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

• Market Cap: ¥4.44B
• Dividend Yield: 1.64%
• Average Volume (3M): 1.68K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.40
• Revenue Growth: -3.34%
• EPS Growth: 16.67%
• Country: JP
• Employees: 187
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): 22.98
• Shares Outstanding: 3,949,762
• 10 Day Avg. Volume: 1,910
• 30 Day Avg. Volume: 1,680
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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. (3816) is a Japanese company specializing in information technology services. It operates in sectors including software development, IT consulting, and systems integration. The company offers a range of solutions such as custom software applications, IT infrastructure management, and business process outsourcing to various industries.

How the Company Makes Money

Daiwa Computer Co., Ltd. generates revenue by providing IT services and solutions to businesses. Its primary revenue streams include custom software development, where it creates tailored applications for clients, and IT consulting services, offering strategic advice and implementation support for technology projects. Additionally, the company earns income from systems integration services, which involve aligning a client's IT systems to improve efficiency and effectiveness. Partnerships with technology providers and a strong client base in diverse industries contribute significantly to its earnings.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.29B	3.01B	2.88B	2.61B	2.77B
Gross Profit	1.06B	960.96M	894.76M	899.68M	871.67M
EBITDA	585.06M	551.01M	540.98M	530.56M	508.41M
Net Income	342.18M	329.00M	339.56M	328.88M	313.29M
Balance Sheet
Total Assets	6.12B	5.76B	5.25B	5.15B	4.85B
Cash, Cash Equivalents and Short-Term Investments	3.88B	3.26B	3.18B	2.98B	2.67B
Total Debt	79.61M	85.50M	30.00M	30.00M	30.00M
Total Liabilities	1.02B	975.73M	836.80M	899.31M	877.34M
Stockholders Equity	5.10B	4.78B	4.41B	4.25B	3.97B
Cash Flow
Free Cash Flow	585.30M	317.70M	276.47M	380.37M	440.46M
Operating Cash Flow	593.37M	324.42M	283.60M	383.22M	459.96M
Investing Cash Flow	79.12M	-130.91M	-20.12M	-14.45M	-79.19M
Financing Cash Flow	-76.09M	-121.62M	-93.70M	-64.91M	-29.54M

Daiwa Computer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1140.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1140 is above the 20-day moving average (MA) of 1139.23, above the 50-day MA of 1137.46, and above the 200-day MA of 1110.31, indicating a bullish trend. The MACD of 1.92 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 7.20 is Positive, 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	80 Outperform	¥5.93B	13.91		3.52%	13.66%	0.93%
4060	77 Outperform	¥5.86B	21.84		0.60%	10.58%	29.96%
3816	75 Outperform	¥4.44B	11.85	7.33%	1.64%	-3.34%	16.67%
4491	69 Neutral	¥5.85B	14.70		1.74%	7.19%	-2.13%
4829	66 Neutral	¥4.66B	214.96		2.50%	-0.26%	-75.64%
Sector *	62 Neutral	$34.80B	6.83	-10.78%	2.06%	6.36%	-8.52%