Daiwa House Industry Co (1925) AI Stock Analysis

• Market Cap: $3.31T
• Dividend Yield: 2.9%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.48
• Revenue Growth: 3.11%
• EPS Growth: -2.76%
• Country: JP
• Employees: 48,483
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 123.25
• 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: 1.62
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: $5,589.28
• Price Target Upside: 6.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥5,844.00 ▲(11.68% 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.

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.

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: Neutral
• Last Price: 5233.00
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 5233 is below the 20-day moving average (MA) of 5236.30, below the 50-day MA of 5276.36, and above the 200-day MA of 4973.31, indicating a neutral trend. The MACD of 8.16 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3299	―	¥49.32B	7.56	―	5.55%	11.83%	33.96%
1925	―	$3.31T	10.31	12.33%	2.90%	3.11%	-2.76%
8871	―	¥113.76B	18.14	4.48%	3.33%	-2.12%	0.89%
8897	―	¥51.45B	7.32	9.70%	7.37%	-6.09%	-36.16%
1814	―	¥27.72B	12.69	―	4.16%	12.73%	52.94%
3480	―	¥87.28B	15.19	―	2.88%	8.87%	-25.97%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Daiwa House Industry Co Corporate Events

Daiwa House Completes Payment for New Share Issuance

Daiwa House Industry Co., Ltd. has completed the payment procedures for the issuance of new shares as part of a restricted stock compensation plan, which was approved in a board meeting on July 10, 2025. This issuance involves 157,220 common shares at a price of 4,911 yen per share, totaling 772,107,420 yen, and is aimed at compensating directors and executive officers, thereby aligning their interests with company performance.

The most recent analyst rating on (JP:1925) stock is a Buy with a Yen5770.00 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. Reports Mixed Q1 Results

Daiwa House Industry Co., Ltd. is a leading Japanese company in the construction and real estate sector, known for its diverse portfolio that includes residential, commercial, and logistics facilities, as well as its commitment to sustainable development and innovation.

Daiwa House Increases Dividend Forecast Amid Strong Performance

Daiwa House Industry Co., Ltd. has announced an increase in its dividend forecast for the fiscal year ending March 2026, raising the annual dividend per share from 165 yen to 170 yen. This decision reflects the company’s improved business performance, including the successful sale of development properties and an enhanced gross profit margin in its construction business, aligning with its policy of returning profits 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 Reports Decline in Q1 Earnings, Revises Dividend Forecast

Daiwa House Industry Co., Ltd. reported a significant decline in comprehensive income for the first three months of the fiscal year ending March 31, 2026, with a 68.9% decrease compared to the previous year. Despite a slight increase in net sales, the company experienced declines in operating, ordinary, and net income. The company has revised its dividend forecast, indicating an increase for the fiscal year, which includes a commemorative dividend for its 70th anniversary. This financial performance may impact the company’s market positioning and investor sentiment.

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.