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

• Market Cap: ¥23.17B
• Dividend Yield: 3%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.29
• Revenue Growth: 8.26%
• EPS Growth: -23.43%
• Country: JP
• Employees: 2,281
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 71.24
• Shares Outstanding: 10,322,591
• 10 Day Avg. Volume: 2,300
• 30 Day Avg. Volume: 2,413
• 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: ¥2,528.00
• Price Target Upside: 8.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥2,528.00 ▲(8.22% Upside)

The stock score is primarily driven by strong financial performance with robust revenue growth and a solid balance sheet. The technical analysis indicates a bullish trend but warns of potential overbought conditions. The valuation is highly favorable, with a low P/E ratio and a strong dividend yield, enhancing the attractiveness of the stock. However, cash flow management remains a key area for improvement.

Dynapac Co., Ltd. Business Overview & Revenue Model

Company Description

Dynapac Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of packaging materials in Japan and internationally. The company offers digital printing products, cardboard products, printed paper containers, flexible packaging products, pulp molds, corrugated cushioning materials, cardboard pallets, cardboard fixtures, functional cardboards, plastic cushioning materials, and plastic stage products. Its products are used in various industries, such as electrical/ machinery, chemicals/detergents, processed foods/fruits and vegetables, textiles, pottery/glass, and mail order. The company was incorporated in 1948 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Dynapac Co., Ltd. generates revenue through the design, production, and sale of its construction machinery and equipment. The company earns money by selling its products directly to construction companies, contractors, and distributors worldwide. Additionally, Dynapac may engage in service contracts, offering maintenance, repair, and spare parts for its machinery, which provides an ongoing revenue stream. Strategic partnerships with other industry players or governments may also play a role in expanding its market reach and enhancing its revenue potential. The company's earnings are influenced by factors such as global construction trends, technological advancements, and economic conditions impacting infrastructure investments.

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, especially in free cash flow generation, indicate potential 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	64.07B	62.53B	58.03B	56.79B	56.30B	52.28B
Gross Profit	12.50B	11.88B	10.58B	9.74B	9.62B	8.96B
EBITDA	8.27B	3.96B	4.34B	3.49B	3.91B	3.01B
Net Income	4.02B	2.99B	1.61B	1.61B	1.40B	934.00M
Balance Sheet
Total Assets	73.83B	76.54B	73.03B	68.05B	66.19B	66.86B
Cash, Cash Equivalents and Short-Term Investments	4.59B	3.92B	6.24B	4.48B	3.26B	2.23B
Total Debt	2.49B	3.57B	1.38B	1.45B	833.82M	1.94B
Total Liabilities	28.49B	30.49B	30.12B	27.39B	27.02B	27.65B
Stockholders Equity	45.06B	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	1.04B	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: Positive
• Last Price: 2336.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3947, the sentiment is Positive. The current price of 2336 is above the 20-day moving average (MA) of 2274.15, above the 50-day MA of 2199.82, and above the 200-day MA of 1950.50, indicating a bullish trend. The MACD of 46.86 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 82.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3947.

Dynapac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3954	83 Outperform	¥13.41B	10.87	5.63%	1.32%	8.41%	3.21%
3947	82 Outperform	¥23.17B	9.54	―	3.00%	8.26%	-23.43%
3943	77 Outperform	¥11.64B	12.74	5.06%	3.74%	7.00%	-28.12%
4994	76 Outperform	¥18.72B	11.67	6.72%	2.54%	9.52%	17.71%
3951	72 Outperform	¥19.67B	12.57	4.97%	4.16%	3.78%	-2.21%
3953	63 Neutral	¥2.83B	-31.99	-2.25%	6.16%	2.82%	-140.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%