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Daisyo Corporation (9979) AI Stock Analysis

JP:9979

Daisyo Corporation

(TSE/TYO:9979)

Select Model
Rating:52Neutral
Price Target:JPY 1,026.00â–²(2.70% Upside)
Action:reiterated
Date:10/16/26

The overall score is constrained by weak technicals and a very high valuation. The stock is in a clear downtrend with bearish momentum, and its P/E ratio of 53.4 is not supported by its thin profitability or vanishing free cash flow. The primary support comes from a strengthening balance sheet and a recovering top line, but these positive financial factors are overshadowed by poor cash generation and negative market sentiment.

Positive Factors
Revenue ExpansionMeaningful revenue expansion through 2026 indicates that Daisyo has regained business activity after earlier weakness. Continued growth in the latest two years provides a larger sales base from which the restaurant network can improve utilization, support fixed-cost absorption, and rebuild earnings capacity.
Negative Factors
Thin ProfitabilityA net margin below 1% leaves little room for cost increases, weaker restaurant demand, or execution setbacks before earnings are impaired. The sharp decline in net income versus 2025 also shows that the turnaround remains fragile, limiting confidence that current profitability can persist.

Daisyo Corporation (9979) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:9979-7.39%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 20.96B
Dividend Yield
1.40%
Average Volume (3M)
73.11K
Price to Earnings (P/E)
53.2
Beta (1Y)
0.46
Revenue Growth
1.01%
EPS Growth
-66.38%
Country
Japan
Employees
1,537
Sector
General
Sector Strength
55
Industry
Restaurants

Daisyo Corporation Business Overview & Revenue Model

Company Description

Daisyo Corporation engages in the food and beverages business in Japan. The company also provides operational support; and franchise stores. In addition, it rents and manages real estate, such as building tenants and subleases rented store properties...

Daisyo Corporation Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows strong revenue recovery and a healthy gross margin, but net profit margin is razor-thin at 0.7%. The balance sheet has improved significantly through debt reduction, lowering risk. However, cash flow is a major concern, with free cash flow nearly vanishing due to heavy investment, indicating weak profit-to-cash conversion.

Income Statement

65Positive

Balance Sheet

72Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue53.09B53.09B52.56B50.59B45.49B35.80B
Gross Profit19.77B19.14B3.12B19.64B18.43B15.71B
EBITDA1.54B1.99B2.25B2.05B667.00M-4.16B
Net Income394.00M394.00M1.17B1.33B-769.00M-770.00M
Balance Sheet
Total Assets27.98B27.98B29.52B33.52B33.19B33.74B
Cash, Cash Equivalents and Short-Term Investments4.38B4.38B5.97B9.01B8.16B8.28B
Total Debt7.88B7.88B8.81B13.98B14.75B15.30B
Total Liabilities16.59B16.59B18.23B23.12B23.70B23.67B
Stockholders Equity11.39B11.39B11.29B10.40B9.48B10.06B
Cash Flow
Free Cash Flow0120.00M1.30B714.00M-406.00M2.65B
Operating Cash Flow01.73B2.15B1.54B784.00M3.40B
Investing Cash Flow0-1.68B295.00M370.00M-372.00M-665.00M
Financing Cash Flow0-1.23B-5.47B-1.04B-544.00M-1.38B

Daisyo Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price999.00

Price Trends

50DMA1032.62Negative
100DMA1061.79Negative
200DMA1079.86Negative

Market Momentum

MACD-9.40Negative
RSI43.63Neutral
STOCH35.29Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9979, the sentiment is Negative. The current price of 999.00 is below the 20-day moving average (MA) of 1004.65, below the 50-day MA of 1032.62, and below the 200-day MA of 1079.86, indicating a bearish trend. The MACD of -9.40 indicates Negative momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9979.

Daisyo Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9979 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3547JP:354776OutperformJPY 20.85B52.20―0.78%62.78%-57.81%
JP:7554JP:755469NeutralJPY 22.85B19.14―1.46%42.20%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:9979JP:997952NeutralJPY 21.03B53.22―1.40%1.01%-66.38%
JP:9850JP:985051NeutralJPY 21.07B530.06―0.76%1.71%-91.47%
JP:3053JP:305349NeutralJPY 12.78B75.58――9.99%―
JP:2882JP:288244NeutralJPY 22.81B43.64―0.75%3.77%75.23%

* General Sector Average

Performance Comparison

-20%0%20%JP:9979JP:2882JP:3053JP:3547JP:7554JP:9850Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9979 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9979Daisyo Corporation999.00-94.57-8.65%
JP:2882EAT&HOLDINGS Co., Ltd.2001.0041.422.11%
JP:3053Pepper Food Service Co., Ltd.207.0027.0015.00%
JP:3547Kushikatsu Tanaka Holdings Co.1920.00-297.44-13.41%
JP:7554Kourakuen Holdings Corporation1198.00182.0417.92%
JP:9850GOURMET KINEYA CO., LTD.917.00-33.25-3.50%

Daisyo Corporation Corporate Events

Daisyo’s Profit Slumps Despite Modest Sales Growth, Balance Sheet Stays Solid

Oct 15, 2026

Daisyo Corporation reported a slight increase in net sales to ¥53.09 billion for the fiscal year ended August 2026, up 1.0% from the previous year, but profitability deteriorated significantly. Operating profit fell 23.5% to ¥915 million an...

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: Oct 16, 2026