Daiki Axis Co., Ltd. (4245) AI Stock Analysis

• Market Cap: ¥9.04B
• Dividend Yield: 3.53%
• Average Volume (3M): 13.64K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.35
• Revenue Growth: 8.60%
• EPS Growth: 55.62%
• Country: JP
• Employees: 1,073
• Sector: Industrials
• Sector Strength: 89
• Industry: Waste Management
• EPS (TTM): 34.06
• Shares Outstanding: 13,672,100
• 10 Day Avg. Volume: 9,140
• 30 Day Avg. Volume: 13,636
• PEG Ratio: 0.29
• Price to Book (P/B): 0.91
• 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: ¥728.00
• Price Target Upside: 7.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥738.00 ▲(8.53%Upside)

The overall stock score of 70.5 reflects the company's strong financial performance and reasonable valuation. The financial performance, particularly the robust cash flow, is a major positive factor. The technical analysis suggests stable market perception, and the valuation metrics support a balanced investment case. Absence of earnings call or corporate events data does not affect the score significantly.

Daiki Axis Co., Ltd. Business Overview & Revenue Model

Company Description

Daiki Axis Co., Ltd. (4245) is a Japanese company primarily engaged in the environmental equipment and home equipment businesses. The company specializes in the manufacturing and sale of wastewater treatment systems, primarily focusing on Johkasou systems, which are decentralized wastewater treatment facilities used in areas without access to sewage infrastructure. Additionally, Daiki Axis is involved in the renewable energy sector, offering products and services related to biomass energy and solar power generation systems.

How the Company Makes Money

Daiki Axis Co., Ltd. generates revenue through the sale and installation of its wastewater treatment systems, particularly Johkasou systems. These systems are essential in regions lacking centralized sewage systems, making them a vital solution for wastewater management. The company also earns income from its renewable energy segment, which includes the sale and installation of biomass energy systems and solar power generation equipment. Daiki Axis leverages its expertise in environmental technology to form strategic partnerships with governments and private entities, enhancing its market reach and contributing to its revenue growth. Additionally, the company provides maintenance services for its installed systems, offering a recurring revenue stream.

Daiki Axis Co., Ltd. Financial Statement Overview

Summary

Daiki Axis Co., Ltd. demonstrates solid financial health with strong revenue growth and improved profitability. The cash flow position is particularly strong, indicating good liquidity and financial flexibility. However, the company should focus on enhancing operational efficiencies and managing leverage to improve overall stability. Despite these challenges, the firm's financial trajectory remains positive, supported by its growth momentum and cash generation capabilities.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024 at 9.8%. Gross profit margin improved to 21.8% in 2024, up from 20.8% in 2023, indicating better cost management. Net profit margin also increased to 0.8% from 0.5% in the previous year, reflecting enhanced profitability. However, the EBIT Margin decreased to 2.2% in 2024 from 1.5% in 2023, suggesting challenges in operational efficiencies. Overall, the income statement shows positive growth trends but with room for improving operational margins.

Balance Sheet

The company's debt-to-equity ratio stands at 1.77 in 2024, slightly up from 1.69 in 2023, indicating moderate leverage but a manageable debt level. Return on Equity improved to 3.7% from 2.2%, suggesting better profitability relative to shareholder equity. The equity ratio remained relatively stable at 25.7%, indicating a balanced capital structure. While the company maintains a stable equity position, the increasing leverage could pose a risk if not managed properly.

Cash Flow

The cash flow statement reflects strong performance, with a significant turnaround in free cash flow from negative in 2023 to positive in 2024, driven by improved operating cash flow. The free cash flow to net income ratio is robust, indicating that the company generates ample cash relative to its net income. Operating cash flow increased significantly, supporting the company's liquidity position. Overall, the strong cash flow generation enhances financial flexibility and supports future growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.86B	42.68B	39.48B	37.82B	34.65B
Gross Profit	10.22B	8.87B	8.17B	7.86B	7.34B
EBITDA	2.26B	1.75B	1.71B	2.05B	1.87B
Net Income	354.00M	205.00M	574.00M	610.00M	477.03M
Balance Sheet
Total Assets	36.85B	34.07B	31.91B	32.25B	27.78B
Cash, Cash Equivalents and Short-Term Investments	8.21B	6.95B	7.27B	6.30B	7.90B
Total Debt	16.72B	16.06B	13.88B	12.95B	12.87B
Total Liabilities	27.39B	24.55B	22.39B	23.41B	20.14B
Stockholders Equity	9.46B	9.52B	9.52B	8.84B	7.63B
Cash Flow
Free Cash Flow	1.96B	-22.00M	-93.00M	-166.89M	1.45B
Operating Cash Flow	3.20B	1.33B	1.26B	520.63M	2.22B
Investing Cash Flow	-2.04B	-2.44B	-1.55B	-1.51B	-1.05B
Financing Cash Flow	157.00M	574.00M	790.00M	-703.80M	-424.38M

Daiki Axis Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 680.00
• 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:4245, the sentiment is Positive. The current price of 680 is above the 20-day moving average (MA) of 667.56, above the 50-day MA of 668.80, and above the 200-day MA of 672.57, indicating a bullish trend. The MACD of 3.01 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4245.

Daiki Axis Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5699	84 Outperform	¥4.80B	7.14		1.77%	3.62%	48.23%
2195	72 Outperform	¥6.90B	20.73		1.02%	8.72%	-17.33%
1712	71 Outperform	¥19.60B	14.41		1.20%	-5.25%	-11.55%
4245	71 Outperform	¥9.04B	16.41		3.53%	8.60%	55.62%
6403	69 Neutral	¥9.07B	21.20		2.60%	20.02%	17.30%
5698	66 Neutral	¥15.53B	26.86		2.90%	-2.57%	-51.75%
Sector *	62 Neutral	C$6.71B	7.66	3.45%	2.77%	6.63%	-23.02%

Daiki Axis Co., Ltd. Corporate Events

Daiki Axis Co., Ltd. Reports Strong Financial Growth in Q1 2025

Daiki Axis Co., Ltd. reported a significant increase in its financial performance for the first quarter ending March 31, 2025, with net sales rising by 7% and operating profit surging by 45.5% compared to the previous year. The company’s strong financial results reflect its robust market positioning and effective operational strategies, which are likely to enhance stakeholder confidence and strengthen its competitive edge in the environmental industry.