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Daiichi Cutter Kogyo K.K. (JP:1716)
:1716
Japanese Market
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Daiichi Cutter Kogyo K.K. (1716) AI Stock Analysis

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JP:1716

Daiichi Cutter Kogyo K.K.

(1716)

Rating:80Outperform
Price Target:
¥1,570.00
▲(23.04%Upside)
Daiichi Cutter Kogyo scores well overall due to strong financial performance, particularly in profitability and balance sheet stability, coupled with attractive valuation metrics. Technical analysis supports these fundamentals with stable momentum indicators.

Daiichi Cutter Kogyo K.K. (1716) vs. iShares MSCI Japan ETF (EWJ)

Daiichi Cutter Kogyo K.K. Business Overview & Revenue Model

Company DescriptionDaiichi Cutter Kogyo K.K. is a Japan-based company primarily engaged in the construction industry. The company specializes in providing cutting and drilling services for concrete structures, which are essential in various construction and civil engineering projects. Its services include concrete cutting, asphalt cutting, and core drilling, which are integral to infrastructure development, renovation, and maintenance activities.
How the Company Makes MoneyDaiichi Cutter Kogyo K.K. generates revenue by offering specialized cutting and drilling services to construction firms and government bodies involved in infrastructure projects. The company charges fees for its services based on the complexity, scale, and duration of the projects they undertake. Key revenue streams include contracts for road construction, building renovations, and large-scale engineering projects where precision cutting and drilling are required. Strategic partnerships with construction companies and government agencies also play a significant role in securing consistent business opportunities and enhancing the company's revenue streams.

Daiichi Cutter Kogyo K.K. Financial Statement Overview

Summary
Daiichi Cutter Kogyo demonstrates strong profitability and a solid balance sheet with low leverage. However, the limited cash flow data reduces visibility. Focus on improving cash flow could further enhance financial performance.
Income Statement
82
Very Positive
Daiichi Cutter Kogyo shows solid profitability with a healthy Gross Profit Margin of 30.86% and a Net Profit Margin of 9.51% for TTM. The revenue growth has been stable, though there is a slight decline in revenue over the past year (-6.65%). EBIT and EBITDA margins are strong at 10.92% and 14.82%, respectively, indicating efficient operational management.
Balance Sheet
88
Very Positive
The company maintains a robust financial position with a low Debt-to-Equity Ratio of 0.02, and a strong Equity Ratio of 84.19%, highlighting financial stability. Return on Equity is impressive at 10.62%, showcasing effective use of equity to generate profits.
Cash Flow
45
Neutral
Cash flow metrics are limited due to unavailable data for TTM. However, historical data shows a positive Free Cash Flow, though with fluctuations. The Free Cash Flow to Net Income Ratio was healthy in previous years, suggesting decent cash generation relative to net income.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue20.92B22.16B20.95B19.34B17.44B
Gross Profit6.65B7.05B6.67B6.31B5.84B
EBITDA3.26B3.71B3.27B3.41B2.95B
Net Income1.97B1.95B1.58B1.74B1.52B
Balance Sheet
Total Assets21.86B21.57B19.41B17.99B15.53B
Cash, Cash Equivalents and Short-Term Investments9.48B9.44B7.77B6.64B6.35B
Total Debt338.38M467.47M285.43M246.56M101.19M
Total Liabilities3.57B4.33B3.55B3.67B2.99B
Stockholders Equity18.16B16.62B15.02B13.63B11.98B
Cash Flow
Free Cash Flow1.22B1.92B1.30B104.07M1.42B
Operating Cash Flow2.17B2.74B2.24B1.96B2.52B
Investing Cash Flow-1.65B-561.38M-847.24M-1.59B-1.70B
Financing Cash Flow-481.83M-506.39M-289.41M-69.14M-198.17M

Daiichi Cutter Kogyo K.K. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1276.00
Price Trends
50DMA
1290.38
Negative
100DMA
1313.53
Negative
200DMA
1348.87
Negative
Market Momentum
MACD
-3.83
Negative
RSI
44.74
Neutral
STOCH
23.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1716, the sentiment is Negative. The current price of 1276 is above the 20-day moving average (MA) of 1275.81, below the 50-day MA of 1290.38, and below the 200-day MA of 1348.87, indicating a bearish trend. The MACD of -3.83 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1716.

Daiichi Cutter Kogyo K.K. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥27.17B10.26
3.43%-1.95%37.71%
80
Outperform
¥14.52B8.65
3.13%-2.16%-8.63%
75
Outperform
¥14.64B8.20
3.75%1.16%12.22%
71
Outperform
¥268.02B13.928.47%2.88%6.35%13.11%
70
Neutral
¥14.74B9.36
3.46%32.17%298.59%
65
Neutral
¥15.09B11.82
4.49%1.27%-5.19%
58
Neutral
¥17.49B28.29
5.32%23.70%714.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1716
Daiichi Cutter Kogyo K.K.
1,276.00
-257.99
-16.82%
JP:1726
Br.Holdings Corporation
331.00
-21.63
-6.13%
JP:1770
Fujita Engineering Co., Ltd.
1,598.00
332.96
26.32%
JP:1826
Sata Construction Co., Ltd.
1,127.00
340.72
43.33%
JP:1828
Tanabe Engineering Corporation
2,539.00
784.35
44.70%
JP:1914
Japan Foundation Engineering Co., Ltd.
694.00
107.18
18.26%
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: Jun 17, 2025