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

• Market Cap: ¥500.23B
• Dividend Yield: 2.58%
• Average Volume (3M): 161.31K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.25
• Revenue Growth: 30.13%
• EPS Growth: 101.75%
• Country: JP
• Employees: 1,901
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 51.45
• Shares Outstanding: 137,891,400
• 10 Day Avg. Volume: 180,150
• 30 Day Avg. Volume: 161,306
• PEG Ratio: 0.10
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 13.19
• 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
• EPS Forecast (FY): 185.43
• Revenue Forecast (FY): ¥270.00B

• Rating: 76 Outperform
• Price Target: ¥4,147.00 ▲(67.49% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

Score is driven primarily by strong financial performance (healthy profitability trends, solid balance sheet, and good cash generation). Technicals support an uptrend, but very overbought momentum signals increase short-term downside risk. Valuation and dividend yield are moderate and provide a neutral contribution.

Positive Factors

Revenue & margin improvement

Sustained revenue growth combined with improving gross and net margins indicates durable demand for building-systems services and improving cost control. Strong EBIT/EBITDA margins suggest scalable project execution, supporting long-term profitability across contract cycles and client segments.

Healthy balance sheet, low leverage

Low leverage and a solid equity base provide financial flexibility to bid on larger projects, absorb project delays, and invest in equipment or working capital. Improving ROE and a steady equity ratio reduce solvency risk and support durable access to capital through cycles.

Strong cash generation quality

Consistent operating cash conversion and meaningful free cash flow allow the company to fund capex, maintenance, and service expansions without heavy external financing. This cash resilience supports steady operations, reinvestment, and shareholder returns over the medium term.

Negative Factors

Volatile free cash flow

Volatility in free cash flow undermines planning for dividends, capex, and working capital during multi-quarter projects. Repeated swings increase reliance on liquidity buffers or short-term financing and can constrain consistent reinvestment or payout policies over time.

Room to improve asset efficiency

Suboptimal asset efficiency implies lower turnover on deployed capital and weaker return on assets. Improving utilization of equipment, inventory and receivables is needed to lift ROA and convert margin gains into stronger, more stable shareholder returns over the medium term.

Project-based revenue/backlog exposure

A business model concentrated on long-term, milestone-driven construction contracts produces lumpy revenue and cash timing risk. Tender competition, backlog variability and execution delays can materially affect near-term revenue visibility and operating cash, requiring strong backlog management.

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 primarily through the sale of its industrial equipment and tools to businesses across multiple sectors. The company's revenue model is based on direct sales, where it sells both standard products and customized solutions tailored to specific customer needs. Key revenue streams include bulk orders from manufacturing companies, ongoing contracts for maintenance and support services, and partnerships with distributors who expand the company's reach in various markets. Additionally, DAI-DAN invests in research and development to innovate and improve its product lines, ensuring a competitive edge that attracts more clients and contributes significantly to its earnings.

DAI-DAN Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: solid revenue growth and improving profitability margins (income statement), a healthy balance sheet with low leverage and improving ROE, and good free cash flow generation. Main risk is volatility in free cash flow and room to improve asset efficiency.

Income Statement

DAI-DAN Co., Ltd. has demonstrated strong financial performance with consistent revenue growth over the years. The company's gross profit margin and net profit margin have shown a positive trend, indicating efficient cost management. The EBIT and EBITDA margins are robust, showcasing operational efficiency. However, there is room for improvement in net profit growth to further strengthen financial stability.

Balance Sheet

The balance sheet of DAI-DAN Co., Ltd. reflects a healthy financial position with a solid equity base and low debt levels. The debt-to-equity ratio is favorable, indicating prudent leverage management. The return on equity has been improving, which is a positive sign for shareholders. The equity ratio is steady, affirming financial stability. Nonetheless, maintaining or enhancing asset efficiency could optimize returns further.

Cash Flow

DAI-DAN Co., Ltd. shows a good cash flow position with significant free cash flow generation. The operating cash flow to net income ratio is strong, reflecting better cash earnings quality. Free cash flow growth has been volatile, which poses a risk in cash flow stability. Improving consistency in free cash flow generation will be crucial for sustaining long-term financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	278.55B	262.73B	197.43B	185.96B	162.93B	157.71B
Gross Profit	49.82B	40.25B	26.22B	22.62B	20.72B	21.52B
EBITDA	32.09B	25.17B	11.64B	10.39B	8.03B	9.84B
Net Income	23.02B	17.44B	9.09B	6.63B	5.78B	6.32B
Balance Sheet
Total Assets	181.87B	215.31B	160.55B	148.54B	139.10B	132.21B
Cash, Cash Equivalents and Short-Term Investments	45.48B	51.76B	22.70B	25.38B	16.07B	31.77B
Total Debt	3.38B	23.60B	3.16B	3.62B	3.90B	5.18B
Total Liabilities	71.23B	106.10B	66.57B	66.12B	61.86B	57.38B
Stockholders Equity	108.51B	107.02B	93.75B	82.24B	77.08B	74.63B
Cash Flow
Free Cash Flow	0.00	12.06B	-1.03B	14.13B	-12.94B	13.87B
Operating Cash Flow	0.00	12.40B	596.00M	15.94B	-11.72B	14.24B
Investing Cash Flow	0.00	-832.00M	-603.00M	-4.73B	-873.00M	-718.00M
Financing Cash Flow	0.00	16.04B	-2.83B	-2.22B	-3.21B	-3.49B

DAI-DAN Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2476.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2476 is below the 20-day moving average (MA) of 3167.95, below the 50-day MA of 2855.40, and above the 200-day MA of 2108.69, indicating a bullish trend. The MACD of 205.09 indicates Negative momentum. The RSI at 79.87 is Negative, neither overbought nor oversold. The STOCH value of 93.82 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
1980	76 Outperform	¥500.23B	19.29	―	2.58%	30.13%	101.75%
1941	76 Outperform	¥282.69B	16.21	9.20%	2.78%	1.31%	59.20%
1721	74 Outperform	¥669.28B	20.38	8.34%	2.66%	5.14%	12.52%
1959	74 Outperform	¥748.49B	22.29	―	2.15%	-5.20%	-1.20%
1951	70 Outperform	¥594.03B	17.68	―	2.51%	15.47%	64.50%
1934	68 Neutral	¥221.53B	16.91	―	2.87%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DAI-DAN Co., Ltd. Corporate Events

DAI-DAN Lifts Profits on Record Order Intake and Strong Margin Gains

DAI-DAN Co., Ltd. reported record-high net sales of construction contract orders received for the third quarter of the period ending March 2026, driven primarily by large-scale overseas projects, even as net sales of completed construction contracts declined following the prior year’s unusually high activity. Improved profitability on completed construction contracts, supported by better customer acceptance of price pass-through, lifted gross profit by 43.3% and pushed operating, ordinary, and net profit all significantly higher, strengthening the company’s earnings profile and underscoring the positive impact of its overseas expansion and pricing strategy on margins and stakeholder returns.

The most recent analyst rating on (JP:1980) stock is a Buy with a Yen3214.00 price target. To see the full list of analyst forecasts on DAI-DAN Co., Ltd. stock, see the JP:1980 Stock Forecast page.

DAI-DAN Delivers Profit Surge and Raises Outlook Despite Lower Sales

DAI-DAN Co., Ltd. reported strong earnings for the third quarter of the fiscal year ending March 2026, with operating profit surging 61.7% year-on-year to ¥26.5 billion and profit attributable to owners of parent climbing 58.6% to ¥19.2 billion, despite a 3.0% decline in net sales to ¥180.2 billion. The company’s financial position improved notably as total assets stood at ¥203.9 billion while net assets rose to ¥121.8 billion, lifting the equity ratio to 58.6%. DAI-DAN revised its full-year consolidated forecast, now projecting ¥32.0 billion in operating profit and ¥23.1 billion in net profit on slightly lower full-year sales, and it has also revised its dividend plan in the context of a recently executed 3-for-1 share split, signaling confidence in profitability and shareholder returns even amid modest top-line pressure.

The most recent analyst rating on (JP:1980) stock is a Buy with a Yen3214.00 price target. To see the full list of analyst forecasts on DAI-DAN Co., Ltd. stock, see the JP:1980 Stock Forecast page.

DAI-DAN Ups Earnings Outlook and Lifts Dividend Forecast on Strong Project Profitability

DAI-DAN Co., Ltd. has raised its earnings forecast for the fiscal year ending March 31, 2026, projecting operating profit to rise by ¥4 billion to ¥32 billion and profit attributable to owners of parent to increase to ¥23.1 billion, while keeping net sales and order projections unchanged. The upward revision is driven mainly by better-than-expected profitability on construction projects, and in line with its shareholder return policy, the company also announced an increase in its forecast year-end dividend from ¥37 to ¥45 per share (pre-split equivalent from ¥193 to ¥217 annually), signaling strengthened earnings power and a reinforced commitment to higher shareholder returns under its revised mid-term management targets.

The most recent analyst rating on (JP:1980) stock is a Buy with a Yen3214.00 price target. To see the full list of analyst forecasts on DAI-DAN Co., Ltd. stock, see the JP:1980 Stock Forecast page.

DAI-DAN Reshapes Top Management Ahead of Next Mid-Term Plan Phase

DAI-DAN Co., Ltd. announced changes to its top management, appointing Hisao Sasaki as Representative Director and Senior Executive Corporate Officer, while incumbent Representative Director and Chairman Ichiro Fujisawa will become Director and Chairman, relinquishing his representative authority as of April 1, 2026. The leadership reshuffle is timed with the final year of the company’s Phase 2 Mid-Term Management Plan, the “Refining Stage,” and preparation for Phase 3, the “Excellence Stage,” with Sasaki’s long track record in equipment design, industrial facilities, and management of core divisions expected to reinforce the governance structure and support the president in driving the next phase of growth.

The most recent analyst rating on (JP:1980) stock is a Buy with a Yen8432.00 price target. To see the full list of analyst forecasts on DAI-DAN Co., Ltd. stock, see the JP:1980 Stock Forecast page.