DAIREI CO.LTD. (2883) AI Stock Analysis

• Market Cap: ¥11.82B
• Dividend Yield: 2.99%
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.06
• Revenue Growth: -5.70%
• EPS Growth: -192.01%
• Country: JP
• Employees: 152
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Machinery
• EPS (TTM): 15.74
• Shares Outstanding: 6,008,300
• 10 Day Avg. Volume: 4,570
• 30 Day Avg. Volume: 3,730
• 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: ¥1,995.00
• Price Target Upside: -0.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥1,995.00 ▼(-0.45% Downside)

DAIREI CO.LTD.'s stock score is primarily influenced by its mixed financial performance, with significant volatility in income and cash flows despite a strong balance sheet. Technical indicators show positive momentum, but valuation concerns arise from a negative P/E ratio. The company's dividend yield provides some attractiveness amid profitability challenges.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing DAIREI to navigate market fluctuations and invest in growth opportunities.

Dividend Commitment

Maintaining dividends during financial downturns signals confidence in long-term cash flow stability and commitment to shareholder returns, enhancing investor trust.

Equity Ratio

A robust equity ratio indicates strong capitalization, which can support business operations and strategic initiatives, ensuring long-term sustainability.

Negative Factors

Revenue Decline

The decline in revenue and net loss indicates challenges in market demand or operational efficiency, which could impact long-term growth prospects if not addressed.

Profitability Issues

Negative profitability suggests operational inefficiencies or market challenges, which could hinder the company's ability to reinvest in growth and maintain competitive positioning.

Cash Flow Volatility

Inconsistent cash flow generation can limit the company's ability to fund operations and growth initiatives, posing risks to financial stability and strategic execution.

DAIREI CO.LTD. Business Overview & Revenue Model

Company Description

DAIREI CO., LTD. is a Japanese company primarily engaged in the wholesale of frozen foods. The company operates in the food industry, focusing on the distribution of a wide range of frozen food products including meat, seafood, and processed foods. DAIREI caters to various sectors such as restaurants, supermarkets, and other food service businesses, providing them with high-quality and diverse frozen food options.

How the Company Makes Money

DAIREI CO., LTD. generates revenue through the wholesale distribution of frozen food products to various clients, including restaurants, retail supermarkets, and food service companies. The company's income is primarily driven by the sale of its extensive range of frozen products, which include meat, seafood, and processed foods. DAIREI benefits from partnerships with food manufacturers and suppliers to ensure a steady supply of products. Additionally, the company leverages its distribution network and logistics capabilities to efficiently reach its diverse customer base, thereby maintaining steady revenue streams.

DAIREI CO.LTD. Financial Statement Overview

Summary

DAIREI CO.LTD. presents a mixed financial profile. The income statement reveals volatility in revenue and profitability with negative net profit margins. The balance sheet is relatively strong with low leverage, but declining equity and total assets are concerning. Cash flow generation is inconsistent, reflecting instability in financial health.

Income Statement

DAIREI CO.LTD. has experienced volatility in its revenue and profitability. The revenue growth rate fluctuated significantly over the years, with a decline in the most recent period. The gross profit margin has been relatively stable, yet the net profit margin turned negative in the latest report, indicating profitability issues. EBIT and EBITDA margins are inconsistent, reflecting operational challenges.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio indicating modest leverage. Return on equity has been under pressure due to fluctuating net income. The equity ratio is robust, suggesting strong capitalization. However, the declining stockholders' equity and total assets trend is a concern.

Cash Flow

Cash flow generation has been inconsistent, with operating cash flow and free cash flow showing significant volatility. The free cash flow to net income ratio experienced drastic changes, reflecting instability in cash generation relative to profit levels. The cash flow management needs improvement to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.73B	25.73B	27.42B	27.24B	22.96B	22.51B
Gross Profit	4.03B	3.99B	4.29B	4.80B	3.97B	3.85B
EBITDA	891.80M	-235.21M	1.15B	1.56B	1.09B	1.00B
Net Income	-575.47M	-574.63M	766.90M	1.02B	729.43M	684.24M
Balance Sheet
Total Assets	11.51B	11.51B	14.04B	12.83B	11.52B	10.86B
Cash, Cash Equivalents and Short-Term Investments	3.75B	3.75B	3.87B	2.66B	2.74B	4.31B
Total Debt	20.49M	20.49M	331.42M	343.07M	33.80M	32.44M
Total Liabilities	2.72B	2.72B	4.32B	3.52B	2.85B	2.59B
Stockholders Equity	8.79B	8.79B	9.73B	9.31B	8.67B	8.27B
Cash Flow
Free Cash Flow	0.00	672.50M	1.63B	277.20M	-1.24B	777.89M
Operating Cash Flow	0.00	710.91M	1.63B	322.67M	-1.24B	794.89M
Investing Cash Flow	0.00	-153.97M	-72.57M	-316.75M	-6.35M	137.42M
Financing Cash Flow	0.00	-665.50M	-366.23M	-93.06M	-332.88M	-435.39M

DAIREI CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2004.00
• 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:2883, the sentiment is Positive. The current price of 2004 is above the 20-day moving average (MA) of 1992.65, above the 50-day MA of 1979.46, and above the 200-day MA of 1905.03, indicating a bullish trend. The MACD of 6.76 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 98.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2883.

DAIREI CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6322	81 Outperform	¥11.61B	9.20		3.12%	-0.11%	0.79%
6203	72 Outperform	¥16.90B	18.37		1.48%	29.02%	―
6496	68 Neutral	¥18.28B	10.43		1.95%	27.72%	70.12%
6312	67 Neutral	¥18.00B	15.96		1.86%	8.71%	96.54%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
2883	57 Neutral	¥11.82B	18.00		2.99%	-5.70%	-192.01%
6392	―	¥12.45B	7.74		3.98%	―	―

DAIREI CO.LTD. Corporate Events

DAIREI CO., LTD. Reports Decline in Q1 2025 Financial Results

DAIREI CO., LTD. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company maintains a strong equity ratio and has not revised its forecast for the fiscal year ending March 31, 2026, indicating confidence in future performance.

DAIREI CO., LTD. Reports Decline in Financial Results but Maintains Dividend

DAIREI CO., LTD. reported a decline in its non-consolidated financial results for the fiscal year ended March 31, 2025, with net sales decreasing by 6.1% and a net loss of 574 million yen. Despite the downturn, the company maintained its annual dividend at 60 yen per share, indicating a commitment to shareholder returns. The forecast for the next fiscal year shows a modest recovery with expected increases in net sales and profits.