summary

Daiko Denshi Tsushin, Ltd. demonstrates solid financial fundamentals with a strong balance sheet characterized by low leverage and a solid equity position. However, the declining net profit margin and cash flow generation are areas of concern, suggesting potential operational challenges impacting profitability and liquidity.

Income Statement

The company has shown a stable revenue performance with a slight decline in 2025. Gross profit margin remains strong at approximately 24.7%, indicating good cost management. However, the net profit margin has decreased to 3.9% in 2025 from 4.2% in 2024, suggesting some pressure on bottom-line profitability. EBIT and EBITDA margins have also contracted, indicating potential operating challenges.

Balance Sheet

The balance sheet reflects a healthy equity base with an equity ratio of 47.2%, suggesting financial stability. The debt-to-equity ratio is low at 0.19, indicating conservative leverage. Return on equity has decreased to 13.3% from 15.7% in the previous year, which raises concerns about declining profitability relative to equity.

Cash Flow

The cash flow situation shows a significant decline in operating cash flow, with a 68.1% drop from the previous year. Free cash flow has also decreased substantially, impacting the free cash flow to net income ratio. The operating cash flow to net income ratio has decreased to 0.78, indicating reduced cash generation efficiency. This could pose liquidity risks if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.03B	42.69B	43.38B	37.62B	35.47B	36.27B
Gross Profit	10.30B	10.56B	11.11B	9.48B	8.75B	8.39B
EBITDA	2.35B	2.81B	3.28B	1.92B	2.06B	-137.90M
Net Income	1.36B	1.68B	1.84B	996.36M	1.23B	-452.45M
Balance Sheet
Total Assets	26.25B	26.84B	27.83B	25.62B	24.18B	23.79B
Cash, Cash Equivalents and Short-Term Investments	11.52B	10.46B	10.05B	7.29B	7.53B	6.42B
Total Debt	2.25B	2.36B	2.39B	2.65B	3.13B	3.93B
Total Liabilities	14.01B	14.12B	16.10B	15.71B	15.03B	15.61B
Stockholders Equity	12.18B	12.67B	11.68B	9.86B	9.11B	8.14B
Cash Flow
Free Cash Flow	0.00	1.28B	3.99B	394.65M	2.21B	792.20M
Operating Cash Flow	0.00	1.32B	4.13B	556.15M	2.27B	1.08B
Investing Cash Flow	0.00	-71.25M	-543.46M	366.40M	-78.33M	-63.87M
Financing Cash Flow	0.00	-830.97M	-826.11M	-1.11B	-1.09B	-108.93M

Daiko Denshi Tsushin,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1112.00
• 50DMA: Negative
• 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:8023, the sentiment is Positive. The current price of 1112 is above the 20-day moving average (MA) of 1084.55, below the 50-day MA of 1115.65, and above the 200-day MA of 974.89, indicating a neutral trend. The MACD of -6.71 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8023.

Daiko Denshi Tsushin,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	€181.09B	10.83	11.40%	3.30%	9.67%	45.58%
8093	76 Outperform	¥21.34B	5.26	―	3.86%	32.77%	280.02%
8137	74 Outperform	¥45.33B	18.31	―	4.51%	-4.88%	-26.05%
8023	72 Outperform	¥15.05B	10.41	―	4.40%	-5.42%	-29.21%
9880	72 Outperform	¥23.52B	25.12	―	3.85%	-3.90%	-44.26%
7537	71 Outperform	¥30.97B	9.96	―	5.56%	1.71%	-29.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%