Daitobo Co.,Ltd. (3202) AI Stock Analysis

• Market Cap: ¥4.33B
• Dividend Yield: 2.63%
• Average Volume (3M): 104.02K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 0.30
• Revenue Growth: -3.01%
• EPS Growth: -65.96%
• Country: JP
• Employees: 97
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.99
• Shares Outstanding: 30,360,000
• 10 Day Avg. Volume: 72,900
• 30 Day Avg. Volume: 104,016
• PEG Ratio: -0.87
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 8.93
• 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: 57 Neutral
• Price Target: ¥148.00 ▲(29.82% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Daitobo Co.,Ltd. has a solid operational foundation with strong cash flow generation, but high debt levels and inconsistent revenue growth pose risks. The technical indicators suggest a lack of strong momentum, and the valuation indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Operating Cash Flow

Consistently positive operating cash flow and generally positive free cash flow indicate the business funds operations and investments internally. This durable cash generation reduces reliance on external financing, supports capital allocation and resilience through cyclical apparel demand.

Operational Margins

Stable gross margins and healthy EBIT/EBITDA margins reflect structural operational efficiency in manufacturing and cost control. Sustained margins provide a buffer against revenue volatility and support reinvestment for product quality and distribution over multiple quarters.

Return on Equity

A positive ROE signals that management is effectively deploying equity capital to generate profits. Even with leverage, sustained ROE suggests the core apparel business can earn returns above cost of equity, underpinning long-term value creation if margins and cash flow persist.

Negative Factors

High Leverage

Significant leverage raises refinancing and interest-rate risks, reducing financial flexibility to invest or weather downturns. Over a 2-6 month horizon, high debt can constrain strategic initiatives, force cost cutting, or increase vulnerability to macro shocks in the apparel sector.

Inconsistent Revenue Growth

Negative and uneven top-line trends indicate weak demand or competitive pressure in key channels. Sustained inconsistency hampers capacity planning and margin leverage, making it harder to convert operational efficiencies into predictable earnings and long-term strategic investments.

Declining Profitability Metrics

Sharp EPS contraction and declining net margins signal profit pressure from cost or revenue declines. Persisting margin erosion can reduce retained earnings, limit reinvestment, and strain returns to shareholders unless the company stabilizes sales or further improves cost structure.

Daitobo Co.,Ltd. Business Overview & Revenue Model

Company Description

Daitobo Co., Ltd. engages in the fashion apparel and uniform, commercial facility/real estate, healthcare, and other related businesses in Japan and internationally. The company offers textile fabric OEM and knit ODM services; value-added and Chinese materials; and wool, cotton, and synthetic fiber uniforms, as well as uniforms for government agencies. It also invests in and develops commercial facilities; rents housing; and purchases and sells real estate properties. In addition, the company engages in the manufacture of health related materials, including sleeping products under the EWOOL name, as well as other value added products under the Mixley Wool brand name; sale and wholesale of futon type home medical equipment; and provision of health-related food products under the Kenyosen and SpoLife LN2 names. Further, it provides OEM services primarily in China; and general bedding products. The company was formerly known as Daito Woolen Spinning & Weaving Co Ltd and changed its name to Daitobo Co., Ltd. in September 2016. Daitobo Co., Ltd. was founded in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daitobo Co., Ltd. generates revenue through multiple streams, predominantly from the sale of its textile products to manufacturers and retailers in various industries. The company's revenue model is built on a combination of direct sales and long-term contracts with key clients in the apparel and automotive sectors. Significant partnerships with fashion brands and collaborations with tech companies for innovative fabric development also contribute to income. Additionally, Daitobo benefits from economies of scale, allowing it to maintain competitive pricing while ensuring a steady profit margin. The company's investment in research and development further enables it to create unique products that meet emerging market demands, enhancing its revenue potential.

Daitobo Co.,Ltd. Financial Statement Overview

Summary

Daitobo Co.,Ltd. demonstrates a solid operational foundation with strong margins and cash flow generation. However, the high debt levels present a potential risk, and inconsistent revenue growth could impact future performance. The company should focus on reducing leverage while maintaining its operational efficiency to enhance financial stability and shareholder value.

Income Statement

Daitobo Co.,Ltd. shows a stable gross profit margin with a slight decline in net profit margin due to a decrease in net income over recent years. The revenue growth has been inconsistent, with a notable decline recently, impacting overall performance. However, EBIT and EBITDA margins remain relatively healthy, indicating operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage, which poses a risk to financial stability. However, the return on equity (ROE) is positive, showing the company can generate returns on shareholders' investments. The equity ratio is moderate, indicating a balanced asset structure but with room for improvement in reducing liabilities.

Cash Flow

Operating cash flow is consistently positive, outpacing net income, illustrating strong cash generation capabilities. The free cash flow has fluctuated but is generally positive, indicating the company's ability to fund operations and growth internally without excessive reliance on external financing.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.07B	4.11B	4.03B	4.00B	4.50B	4.62B
Gross Profit	1.30B	1.31B	1.25B	1.16B	1.17B	1.16B
EBITDA	688.69M	820.10M	878.34M	779.70M	845.67M	873.46M
Net Income	73.77M	54.95M	153.37M	69.12M	42.83M	97.51M
Balance Sheet
Total Assets	19.86B	20.04B	20.35B	20.43B	21.11B	21.91B
Cash, Cash Equivalents and Short-Term Investments	869.33M	959.66M	1.10B	1.01B	1.25B	1.50B
Total Debt	9.40B	9.77B	10.02B	10.48B	10.92B	11.55B
Total Liabilities	15.01B	15.11B	15.41B	15.64B	16.47B	17.29B
Stockholders Equity	4.85B	4.92B	4.94B	4.79B	4.65B	4.62B
Cash Flow
Free Cash Flow	0.00	343.07M	693.05M	159.35M	388.99M	820.70M
Operating Cash Flow	0.00	480.94M	757.99M	367.94M	516.95M	899.39M
Investing Cash Flow	0.00	-137.48M	-54.90M	-187.53M	-127.97M	-64.58M
Financing Cash Flow	0.00	-481.56M	-616.48M	-422.96M	-632.77M	-668.65M

Daitobo Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3202, the sentiment is Positive. The current price of 114 is below the 20-day moving average (MA) of 134.40, below the 50-day MA of 125.12, and above the 200-day MA of 113.63, indicating a bullish trend. The MACD of 4.71 indicates Negative momentum. The RSI at 74.54 is Negative, neither overbought nor oversold. The STOCH value of 69.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3202.

Daitobo Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3524	70 Outperform	¥4.25B	8.93	―	3.18%	3.21%	-21.80%
3550	70 Outperform	¥3.16B	28.49	―	2.48%	16.51%	35.70%
8040	66 Neutral	¥3.66B	15.75	―	4.01%	3.98%	89.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	57 Neutral	¥4.33B	53.38	―	2.63%	-3.01%	-65.96%
7112	56 Neutral	¥4.47B	127.34	―	―	6.54%	-58.94%
8166	47 Neutral	¥4.13B	3.82	―	―	-5.25%	-77.53%