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

• Market Cap: ¥18.36B
• Dividend Yield: 1.27%
• Average Volume (3M): 30.97K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.52
• Revenue Growth: -17.42%
• EPS Growth: -30.65%
• Country: JP
• Employees: 251
• Sector: Industrials
• Sector Strength: 84
• Industry: Waste Management
• EPS (TTM): 73.51
• Shares Outstanding: 16,827,120
• 10 Day Avg. Volume: 25,770
• 30 Day Avg. Volume: 30,973
• PEG Ratio: -0.50
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.10
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥1,196.00 ▲(8.73%Upside)

The overall stock score indicates a moderate outlook. The company's strong balance sheet and historical financial stability are offset by recent cash flow challenges and a neutral technical outlook. While the stock is fairly valued, the lack of strong catalysts in earnings call and corporate events results in a cautious investment stance.

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

Despite strong historical financial performance, the company is currently facing challenges in cash flow management and profitability stability. The Income Statement shows solid revenue growth but some recent declines in total revenue and margins. The Balance Sheet remains strong with a robust equity position, while Cash Flow analysis indicates liquidity concerns due to negative Free Cash Flow and rising Capital Expenditures.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
18.75B	19.94B	24.15B	16.41B	17.08B	14.91B
	Gross Profit
4.20B	4.50B	5.19B	3.21B	3.70B	2.65B
	EBIT
1.94B	2.25B	2.79B	1.37B	2.10B	1.21B
	EBITDA
2.66B	3.41B	3.92B	2.38B	3.04B	2.12B
	Net Income Common Stockholders
1.15B	1.23B	1.78B	724.00M	1.25B	689.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.57B	1.41B	2.45B	886.00M	645.00M	1.03B
	Total Assets
28.50B	29.03B	27.35B	21.95B	21.28B	21.27B
	Total Debt
6.38B	6.74B	5.84B	3.61B	3.52B	5.22B
	Net Debt
4.80B	5.32B	3.40B	2.72B	2.88B	4.19B
	Total Liabilities
9.90B	10.06B	9.68B	6.01B	6.05B	7.51B
	Stockholders Equity
17.19B	17.50B	16.40B	14.88B	14.35B	13.06B
Cash Flow		Free Cash Flow
0.00	-1.54B	2.11B	408.00M	1.40B	1.53B
	Operating Cash Flow
0.00	1.85B	3.23B	1.12B	2.35B	2.07B
	Investing Cash Flow
0.00	-3.39B	-3.18B	-659.00M	-840.00M	-411.00M
	Financing Cash Flow
0.00	504.00M	1.52B	-217.00M	-1.90B	-1.23B

Daiseki Eco.Solution Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1100.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1712, the sentiment is Neutral. The current price of 1100 is above the 20-day moving average (MA) of 1093.05, above the 50-day MA of 1084.26, and below the 200-day MA of 1169.72, indicating a neutral trend. The MACD of -6.14 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥13.26B	12.81		2.49%	7.20%	291.22%
6566	78 Outperform	¥18.79B	12.41		2.35%	7.43%	17.74%
2195	72 Outperform	¥6.65B	19.99		1.05%	8.72%	-17.33%
4245	69 Neutral	¥8.92B	16.19		3.58%	8.60%	55.62%
1712	68 Neutral	¥18.36B	14.87		1.27%	-17.42%	-30.65%
5698	66 Neutral	¥15.32B	26.49		1.18%	-2.57%	-51.75%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%

Daiseki Eco.Solution Co., Ltd. Corporate Events

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.

Daiseki Eco. Solution Exceeds Financial Forecasts for FY 2025

Daiseki Eco. Solution Co., Ltd. reported that its actual financial results for the fiscal year ended February 28, 2025, exceeded its forecasted results. This positive outcome was primarily driven by strong performance in its Soil Investigation and Measures Business, particularly in the Kanto and Kansai regions, and successful high value-added projects. Despite a slight decrease in profit attributable to owners of the parent, the company’s net sales and operating profit surpassed expectations, indicating robust business operations and strategic market positioning.

Daiseki Eco.Solution Reports Decline but Plans Dividend Increase

Daiseki Eco.Solution Co., Ltd. reported a decline in its financial performance for the fiscal year ending February 28, 2025, with net sales and profits showing significant decreases compared to the previous year. Despite the downturn, the company plans to increase its dividends and forecasts moderate growth in sales and profits for the next fiscal year, indicating a strategic focus on recovery and shareholder value.