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

• Market Cap: ¥9.54B
• Dividend Yield: 3.34%
• Average Volume (3M): 14.45K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.33
• Revenue Growth: 7.12%
• EPS Growth: -43.68%
• Country: JP
• Employees: 1,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -4.56
• Shares Outstanding: 13,672,100
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 14,446
• PEG Ratio: 0.37
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 4.71
• 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: 67 Neutral
• Price Target: ¥737.00 ▲(2.65% Upside)

Daiki Axis Co., Ltd. scores a 67, driven primarily by its strong financial performance and robust cash flow position, which provide a solid foundation for future growth. Technical analysis indicates a stable trend, while valuation suggests the stock is priced for growth with a reasonable dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Cash Flow Strength

Strong cash flow generation supports liquidity and financial flexibility, enabling investment in growth initiatives and debt management.

Profitability Improvement

Improved profitability through better cost management enhances the company's ability to reinvest in operations and sustain competitive advantages.

Negative Factors

Leverage Concerns

Increasing leverage, if not managed properly, could strain financial resources, impacting long-term stability and growth potential.

Operational Efficiency

Declining operational efficiency can hinder profitability and competitiveness, necessitating improvements in cost control and productivity.

Earnings Growth Challenges

Negative EPS growth indicates challenges in translating revenue growth into shareholder value, potentially affecting investor confidence.

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

Company Description

Daiki Axis Co., Ltd. designs, constructs, and maintains various wastewater treatment equipment in Japan and internationally. It offers industrial wastewater treatment, wastewater recycling and rainwater treatment, and water purification systems, as well as compact grease traps. The company is also involved in the design, manufacture, construction, and distribution of products using synthetic resins and other materials; distribution and installation of various construction materials and household equipment; refining and distribution of biodiesel fuel, as well as sale of purification plants; production and distribution of drinking water; and generation and sale of solar power. Daiki Axis Co., Ltd. was founded in 1958 and is headquartered in Matsuyama, Japan.

How the Company Makes Money

Daiki Axis generates revenue through the sale of its electronic components and automation systems. The primary revenue streams include direct sales of products to manufacturers and distributors, as well as long-term contracts for custom solutions tailored to specific client needs. Additionally, the company may engage in partnerships with other technology firms to develop integrated systems, which further enhances its product offerings and market reach. The growth of industrial automation and the increasing demand for efficient manufacturing processes contribute significantly to Daiki Axis's earnings.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.74B	46.86B	42.68B	39.48B	37.82B	34.65B
Gross Profit	10.38B	10.22B	8.87B	8.17B	7.86B	7.34B
EBITDA	2.21B	2.26B	1.75B	1.71B	2.05B	1.87B
Net Income	264.00M	352.00M	205.00M	574.00M	610.00M	477.03M
Balance Sheet
Total Assets	36.00B	36.85B	34.07B	31.91B	32.25B	27.78B
Cash, Cash Equivalents and Short-Term Investments	7.28B	8.21B	6.95B	7.27B	6.30B	7.90B
Total Debt	17.11B	16.72B	16.06B	13.88B	12.95B	12.87B
Total Liabilities	26.52B	27.39B	24.55B	22.39B	23.41B	20.14B
Stockholders Equity	9.48B	9.46B	9.52B	9.52B	8.84B	7.63B
Cash Flow
Free Cash Flow	-651.00M	1.96B	-22.00M	-93.00M	-166.89M	1.45B
Operating Cash Flow	993.00M	3.20B	1.33B	1.26B	520.63M	2.22B
Investing Cash Flow	-2.69B	-2.04B	-2.44B	-1.55B	-1.51B	-1.05B
Financing Cash Flow	727.00M	157.00M	574.00M	790.00M	-703.80M	-424.38M

Daiki Axis Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 718.00
• 50DMA: Positive
• 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:4245, the sentiment is Positive. The current price of 718 is above the 20-day moving average (MA) of 711.70, above the 50-day MA of 699.22, and above the 200-day MA of 676.47, indicating a bullish trend. The MACD of 4.40 indicates Positive momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, 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	81 Outperform	¥4.71B	8.41	―	1.80%	-0.27%	0.09%
5698	77 Outperform	¥17.21B	11.80	―	2.62%	-9.37%	590.66%
1712	77 Outperform	¥30.99B	21.70	―	0.81%	15.80%	11.11%
6403	75 Outperform	¥13.17B	22.41	―	1.79%	23.19%	-37.04%
4245	67 Neutral	¥9.54B	40.36	―	3.34%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	59 Neutral	¥5.18B	15.63	―	1.36%	3.68%	-24.83%

Daiki Axis Co., Ltd. Corporate Events

Daiki Axis Reports Mixed Financial Results for Nine Months Ending September 2025

Daiki Axis Co., Ltd. reported its consolidated financial results for the nine months ending September 30, 2025, showing a 4% increase in net sales compared to the previous year. However, the company experienced a significant decrease in profit attributable to owners of the parent, which fell by 50.2%. Despite the decline in profit, Daiki Axis maintains its forecast for the full fiscal year, expecting a modest growth in net sales and operating profit, indicating a cautious yet optimistic outlook for the remainder of the year.