Daiseki Eco.Solution Co., Ltd. (1712) AI Stock Analysis

• Market Cap: ¥19.60B
• Dividend Yield: 1.2%
• Average Volume (3M): 70.12K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.61
• Revenue Growth: -5.25%
• EPS Growth: -11.55%
• Country: JP
• Employees: 251
• Sector: Industrials
• Sector Strength: 89
• Industry: Waste Management
• EPS (TTM): 25.47
• Shares Outstanding: 16,827,120
• 10 Day Avg. Volume: 133,820
• 30 Day Avg. Volume: 70,123
• PEG Ratio: 2.25
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,196.00
• Price Target Upside: 2.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,290.00 ▲(10.54%Upside)

Daiseki Eco.Solution Co., Ltd. shows a strong financial base with a stable Balance Sheet. However, emerging cash flow challenges and moderate technical indicators suggest caution. The stock appears reasonably valued, providing potential upside if operational efficiencies improve and liquidity concerns are addressed.

Daiseki Eco.Solution Co., Ltd. Business Overview & Revenue Model

Company Description

Daiseki Eco.Solution Co., Ltd. (1712) is a Japan-based company primarily engaged in the business of waste management and environmental services. The company offers a range of eco-friendly solutions, including industrial waste treatment, recycling, and disposal services. Its operations are focused on providing sustainable environmental solutions to various industries, thereby contributing to resource conservation and pollution reduction.

How the Company Makes Money

Daiseki Eco.Solution Co., Ltd. generates revenue through its comprehensive waste management services. The company earns money by collecting fees for the treatment, recycling, and disposal of industrial waste from its clients, which include manufacturing and production companies. Additionally, Daiseki Eco.Solution benefits from the sale of recycled materials recovered through its processes, as well as from providing consulting services on environmental compliance and waste management optimization. The company's earnings are further supported by its strategic partnerships with municipal and industrial clients, which ensure a steady demand for its environmentally driven services.

Daiseki Eco.Solution Co., Ltd. Financial Statement Overview

Summary

Strong financial foundation with stable profitability and growth in previous years. Recent challenges in cash flow management and profitability stability are noted. The Balance Sheet remains robust with a healthy equity ratio, but cash flow issues suggest potential liquidity concerns.

Income Statement

The company has demonstrated solid revenue growth over the years, although a decline in Total Revenue for the latest period was observed. Gross Profit Margin remained stable around 22-26%, indicating efficient cost management. Net Profit Margin showed variability but remained positive, with a slight dip in the most recent period. EBIT and EBITDA margins suggest strong operational efficiency, though they have slightly decreased recently, pointing to potential cost pressures or competitive challenges.

Balance Sheet

The company's Balance Sheet reveals a robust equity position with an Equity Ratio consistently above 50%, highlighting financial stability. The Debt-to-Equity Ratio is moderate, suggesting manageable leverage levels. Return on Equity (ROE) has been healthy, though it slightly declined in the latest period, potentially due to decreased profitability or increased equity base.

Cash Flow

Cash Flow analysis indicates a challenging period with negative Free Cash Flow recently, driven by a significant rise in Capital Expenditures. The Operating Cash Flow remains positive, supporting ongoing operations, but Free Cash Flow to Net Income Ratio has turned unfavorable. There was a notable deterioration in Free Cash Flow growth, pointing to potential liquidity concerns if the trend continues.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	19.94B	24.15B	16.41B	17.08B	14.91B
Gross Profit	4.50B	5.19B	3.21B	3.70B	2.65B
EBITDA	3.41B	3.92B	2.38B	3.04B	2.12B
Net Income	1.23B	1.78B	724.00M	1.25B	689.00M
Balance Sheet
Total Assets	29.03B	27.35B	21.95B	21.28B	21.27B
Cash, Cash Equivalents and Short-Term Investments	1.41B	2.45B	886.00M	645.00M	1.03B
Total Debt	6.74B	5.84B	3.61B	3.52B	5.22B
Total Liabilities	10.06B	9.68B	6.01B	6.05B	7.51B
Stockholders Equity	17.50B	16.40B	14.88B	14.35B	13.06B
Cash Flow
Free Cash Flow	-1.54B	2.11B	408.00M	1.40B	1.53B
Operating Cash Flow	1.85B	3.23B	1.12B	2.35B	2.07B
Investing Cash Flow	-3.39B	-3.18B	-659.00M	-840.00M	-411.00M
Financing Cash Flow	504.00M	1.52B	-217.00M	-1.90B	-1.23B

Daiseki Eco.Solution Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1167.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1712, the sentiment is Positive. The current price of 1167 is above the 20-day moving average (MA) of 1139.00, above the 50-day MA of 1119.42, and below the 200-day MA of 1178.23, indicating a neutral trend. The MACD of 5.25 indicates Positive momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1712.

Daiseki Eco.Solution Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9221	78 Outperform	¥13.19B	12.75		2.50%	7.20%	291.22%
6566	78 Outperform	¥18.90B	12.49		2.35%	7.43%	17.74%
2195	72 Outperform	¥6.90B	20.73		1.02%	8.72%	-17.33%
1712	71 Outperform	¥19.60B	14.41		1.20%	-5.25%	-11.55%
4245	71 Outperform	¥9.00B	16.33		3.53%	8.60%	55.62%
5698	66 Neutral	¥15.53B	26.86		2.90%	-2.57%	-51.75%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%

Daiseki Eco.Solution Co., Ltd. Corporate Events

Daiseki Eco.Solution Reports Strong Q1 2025 Financial Results and Positive Outlook

Daiseki Eco.Solution Co., Ltd. reported a significant increase in its financial performance for the three months ended May 31, 2025, with net sales rising by 24.1% and profit attributable to owners of the parent increasing by 41.2% compared to the same period last year. The company also announced a forecasted increase in annual dividends and a positive outlook for the fiscal year ending February 28, 2026, indicating strong operational growth and financial stability.

Daiseki Eco. Solution Completes Share Disposal for Compensation

Daiseki Eco. Solution Co., Ltd. has completed the payment procedures for the disposal of its own shares as part of a restricted stock compensation plan. This move involves the disposal of 24,200 common shares at a value of 1,129 yen per share, totaling 27,321,800 yen, and is aimed at compensating key company executives, potentially aligning their interests with the company’s long-term performance.

Daiseki Eco. Solution Highlights Autonomy and Group Synergies

Daiseki Eco. Solution Co., Ltd. has outlined its relationship with its parent company, Daiseki Co., Ltd., which holds a 54% voting rights stake. The company emphasizes its autonomy in business operations despite being part of a larger corporate group. This relationship allows Daiseki Eco. Solution to leverage the group’s strengths while ensuring fair and rational transactions, especially those involving the parent company, to protect minority shareholders’ interests.

Daiseki Eco. Solution Co., Ltd. Announces Treasury Share Disposal for Executive Incentive

Daiseki Eco. Solution Co., Ltd. announced the disposal of 24,200 treasury shares as part of a restricted stock compensation system aimed at incentivizing directors and executive officers to enhance corporate value and align with shareholder interests. This move is designed to foster long-term commitment from key personnel by imposing a 30-year transfer restriction period on the allotted shares, thereby potentially strengthening the company’s operational stability and market positioning.