Daito Construction (1878) AI Stock Analysis

• Market Cap: ¥1.11T
• Dividend Yield: 4.59%
• Average Volume (3M): 212.91K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.43
• Revenue Growth: 6.40%
• EPS Growth: 28.80%
• Country: JP
• Employees: 18,814
• Sector: Real Estate
• Sector Strength: 83
• Industry: Real Estate - Diversified
• EPS (TTM): 255.26
• Shares Outstanding: 68,918,976
• 10 Day Avg. Volume: 224,250
• 30 Day Avg. Volume: 212,906
• PEG Ratio: 1.97
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.17
• 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: ¥16,641.04
• Price Target Upside: 2.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Daito Construction's strong financial performance, marked by robust revenue growth and profitability, forms the foundation of its stock evaluation. The company's low leverage and solid equity base further enhance financial stability. Technical analysis indicates stable short-term price trends, while valuation metrics underscore its appeal, with an attractive P/E ratio and dividend yield. These factors collectively contribute to a solid overall stock score.

Daito Construction Business Overview & Revenue Model

Company Description

Daito Trust Construction Co.,Ltd. designs and constructs apartments, condominiums, rental office buildings, factories, and warehouses in Japan. It operates through Construction, Real Estate, and Other segments. The company also constructs mid- to high-rise rental condominiums in metropolitan area; produces and constructs steel frames and sells exterior products; manages rental buildings and provides customer services; and offers rental building brokerage and tenant recruitment services. In addition, it offers agency guarantee and rental building real estate agency services; constructs LP gas plants and supplies LP gas to rental buildings; supplies and sells energy, such as electric power to rental buildings; and operates elderly day care centers and nurseries. Further, the company provides home care, in-home support planning, home visit nursing care, support for people with disabilities, housekeeper referrals, and nursing care personnel introduction services; operates hotels in Malaysia; and handles financing, such as construction funds. Additionally, it sells insurance to rental housing owners and tenants; offers payment services for credit card settlements and other payment methods; provides consulting services for trust businesses centered on real estate management trusts, as well as asset succession and asset management; and offers document shipping and shredding, printing, and clerical work services. The company also engages in flexible workspace business; and management of facility reservation portal sites. The company was incorporated in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daito Construction makes money through various revenue streams primarily centered around its construction and real estate operations. The company's core revenue is generated from the design and construction of residential buildings, where it serves both the private and public sectors. Additionally, Daito Construction earns income from property leasing and management services, maintaining a significant portfolio of rental properties. The company also engages in real estate sales, development consulting, and offers complementary services such as renovation and maintenance. Partnerships with financial institutions and collaboration with local governments further support its business operations and revenue growth.

Daito Construction Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.82T	1.73T	1.66T	1.58T	1.49T	1.59T
	Gross Profit
312.70B	284.78B	258.45B	260.14B	238.87B	282.46B
	EBIT
126.34B	104.82B	100.00B	99.59B	86.74B	127.96B
	EBITDA
146.00B	128.99B	117.42B	116.66B	106.86B	142.87B
	Net Income Common Stockholders
91.32B	74.69B	70.36B	69.58B	62.28B	90.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.22B	249.56B	271.13B	262.24B	200.50B	163.96B
	Total Assets
540.50B	1.08T	1.06T	1.01T	919.45B	880.29B
	Total Debt
0.00	80.02B	91.87B	95.28B	97.30B	83.47B
	Net Debt
-102.87B	-165.74B	-175.26B	-163.86B	-101.69B	-76.46B
	Total Liabilities
222.70B	674.27B	656.98B	640.09B	611.25B	594.13B
	Stockholders Equity
317.11B	402.67B	401.53B	361.78B	304.12B	283.00B
Cash Flow		Free Cash Flow
62.96B	71.27B	54.18B	95.13B	85.01B	74.77B
	Operating Cash Flow
80.52B	90.88B	82.10B	112.48B	98.46B	102.13B
	Investing Cash Flow
-32.18B	-13.11B	-57.09B	-19.51B	-24.74B	-18.30B
	Financing Cash Flow
-46.93B	-96.79B	-40.06B	-34.09B	-34.31B	-111.41B

Daito Construction Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1878, the sentiment is Positive. The current price of 16300 is above the 20-day moving average (MA) of 15678.75, above the 50-day MA of 15418.80, and below the 200-day MA of 16337.01, indicating a neutral trend. The MACD of 211.73 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1878.

Daito Construction Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1878	74 Outperform	¥1.11T	11.41	21.32%	4.59%	6.40%	28.80%
1926	72 Outperform	¥104.88B	14.08		2.78%	3.37%	8.07%
Sector *	60 Neutral	$2.81B	11.05	0.20%	8508.34%	6.12%	-16.02%

Daito Construction Corporate Events

Daito Trust Construction Announces Increased Dividends for Fiscal Year 2025

Daito Trust Construction Co., Ltd. has announced a resolution to distribute dividends from surplus with a record date of March 31, 2025. The dividend per share is set at JPY 427, marking an increase from the previous fiscal year, and the total dividend payout for the fiscal year is JPY 28,400 million. This move aligns with their policy of maintaining a 50% dividend payout ratio, reflecting a strong financial performance and commitment to shareholder returns.

Daito Trust Construction Reports Strong Financial Growth and Announces Stock Split

Daito Trust Construction Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 6.4% and profit attributable to owners of the parent increasing by 25.7%. The company also announced a planned 5-for-1 stock split, aiming to enhance the liquidity of its shares and potentially attract a broader range of investors.

Daito Trust Construction Announces Correction to Stock Split Notice

Daito Trust Construction Co., Ltd announced a correction to its previous notice regarding a stock split and amendments to its articles of incorporation. The correction involves a reduction in the total number of shares authorized to be issued after the stock split, which impacts the company’s capital structure and may influence investor perceptions.

Daito Trust Construction Announces Stock Split to Enhance Share Accessibility

Daito Trust Construction Co., Ltd announced a stock split to make its shares more accessible and improve liquidity. This move aims to expand the investor base and involves a five-for-one stock split, increasing the total number of outstanding shares significantly. The company will also amend its Articles of Incorporation to reflect the increased number of authorized shares, with no change in share capital or exercise prices for share acquisition rights.

Daito Trust Construction Completes Acquisition of Ascot Corp Shares

Daito Trust Construction Co., Ltd has successfully completed a tender offer to acquire shares of Ascot Corp, with the intention of making it a consolidated subsidiary. This strategic acquisition is expected to enhance Daito’s market positioning and expand its operational capabilities in the construction and real estate sectors.

Daito Trust Construction Amends Tender Offer for Ascot Corp.

Daito Trust Construction Co., Ltd has announced amendments to its tender offer for shares of Ascot Corp. following a notice from the Fair Trade Commission. These amendments, which do not alter the purchase terms, are part of the company’s strategic move to acquire Ascot Corp., potentially impacting its market positioning and stakeholder interests.

Daito Trust Construction Announces Treasury Share Repurchase

Daito Trust Construction Co., Ltd announced its decision to repurchase fractional shares resulting from a share exchange with its subsidiary, Housecom Corporation, effective February 1, 2025. This move, approved by Daito’s Board of Directors, involves the acquisition of 48 ordinary shares according to the Companies Act, potentially impacting the company’s shareholder structure and market positioning.