Daiwa House Industry Co (1925) AI Stock Analysis

• Market Cap: $3.39T
• Dividend Yield: 2.91%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.48
• Revenue Growth: 1.93%
• EPS Growth: 5.42%
• Country: JP
• Employees: 48,483
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 99.37
• Shares Outstanding: 659,636,170
• 10 Day Avg. Volume: 1,276,850
• 30 Day Avg. Volume: 1,249,673
• PEG Ratio: 0.77
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 80.54
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥5,844.00 ▲(11.87% Upside)

Daiwa House Industry Co's stock score is primarily driven by its strong financial performance, characterized by consistent revenue and profit growth, and a balanced financial structure. The technical analysis indicates a neutral trend with some bearish momentum, while the valuation metrics suggest the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Operational Efficiency

Strong operational efficiency, as indicated by healthy margins, enhances profitability and competitiveness, ensuring sustainable business operations.

Cash Flow Generation

Efficient cash generation relative to profits ensures liquidity and financial flexibility, supporting ongoing investments and debt obligations.

Negative Factors

Earnings Per Share Decline

A decline in EPS growth can signal challenges in profit expansion, potentially impacting investor confidence and future dividend payouts.

Volatile Free Cash Flow

Volatility in free cash flow can affect financial planning and investment capacity, posing risks to long-term strategic initiatives.

Moderate Equity Ratio

A moderate equity ratio suggests reliance on debt, which may increase financial risk and limit flexibility in adverse economic conditions.

Daiwa House Industry Co Business Overview & Revenue Model

Company Description

Daiwa House Industry Co., Ltd. engages in the construction business worldwide. It operates through Single-Family Houses; Rental Housing; Condominiums; Existing Homes; Commercial Facilities; Logistics, Business and Corporate Facilities; and Other Businesses segments. The company constructs single-family houses; rents houses; develops, manages, and sells condominiums; purchases, renovates, and resells existing homes; develops commercial facilities; develops and constructs logistics, business, and corporate facilities; and provides real estate agency services. It also manufactures steel and timber housing parts; offers ground survey and reinforcement services; and constructs retail and wholesale, medical and nursing care, office and factory, urban development and industrial park, energy, environmental greening, agriculture, parking and carsharing, and public-private partnership facilities. In addition, the company operates resort hotels and golf courses, business and city hotels, fitness clubs and aesthetic salons, and home centers; provides robotics technologies for use in hospitals, care facilities, factories, and construction sites; manages private homes for the elderly and assisted-living residential facilities for seniors; and offers parking, advertising, travel agency, information technology, and credit card and insurance agency services. Daiwa House Industry Co., Ltd. was incorporated in 1947 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daiwa House generates revenue through multiple streams, predominantly from the sale of prefabricated homes and construction services. The company builds and sells residential properties, including single-family homes and apartment complexes, which are significant contributors to its income. Additionally, Daiwa House engages in the development of commercial properties and logistics facilities, catering to the growing demand for warehousing and distribution services. The company also earns revenue from its involvement in the renewable energy sector, providing solar power solutions and other environmentally friendly technologies. Strategic partnerships with various stakeholders in the construction and real estate industries further enhance its revenue potential, allowing for collaborative projects and expanded market reach. Overall, the diverse portfolio and focus on innovation underpin Daiwa House's financial success.

Daiwa House Industry Co Financial Statement Overview

Summary

Daiwa House Industry Co exhibits strong financial health with consistent revenue and profit growth. The company maintains a balanced use of debt and equity, while cash flow generation shows improvement. Despite some volatility in free cash flows, the overall financial position is robust, underpinning the company's stability and growth prospects in the real estate development industry.

Income Statement

Daiwa House Industry Co has shown consistent revenue growth with a 4.47% increase from 2024 to 2025. The gross profit margin stands at a healthy 19.93%, while the net profit margin improved to 5.98%. The EBIT and EBITDA margins are robust at 10.05% and 12.18% respectively, indicating strong operational efficiency.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.93, reflecting moderate leverage. The return on equity is strong at 12.44%, suggesting effective use of shareholder funds. However, the equity ratio is moderate at 37.09%, indicating a balanced approach between debt and equity financing.

Cash Flow

The operating cash flow to net income ratio is 1.29, demonstrating efficient cash generation relative to profits. However, free cash flow has been volatile, with a significant improvement to a positive 38.78 billion JPY in 2025 from negative figures in previous years. The free cash flow to net income ratio is 0.12, indicating room for improvement in cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.44T	5.43T	5.20T	4.91T	4.44T	4.13T
Gross Profit	1.11T	1.10T	992.41B	955.20B	864.68B	826.88B
EBITDA	678.77B	662.13B	604.57B	577.99B	466.66B	399.63B
Net Income	309.90B	325.06B	298.75B	308.40B	225.27B	195.08B
Balance Sheet
Total Assets	7.22T	7.05T	6.53T	6.14T	5.52T	5.05T
Cash, Cash Equivalents and Short-Term Investments	397.79B	333.60B	450.58B	361.66B	345.20B	426.53B
Total Debt	2.61T	2.46T	2.22T	1.97T	1.55T	1.38T
Total Liabilities	4.52T	4.33T	4.01T	3.75T	3.41T	3.16T
Stockholders Equity	2.61T	2.61T	2.44T	2.28T	2.02T	1.84T
Cash Flow
Free Cash Flow	0.00	38.77B	-53.75B	-256.22B	-74.55B	95.62B
Operating Cash Flow	0.00	420.56B	302.29B	230.30B	336.44B	430.31B
Investing Cash Flow	0.00	-481.09B	-305.80B	-503.32B	-440.92B	-385.50B
Financing Cash Flow	0.00	-56.96B	92.78B	285.59B	-2.08B	98.25B

Daiwa House Industry Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5224.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1925, the sentiment is Positive. The current price of 5224 is above the 20-day moving average (MA) of 5207.45, below the 50-day MA of 5249.50, and above the 200-day MA of 5060.48, indicating a neutral trend. The MACD of -29.12 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1925.

Daiwa House Industry Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1814	74 Outperform	¥37.96B	12.69	―	3.91%	14.97%	72.48%
3299	74 Outperform	¥44.10B	7.56	―	6.14%	1.33%	9.59%
1925	73 Outperform	$3.39T	10.61	11.39%	2.91%	1.93%	5.42%
8871	69 Neutral	¥113.25B	18.05	4.48%	3.31%	-2.12%	0.89%
8897	68 Neutral	€51.45B	9.83	6.98%	7.37%	-21.50%	-56.82%
3480	67 Neutral	¥75.90B	14.30	―	3.00%	9.37%	-31.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Daiwa House Industry Co Corporate Events

Daiwa House Industry Revises Earnings and Dividend Forecasts for FY 2026

Daiwa House Industry Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 2026, driven by a large-scale land sale at its U.S. subsidiary and improved real estate sales schedules. The company anticipates exceeding previous earnings forecasts, reflecting its strategic focus on sustainable growth, optimizing management efficiency, and enhancing shareholder value through increased earnings per share and stable dividend payouts.

Daiwa House Reports Decline in Six-Month Earnings Amid Market Challenges

Daiwa House Industry Co., Ltd. reported a significant decline in comprehensive income for the first six months of the fiscal year ending March 31, 2026, with a 60.8% decrease compared to the previous year. Despite a slight increase in net sales forecast for the fiscal year, the company anticipates declines in operating and ordinary income, reflecting challenges in the market and operational adjustments. The dividend forecast has been revised, indicating a focus on shareholder returns amidst fluctuating financial conditions.