DAI-DAN Co., Ltd. (1980) AI Stock Analysis

• Market Cap: ¥193.03B
• Dividend Yield: 5.1%
• Average Volume (3M): 163.45K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.99
• Revenue Growth: 33.08%
• EPS Growth: 91.81%
• Country: JP
• Employees: 1,901
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 124.88
• Shares Outstanding: 45,963,802
• 10 Day Avg. Volume: 153,470
• 30 Day Avg. Volume: 163,450
• PEG Ratio: 0.34
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,795.00 ▲(8.73%Upside)

DAI-DAN Co., Ltd. demonstrates strong financial health with consistent revenue growth and efficient operations, which is the most significant factor. Technical indicators show a positive trend, supporting the stock's upward momentum. The valuation is reasonable with an attractive dividend yield.

DAI-DAN Co., Ltd. Business Overview & Revenue Model

Company Description

Dai-Dan Co., Ltd. designs, supervises, and constructs electrical, air conditioning, plumbing and sanitary, and firefighting facilities works in Japan. It offers Artificial Intelligence for energy-saving; REMOVIS, a building equipment monitoring and management solution; WIT WET, a vaporization type humidification system; Net Zero Energy Building solutions; Airac System, a breeding rack for experimental animals; Arapak, an internal automatic cleaning package air conditioner; Ion Drop to remove static electricity; Air Barrier Booth, a cross contamination prevention system; Air filter regeneration solutions; Econospot, a -Spot air-conditioning system; All-in-one CP unit; and Airflow analysis solutions. The company also provides cushion ducky, air conditioning chair, and quick covers; vaporization type humidifiers and lightweight reinforced ducts, as well as sealing free solutions; stratified air conditioning, heat storage tanks, and energy-saving dehumidification systems; and virtual duct clean room systems, room pressure control- barriers, and anticorrosion diagnostic solutions. In addition, it offers FlowSmart for reducing the transport power of air conditioning equipment; radiant air conditioning system that regulates the temperature of the room; Lami Flowrack that enahances the environment inside the breeding room and cage; and floor blowing air conditioning system. Further, the company engages in the machinery/equipment installation works. The company was formerly known as Osaka Denki Danbo Co., Ltd. and changed its name to Dai-Dan Co., Ltd. in April 1987. Dai-Dan Co., Ltd. was founded in 1903 and is headquartered in Osaka, Japan.

How the Company Makes Money

DAI-DAN Co., Ltd. generates revenue through its engineering and construction services. The company's primary revenue streams include contracts for designing, installing, and maintaining air conditioning, electrical, plumbing, and sanitation systems in commercial buildings, residential complexes, and industrial facilities. DAI-DAN Co., Ltd. works closely with construction firms, architects, and developers to secure projects. Additionally, the company benefits from long-term maintenance contracts, providing ongoing services for installed systems. Strategic partnerships with suppliers and technology companies help DAI-DAN Co., Ltd. stay competitive and enhance its service offerings, contributing to its revenue growth.

DAI-DAN Co., Ltd. Financial Statement Overview

Summary

DAI-DAN Co., Ltd. displays strong revenue growth and profitability, with a solid balance sheet characterized by low leverage. However, cash flow variability presents a challenge, emphasizing the need for improved cash management strategies. Overall, the company is financially robust with growth potential, but must focus on stabilizing cash flow generation.

Income Statement

The company demonstrates strong revenue growth with a TTM revenue of ¥243.8B, up from ¥197.4B annually, indicating a positive growth trajectory. The gross profit margin for the TTM is 15.3%, while the net profit margin is 6.6%, both showing solid profitability. EBIT and EBITDA margins are 8.6% and 9.1%, respectively, reflecting effective cost management. However, there is room for improvement in net profit margin compared to industry peers.

Balance Sheet

The balance sheet reveals a robust equity position with a stockholders' equity of ¥100.8B, and an equity ratio of 48.9%, indicating financial stability and low leverage. The debt-to-equity ratio is 0.23, which is below industry averages, highlighting a conservative leverage strategy. The return on equity stands at 15.9%, demonstrating efficient use of equity to generate profits.

Cash Flow

Cash flow analysis shows variability, with TTM operating cash flow reported at zero, posing concerns over cash generation. Historical data indicates fluctuating free cash flow, from ¥14.1B in 2023 to negative figures in prior years, suggesting inconsistent cash flow management. The operating cash flow to net income ratio is challenging to assess accurately due to missing TTM data.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
243.78B	197.43B	185.96B	162.93B	157.71B	169.23B
	Gross Profit
37.37B	25.45B	22.62B	20.72B	21.52B	21.06B
	EBIT
20.93B	10.88B	8.43B	7.58B	8.75B	9.06B
	EBITDA
22.15B	11.64B	8.92B	8.03B	9.84B	9.80B
	Net Income Common Stockholders
16.06B	9.09B	6.63B	5.78B	6.32B	6.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.55B	22.70B	25.38B	16.07B	31.77B	21.64B
	Total Assets
206.25B	160.55B	148.54B	139.10B	132.21B	123.05B
	Total Debt
23.46B	3.16B	3.62B	3.90B	5.18B	5.68B
	Net Debt
-3.09B	-19.54B	-21.76B	-12.16B	-26.59B	-15.96B
	Total Liabilities
104.09B	66.57B	66.12B	61.86B	57.38B	55.64B
	Stockholders Equity
100.77B	93.75B	82.24B	77.08B	74.63B	67.20B
Cash Flow		Free Cash Flow
0.00	-1.03B	14.13B	-12.94B	13.87B	11.97B
	Operating Cash Flow
0.00	596.00M	15.94B	-11.72B	14.24B	12.74B
	Investing Cash Flow
0.00	-603.00M	-4.73B	-873.00M	-718.00M	-636.00M
	Financing Cash Flow
0.00	-2.83B	-2.22B	-3.21B	-3.49B	-3.24B

DAI-DAN Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4410.00
• 50DMA: Positive
• 100DMA: Positive
• 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:1980, the sentiment is Positive. The current price of 4410 is above the 20-day moving average (MA) of 4221.00, above the 50-day MA of 3955.40, and above the 200-day MA of 3486.37, indicating a bullish trend. The MACD of 94.28 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1980.

DAI-DAN Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	79 Outperform	¥185.34B	9.19	8.99%	3.56%	10.38%	151.57%
1949	78 Outperform	¥223.78B	17.30	11.54%	3.29%	9.76%	28.02%
1980	77 Outperform	¥193.03B	10.69		5.10%	33.08%	91.81%
1417	72 Outperform	¥205.83B	13.09	6.74%	3.23%	11.62%	40.21%
1861	69 Neutral	€182.23B	19.43	5.23%	3.38%	12.50%	12.87%
1820	67 Neutral	¥193.05B	11.00		4.61%	-8.67%	40.83%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%

DAI-DAN Co., Ltd. Corporate Events

DAI-DAN Co., Ltd. Revises Mid-Term Management Plan Targets

DAI-DAN Co., Ltd. has revised its performance targets and financial strategy indicators for its Mid-Term Management Plan ‘Refining Stage’ following a successful first year that exceeded expectations. The revisions include increased targets for net sales, operating profit, and return on equity, as well as enhanced growth investments and shareholder returns, reflecting the company’s response to favorable order trends and challenges in construction capacity.

DAI-DAN Co., Ltd. Announces Strategic Merger with Subsidiary

DAI-DAN Co., Ltd. has announced a strategic absorption-type merger with its wholly owned subsidiary, DAI-DAN SERVICE CHUBU Co., Ltd., to enhance customer service and improve management efficiency. This merger will consolidate resources and streamline operations, positioning DAI-DAN to better serve its clients in the Chubu region and potentially strengthen its market presence.

DAI-DAN Co., Ltd. Announces Disposal of Treasury Shares for Employee Incentive

DAI-DAN Co., Ltd. announced its decision to dispose of 195,000 treasury shares as restricted stock to its Employee Stock Ownership Association. This move aims to enhance employee welfare by providing them with an incentive to increase the company’s corporate value and align their interests with shareholders. The initiative is expected to support asset building for employees while potentially diluting shares if all eligible employees participate.

DAI-DAN Co., Ltd. Reports Strong Financial Growth and Increased Dividends

DAI-DAN Co., Ltd. reported significant growth in its consolidated financial results for the period ending March 2025, with net sales increasing by 33.1% and operating profit more than doubling compared to the previous year. The company’s strong performance is attributed to increased construction contract orders and effective cost management, positioning it well in the competitive construction industry. The company also announced a substantial increase in dividends, reflecting its robust financial health and commitment to shareholder returns.

DAI-DAN Co., Ltd. Increases Year-End Dividend Amid Strong Financial Performance

DAI-DAN Co., Ltd. has announced an increase in its year-end dividend to 111 yen per share, up from the previously forecasted 109 yen, due to better-than-expected financial results for the fiscal year ended March 2025. This decision reflects the company’s commitment to returning profits to shareholders, with a dividend payout ratio of 40% or more and a minimum dividend on equity ratio of 4%, highlighting its strong financial position and shareholder-focused management policy.

Daidan Co., Ltd. Revises Earnings and Dividend Forecasts Upward for FY 2025

Daidan Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 2025, reflecting strong performance trends. The company anticipates increased construction orders and higher net sales, leading to improved operating and ordinary profits. The revised forecasts also include a dividend increase, indicating confidence in sustained growth and profitability.