DAIREI CO.LTD. (2883) AI Stock Analysis

• Market Cap: ¥11.56B
• Dividend Yield: 3.05%
• Average Volume (3M): 5.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -5.40%
• EPS Growth: -202.08%
• Country: JP
• Employees: 152
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 16.99
• Shares Outstanding: 6,008,300
• 10 Day Avg. Volume: 2,260
• 30 Day Avg. Volume: 5,486
• PEG Ratio: 0.11
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 16.78
• 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: 51 Neutral
• Price Target: ¥1,996.00 ▲(1.58% Upside)

DAIREI CO.LTD.'s overall stock score is primarily impacted by its mixed financial performance and technical indicators suggesting potential short-term weakness. The negative P/E ratio highlights profitability challenges, although the dividend yield offers some compensation. Stabilizing cash flow and improving operational efficiency are crucial for enhancing the company's financial health.

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. plans, develops, and sells frozen food products for professional use in Japan. The company was incorporated in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DAIREI CO.LTD. generates revenue primarily through the sale of its dairy products to both retail and wholesale customers. The company benefits from multiple revenue streams, including direct sales to supermarkets, convenience stores, and foodservice establishments. Additionally, DAIREI engages in partnerships with local dairy farms to ensure a stable supply chain, which helps in reducing costs and enhancing product quality. The company may also explore export opportunities to increase its market presence internationally, thus contributing to its earnings. Seasonal promotions and product innovations, such as introducing new flavors or health-focused products, further enhance its revenue potential.

DAIREI CO.LTD. Financial Statement Overview

Summary

DAIREI CO.LTD. presents a mixed financial profile. The balance sheet is strong with low leverage, but the income statement and cash flow statement reveal challenges in maintaining consistent revenue growth and profitability. The company needs to stabilize its cash flow and improve operational efficiency.

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	25.33B	25.73B	27.42B	27.24B	22.96B	22.51B
Gross Profit	3.93B	3.99B	4.29B	4.80B	3.97B	3.85B
EBITDA	795.45M	-235.21M	1.15B	1.56B	1.09B	1.00B
Net Income	-621.54M	-574.63M	766.90M	1.02B	729.43M	684.24M
Balance Sheet
Total Assets	11.17B	11.51B	14.04B	12.83B	11.52B	10.86B
Cash, Cash Equivalents and Short-Term Investments	3.06B	3.75B	3.87B	2.66B	2.74B	4.31B
Total Debt	108.72M	20.49M	331.42M	343.07M	41.80M	39.44M
Total Liabilities	2.67B	2.72B	4.32B	3.52B	2.85B	2.59B
Stockholders Equity	8.51B	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: Neutral
• Last Price: 1965.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2883, the sentiment is Neutral. The current price of 1965 is below the 20-day moving average (MA) of 1966.55, above the 50-day MA of 1956.64, and above the 200-day MA of 1943.98, indicating a neutral trend. The MACD of 1.17 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2883.

DAIREI CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6392	78 Outperform	¥13.31B	7.83	―	3.23%	5.78%	6.00%
6496	76 Outperform	¥20.46B	14.74	―	1.84%	34.70%	-8.44%
6322	74 Outperform	¥11.32B	8.97	―	3.18%	2.32%	1.94%
6312	67 Neutral	¥18.00B	11.00	―	1.86%	17.61%	211.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6203	53 Neutral	¥13.56B	42.77	―	1.61%	26.09%	―
2883	51 Neutral	¥11.56B	-18.25	―	3.05%	-5.40%	-202.08%

DAIREI CO.LTD. Corporate Events

DAIREI CO., LTD. Reports Decline in Semi-Annual Financial Results

DAIREI CO., LTD. reported a decline in its non-consolidated financial results for the six months ended September 30, 2025, with net sales, operating profit, and ordinary profit all decreasing compared to the previous year. Despite the downturn, the company maintains a strong equity ratio and has not revised its financial forecast for the fiscal year ending March 31, 2026, indicating a stable outlook.