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

• Market Cap: ¥8.92B
• Dividend Yield: 3.58%
• Average Volume (3M): 21.98K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.35
• Revenue Growth: 8.60%
• EPS Growth: 55.62%
• Country: JP
• Employees: 1,073
• Sector: Industrials
• Sector Strength: 83
• Industry: Waste Management
• EPS (TTM): 34.06
• Shares Outstanding: 13,672,100
• 10 Day Avg. Volume: 16,340
• 30 Day Avg. Volume: 21,983
• PEG Ratio: -1.90
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -96.15
• 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: 69 Neutral
• Price Target: ¥728.00 ▲(8.49%Upside)

The overall stock score of 69 reflects strong financial performance, particularly in cash flow generation, and a fair valuation. However, technical indicators suggest a bearish trend, which offsets some of the positive financial aspects. The absence of significant recent earnings call data or corporate events results in a more balanced view.

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 housing equipment sectors. The company is known for its sustainable wastewater treatment solutions, providing products such as Johkasou systems, which are small-scale wastewater treatment units used in residential and commercial settings. Additionally, Daiki Axis offers a variety of construction and housing equipment, contributing to its diversified portfolio.

How the Company Makes Money

Daiki Axis Co., Ltd. generates revenue primarily through the sale of its environmental and housing equipment products. The company earns significant income from its Johkasou systems, which are widely used in Japan and other countries for decentralized wastewater treatment. These systems are a critical part of the company's offerings, providing a steady stream of revenue due to their necessity in areas lacking centralized sewage systems. Apart from product sales, Daiki Axis may also generate income through installation and maintenance services, ensuring effective operation of their systems. The company's partnerships or collaborations with local governments and businesses for sustainable infrastructure development could also contribute to its financial performance, although specific details on such partnerships are not provided.

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
	EBIT
1.05B	660.00M	1.22B	1.12B	1.05B
	EBITDA
2.26B	1.75B	1.71B	2.05B	1.87B
	Net Income Common Stockholders
354.00M	205.00M	574.00M	610.00M	477.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21B	6.95B	7.27B	6.30B	7.90B
	Total Assets
36.85B	34.07B	31.91B	32.25B	27.78B
	Total Debt
16.72B	16.06B	13.88B	12.95B	12.87B
	Net Debt
8.51B	9.12B	6.61B	6.65B	4.97B
	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: Negative
• Last Price: 671.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4245, the sentiment is Negative. The current price of 671 is below the 20-day moving average (MA) of 680.55, above the 50-day MA of 668.04, and below the 200-day MA of 686.37, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.55B	6.77		1.86%	3.62%	48.23%
6403	72 Outperform	¥8.34B	19.51		2.83%	20.02%	17.25%
4245	69 Neutral	¥8.92B	16.19		3.58%	8.60%	55.62%
2195	69 Neutral	¥6.36B	19.09		1.10%	8.72%	-17.33%
1712	68 Neutral	¥18.41B	14.91		1.28%	-17.42%	-30.65%
5698	66 Neutral	¥14.96B	25.87		1.18%	-2.57%	-51.75%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%

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.