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

• Market Cap: ¥279.12B
• Dividend Yield: 3.08%
• Average Volume (3M): 268.92K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.88
• Revenue Growth: 22.81%
• EPS Growth: 504.99%
• Country: JP
• Employees: 2,867
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): N/A
• 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: ¥3,608.00 ▲(17.10% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Consistent revenue growth

Sustained top-line expansion over multiple years indicates durable demand and successful channel execution. A rising revenue base supports scale benefits, underwriting stable operating leverage and providing management flexibility to invest in logistics, services, or margin-enhancing segments over the next 2–6 months.

Strong free cash flow generation

Consistently positive free cash flow demonstrates the company’s ability to convert profits into cash, supporting liquidity, dividends, and reinvestment. That cash conversion strength provides resilience to cyclical demand and funds strategic initiatives without heavy reliance on external financing.

Nationwide sales and logistics network

A national distribution footprint is a durable competitive asset in IT distribution, ensuring reach to resellers and public-sector customers. Logistics scale and channel relationships lower unit costs, improve service levels, and strengthen vendor access, supporting stable volumes and long-term customer retention.

Negative Factors

Low gross profit margins

A gross margin in the mid-single digits reflects the commoditized nature of IT distribution and limits earnings sensitivity to volume growth. Low structural margins make profitability vulnerable to price pressure, rising input or logistics costs, and adverse product-mix shifts over the medium term.

Dependence on shipment volumes and vendor relationships

Business performance hinges on maintaining vendor agreements and stable shipment flows. Concentration risk in supplier or channel relationships and sensitivity to volume swings can create structural revenue volatility and bargaining pressure, constraining margin resilience and long-term predictability.

Operating cash flow volatility in 2025

A decline in operating cash flow in 2025 signals potential working-capital or timing issues tied to inventory and receivables. Even with positive free cash flow historically, episodes of cash-flow variability can stress liquidity and limit the company’s ability to consistently fund growth or dividends without precautionary buffers.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• 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 below the 20-day moving average (MA) of 3108.25, below the 50-day MA of 3096.63, and above the 200-day MA of 2869.48, indicating a bullish trend. The MACD of 5.28 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 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	¥218.11B	7.63	14.97%	2.94%	9.67%	45.58%
3107	76 Outperform	¥279.12B	8.97	―	3.08%	22.81%	504.99%
9824	75 Outperform	¥105.26B	16.64	―	2.72%	-0.41%	-10.32%
8137	74 Outperform	¥55.01B	19.94	―	4.12%	-4.88%	-26.05%
7537	65 Neutral	¥33.32B	11.35	―	5.16%	1.71%	-29.37%
8141	64 Neutral	¥31.96B	101.97	1.55%	1.34%	-34.13%	-31.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Daiwabo Holdings Co., Ltd. Corporate Events

Daiwabo Holdings Raises Year-End Dividend Forecast for FY Ending March 2026

Daiwabo Holdings has revised upward its year-end dividend forecast for the fiscal year ending March 2026, lifting the planned year-end payout from ¥50 to ¥55 per share and raising the total annual dividend forecast to ¥105, compared with ¥90 in the previous fiscal year. Citing favorable progress in consolidated business performance and a solid financial position, the company reaffirmed its policy of prioritizing continuous and stable shareholder returns and maintaining a dividend payout ratio of at least 30%, with the increased dividend to be submitted for approval at the June 2026 shareholders’ meeting, signaling a stronger commitment to returning profits to investors in line with earnings growth.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3516.00 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 Releases Nine-Month Fiscal 2026 Results and Strategy Update

Daiwabo Holdings has released its financial results materials for the nine months of the fiscal year ending March 31, 2026, outlining performance in its IT Infrastructure Distribution and Industrial Machinery businesses and presenting information on shareholder returns. The disclosure also references its current medium-term management plan through March 2027 and related business metrics, signaling continued focus on execution of its strategy and providing stakeholders with visibility into operational trends and the company’s approach to capital allocation.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3516.00 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 Delivers Strong Nine‑Month Earnings and Raises Dividend Payout

Daiwabo Holdings reported strong consolidated results for the nine months ended 31 December 2025, with net sales up 23.8% year on year to ¥1,001.2 billion and profit attributable to owners of the parent rising 46.0% to ¥22.45 billion, lifting basic earnings per share to ¥252.48. The company’s financial position also improved, with total assets reaching ¥459.28 billion and an equity ratio of 35.0%, while it announced a higher dividend trajectory, raising the interim dividend to ¥50 per share and forecasting a full-year total of ¥105, alongside a full-year outlook that projects double‑digit growth in sales and profits, underscoring robust business momentum and enhanced shareholder returns despite a minor change in consolidation scope.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3516.00 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 Continues Share Buyback, Nears Cap on Current Program

Daiwabo Holdings has continued its share buyback program, repurchasing 294,800 common shares on the Tokyo Stock Exchange in January 2026 for a total of ¥910.2 million under the authorization granted by its board in June 2025. This latest tranche brings cumulative buybacks under the current mandate to 2,490,100 shares at a total cost of about ¥7.29 billion, signaling ongoing capital-return efforts and potentially supporting shareholder value through a reduced free float and improved capital efficiency ahead of the program’s scheduled end in February 2026.

The most recent analyst rating on (JP:3107) stock is a Buy with a Yen3516.00 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 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.