Daiwabo Holdings Co., Ltd. (3107) AI Stock Analysis

• Market Cap: ¥270.92B
• Dividend Yield: 3.08%
• Average Volume (3M): 268.92K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.85
• Revenue Growth: 22.81%
• EPS Growth: 504.99%
• Country: JP
• Employees: 2,867
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 95.85
• Shares Outstanding: 88,479,030
• 10 Day Avg. Volume: 255,070
• 30 Day Avg. Volume: 268,916
• PEG Ratio: 0.02
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 57.89
• 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: 76 Outperform
• Price Target: ¥3,238.00 ▲(5.10% Upside)

Daiwabo Holdings Co., Ltd. demonstrates strong financial performance with consistent revenue growth and stable profitability, which significantly boosts its overall score. The stock's valuation is attractive due to a low P/E ratio and a solid dividend yield. However, technical indicators suggest a lack of strong momentum, slightly tempering the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitive positioning.

Balance Sheet Health

A healthy balance sheet with low leverage and strong equity base provides financial stability and flexibility for future investments.

Cash Generation

Consistent positive free cash flow indicates strong cash generation capabilities, supporting liquidity and potential for reinvestment.

Negative Factors

Operating Cash Flow Decline

A decline in operating cash flow may indicate challenges in cash conversion efficiency, potentially impacting liquidity and operational flexibility.

Profit Margin Stability

Stable but low gross profit margins may limit profitability improvements, affecting long-term earnings potential and competitive edge.

Limited Earnings Call Insights

Lack of recent earnings call insights may hinder transparency and investor understanding of strategic direction and operational challenges.

Daiwabo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Daiwabo Holdings Co., Ltd. operates as an IT distributor in Japan and internationally. The company distributes computer appliances, peripheral devices, etc.; and provides services and support. It also manufactures, processes, and sells synthetic fiber, nonwoven fabric, and industrial materials and related products; spun yarn, fabric, knitting, and secondary products; and clothing products. In addition, the company manufactures and sells machine tools, such as vertical lathes, grinding machines, and specialized machines; and cartoning machines, intermediate packaging machines, corrugated cardboard casers, and other automatic machinery. Further, it manufactures and sells rubber sponge products; and provides hotel management, insurance agency, and engineering services. Daiwabo Holdings Co., Ltd. was founded in 1941 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daiwabo Holdings generates revenue through multiple key streams within its textile and apparel operations. The primary source of income comes from the production and sale of textiles, including synthetic and natural fibers, which are supplied to various industries such as fashion, sports, and industrial applications. Additionally, the company earns revenue from its apparel division by designing, manufacturing, and selling finished garments to retail partners and directly to consumers. Significant partnerships with major retailers and brands enhance market reach and sales volume. The company also benefits from export activities, supplying textiles and apparel to international markets. Overall, Daiwabo's focus on quality, innovation, and sustainability in its product lines plays a vital role in driving profitability.

Daiwabo Holdings Co., Ltd. Financial Statement Overview

Summary

Daiwabo Holdings Co., Ltd. exhibits robust financial health with strong revenue growth, stable profitability margins, and a solid balance sheet. The company maintains a healthy cash flow, supporting liquidity and ongoing operations, making it a strong performer in the technology distribution sector.

Income Statement

Daiwabo Holdings Co., Ltd. has demonstrated consistent revenue growth, with a notable increase from ¥903.92 billion in 2023 to ¥1.136 trillion in 2025. Gross profit margin has remained stable around 7-8%, while EBIT and EBITDA margins have been strong, reflecting efficient operations. The significant net income jump to ¥24.75 billion in 2025 enhances profitability.

Balance Sheet

The company maintains a healthy balance sheet with a significant equity base, reflected in a debt-to-equity ratio of approximately 0.14. Return on equity has shown improvement, and the equity ratio remains robust at around 34.5%. The strong cash position supports financial stability.

Cash Flow

Free cash flow has been consistently positive, indicating strong cash generation capabilities. Operating cash flow to net income ratio shows efficiency in cash conversion, despite a drop in operating cash flow in 2025. A healthy free cash flow to net income ratio further supports liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20T	1.14T	967.76B	903.92B	763.84B	1.04T
Gross Profit	87.14B	79.80B	78.21B	70.52B	64.14B	81.85B
EBITDA	43.36B	38.08B	17.23B	31.77B	28.68B	40.31B
Net Income	28.87B	24.75B	4.28B	19.06B	16.99B	25.71B
Balance Sheet
Total Assets	420.31B	440.12B	405.26B	406.69B	356.20B	383.76B
Cash, Cash Equivalents and Short-Term Investments	19.12B	55.42B	69.37B	52.12B	46.96B	32.06B
Total Debt	20.70B	20.70B	20.90B	26.10B	27.48B	27.32B
Total Liabilities	265.69B	287.81B	263.12B	262.73B	220.03B	254.44B
Stockholders Equity	154.62B	152.09B	141.93B	142.99B	135.25B	128.28B
Cash Flow
Free Cash Flow	0.00	3.98B	21.82B	14.94B	25.04B	6.31B
Operating Cash Flow	0.00	5.91B	24.54B	16.96B	28.16B	9.43B
Investing Cash Flow	0.00	-2.59B	-4.95B	-1.63B	-2.93B	-1.36B
Financing Cash Flow	0.00	-17.40B	-2.86B	-10.34B	-10.72B	-7.59B

Daiwabo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3081.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3107, the sentiment is Positive. The current price of 3081 is above the 20-day moving average (MA) of 3079.25, above the 50-day MA of 2988.67, and above the 200-day MA of 2744.79, indicating a bullish trend. The MACD of 35.56 indicates Positive momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3107.

Daiwabo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	¥194.85B	8.43	14.97%	2.94%	9.67%	45.58%
3107	76 Outperform	¥270.92B	9.00	―	3.08%	22.81%	504.99%
9824	75 Outperform	¥89.76B	14.27	―	2.72%	-0.41%	-10.32%
8137	74 Outperform	¥47.42B	19.48	―	4.12%	-4.88%	-26.05%
6638	66 Neutral	¥48.43B	8.32	―	3.07%	1.56%	1.72%
7513	64 Neutral	¥90.92B	18.62	―	1.85%	4.79%	17.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Daiwabo Holdings Co., Ltd. Corporate Events

Daiwabo Holdings Reports Progress on Ongoing Share Buyback Program

Daiwabo Holdings Co., Ltd. has disclosed the status of its ongoing share buyback program, announcing that it repurchased 333,900 common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of ¥993,158,650. This activity is part of a previously approved board resolution from June 19, 2025, authorizing the acquisition of up to 4.2 million shares or ¥8 billion through February 27, 2026; to date, the company has cumulatively bought back 2,195,300 shares for ¥6,379,262,567, signaling an active capital policy that may enhance shareholder returns and adjust its capital structure.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.

Daiwabo Holdings Forms Strategic Alliance with BCC Co., Ltd.

Daiwabo Holdings Co., Ltd. has announced an investment in BCC Co., Ltd. through a subscription to new shares and a capital business alliance. This partnership aims to address labor shortages in the IT industry, enhance knowledge sharing, and create new business opportunities, thereby maximizing corporate value and contributing to the sustainable development of the IT sector.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.

Daiwabo Holdings Announces Retirement of Treasury Shares

Daiwabo Holdings Co., Ltd. has announced the retirement of 7,877,432 treasury shares, as resolved in their Board of Directors meeting on November 6, 2025. This move is part of their corporate strategy under Article 178 of the Companies Act, which may impact the company’s capital structure and shareholder value.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.

Daiwabo Holdings Announces Consistent Interim Dividend Payout

Daiwabo Holdings Co., Ltd. announced an interim dividend of ¥50 per share, consistent with its previous forecast, reflecting its commitment to stable shareholder returns. The decision aligns with the company’s policy of paying dividends twice a year, aiming to enhance shareholder returns under its current medium-term management plan.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.

Daiwabo Holdings Revises Financial Forecasts Amid Rising IT Demand

Daiwabo Holdings Co., Ltd. has revised its consolidated financial forecasts for the fiscal year ending March 31, 2026, due to increased demand in the IT infrastructure distribution business. The company has seen a rise in net sales and profits driven by corporate demand for PC replacements and accelerated deliveries in the education sector. The full-year forecasts have been adjusted upwards, reflecting strong expected IT demand from corporate customers and ongoing replacement needs for educational devices.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.

Daiwabo Holdings Reports Strong Financial Growth and Strategic Adjustments

Daiwabo Holdings Co., Ltd. reported significant growth in its consolidated financial results for the six months ended September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company has revised its financial forecasts upward for the fiscal year ending March 31, 2026, indicating strong performance and positive market positioning. The exclusion of Suzhou Daiwa Knitting and Garment Co., Ltd. from its consolidation scope marks a strategic adjustment in its operations.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3238.00 price target. To see the full list of analyst forecasts on Daiwabo Holdings Co., Ltd. stock, see the JP:3107 Stock Forecast page.