Daiwa Computer Co., Ltd. (3816) AI Stock Analysis

• Market Cap: ¥4.49B
• Dividend Yield: 1.68%
• Average Volume (3M): 7.20K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.42
• Revenue Growth: -3.34%
• EPS Growth: 16.67%
• Country: JP
• Employees: 187
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 22.98
• Shares Outstanding: 3,949,762
• 10 Day Avg. Volume: 17,300
• 30 Day Avg. Volume: 7,200
• PEG Ratio: -3.83
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.51
• 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

• Rating: 75 Outperform
• Price Target: ―

Daiwa Computer Co., Ltd. maintains a solid financial position with strong income statement and balance sheet metrics. The moderate cash flow issues and slight dip in TTM revenue are concerns, but they are offset by the company's low leverage and efficient cost management. Technical analysis presents mixed signals, while valuation metrics suggest the stock is fairly priced. The absence of earnings call and corporate events data means the score is based primarily on financials and technicals.

Daiwa Computer Co., Ltd. Business Overview & Revenue Model

Company Description

Daiwa Computer Co., Ltd. is a Japanese IT services company that specializes in providing comprehensive technological solutions to various industries. The company engages in system integration, software development, and IT infrastructure services, catering primarily to the needs of enterprises seeking efficient and innovative IT solutions. With a focus on quality and customer satisfaction, Daiwa Computer Co., Ltd. offers a range of services designed to enhance business operations and drive digital transformation.

How the Company Makes Money

Daiwa Computer Co., Ltd. generates revenue primarily through its IT services and solutions. The company earns money by providing system integration services, where it designs and implements IT systems tailored to the specific needs of its clients. Additionally, Daiwa Computer Co., Ltd. offers software development services, creating custom software solutions that help businesses enhance their capabilities and streamline operations. The company also provides IT infrastructure services, including network design, implementation, and maintenance, ensuring that clients have robust and reliable IT environments. Revenue streams are further supported by ongoing maintenance and support contracts, which provide continuous income through service agreements. Partnerships with hardware and software vendors may also contribute to revenue by enabling the company to offer a broader range of solutions to its customers.

Daiwa Computer Co., Ltd. Financial Statement Overview

Summary

Daiwa Computer Co., Ltd. shows strong financial performance with a high equity ratio and low debt levels, indicating financial stability. The income statement is robust with consistent revenue growth and efficient cost management. However, the recent dip in TTM revenue and concerns over cash flow reporting highlight potential short-term challenges.

Income Statement

Daiwa Computer Co., Ltd. demonstrated strong income statement performance, with consistent revenue growth over the years. The gross profit margin and net profit margin are robust, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy, reflecting strong operational performance. However, the slight dip in revenue for the TTM period suggests potential short-term challenges.

Balance Sheet

The balance sheet of Daiwa Computer Co., Ltd. is very strong, characterized by a high equity ratio and low debt levels, resulting in a favorable debt-to-equity ratio. The company maintains a solid return on equity, showcasing effective utilization of shareholder funds. The substantial cash reserves enhance financial stability and flexibility.

Cash Flow

Cash flow performance is moderate, with historical growth in free cash flow, though the TTM period shows no free cash flow reported, indicating potential cash flow management issues. The operating cash flow to net income ratio is strong in past years, reflecting good cash earnings conversion, but the lack of data for the TTM period raises concerns.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.23B	3.29B	3.01B	2.88B	2.61B	2.77B
	Gross Profit
1.03B	1.06B	960.96M	894.76M	899.68M	871.67M
	EBIT
543.02M	565.01M	503.62M	471.59M	461.09M	455.08M
	EBITDA
602.30M	585.06M	551.01M	540.98M	530.56M	508.41M
	Net Income Common Stockholders
378.50M	342.18M	329.00M	339.56M	328.88M	313.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.71B	3.88B	3.26B	3.18B	2.98B	2.67B
	Total Assets
6.14B	6.12B	5.76B	5.25B	5.15B	4.85B
	Total Debt
47.00M	79.61M	85.50M	30.00M	30.00M	30.00M
	Net Debt
-3.66B	-3.80B	-3.18B	-3.15B	-2.95B	-2.64B
	Total Liabilities
888.00M	1.02B	975.73M	836.80M	899.31M	877.34M
	Stockholders Equity
5.26B	5.10B	4.78B	4.41B	4.25B	3.97B
Cash Flow		Free Cash Flow
0.00	585.30M	317.70M	276.47M	380.37M	440.46M
	Operating Cash Flow
0.00	593.37M	324.42M	283.60M	383.22M	459.96M
	Investing Cash Flow
0.00	79.12M	-130.91M	-20.12M	-14.45M	-79.19M
	Financing Cash Flow
0.00	-76.09M	-121.62M	-93.70M	-64.91M	-29.54M

Daiwa Computer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1153.00
• 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:3816, the sentiment is Neutral. The current price of 1153 is below the 20-day moving average (MA) of 1155.80, above the 50-day MA of 1119.98, and above the 200-day MA of 1113.49, indicating a neutral trend. The MACD of 9.39 indicates Positive momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3816.

Daiwa Computer Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3816	75 Outperform	¥4.49B	11.98	7.33%	1.68%	-3.34%	16.67%
4060	71 Outperform	¥4.94B	18.42		0.70%	10.58%	29.96%
4491	69 Neutral	¥5.15B	12.93		1.99%	7.19%	-2.13%
4492	68 Neutral	¥5.09B	11.98		4.51%	13.66%	1.12%
4829	66 Neutral	¥4.39B	89.08		2.63%	-0.26%	-75.64%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%