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

• Market Cap: ¥13.61B
• Dividend Yield: 1.28%
• Average Volume (3M): 3.19K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.06
• Revenue Growth: 2.70%
• EPS Growth: -42.35%
• Country: JP
• Employees: 582
• Sector: Consumer Defensive
• Sector Strength: 49
• Industry: Food Distribution
• EPS (TTM): -11.37
• Shares Outstanding: 9,868,800
• 10 Day Avg. Volume: 3,290
• 30 Day Avg. Volume: 3,193
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,514.00
• Price Target Upside: 7.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,514.00 ▲(7.38% Upside)

Daisho Co., Ltd. shows a stable financial position with growth potential, but faces challenges in profitability and valuation. Technical indicators are neutral, and the high P/E ratio suggests overvaluation. Strategic improvements in profitability and cash flow could enhance the stock's attractiveness.

Daisho Co., Ltd. Business Overview & Revenue Model

Company Description

Daisho Co., Ltd. (2816) is a Japanese company primarily engaged in the production and sale of seasonings and food products. It operates within the food processing industry, focusing on the development and distribution of a variety of sauces, dressings, and other seasoning products. The company caters to both domestic and international markets, providing high-quality culinary solutions that enhance the flavor of food.

How the Company Makes Money

Daisho Co., Ltd. generates revenue through the manufacturing and distribution of its seasoning and food products. The company's primary revenue streams include the sale of sauces, dressings, and other culinary seasonings to both retail and wholesale customers. Significant contributions to its earnings come from partnerships with food retailers, restaurants, and distributors. Additionally, Daisho invests in research and development to innovate new products, which can lead to increased sales and market expansion. The company's ability to maintain strong relationships with suppliers and leverage efficient production processes also plays a crucial role in its profitability.

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 needing improvement. The company shows potential for growth with a stable equity base but must focus on enhancing profitability and optimizing 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	3.42B	812.00M	952.00M	951.00M	1.16B
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: Positive
• Last Price: 1410.00
• 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:2816, the sentiment is Positive. The current price of 1410 is above the 20-day moving average (MA) of 1405.60, above the 50-day MA of 1403.04, and above the 200-day MA of 1404.34, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2816.

Daisho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8030	81 Outperform	¥14.66B	5.40		3.00%	7.29%	10.64%
7614	71 Outperform	¥10.06B	10.15		2.27%	3.37%	-28.80%
7538	69 Neutral	¥4.72B	4.34		1.69%	2.56%	16.26%
2816	66 Neutral	¥13.61B	40.15		1.28%	2.70%	-42.35%
Sector *	63 Neutral	$20.44B	14.73	-2.84%	3.14%	2.04%	-6.12%
8006	―	¥24.71B	11.05		2.18%	―	―
8039	60 Neutral	¥8.10B	22.85		0.97%	5.89%	82.20%