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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)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
¥1,461.00
▲(13.08% Upside)
Daiichi Cutter Kogyo K.K. scores well due to its solid financial performance and attractive valuation, with a reasonable P/E ratio and dividend yield. However, technical indicators suggest a neutral to slightly bearish short-term trend, and challenges in revenue growth and cash flow volatility present potential risks.

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

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

Company DescriptionDai-Ichi Cutter Kogyo k.k. engages in the construction and civil engineering activities in Japan. The company offers flat sawing, core drilling, wall and wire sawing, grooving, various dry cutting/perforating, and various metal cutting/perforating services; concrete chipping, concrete surface treatment, coating removal treatment, metal cutting, and plant equipment cleaning decontamination services; shot and vacuum blast and decontamination services; and various cleaning, polishing, mechanical cutting, peeling, and mirror floor polishing services. It also provides building maintenance services comprising drain pipe and water tank cleaning, common floor and mechanical pit cleaning, firefighting equipment inspection, pest control, sewage layer, miscellaneous drainage tank repair, and water supply equipment inspection services; and anchor construction, industrial waste collection and transportation, and intermediate treatment services. The company was founded in 1967 and is headquartered in Chigasaki, Japan.
How the Company Makes MoneyDaiichi Cutter Kogyo K.K. generates revenue through the sale of its cutting tools and industrial equipment, which are supplied to a diverse range of industries that require precision machining solutions. The company’s revenue model is primarily based on direct sales of its products, as well as a growing segment of custom tool manufacturing that caters to specific customer needs. Key revenue streams include bulk orders from manufacturing companies, long-term contracts for tool supply, and aftermarket services such as tool maintenance and reconditioning. Additionally, partnerships with distributors and collaborations with industry leaders in technology and manufacturing help expand its market reach and enhance its product offerings, contributing significantly to its overall earnings.

Daiichi Cutter Kogyo K.K. Financial Statement Overview

Summary
Daiichi Cutter Kogyo shows strong financial health with robust profitability and low debt. The Income Statement is solid, with good margins, and the Balance Sheet reflects financial stability. However, cash flow analysis is limited due to unavailable data, which slightly impacts the overall financial performance score.
Income Statement
75
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
80
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.57B20.23B20.92B22.16B20.95B19.34B
Gross Profit6.16B5.83B6.65B7.05B6.67B6.31B
EBITDA3.20B2.71B3.69B3.71B3.27B3.41B
Net Income1.67B1.33B1.97B1.95B1.58B1.74B
Balance Sheet
Total Assets21.90B22.25B21.86B21.57B19.41B17.99B
Cash, Cash Equivalents and Short-Term Investments10.20B9.93B9.48B9.44B7.77B6.64B
Total Debt319.25M331.48M338.38M467.47M285.43M246.56M
Total Liabilities2.97B2.89B3.57B4.33B3.55B3.67B
Stockholders Equity18.80B19.23B18.16B16.62B15.02B13.63B
Cash Flow
Free Cash Flow0.00950.54M1.22B1.92B1.30B104.07M
Operating Cash Flow0.001.70B2.17B2.74B2.24B1.96B
Investing Cash Flow0.00-2.44B-1.65B-561.38M-847.24M-1.59B
Financing Cash Flow0.00-515.67M-481.83M-506.39M-289.41M-69.14M

Daiichi Cutter Kogyo K.K. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1292.00
Price Trends
50DMA
1317.32
Negative
100DMA
1306.24
Negative
200DMA
1320.89
Negative
Market Momentum
MACD
-9.44
Positive
RSI
45.08
Neutral
STOCH
37.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1716, the sentiment is Neutral. The current price of 1292 is below the 20-day moving average (MA) of 1304.10, below the 50-day MA of 1317.32, and below the 200-day MA of 1320.89, indicating a bearish trend. The MACD of -9.44 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1716.

Daiichi Cutter Kogyo K.K. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥14.24B10.544.18%-12.29%-34.50%
74
Outperform
¥25.59B9.583.63%-5.11%30.22%
73
Outperform
¥14.63B10.923.08%-3.30%-32.50%
66
Neutral
¥13.74B12.803.71%17.93%-31.47%
65
Neutral
¥15.04B11.734.64%-2.90%-10.32%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
¥17.05B30.365.43%4.96%152.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1716
Daiichi Cutter Kogyo K.K.
1,297.00
-137.18
-9.57%
JP:1726
Br.Holdings Corporation
334.00
-1.54
-0.46%
JP:1770
Fujita Engineering Co., Ltd.
1,534.00
214.44
16.25%
JP:1826
Sata Construction Co., Ltd.
1,105.00
290.30
35.63%
JP:1828
Tanabe Engineering Corporation
2,374.00
896.90
60.72%
JP:1914
Japan Foundation Engineering Co., Ltd.
647.00
-10.28
-1.56%
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 01, 2025