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

• Market Cap: ¥14.52B
• Dividend Yield: 3.13%
• Average Volume (3M): 20.71K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.47
• Revenue Growth: -2.16%
• EPS Growth: -8.63%
• Country: JP
• Employees: 629
• Sector: Industrials
• Sector Strength: 95
• Industry: Engineering & Construction
• EPS (TTM): 17.06
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 15,320
• 30 Day Avg. Volume: 20,706
• PEG Ratio: -0.56
• Price to Book (P/B): 0.76
• 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: ¥1,570.00
• Price Target Upside: 23.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• 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. Business Overview & Revenue Model

Company Description

Daiichi 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 Money

Daiichi 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	20.92B	22.16B	20.95B	19.34B	17.44B
Gross Profit	6.65B	7.05B	6.67B	6.31B	5.84B
EBITDA	3.26B	3.71B	3.27B	3.41B	2.95B
Net Income	1.97B	1.95B	1.58B	1.74B	1.52B
Balance Sheet
Total Assets	21.86B	21.57B	19.41B	17.99B	15.53B
Cash, Cash Equivalents and Short-Term Investments	9.48B	9.44B	7.77B	6.64B	6.35B
Total Debt	338.38M	467.47M	285.43M	246.56M	101.19M
Total Liabilities	3.57B	4.33B	3.55B	3.67B	2.99B
Stockholders Equity	18.16B	16.62B	15.02B	13.63B	11.98B
Cash Flow
Free Cash Flow	1.22B	1.92B	1.30B	104.07M	1.42B
Operating Cash Flow	2.17B	2.74B	2.24B	1.96B	2.52B
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 Price: 1276.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1828	81 Outperform	¥27.17B	10.26		3.43%	-1.95%	37.71%
1716	80 Outperform	¥14.52B	8.65		3.13%	-2.16%	-8.63%
1770	75 Outperform	¥14.64B	8.20		3.75%	1.16%	12.22%
Sector *	71 Outperform	¥268.02B	13.92	8.47%	2.88%	6.35%	13.11%
1914	70 Neutral	¥14.74B	9.36		3.46%	32.17%	298.59%
1726	65 Neutral	¥15.09B	11.82		4.49%	1.27%	-5.19%
1826	58 Neutral	¥17.49B	28.29		5.32%	23.70%	714.01%