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

• Market Cap: ¥14.63B
• Dividend Yield: 3.08%
• Average Volume (3M): 27.60K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.39
• Revenue Growth: -3.30%
• EPS Growth: -32.50%
• Country: JP
• Employees: 629
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 26.98
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 29,570
• 30 Day Avg. Volume: 27,603
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 73 Outperform
• 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. 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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.57B	20.23B	20.92B	22.16B	20.95B	19.34B
Gross Profit	6.16B	5.83B	6.65B	7.05B	6.67B	6.31B
EBITDA	3.20B	2.71B	3.69B	3.71B	3.27B	3.41B
Net Income	1.67B	1.33B	1.97B	1.95B	1.58B	1.74B
Balance Sheet
Total Assets	21.90B	22.25B	21.86B	21.57B	19.41B	17.99B
Cash, Cash Equivalents and Short-Term Investments	10.20B	9.93B	9.48B	9.44B	7.77B	6.64B
Total Debt	319.25M	331.48M	338.38M	467.47M	285.43M	246.56M
Total Liabilities	2.97B	2.89B	3.57B	4.33B	3.55B	3.67B
Stockholders Equity	18.80B	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: Neutral
• Last Price: 1292.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1770	74 Outperform	¥14.24B	10.54	―	4.18%	-12.29%	-34.50%
1828	74 Outperform	¥25.59B	9.58	―	3.63%	-5.11%	30.22%
1716	73 Outperform	¥14.63B	10.92	―	3.08%	-3.30%	-32.50%
1914	66 Neutral	¥13.74B	12.80	―	3.71%	17.93%	-31.47%
1726	65 Neutral	¥15.04B	11.73	―	4.64%	-2.90%	-10.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥17.05B	30.36	―	5.43%	4.96%	152.04%