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

• Market Cap: ¥4.11B
• Dividend Yield: 2.63%
• Average Volume (3M): 104.02K
• Price to Earnings (P/E): 14.3
• 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: ¥141.00 ▲(23.68% 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 durable internal funding for operations and reinvestment. This reduces reliance on external financing, supports capex/dividends, and provides a buffer for deleveraging or strategic initiatives over the medium term.

Margin sustainability

Stable gross margins and healthy EBIT/EBITDA margins point to structural operational efficiency and cost control. Sustained margin strength can preserve profitability despite top-line volatility, enabling the company to generate operating cash and fund investments or weather sector cyclicality over several quarters.

Return on equity

A positive ROE shows the company earns returns on shareholder capital, indicating competent capital allocation. Coupled with a moderate equity ratio, this suggests the firm can extract value from assets and has scope to improve capital structure, supporting sustainable shareholder value creation if leverage is managed.

Negative Factors

High leverage

Material leverage raises financing and refinancing risk and increases interest expense sensitivity. High debt limits strategic flexibility, constrains investment choices, and elevates vulnerability to rate or demand shocks; deleveraging will be necessary to materially improve financial resilience over the medium term.

Inconsistent revenue growth

Inconsistent and recently declining revenue reduces predictability of cash flows and undermines capacity to sustain margins and investment. Structural demand weakness or competitive pressure could prolong recovery, complicating planning and making medium-term performance dependent on stabilizing top-line trends.

Earnings volatility

A sharp EPS contraction and falling net profit margin indicate profit volatility and weakening bottom-line conversion. This erodes retained earnings, limits internal funding for deleveraging or growth, and signals potential operational or mix pressures that could persist absent structural revenue or cost improvements.

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

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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 2025	Mar 2024	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	1.14B
EBITDA	796.82M	808.43M	840.23M	774.66M	850.01M	859.77M
Net Income	73.44M	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	9.81B	10.04B	10.52B	11.55B	11.58B
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: Neutral
• Last Price: 114.00
• 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:3202, the sentiment is Neutral. The current price of 114 is below the 20-day moving average (MA) of 138.15, below the 50-day MA of 131.74, and below the 200-day MA of 115.97, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥4.04B	-12.43	―	3.18%	3.21%	-21.80%
3550	70 Outperform	¥3.13B	33.23	―	2.48%	16.51%	35.70%
8040	66 Neutral	¥3.59B	-11.36	―	4.01%	3.98%	89.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	57 Neutral	¥4.11B	14.35	―	2.63%	-3.01%	-65.96%
7112	56 Neutral	¥4.39B	104.93	―	―	6.54%	-58.94%
8166	47 Neutral	¥3.93B	1.99	―	―	-5.25%	-77.53%