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

• Market Cap: ¥24.69B
• Dividend Yield: 2.92%
• Average Volume (3M): 2.88K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.25
• Revenue Growth: 8.54%
• EPS Growth: 5.27%
• Country: JP
• Employees: 2,281
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 90.71
• Shares Outstanding: 10,322,591
• 10 Day Avg. Volume: 1,790
• 30 Day Avg. Volume: 2,876
• PEG Ratio: 1.09
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 6.96
• 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: 76 Outperform
• Price Target: ¥2,833.00 ▲(22.53% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Score is driven primarily by improving financial performance and a strong balance sheet, with an attractive valuation (low P/E and solid dividend) adding meaningful support. Technicals are moderately positive (price above key moving averages with positive MACD), while cash flow volatility—especially the weak 2024 free cash flow—and higher 2025 debt temper the upside.

Positive Factors

Consistent revenue growth

Multi-year revenue growth through 2025 indicates durable demand and successful market positioning. Sustained top-line expansion supports scale economics, predictable cash inflows for reinvestment, and provides a structural tailwind for profitability and long-term return on invested capital.

Margin expansion and improved profitability

Meaningful improvement in gross and EBITDA margins suggests better pricing power and/or cost control, creating durable operating leverage. Higher margins increase resilience to cyclical costs and give management more flexibility to invest, pay dividends, or deleverage over time.

Conservative balance sheet / low leverage

Low leverage and growing equity underpin financial resilience and capacity to fund investments or dividends. A conservative capital structure lowers default risk, preserves borrowing capacity during downturns, and supports steady execution of strategic plans over multiple quarters.

Negative Factors

Volatile cash generation

Intermittent negative free cash flow and weak cash conversion reduce financial flexibility and increase reliance on external funding for capex or dividends. Persistent volatility in working capital undermines the sustainability of profits and raises execution risk over the medium term.

Modest net margins

A low net margin base limits the company’s ability to absorb rising input or SG&A costs without profit erosion. Modest bottom-line conversion constrains retained earnings for growth, makes dividend coverage more sensitive, and increases vulnerability to margin compression.

Notable debt increase in 2025

A step-up in debt after a historically very low-leverage profile raises financial risk if cash generation remains uneven. Higher interest and repayment obligations reduce optionality for capex or buybacks and increase strain on liquidity during earnings or cash-flow setbacks.

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 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

Solid fundamentals led by steady revenue growth through 2025 and improving profitability (gross margin ~20% in 2025; EBITDA margin ~8%). Balance sheet is strong with low leverage (debt-to-equity ~0.15) despite higher debt in 2025. Main constraint is cash flow consistency, with volatile conversion and negative free cash flow in 2024.

Income Statement

Revenue has grown steadily from 2021–2025 (including a strong step-up in 2025), and profitability has improved meaningfully versus earlier years. Gross margin expanded to ~20% in 2025 from ~17% in 2020–2022, and operating profitability strengthened, with EBITDA margin rising to ~8% in 2025 from ~6% in 2024. Net margin is stable around ~4.7% in 2024–2025, but remains modest for the sector and shows some sensitivity to cost/operating swings (e.g., weaker net margin in 2022–2023).

Balance Sheet

The balance sheet looks conservatively financed with low leverage across the period, with debt-to-equity remaining modest even after a notable debt increase in 2025 (still ~0.15). Equity has grown steadily and supports a larger asset base, suggesting good balance sheet resilience. The main watch item is the jump in total debt in 2025 versus 2024, which increases financial risk relative to the prior very low-leverage profile.

Cash Flow

Cash generation is mixed. Operating cash flow rebounded strongly in 2025 after a weak 2024, and free cash flow was solidly positive in 2025 and most prior years. However, 2024 showed negative free cash flow and very low cash conversion versus earnings, highlighting volatility in working capital or spending needs. Overall, cash flow quality is acceptable but less consistent than the income statement trend.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.42B	67.08B	62.53B	58.03B	56.79B	56.30B
Gross Profit	12.83B	13.70B	11.75B	10.48B	9.64B	9.53B
EBITDA	4.65B	5.40B	3.96B	3.85B	3.27B	3.16B
Net Income	2.46B	3.18B	2.99B	1.61B	1.61B	1.40B
Balance Sheet
Total Assets	74.21B	84.87B	76.54B	73.03B	68.05B	66.19B
Cash, Cash Equivalents and Short-Term Investments	4.97B	5.10B	3.92B	6.24B	4.48B	3.26B
Total Debt	2.38B	7.26B	3.64B	1.46B	1.53B	833.82M
Total Liabilities	28.94B	37.03B	30.49B	30.12B	27.39B	27.02B
Stockholders Equity	44.98B	46.87B	45.86B	42.82B	40.59B	39.12B
Cash Flow
Free Cash Flow	0.00	3.30B	-1.10B	2.44B	1.14B	2.82B
Operating Cash Flow	0.00	5.23B	1.07B	5.78B	3.07B	4.30B
Investing Cash Flow	0.00	-5.76B	-4.04B	-3.40B	-1.81B	-1.59B
Financing Cash Flow	0.00	1.91B	687.22M	-666.53M	27.31M	-1.67B

Dynapac Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2312.00
• 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 Negative. The current price of 2312 is below the 20-day moving average (MA) of 2568.15, below the 50-day MA of 2510.46, and above the 200-day MA of 2256.63, indicating a neutral trend. The MACD of 30.21 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3947.

Dynapac Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥496.44B	10.13	6.90%	2.71%	-0.06%	137.47%
7917	77 Outperform	¥100.64B	7.99	7.53%	3.01%	5.44%	45.99%
3947	76 Outperform	¥24.69B	6.37	―	2.92%	8.54%	5.27%
3950	76 Outperform	¥78.14B	12.05	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥59.96B	5.78	―	3.31%	0.83%	-9.16%
7864	70 Outperform	¥145.80B	4.25	10.46%	2.35%	4.56%	49.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%