Daiwa House Industry Co Ltd (JP:1925)
:1925
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Daiwa House Industry Co
(1925)
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Rating:62Neutral
Price Target:
¥4,810.00
▼(-9.60% Downside)
Action:Downgraded
Date:05/15/26
The score is driven primarily by mixed financial performance—good profitability but meaningfully weakened by poor free-cash-flow generation and higher leverage. Valuation is a clear positive (low P/E and solid yield), while technical indicators remain weak with the stock trading below key moving averages and negative momentum.
Positive Factors
Diversified business model & recurring income
Daiwa House’s mix of new-home construction, condominium development, logistics/commercial buildings and rental housing creates multiple revenue streams. Recurring lease and property-management income smooths cyclicality, supporting steadier cash flow and earnings resilience over months.
Negative Factors
Weak cash conversion / negative FCF
Operating cash flow is modest relative to reported profits and free cash flow turned deeply negative in 2026 after being positive in 2025. Persistent weak FCF increases dependence on external financing and limits flexibility for capex, dividends, or debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model & recurring income
Daiwa House’s mix of new-home construction, condominium development, logistics/commercial buildings and rental housing creates multiple revenue streams. Recurring lease and property-management income smooths cyclicality, supporting steadier cash flow and earnings resilience over months.
Read all positive factors
Daiwa House Industry Co (1925) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.91T
Dividend Yield2.93%
Average Volume (3M)1.25M
Price to Earnings (P/E)8.7
Beta (1Y)0.49
Revenue Growth2.61%
EPS Growth10.15%
CountryJP
Employees48,483
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)494.67
Shares Outstanding659,636,170
10 Day Avg. Volume1,276,850
30 Day Avg. Volume1,249,673
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.05
Price to Sales (P/S)0.55
P/FCF Ratio-9.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)489.14
Revenue Forecast (FY)¥5.92T
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 B...
How the Company Makes Money
Daiwa House makes money primarily by (1) constructing and selling properties, (2) earning recurring income from leasing and managing properties it develops or owns, and (3) providing associated real estate and building-related services.
1) Develo...
Daiwa House Industry Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.44T | 5.58T | 5.43T | 5.20T | 4.91T | 4.44T |
| Gross Profit | 1.11T | 1.22T | 1.10T | 992.41B | 955.20B | 864.68B |
| EBITDA | 669.47B | 754.63B | 678.07B | 557.36B | 577.99B | 481.95B |
| Net Income | 309.90B | 350.57B | 325.06B | 298.75B | 308.40B | 225.27B |
Balance Sheet | ||||||
| Total Assets | 7.22T | 8.41T | 7.05T | 6.53T | 6.14T | 5.52T |
| Cash, Cash Equivalents and Short-Term Investments | 397.79B | 434.57B | 333.60B | 450.58B | 361.66B | 345.20B |
| Total Debt | 2.61T | 3.21T | 2.46T | 2.22T | 1.97T | 1.55T |
| Total Liabilities | 4.52T | 5.39T | 4.33T | 4.01T | 3.75T | 3.41T |
| Stockholders Equity | 2.61T | 2.90T | 2.61T | 2.44T | 2.28T | 2.02T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -304.56B | 38.77B | -53.75B | -256.22B | -74.55B |
| Operating Cash Flow | 0.00 | 189.28B | 420.56B | 302.29B | 230.30B | 336.44B |
| Investing Cash Flow | 0.00 | -716.62B | -481.09B | -305.80B | -503.32B | -440.92B |
| Financing Cash Flow | 0.00 | 621.63B | -56.96B | 92.78B | 285.59B | -2.08B |
Daiwa House Industry Co Technical Analysis
Negative
5321.00
Price Trends
4916.84
Negative
5095.17
Negative
5109.81
Negative
Market Momentum
-117.99
Positive
28.01
Positive
11.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1925, the sentiment is Negative. The current price of 5321 is above the 20-day moving average (MA) of 4741.45, above the 50-day MA of 4916.84, and above the 200-day MA of 5109.81, indicating a bearish trend. The MACD of -117.99 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 11.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1925.
Daiwa House Industry Co Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥33.66B | 9.63 | ― | 3.86% | 18.56% | 86.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥42.68B | 28.97 | ― | 6.02% | -5.07% | -26.79% | |
62 Neutral | ¥2.91T | 8.68 | 11.39% | 2.93% | 2.61% | 10.15% | |
62 Neutral | ¥127.30B | 44.54 | ― | 2.95% | 9.22% | 15.61% | |
58 Neutral | ¥121.26B | 18.91 | 4.48% | 3.30% | 3.93% | 16.91% | |
56 Neutral | ¥55.92B | 11.34 | 6.98% | 7.35% | 9.08% | -42.76% |
* Real Estate Sector Average
JP:1925
Daiwa House Industry Co
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Daiwa House Industry Co Corporate Events
Daiwa House Overhauls Director Stock Pay to Tie Rewards to Long-Term TSR
May 13, 2026
Daiwa House Industry has approved a revamp of its director stock compensation framework, shifting from service-based and performance-linked restricted stock to a mix of Performance Share Units and Restricted Stock Units for internal directors. The...
Daiwa House Announces Two-for-One Stock Split and Expanded Shareholder Benefits
May 13, 2026
Daiwa House Industry will conduct a two-for-one stock split, effective October 1, 2026, halving the investment amount per trading unit to enhance liquidity and broaden its shareholder base. The move will double the number of issued shares without ...
Daiwa House lifts profit and dividend, plans stock split as earnings normalize
May 13, 2026
Daiwa House Industry reported consolidated net sales of ¥5,576.9 billion for the fiscal year ended March 31, 2026, up 2.6% year on year, with operating income rising 12.6% to ¥614.9 billion and net income attributable to owners of the pa...
Daiwa House Restructures U.S. Operations, Establishes CRC Holdings as Specified Subsidiary
Feb 20, 2026
Daiwa House Industry has created CRC Holdings LLC in Delaware as a new holding company for its U.S. subsidiary CastleRock Communities, following an organizational restructuring that transferred existing shareholders’ equity in CastleRock int...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.