Daisho Co., Ltd. (2816) AI Stock Analysis

• Market Cap: ¥13.51B
• Dividend Yield: 1.29%
• Average Volume (3M): 5.94K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 0.06
• Revenue Growth: 2.47%
• EPS Growth: -56.58%
• Country: JP
• Employees: 582
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 25.47
• Shares Outstanding: 9,868,800
• 10 Day Avg. Volume: 3,050
• 30 Day Avg. Volume: 5,943
• PEG Ratio: -1.27
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -5.88
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥1,474.00 ▲(4.91% Upside)

Daisho Co., Ltd. is financially stable with growth potential, but high valuation and lack of technical momentum are concerns. The company's strong equity position and revenue growth are positives, but profitability and cash flow optimization are needed for a stronger outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product offerings, supporting long-term business expansion.

Strong Capital Structure

A strong capital structure with prudent leverage enhances financial stability and supports future growth opportunities.

Operational Cash Generation

Strong operational cash generation provides liquidity for reinvestment and financial resilience, supporting long-term sustainability.

Negative Factors

Profitability Challenges

Declining profitability may hinder reinvestment and shareholder returns, necessitating cost control improvements for long-term viability.

Negative Free Cash Flow

Negative free cash flow can limit financial flexibility and investment capacity, impacting long-term growth and stability.

Declining EBITDA Margin

A declining EBITDA margin suggests reduced operational efficiency, which may affect profitability and competitive positioning over time.

Daisho Co., Ltd. Business Overview & Revenue Model

Company Description

Daisho Co., Ltd. (2816) is a Japanese company primarily engaged in the manufacturing and sales of food products, particularly frozen and processed foods. The company operates in the food production sector, focusing on high-quality offerings that cater to both retail and food service markets. Daisho also emphasizes sustainability and innovation in its product development, providing a diverse range of items that meet the evolving preferences of consumers.

How the Company Makes Money

Daisho Co., Ltd. generates revenue through multiple streams, primarily from the sale of frozen and processed food products to both wholesalers and retailers. The company's revenue model is centered on producing high-quality, ready-to-eat meals and convenience foods, which are sold under various brand names. Additionally, Daisho may engage in private-label manufacturing for retail partners, allowing them to produce branded products for other companies. Significant partnerships with major supermarket chains and food service providers enhance distribution and market reach, contributing to consistent sales. Furthermore, the company may benefit from export opportunities, expanding its market presence in international territories where demand for Japanese cuisine and convenience foods is growing.

Daisho Co., Ltd. Financial Statement Overview

Summary

Daisho Co., Ltd. demonstrates solid revenue growth and a strong capital structure. However, profitability and free cash flow are areas for improvement, with a declining net profit margin and negative free cash flow due to high capital expenditures.

Income Statement

Daisho Co., Ltd. shows a steady revenue growth with a Revenue Growth Rate of 3.52% in 2025. Gross Profit Margin remains robust at 37.85% in 2025, indicating effective cost management. However, the Net Profit Margin has declined to 1.75%, reflecting potential challenges in controlling operating expenses. The company's EBITDA Margin of 4.93% further suggests operational efficiency, although it has weakened from previous years. Overall, the income statement indicates a solid revenue growth trajectory but highlights the need for improved profitability.

Balance Sheet

The balance sheet of Daisho Co., Ltd. reveals a strong financial position with a high Equity Ratio of 52.39%, indicating a solid capital structure. The Debt-to-Equity Ratio is 0.35, showcasing prudent leverage levels. Return on Equity (ROE) is modest at 4.68%, suggesting room for improvement in generating returns for shareholders. The stability provided by a strong equity base positions the company well for future growth despite the moderate return on equity.

Cash Flow

Daisho Co., Ltd. displays a challenging cash flow scenario with negative Free Cash Flow in 2025 due to significant capital expenditures. The Operating Cash Flow to Net Income Ratio of 2.16 indicates healthy cash conversion from operations. However, the negative Free Cash Flow to Net Income Ratio underscores the impact of high capital investments. While operational cash generation is strong, the company may need to optimize capital spending to improve free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.24B	25.35B	23.37B	22.67B	21.81B
Gross Profit	9.93B	9.70B	8.98B	9.27B	8.93B
EBITDA	1.29B	1.57B	1.19B	1.52B	1.56B
Net Income	458.00M	599.00M	310.00M	561.00M	533.00M
Balance Sheet
Total Assets	18.70B	16.39B	15.35B	15.66B	15.12B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.53B	2.20B	2.83B	2.65B
Total Debt	3.64B	812.00M	952.00M	951.00M	1.37B
Total Liabilities	8.90B	6.86B	6.26B	6.72B	6.54B
Stockholders Equity	9.80B	9.54B	9.09B	8.95B	8.57B
Cash Flow
Free Cash Flow	-2.32B	747.00M	-212.00M	756.00M	1.34B
Operating Cash Flow	988.00M	975.00M	493.00M	1.10B	1.97B
Investing Cash Flow	-3.27B	-233.00M	-678.00M	-354.00M	-635.00M
Financing Cash Flow	2.34B	-414.00M	-450.00M	-562.00M	-671.00M

Daisho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1405.00
• 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:2816, the sentiment is Negative. The current price of 1405 is above the 20-day moving average (MA) of 1402.25, above the 50-day MA of 1404.98, and above the 200-day MA of 1399.64, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2816.

Daisho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8006	78 Outperform	¥31.72B	13.28	―	7.04%	3.15%	27.71%
7614	71 Outperform	¥10.31B	10.34	―	2.21%	5.62%	-21.92%
7538	69 Neutral	¥4.74B	4.37	―	1.65%	4.32%	24.60%
8030	68 Neutral	¥13.84B	5.17	―	3.20%	5.19%	11.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥7.92B	22.34	―	0.98%	6.26%	67.81%
2816	60 Neutral	¥13.51B	45.05	―	1.29%	2.47%	-56.58%