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

• Market Cap: ¥4.55B
• Dividend Yield: 1.64%
• Average Volume (3M): 1.91K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.38
• 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: 1,720
• 30 Day Avg. Volume: 1,910
• PEG Ratio: 0.49
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 17.70
• 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: 71 Outperform
• Price Target: ¥1,274.00 ▲(10.49% Upside)

Daiwa Computer Co., Ltd. has a solid financial foundation with strong profitability and low leverage, contributing significantly to its overall score. The stock's valuation is attractive due to a low P/E ratio and a reasonable dividend yield. However, technical indicators suggest weak momentum, which slightly offsets the positive financial and valuation aspects.

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. demonstrates strong profitability and financial stability with low leverage. While the company has maintained healthy margins and a strong equity position, the recent decline in revenue growth and operating cash flow could pose challenges. Continued focus on revenue growth and cash flow management will be crucial for sustaining long-term financial health.

Income Statement

Daiwa Computer Co., Ltd. shows strong profitability with a consistent gross profit margin around 32-34% over the years. However, the revenue growth rate has been volatile, with a significant decline of 69.9% in the latest period. The net profit margin has improved to 13% in the latest year, indicating efficient cost management. Overall, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company has a very low debt-to-equity ratio, indicating minimal leverage and a strong equity position. The equity ratio is robust, suggesting financial stability. However, the return on equity has slightly decreased over the years, which could indicate a need for more efficient use of equity to generate profits.

Cash Flow

Daiwa Computer Co., Ltd. has shown strong free cash flow generation, with a high free cash flow to net income ratio. However, the operating cash flow has decreased significantly in the latest period, which could impact liquidity. The free cash flow growth rate is positive, but the operating cash flow to net income ratio has declined, indicating potential challenges in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.20B	3.20B	3.29B	3.01B	2.88B	2.61B
Gross Profit	1.05B	1.05B	1.06B	960.96M	894.76M	899.68M
EBITDA	606.07M	606.00M	585.06M	551.01M	540.98M	530.56M
Net Income	417.03M	417.00M	342.18M	329.00M	339.56M	328.88M
Balance Sheet
Total Assets	6.24B	6.24B	6.12B	5.76B	5.25B	5.15B
Cash, Cash Equivalents and Short-Term Investments	3.95B	3.95B	3.88B	3.26B	3.18B	2.98B
Total Debt	43.00M	43.00M	79.61M	85.50M	30.00M	30.00M
Total Liabilities	877.00M	877.00M	1.02B	975.73M	836.80M	899.31M
Stockholders Equity	5.36B	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: Positive
• Last Price: 1153.00
• 50DMA: Negative
• 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:3816, the sentiment is Positive. The current price of 1153 is below the 20-day moving average (MA) of 1157.25, below the 50-day MA of 1168.32, and above the 200-day MA of 1131.70, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4492	72 Outperform	¥5.65B	14.51	―	3.78%	11.30%	-21.37%
3816	71 Outperform	¥4.55B	10.83	8.20%	1.64%	-2.63%	22.03%
4060	69 Neutral	¥6.49B	22.30	―	0.55%	10.95%	39.53%
4491	69 Neutral	¥5.39B	13.38	―	1.89%	6.18%	29.79%
4829	66 Neutral	¥4.20B	173.48	―	2.70%	-4.90%	-85.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%