Dynapac Co., Ltd. (3947) AI Stock Analysis

• Market Cap: ¥24.35B
• Dividend Yield: 2.98%
• Average Volume (3M): 2.88K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.26
• Revenue Growth: 8.54%
• EPS Growth: 5.27%
• Country: JP
• Employees: 2,281
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 52.33
• Shares Outstanding: 10,322,591
• 10 Day Avg. Volume: 1,790
• 30 Day Avg. Volume: 2,876
• PEG Ratio: 0.07
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -15.77
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥3,105.00 ▲(32.13% Upside)

Dynapac Co., Ltd. is on a positive financial trajectory with strong revenue and profit growth and a robust balance sheet. The technical analysis indicates a strong upward trend, although the stock may be overbought. The valuation is attractive, offering a good balance between growth and income potential. The main risk is the cash flow challenges, which need to be addressed for sustainable growth.

Positive Factors

Revenue Growth

Consistent revenue growth showcases Dynapac's ability to expand its market presence and capitalize on the growing demand for infrastructure development.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing Dynapac with the flexibility to invest in growth opportunities and weather economic fluctuations.

Profit Margin Improvement

Improved profit margins reflect effective cost management, which can lead to sustained profitability and competitive pricing strategies.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates challenges in cash generation, which could constrain Dynapac's ability to fund operations and growth initiatives without external financing.

Operational Efficiency Issues

A decline in EBIT margin points to operational inefficiencies that may affect profitability, requiring strategic improvements to maintain competitive advantage.

Low Cash Conversion

Low cash conversion efficiency can hinder Dynapac's ability to reinvest in the business and meet financial obligations, impacting long-term growth prospects.

Dynapac Co., Ltd. Business Overview & Revenue Model

Company Description

Dynapac Co., Ltd. (3947) is a leading manufacturer of construction equipment, primarily focused on providing advanced solutions for road construction and maintenance. The company operates in the heavy machinery sector, specializing in products such as asphalt rollers, soil compactors, and pavers. With a commitment to innovation and quality, Dynapac aims to enhance the efficiency and sustainability of infrastructure development worldwide.

How the Company Makes Money

Dynapac generates revenue through the sale of its construction equipment and machinery, including both new and used products. The company also offers maintenance services, parts sales, and financing options for its customers, creating additional revenue streams. Key partnerships with construction firms, government agencies, and distributors enhance its market reach and customer base, while the growing demand for infrastructure development globally contributes to its earnings. Additionally, Dynapac invests in research and development to innovate and improve its product offerings, ensuring competitiveness and attracting new clients.

Dynapac Co., Ltd. Financial Statement Overview

Summary

Dynapac Co., Ltd. shows strong revenue and profit growth with a robust balance sheet characterized by low leverage and high equity. However, cash flow challenges, particularly in free cash flow generation, indicate areas for improvement in cash management.

Income Statement

Dynapac Co., Ltd. demonstrated strong revenue growth, with a 7.8% increase in total revenue from 2023 to 2024. The gross profit margin improved to 19.0%, indicating efficient cost management. The net profit margin also increased to 4.8%, reflecting enhanced profitability. However, the EBIT margin slightly declined to 2.8%, suggesting some operational challenges. Overall, the income statement shows a positive trajectory in revenue and profit growth, although operational efficiency could be improved.

Balance Sheet

The company's balance sheet remains robust with a debt-to-equity ratio of 0.08, indicating low leverage and strong financial stability. The equity ratio is high at 59.9%, showcasing a solid capital structure. Furthermore, the return on equity improved to 6.5%, reflecting effective use of shareholder funds. The balance sheet indicates a strong financial position with low risk, supported by substantial equity and low debt levels.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow, turning negative in 2024. The operating cash flow to net income ratio is relatively low, suggesting challenges in converting accounting profits into cash. On the positive side, the company has maintained a stable operating cash flow, although capital expenditures have increased. The cash flow analysis highlights the need for improved cash management to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.42B	62.53B	58.03B	56.79B	56.30B	52.28B
Gross Profit	12.82B	11.88B	10.58B	9.74B	9.62B	8.96B
EBITDA	5.73B	3.96B	4.34B	3.49B	3.91B	3.01B
Net Income	2.46B	2.99B	1.61B	1.61B	1.40B	934.00M
Balance Sheet
Total Assets	74.21B	76.54B	73.03B	68.05B	66.19B	66.86B
Cash, Cash Equivalents and Short-Term Investments	4.97B	3.92B	6.24B	4.48B	3.26B	2.23B
Total Debt	2.04B	3.57B	1.38B	1.45B	833.82M	1.94B
Total Liabilities	28.94B	30.49B	30.12B	27.39B	27.02B	27.65B
Stockholders Equity	44.98B	45.86B	42.82B	40.59B	39.12B	39.17B
Cash Flow
Free Cash Flow	0.00	-1.14B	2.44B	1.14B	2.82B	1.48B
Operating Cash Flow	0.00	1.07B	5.78B	3.07B	4.30B	2.76B
Investing Cash Flow	0.00	-4.04B	-3.40B	-1.81B	-1.59B	-1.59B
Financing Cash Flow	0.00	687.22M	-666.53M	27.31M	-1.67B	-1.02B

Dynapac Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2350.00
• 50DMA: Negative
• 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:3947, the sentiment is Neutral. The current price of 2350 is below the 20-day moving average (MA) of 2369.20, below the 50-day MA of 2386.76, and above the 200-day MA of 2088.78, indicating a neutral trend. The MACD of -13.29 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3947.

Dynapac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3947	80 Outperform	¥24.35B	9.92	―	2.98%	8.54%	5.27%
4994	79 Outperform	¥18.05B	11.25	―	2.65%	8.18%	-4.59%
3943	78 Outperform	¥11.22B	12.97	―	4.64%	4.38%	-12.68%
3954	76 Outperform	¥12.83B	10.40	―	1.57%	6.42%	-6.32%
3951	70 Outperform	¥18.83B	12.04	―	4.38%	5.06%	-15.22%
3953	63 Neutral	¥2.77B	―	―	6.32%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%