Daiwa House Industry Co (1925) AI Stock Analysis

• Market Cap: ¥3.20T
• Dividend Yield: 3.12%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.47
• Revenue Growth: 4.46%
• EPS Growth: 12.53%
• Country: JP
• Employees: 48,483
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): 141.52
• Shares Outstanding: 659,478,940
• 10 Day Avg. Volume: 1,342,840
• 30 Day Avg. Volume: 1,380,750
• PEG Ratio: 0.18
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.99
• 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: ¥5,078.10
• Price Target Upside: 2.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ¥5,564.00 ▲(12.72%Upside)

Daiwa House Industry Co presents a compelling investment case primarily due to its strong financial performance and attractive valuation. The stock's operational efficiency and consistent revenue growth underpin its robust financial position. Despite some technical indicators suggesting bearish momentum, the low P/E ratio and generous dividend yield enhance its attractiveness, particularly for value-oriented investors.

Daiwa House Industry Co Business Overview & Revenue Model

Company Description

Daiwa House Industry Co., Ltd. is a leading Japanese construction and homebuilding company, established in 1955 and headquartered in Osaka, Japan. The company operates across various sectors including residential housing, commercial facilities, logistics and industrial facilities, and environmental energy. Daiwa House is known for its expertise in prefabricated houses and offers a wide range of construction services, from single-family homes to large-scale commercial projects. Additionally, the company engages in urban development and operates a real estate business, providing leasing and property management services.

How the Company Makes Money

Daiwa House Industry Co., Ltd. generates revenue primarily through its construction and real estate development activities. The company earns money by designing, constructing, and selling residential homes, commercial buildings, and logistics centers. Key revenue streams include the sale of prefabricated houses, construction contracts for commercial and industrial facilities, and urban development projects. Additionally, Daiwa House benefits from its real estate business by leasing properties and providing property management services. The company also engages in partnerships and joint ventures to expand its market reach and enhance its service offerings, contributing to its overall earnings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.40T	5.43T	5.20T	4.91T	4.44T	4.13T
Gross Profit	1.07T	1.08T	992.41B	955.20B	864.68B	826.88B
EBITDA	642.16B	662.13B	614.26B	578.52B	472.24B	405.15B
Net Income	319.30B	325.06B	298.75B	308.40B	225.27B	195.08B
Balance Sheet
Total Assets	6.96T	7.05T	6.53T	6.14T	5.52T	5.05T
Cash, Cash Equivalents and Short-Term Investments	427.40B	333.60B	450.58B	361.66B	345.20B	426.53B
Total Debt	2.53T	2.43T	2.20T	1.95T	1.53T	1.37T
Total Liabilities	4.35T	4.33T	4.01T	3.75T	3.41T	3.16T
Stockholders Equity	2.51T	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	-310.42B	-505.18B	-467.42B	-389.98B
Financing Cash Flow	0.00	-56.96B	97.40B	287.45B	24.43B	102.73B

Daiwa House Industry Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4936.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4936 is above the 20-day moving average (MA) of 4892.70, below the 50-day MA of 4992.42, and above the 200-day MA of 4759.00, indicating a neutral trend. The MACD of -4.45 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 64.42 is Neutral, 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
1925	78 Outperform	¥3.20T	9.60	12.68%	3.12%	4.46%	12.53%
3480	77 Outperform	¥81.78B	13.67		1.94%	9.00%	-21.69%
3299	74 Outperform	¥47.91B	6.46		4.50%	28.12%	110.57%
1814	73 Outperform	¥22.44B	10.84		5.09%	14.41%	65.57%
Sector *	70 Neutral	¥234.96B	14.48	10.62%	29.30%	17.27%	17.55%
8897	63 Neutral	€51.32B	6.05	11.09%	12.14%	6.12%	-17.70%
8871	63 Neutral	$113.08B	22.01	3.73%	3.61%	17.91%	33.58%

Daiwa House Industry Co Corporate Events

Daiwa House Adjusts Bond Conversion Prices Following Dividend Approval

Daiwa House Industry Co., Ltd. has announced an adjustment to the conversion prices of its Zero Coupon Convertible Bonds due in 2029 and 2030, effective from April 1, 2025. This adjustment follows an extraordinary dividend payment of ¥150 per share, approved at the company’s general meeting, impacting the conversion prices as per the bonds’ terms and conditions.

The most recent analyst rating on (JP:1925) stock is a Hold with a Yen4450.00 price target. To see the full list of analyst forecasts on Daiwa House Industry Co stock, see the JP:1925 Stock Forecast page.

Daiwa House Proposes Amendment to Enhance Shareholder Meeting Flexibility

Daiwa House Industry Co., Ltd. has announced a proposed amendment to its Articles of Incorporation, which will be voted on at the upcoming General Meeting of Shareholders. The amendment aims to provide flexibility in the operation of shareholder meetings by allowing any director appointed by the Board to serve as Chairman, instead of the President by default. This change is expected to enhance the efficiency and adaptability of the company’s governance processes.

The most recent analyst rating on (JP:1925) stock is a Hold with a Yen4450.00 price target. To see the full list of analyst forecasts on Daiwa House Industry Co stock, see the JP:1925 Stock Forecast page.

Daiwa House Implements Employee Stock Ownership Program to Dispose Treasury Stock

Daiwa House Industry Co., Ltd. has announced a new initiative to dispose of treasury stock by allotting shares through an Employee Stock Ownership Program. This move aims to enhance employee benefits and promote asset formation, while also aligning employee interests with those of shareholders by encouraging sustainable corporate value improvements. The company plans to dispose of up to 1,036,000 shares, which could result in a slight stock dilution of up to 0.17%.

The most recent analyst rating on (JP:1925) stock is a Hold with a Yen4450.00 price target. To see the full list of analyst forecasts on Daiwa House Industry Co stock, see the JP:1925 Stock Forecast page.

Daiwa House Industry Announces Fiscal Year-End Dividend

Daiwa House Industry Co., Ltd. announced a resolution by its Board of Directors to pay a fiscal year-end dividend of JPY 80 per share for the year ended March 31, 2025, resulting in an annual dividend of JPY 150. This decision aligns with the company’s policy to return profits to shareholders and maintain a dividend payout ratio of at least 35%, with the actual payout ratio reaching 29.2% for the fiscal year. The resolution is set to be confirmed at the upcoming Annual General Meeting of Shareholders.

The most recent analyst rating on (JP:1925) stock is a Hold with a Yen4450.00 price target. To see the full list of analyst forecasts on Daiwa House Industry Co stock, see the JP:1925 Stock Forecast page.

Daiwa House Reports Strong Financial Performance for FY2025

Daiwa House Industry Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with a 15% rise in comprehensive income and improvements in key financial metrics such as net sales and operating income. The company also announced a higher dividend payout, reflecting its strong financial health and commitment to returning value to shareholders.

The most recent analyst rating on (JP:1925) stock is a Hold with a Yen4450.00 price target. To see the full list of analyst forecasts on Daiwa House Industry Co stock, see the JP:1925 Stock Forecast page.

Daiwa House Industry Co. Issues Fifth Hybrid Bonds to Bolster Financial Flexibility

Daiwa House Industry Co., Ltd. has announced the issuance of its Fifth Hybrid Bonds, amounting to 35 billion yen, with an initial interest rate of 1.902% per annum. These subordinated bonds, set to mature in 2060, offer the company flexibility in interest payments and redemption options, potentially strengthening its financial position and appealing to investors seeking stable returns.