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

• Market Cap: ¥10.29B
• Dividend Yield: 3.34%
• Average Volume (3M): 14.45K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.40
• Revenue Growth: 7.12%
• EPS Growth: -43.68%
• Country: JP
• Employees: 1,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 26.03
• Shares Outstanding: 13,672,100
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 14,446
• PEG Ratio: 0.62
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -140.47
• 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: 57 Neutral
• Price Target: ¥717.00 ▲(5.75% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by financial risks—high leverage and volatile free cash flow despite improving revenues—while technicals are moderately positive and valuation appears reasonable with a supportive dividend yield.

Positive Factors

Recurring service revenue

Daiki Axis generates recurring service and parts revenue alongside equipment sales, creating customer stickiness and more predictable lifecycle cash flows. Over 2–6 months this stable revenue mix supports resilience vs. project timing, smoothing revenue and providing a base for margin recovery and reinvestment.

Steady revenue growth and operating recovery

Consistent top-line growth with improving operating profit into 2025 indicates stronger demand and better project execution. This trend suggests the firm can scale core operations and improve operational leverage, enhancing medium-term earnings quality if execution and cost control continue.

Focused niche in environmental infrastructure

Specialization in decentralized wastewater and environmental infrastructure positions the company in a regulatory-driven, defensive sector with technical barriers. Long-term municipal and commercial needs and required maintenance services create steady addressable demand and reduce competitive commoditization risk.

Negative Factors

Elevated leverage

Debt levels well above equity raise refinancing and interest-rate sensitivity, limiting financial flexibility to fund projects or weather delays. High leverage amplifies earnings volatility and reduces capacity to absorb cost shocks, constraining strategic optionality over the next several months.

Inconsistent free cash flow

Frequent negative free cash flow despite positive operating cash suggests heavy reinvestment or working-capital strain, making internal funding for debt reduction or growth unpredictable. This volatility undermines balance-sheet repair and increases dependence on external financing.

Thin and volatile net income

Persistent thin and fluctuating net income limits retained earnings accumulation and weakens the cushion against project overruns or cost inflation. Even with operating profit recovery, margin unpredictability raises execution risk and makes medium-term profit sustainability less certain.

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

Revenue growth is constructive and operating profit shows improvement into 2025, but the profile is constrained by thin/volatile net income, elevated leverage (debt consistently above equity), and inconsistent cash conversion with frequently negative free cash flow.

Income Statement

Revenue has grown steadily from 2021–2025 (with a stronger uptick in 2024–2025), indicating improving demand and/or project execution. Profitability, however, is mixed: margins improved into 2024, but earnings remain thin overall and net income has been volatile (notably lower in 2023–2025 versus 2021–2022). Operating profit shows some recovery by 2025, but the business is still running with limited buffer if costs rise or projects slip.

Balance Sheet

Leverage is elevated, with debt consistently exceeding equity (debt-to-equity around ~1.5–1.8 in recent annual periods), which increases sensitivity to interest rates and earnings swings. Equity has been relatively stable while assets have expanded, but the higher debt load reduces financial flexibility. Returns on equity have also fluctuated meaningfully, reflecting uneven profitability against a leveraged capital structure.

Cash Flow

Cash generation is inconsistent. Operating cash flow is positive each year shown, but free cash flow is frequently negative (2021–2023 and again in 2025), suggesting heavier reinvestment and/or working-capital pressure. 2024 was a clear bright spot with strong free cash flow, but the reversal to slightly negative free cash flow in 2025 and the sharp decline in free-cash-flow growth point to volatility in the company’s ability to convert earnings into durable cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.74B	48.32B	46.86B	42.68B	39.48B	37.82B
Gross Profit	10.38B	10.43B	10.22B	8.87B	8.17B	7.86B
EBITDA	2.21B	2.37B	2.26B	1.75B	1.71B	2.05B
Net Income	264.00M	461.00M	352.00M	205.00M	574.00M	610.00M
Balance Sheet
Total Assets	36.00B	38.05B	36.85B	34.07B	31.91B	32.25B
Cash, Cash Equivalents and Short-Term Investments	7.28B	7.92B	8.21B	6.95B	7.27B	6.30B
Total Debt	17.11B	17.63B	16.72B	16.06B	13.88B	12.95B
Total Liabilities	26.52B	28.41B	27.39B	24.55B	22.39B	23.41B
Stockholders Equity	9.48B	9.64B	9.46B	9.52B	9.52B	8.84B
Cash Flow
Free Cash Flow	-651.00M	-64.00M	1.96B	-22.00M	-93.00M	-166.89M
Operating Cash Flow	993.00M	1.85B	3.20B	1.33B	1.26B	520.63M
Investing Cash Flow	-2.69B	-2.92B	-2.04B	-2.44B	-1.55B	-1.51B
Financing Cash Flow	727.00M	608.00M	157.00M	574.00M	790.00M	-703.80M

Daiki Axis Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 678.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 678 is below the 20-day moving average (MA) of 693.35, below the 50-day MA of 688.99, and above the 200-day MA of 674.92, indicating a bullish trend. The MACD of 7.04 indicates Negative momentum. The RSI at 85.41 is Negative, neither overbought nor oversold. The STOCH value of 62.04 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
9793	73 Outperform	¥188.13B	20.74	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥30.40B	16.56	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥385.59B	27.83	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4245	57 Neutral	¥10.29B	22.26	―	3.34%	7.12%	-43.68%
2195	56 Neutral	¥6.14B	19.76	―	1.36%	3.68%	-24.83%
4657	56 Neutral	¥2.30B	54.17	―	1.93%	-1.19%	-89.91%

Daiki Axis Co., Ltd. Corporate Events

Daiki Axis Lifts FY2025 Earnings and Keeps Dividend as It Targets Further Growth in 2026

Daiki Axis reported consolidated net sales of ¥48.3 billion for the fiscal year ended December 31, 2025, up 3.2% year on year, with operating profit rising 21.3% to ¥1.27 billion and profit attributable to owners of parent climbing 31.1% to ¥461 million, reflecting improved profitability and a higher operating margin. The company maintained its annual dividend at ¥24 per share and forecast further growth for fiscal 2026, targeting net sales of ¥50.0 billion and a 17.0% increase in profit attributable to owners of parent, suggesting continued earnings momentum and stable shareholder returns despite modest equity and cash position changes.

Total assets increased to ¥38.0 billion and net assets to ¥9.64 billion, while cash and cash equivalents edged down to ¥7.57 billion as investing cash outflows exceeded operating inflows. Management signaled confidence in ongoing expansion by projecting higher operating profit and earnings per share for 2026, which, together with an unchanged dividend, indicates a focus on balancing growth investment with consistent distributions to shareholders.

The most recent analyst rating on (JP:4245) stock is a Hold with a Yen743.00 price target. To see the full list of analyst forecasts on Daiki Axis Co., Ltd. stock, see the JP:4245 Stock Forecast page.