Daiho Corporation (1822) AI Stock Analysis

• Market Cap: ¥70.48B
• Dividend Yield: 3.84%
• Average Volume (3M): 189.77K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.32
• Revenue Growth: -8.79%
• EPS Growth: N/A
• Country: JP
• Employees: 1,690
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.93
• Shares Outstanding: 90,415,820
• 10 Day Avg. Volume: 133,920
• 30 Day Avg. Volume: 189,773
• PEG Ratio: -0.06
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 5.50
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥862.00 ▲(9.81% Upside)

Daiho Corporation's overall stock score reflects a stable financial position with low leverage and a strong equity base. However, profitability and cash flow management show inconsistencies, impacting the financial performance score. Technical analysis indicates a neutral to slightly bearish trend, while the valuation suggests the stock may be overvalued but offers a good dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Financial Stability

Daiho Corporation's low leverage and strong equity base indicate a robust financial structure, reducing financial risk and enhancing long-term stability.

Shareholder Value Enhancement

The share split is a strategic move to enhance liquidity and accessibility of shares, potentially increasing market interest and shareholder value.

Profit Improvement

The significant profit improvement highlights operational efficiency gains and effective cost management, strengthening the company's financial performance.

Negative Factors

Profitability Challenges

Low net profit margins suggest challenges in cost management and profitability, which could impact long-term financial health if not addressed.

Inconsistent Revenue Growth

Volatile revenue growth indicates potential market challenges or operational inefficiencies, which may affect future growth prospects.

Cash Flow Variability

Inconsistent cash flow generation can hinder the company's ability to invest in growth opportunities and maintain financial flexibility.

Daiho Corporation Business Overview & Revenue Model

Company Description

Daiho Corporation operates as an engineering and construction company in Japan and internationally. The company operates through three segments: Civil Engineering, Building Construction, and Other. It undertakes civil engineering works, such as dams and power plants, sea ports, expressways, bridge foundations, and railways; and building works, including offices, accommodations, retail shop buildings, warehouse factories and laboratories, condominiums, education and cultural buildings, medical and welfare buildings, sports and leisure facilities, and environmental protection and cleaning facilities. The company also develops shield tunneling and concrete caisson methods; and undertakes urban tunneling projects for subway, cabling, water supply, and sewer systems. In addition, it develops environmentally friendly technologies comprising the recycling of construction waste materials and by-products, soil de-contamination, and project life cycle; and seismic technologies that protect multifamily residential and school buildings during earthquakes. Daiho Corporation was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daiho Corporation generates revenue primarily through its contracting services for construction and civil engineering projects. The company bids on public and private sector projects, securing contracts that include a variety of infrastructure developments. Key revenue streams include project management fees, construction services, and maintenance contracts. Additionally, partnerships with government agencies and collaborations with other construction firms enhance its project portfolio and financial stability. The company may also earn income from real estate development and environmental consulting services, further diversifying its revenue sources.

Daiho Corporation Financial Statement Overview

Summary

Daiho Corporation's financial performance is stable but shows room for improvement. The income statement reveals moderate efficiency with a gross profit margin of 9.16% but low profitability with a net profit margin of 2.57%. The balance sheet is strong with a low debt-to-equity ratio of 0.10 and a solid equity ratio of 47.74%. Cash flow management is mixed, with positive free cash flow but inconsistent growth. Overall, the company is financially stable but could enhance profitability and cash generation.

Income Statement

Daiho Corporation's income statement shows a mixed performance. The gross profit margin for the latest period is approximately 9.16%, indicating moderate efficiency in managing production costs. However, the net profit margin is relatively low at 2.57%, reflecting challenges in profitability, potentially due to high operating expenses or other costs. The revenue growth rate shows volatility, with a decline in recent years. EBIT and EBITDA margins are also low, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Daiho Corporation reflects a stable financial position with a debt-to-equity ratio of 0.10, indicating conservative leverage. The equity ratio stands at 47.74%, highlighting a strong capital structure with significant equity backing. Return on equity is modest at 5.16%, showing reasonable returns for shareholders but with potential for enhancement. Overall, the balance sheet suggests stability with low financial risk.

Cash Flow

The cash flow statement reveals mixed performance in liquidity and cash management. While there is a significant positive free cash flow, the growth rate has been inconsistent, indicating fluctuations in cash-generating capabilities. The operating cash flow to net income ratio is healthy at 3.19, suggesting efficient conversion of profits to cash. However, the free cash flow to net income ratio shows variability, reflecting potential challenges in maintaining a steady cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.34B	143.39B	163.22B	156.05B	156.52B	161.70B
Gross Profit	13.72B	13.14B	7.61B	11.99B	15.19B	15.10B
EBITDA	5.99B	6.71B	97.00M	6.27B	10.88B	10.62B
Net Income	3.45B	3.69B	-2.07B	2.91B	5.99B	6.26B
Balance Sheet
Total Assets	142.09B	149.84B	165.08B	170.36B	169.62B	170.90B
Cash, Cash Equivalents and Short-Term Investments	27.48B	21.67B	17.53B	28.07B	19.78B	28.21B
Total Debt	6.87B	6.87B	12.97B	6.98B	7.56B	14.30B
Total Liabilities	71.91B	76.78B	96.16B	97.18B	95.13B	96.77B
Stockholders Equity	68.61B	71.54B	67.66B	72.15B	73.65B	73.48B
Cash Flow
Free Cash Flow	6.21B	11.30B	-13.32B	11.49B	3.35B	-11.77B
Operating Cash Flow	6.29B	11.78B	-11.54B	12.86B	5.54B	-4.36B
Investing Cash Flow	-493.00M	-876.00M	-996.00M	758.00M	-2.19B	-8.89B
Financing Cash Flow	-3.25B	-6.62B	1.73B	-5.43B	-11.97B	11.05B

Daiho Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 785.00
• 50DMA: Positive
• 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:1822, the sentiment is Positive. The current price of 785 is above the 20-day moving average (MA) of 773.50, above the 50-day MA of 773.40, and below the 200-day MA of 796.62, indicating a neutral trend. The MACD of 6.76 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1822.

Daiho Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1871	79 Outperform	¥138.70B	15.69	―	3.13%	5.39%	33.02%
1870	79 Outperform	¥103.00B	9.88	―	3.63%	35.73%	62.37%
1898	73 Outperform	¥60.31B	13.77	―	4.90%	4.91%	57.89%
1882	70 Outperform	¥87.91B	20.34	―	8.02%	2.51%	4.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥70.48B	21.50	―	3.84%	-8.79%	―
1888	59 Neutral	¥60.76B	13.78	―	2.84%	15.45%	43.95%

Daiho Corporation Corporate Events

Daiho Corporation Reports Mixed Financial Results for H1 2025

Daiho Corporation reported a decrease in net sales by 3.6% for the six months ending September 30, 2025, compared to the previous year. Despite this, the company saw a substantial increase in operating and ordinary profits, with operating profit rising by 43% and ordinary profit by 208.5%. The company’s profit attributable to owners of the parent dropped by 91.1%, reflecting challenges in profitability. The financial results indicate a mixed performance, with improvements in operational efficiency but challenges in overall profitability, impacting stakeholders’ expectations.

The most recent analyst rating on (JP:1822) stock is a Hold with a Yen862.00 price target. To see the full list of analyst forecasts on Daiho Corporation stock, see the JP:1822 Stock Forecast page.