Dawn Corporation (2303) AI Stock Analysis

• Market Cap: ¥8.53B
• Dividend Yield: 0.99%
• Average Volume (3M): 7.70K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.59
• Revenue Growth: -0.69%
• EPS Growth: -6.98%
• Country: JP
• Employees: 63
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 3,300,000
• 10 Day Avg. Volume: 14,780
• 30 Day Avg. Volume: 7,700
• PEG Ratio: 1.86
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 4.24
• P/FCF Ratio: 23.21
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥2,831.00 ▲(14.94% Upside)

The score is primarily supported by strong financial performance, led by high margins and an exceptionally low-risk, debt-free balance sheet, offset by some cash flow volatility in the most recent year. Technical indicators are moderately positive with improving momentum, while valuation is fair but not a strong bargain given the ~19x P/E and low dividend yield.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet significantly reduces financial risk and interest-rate sensitivity, providing stability and flexibility for future growth.

Profitability

High profitability margins indicate efficient operations and strong market positioning, supporting sustainable earnings over the long term.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and product adoption, which is crucial for long-term success.

Negative Factors

Cash Flow Variability

Inconsistent cash flow generation can impact the company's ability to reinvest in growth and manage financial obligations, posing a risk to stability.

Growth Volatility

Volatile growth patterns can lead to uncertainty in financial planning and investor confidence, affecting long-term strategic initiatives.

Recent Financial Decline

A recent decline in financial performance may signal underlying operational challenges, affecting future profitability and market perception.

Dawn Corporation Business Overview & Revenue Model

Company Description

Dawn Corp. engages in the development and maintenance of Saas based geographic information systems (GIS) in Japan. It provides NET119, a cloud emergency call services; Live110 and Live119, a video reporting system; DMaCS, a disaster information sharing service; AED GO, an AED transportation support system; mailio, a message delivery service; and Town Guidance Town Development Map, an Internet public map service. The company also offers GeoBase/GeoBase.NET, a new-generation GIS middleware; Town Map Pro, a cloud-based service that allows user to build an integrated GIS; infectious disease crisis management system; and easy log analysis services. In addition, it sells license software for building geographic information systems. The company was founded in 1991 and is headquartered in Kobe, Japan.

How the Company Makes Money

Dawn Corporation generates revenue through multiple streams, primarily centered around the manufacturing and sale of electronic components. The company's semiconductor division is a significant contributor to its income, with products being sold to various industries, including telecommunications, automotive, and consumer electronics. Dawn Corporation has established long-term partnerships with leading global tech firms, securing contracts to supply essential components for their products. Additionally, the company earns revenue from its software solutions, which are often bundled with its hardware products or sold separately as standalone offerings. The company's strategic investments in research and development also foster innovation, allowing it to maintain a competitive edge and attract new business opportunities.

Dawn Corporation Financial Statement Overview

Summary

Dawn Corporation exhibits excellent financial health with strong revenue growth of 9.7% and a net profit margin of 25.9%. The balance sheet is robust with zero debt and a high equity ratio of 88.1%. Cash flow metrics are solid, with a free cash flow growth rate of 10.9%, indicating strong cash generation and operational efficiency.

Income Statement

Dawn Corporation shows strong growth in revenue and profitability. Revenue grew by 9.7% from last year, and net income increased significantly, contributing to a healthy net profit margin of 25.9%. The gross profit margin stands at 67.8%, while EBIT and EBITDA margins are robust at 35.5% and 35.8%, respectively. The company's ability to maintain high profitability metrics indicates excellent operational efficiency and cost management.

Balance Sheet

The company's balance sheet is exceptionally strong, with zero debt and a high equity ratio of 88.1%. This indicates financial stability and a low risk of leverage. Moreover, the return on equity is impressive at 15.6%, reflecting efficient use of shareholders' capital. The company's substantial cash reserves further bolster its financial position.

Cash Flow

Dawn Corporation demonstrates solid cash flow generation, with a free cash flow growth rate of 10.9%. The operating cash flow to net income ratio is 1.07, indicating strong cash conversion. The free cash flow to net income ratio at 1.02 further highlights the company's ability to generate cash relative to its earnings, supporting potential future investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.65B	1.50B	1.37B	1.22B	1.12B
Gross Profit	1.05B	1.08B	1.02B	888.64M	818.80M	735.09M
EBITDA	540.78M	579.78M	538.00M	446.43M	403.36M	343.90M
Net Income	391.61M	418.77M	388.12M	321.06M	283.50M	237.72M
Balance Sheet
Total Assets	2.97B	3.07B	2.82B	2.50B	2.37B	2.10B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.73B	1.92B	1.79B	2.07B	1.78B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	231.73M	323.98M	334.94M	269.32M	229.27M	220.34M
Stockholders Equity	2.74B	2.75B	2.48B	2.23B	2.14B	1.88B
Cash Flow
Free Cash Flow	151.45M	301.18M	397.07M	358.14M	254.40M	227.76M
Operating Cash Flow	151.37M	302.57M	414.66M	365.69M	257.07M	228.54M
Investing Cash Flow	-167.52M	-336.79M	-129.51M	-58.83M	-102.67M	-110.78M
Financing Cash Flow	-80.14M	-161.19M	-149.18M	-244.50M	-38.37M	-31.86M

Dawn Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2463.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2303, the sentiment is Positive. The current price of 2463 is below the 20-day moving average (MA) of 2477.20, above the 50-day MA of 2440.10, and above the 200-day MA of 2361.92, indicating a bullish trend. The MACD of 45.31 indicates Negative momentum. The RSI at 77.28 is Negative, neither overbought nor oversold. The STOCH value of 73.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2303.

Dawn Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2303	78 Outperform	¥8.53B	18.89	―	0.99%	-0.69%	-6.98%
2186	69 Neutral	¥7.18B	19.41	―	3.65%	―	―
4397	68 Neutral	¥8.61B	23.68	―	―	11.32%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4845	61 Neutral	¥6.86B	7.13	―	4.25%	-24.66%	―
5259	49 Neutral	¥9.49B	-25.58	―	―	6.59%	-294.11%
9561	41 Neutral	¥3.64B	-6.55	―	―	3.34%	-219.24%

Dawn Corporation Corporate Events

Dawn Corporation Reports Decline in Quarterly Financial Performance

Dawn Corporation reported a decline in its financial performance for the three months ended August 31, 2025, with net sales, operating profit, ordinary profit, and profit all showing significant decreases compared to the same period in the previous year. Despite this, the company maintains a strong equity-to-asset ratio of 92.2% as of August 31, 2025, indicating a stable financial position. The company has not announced any revisions to its financial forecasts or dividend payments, suggesting a cautious approach to future financial planning.