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

• Market Cap: €4.49B
• Dividend Yield: 1.66%
• Average Volume (3M): 4.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.39
• Revenue Growth: -2.63%
• EPS Growth: 22.03%
• Country: JP
• Employees: 187
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 30.49
• Shares Outstanding: 3,949,762
• 10 Day Avg. Volume: 2,220
• 30 Day Avg. Volume: 4,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1,265.85
• Price Target Upside: 9.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,265.00 ▲(9.71% Upside)

Daiwa Computer Co., Ltd. has a solid financial foundation with strong profitability and low leverage, contributing positively to the score. The stock's valuation is attractive, with a low P/E ratio and a decent dividend yield. However, technical indicators suggest bearish momentum, which slightly offsets the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

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

Company Description

Daiwa Computer Co., Ltd. (3816) is a Japanese technology firm specializing in the development and provision of software and IT solutions primarily for the financial services sector. The company focuses on offering advanced systems for asset management, trading, and risk management, catering to both institutional and retail clients. With a strong emphasis on innovation, Daiwa Computer integrates cutting-edge technologies such as AI and big data analytics into its product offerings, ensuring that clients can optimize their operations and enhance decision-making processes.

How the Company Makes Money

Daiwa Computer generates revenue through multiple streams, primarily from software sales, licensing fees, and maintenance services. The company sells proprietary software solutions designed for the financial industry, which includes trading platforms, risk management systems, and analytics tools. Additionally, Daiwa Computer offers consulting services to help clients implement and customize these solutions, further contributing to its income. Recurring revenue from ongoing maintenance and support contracts provides stability to its earnings. Significant partnerships with financial institutions and technology providers bolster its market presence and facilitate access to a broader client base, enhancing overall revenue potential.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.23B	3.20B	3.29B	3.01B	2.88B	2.61B
Gross Profit	1.03B	1.05B	1.06B	960.96M	894.76M	899.68M
EBITDA	602.30M	606.00M	585.06M	551.01M	540.98M	530.56M
Net Income	378.50M	417.00M	342.18M	329.00M	339.56M	328.88M
Balance Sheet
Total Assets	6.14B	6.24B	6.12B	5.76B	5.25B	5.15B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.95B	3.88B	3.26B	3.18B	2.98B
Total Debt	47.00M	43.00M	79.61M	85.50M	30.00M	30.00M
Total Liabilities	888.00M	877.00M	1.02B	975.73M	836.80M	899.31M
Stockholders Equity	5.26B	5.36B	5.10B	4.78B	4.41B	4.25B
Cash Flow
Free Cash Flow	0.00	250.00M	585.30M	317.70M	276.47M	380.37M
Operating Cash Flow	0.00	277.00M	593.37M	324.42M	283.60M	383.22M
Investing Cash Flow	0.00	-87.89M	79.12M	-130.91M	-20.12M	-14.45M
Financing Cash Flow	0.00	-109.68M	-76.09M	-121.62M	-93.70M	-64.91M

Daiwa Computer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1153.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3816, the sentiment is Negative. The current price of 1153 is below the 20-day moving average (MA) of 1154.35, below the 50-day MA of 1173.40, and above the 200-day MA of 1126.25, indicating a neutral trend. The MACD of -5.44 indicates Negative momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4060	77 Outperform	¥6.70B	23.00	―	0.52%	10.95%	39.53%
4492	73 Outperform	¥5.47B	14.03	―	3.71%	11.30%	-21.37%
3816	71 Outperform	€4.49B	10.70	8.20%	1.66%	-2.63%	22.03%
4491	69 Neutral	¥5.20B	12.93	―	1.96%	6.83%	17.32%
4829	66 Neutral	¥4.24B	175.08	―	2.73%	-4.90%	-85.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%