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Daiwa Computer Co., Ltd.
(3816)
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Rating:71Outperform
Price Target:
¥1,256.00
▲(8.93% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial fundamentals (strong margins and low leverage), offset by notable recent pressure from a steep revenue decline and weaker operating cash flow. Technicals are mildly supportive with positive momentum, while valuation appears fair with a modest dividend yield.
Positive Factors
Sustainable Profitability (Margins)
Consistently high gross margins (32–34%) and an improved net margin (~13%) indicate durable pricing power and operational efficiency in services and software delivery. These margins provide a structural cushion against revenue cycles, support reinvestment in products and staff, and sustain cash generation over multiple quarters.
Negative Factors
Sharp Revenue Contraction
A near 70% revenue drop in the latest period represents a structural demand or contract problem that materially reduces scale and erodes the revenue base. Sustained recovery may require new sales cycles, longer customer acquisition, or service diversification, pressuring long-term growth unless addressed strategically.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustainable Profitability (Margins)
Consistently high gross margins (32–34%) and an improved net margin (~13%) indicate durable pricing power and operational efficiency in services and software delivery. These margins provide a structural cushion against revenue cycles, support reinvestment in products and staff, and sustain cash generation over multiple quarters.
Read all positive factors
Daiwa Computer Co., Ltd. (3816) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.36B
Dividend Yield1.7%
Average Volume (3M)2.28K
Price to Earnings (P/E)17.1
Beta (1Y)0.35
Revenue Growth-1.13%
EPS Growth-32.07%
CountryJP
Employees191
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)65.36
Shares Outstanding3,949,762
10 Day Avg. Volume3,150
30 Day Avg. Volume2,283
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.82
Price to Sales (P/S)1.38
P/FCF Ratio17.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Daiwa Computer Co., Ltd. Business Overview & Revenue Model
Company Description
Daiwa Computer Co., Ltd. is an information technology enterprise based in Japan. The company offers a broad spectrum of services, including the architectural design of critical business applications and web-based platforms, comprehensive software ...
How the Company Makes Money
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Daiwa Computer Co., Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.19B | 3.20B | 3.29B | 3.01B | 2.88B | 2.61B |
| Gross Profit | 818.90M | 1.05B | 1.06B | 960.96M | 894.76M | 899.68M |
| EBITDA | 340.90M | 606.82M | 604.89M | 538.55M | 504.39M | 496.67M |
| Net Income | 253.28M | 417.51M | 342.18M | 329.00M | 339.56M | 328.88M |
Balance Sheet | ||||||
| Total Assets | 6.32B | 6.24B | 6.12B | 5.76B | 5.32B | 5.15B |
| Cash, Cash Equivalents and Short-Term Investments | 3.82B | 3.95B | 3.88B | 3.26B | 3.18B | 2.98B |
| Total Debt | 39.28M | 44.12M | 79.61M | 85.50M | 30.00M | 30.00M |
| Total Liabilities | 880.73M | 876.45M | 1.02B | 975.73M | 916.13M | 899.30M |
| Stockholders Equity | 5.44B | 5.37B | 5.10B | 4.78B | 4.41B | 4.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 250.61M | 588.46M | 318.21M | 281.33M | 380.87M |
| Operating Cash Flow | 0.00 | 277.08M | 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
Positive
1153.00
Price Trends
1102.64
Positive
1109.20
Positive
1116.94
Positive
Market Momentum
6.91
Negative
55.06
Neutral
74.58
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 above the 20-day moving average (MA) of 1117.77, above the 50-day MA of 1102.64, and above the 200-day MA of 1116.94, indicating a bullish trend. The MACD of 6.91 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 74.58 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥4.96B | 9.32 | ― | 2.28% | 16.86% | -14.98% | |
72 Outperform | ¥5.51B | 30.63 | ― | ― | 6.84% | -67.70% | |
71 Outperform | ¥4.36B | 17.11 | 4.71% | 1.70% | -1.13% | -32.07% | |
71 Outperform | ¥6.42B | 12.54 | ― | 1.87% | 4.21% | 28.53% | |
64 Neutral | ¥5.49B | 21.40 | ― | 0.49% | 41.73% | 57.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | ¥4.97B | -14.97 | ― | ― | -29.01% | 82.89% |
* Technology Sector Average
JP:3816
Daiwa Computer Co., Ltd.
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.