Daiichi Cutter Kogyo K.K. (1716) AI Stock Analysis

• Market Cap: ¥15.89B
• Dividend Yield: 2.87%
• Average Volume (3M): 27.60K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.35
• Revenue Growth: -1.39%
• EPS Growth: -4.43%
• Country: JP
• Employees: 629
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 44.04
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 29,570
• 30 Day Avg. Volume: 27,603
• PEG Ratio: -0.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 15.08
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,430.00 ▲(2.44% Upside)

Daiichi Cutter Kogyo K.K. shows strong financial stability and an attractive valuation, which are significant strengths. However, technical indicators suggest a bearish trend, and challenges in revenue growth and cash flow volatility present risks. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic downturns.

Operational Efficiency

Consistent operational efficiency, as indicated by stable margins, suggests effective cost management and the ability to maintain profitability even in challenging market conditions.

Cash Generation

Strong cash generation relative to profits indicates robust operational performance, providing the company with the liquidity needed for reinvestment and debt servicing.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in expanding sales, which could impact long-term profitability and market position if not addressed.

Cash Flow Volatility

Volatile cash flow growth can hinder the company's ability to plan and invest strategically, potentially affecting its financial stability and growth prospects.

Declining Profit Margins

Declining profit margins may indicate rising costs or pricing pressures, which could erode profitability and competitiveness over time if not managed effectively.

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

Company Description

Dai-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 Money

Daiichi 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 K.K. demonstrates financial stability with strong profitability and a solid balance sheet. However, challenges in revenue growth and cash flow volatility could pose risks. The company should focus on revitalizing sales growth and stabilizing cash flows to enhance financial performance further.

Income Statement

Daiichi Cutter Kogyo K.K. shows a stable gross profit margin and a decent net profit margin, although both have slightly declined over the years. The revenue growth rate has been negative recently, indicating a potential challenge in maintaining sales momentum. However, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage. The return on equity is solid, suggesting effective use of shareholder funds. The equity ratio is also healthy, showing a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a mixed picture. While the operating cash flow to net income ratio is strong, indicating good cash generation relative to profits, the free cash flow growth rate has been volatile. The free cash flow to net income ratio is reasonable, but the recent 'infinity' growth rate suggests erratic cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.23B	20.23B	20.92B	22.16B	20.95B	19.34B
Gross Profit	5.83B	5.83B	6.65B	7.05B	6.67B	6.31B
EBITDA	2.71B	2.71B	3.69B	3.71B	3.27B	3.41B
Net Income	1.33B	1.33B	1.97B	1.95B	1.58B	1.74B
Balance Sheet
Total Assets	22.25B	22.25B	21.86B	21.57B	19.41B	17.99B
Cash, Cash Equivalents and Short-Term Investments	9.93B	9.93B	9.48B	9.44B	7.77B	6.64B
Total Debt	331.48M	331.48M	338.38M	500.85M	285.43M	267.34M
Total Liabilities	2.89B	2.89B	3.57B	4.33B	3.55B	3.67B
Stockholders Equity	19.23B	19.23B	18.16B	16.62B	15.02B	13.63B
Cash Flow
Free Cash Flow	0.00	950.54M	1.22B	1.92B	1.30B	104.07M
Operating Cash Flow	0.00	1.70B	2.17B	2.74B	2.24B	1.96B
Investing Cash Flow	0.00	-2.44B	-1.65B	-561.38M	-847.24M	-1.59B
Financing Cash Flow	0.00	-515.67M	-481.83M	-506.39M	-289.41M	-69.14M

Daiichi Cutter Kogyo K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1396.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1716, the sentiment is Positive. The current price of 1396 is above the 20-day moving average (MA) of 1377.50, above the 50-day MA of 1353.98, and above the 200-day MA of 1324.13, indicating a bullish trend. The MACD of 9.30 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1716.

Daiichi Cutter Kogyo K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1770	76 Outperform	¥16.09B	12.37	―	3.71%	-21.52%	-35.65%
1828	73 Outperform	¥27.13B	9.45	―	3.44%	-5.43%	34.48%
1716	71 Outperform	¥15.89B	9.58	―	2.87%	-1.39%	-4.43%
1914	67 Neutral	¥13.87B	10.75	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.67B	13.67	―	4.48%	-6.37%	-16.88%
1826	59 Neutral	¥13.70B	23.18	―	5.36%	-3.19%	109.84%