DaikyoNishikawa Corp. (4246) AI Stock Analysis

• Market Cap: ¥48.50B
• Dividend Yield: 4.93%
• Average Volume (3M): 160.88K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.70
• Revenue Growth: 6.00%
• EPS Growth: 12.33%
• Country: JP
• Employees: 5,601
• Sector: Industrials
• Sector Strength: 90
• Industry: Auto - Parts
• EPS (TTM): 37.52
• Shares Outstanding: 73,896,400
• 10 Day Avg. Volume: 168,590
• 30 Day Avg. Volume: 160,880
• PEG Ratio: 0.15
• Price to Book (P/B): 0.56
• 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: ¥730.66
• Price Target Upside: 6.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥731.00 ▲(7.03%Upside)

DaikyoNishikawa Corp. scores well due to strong technical indicators and attractive valuation. While financial performance shows recovery, risks from declining free cash flow and asset reduction should be monitored. Positive market momentum and undervaluation enhance the stock's appeal.

DaikyoNishikawa Corp. Business Overview & Revenue Model

Company Description

DaikyoNishikawa Corp. (4246) is a Japanese company specializing in the production of automotive parts and components. The company primarily operates in the automotive industry, providing essential products such as plastic exterior and interior parts, fuel systems, and modules for vehicles. With a strong focus on innovation and quality, DaikyoNishikawa Corp. serves a diverse range of clients, including major automobile manufacturers, contributing to the enhancement of vehicle performance and design.

How the Company Makes Money

DaikyoNishikawa Corp. generates revenue through the design, manufacturing, and sale of various automotive parts and components. The company's core revenue streams include the production of plastic exterior and interior parts, fuel systems, and modules, which are supplied to major automobile manufacturers. By maintaining strong partnerships with these manufacturers, DaikyoNishikawa ensures a steady demand for its products. The company's earnings are also influenced by its commitment to quality and technological innovation, which helps to secure long-term contracts and maintain competitive pricing in the automotive industry.

DaikyoNishikawa Corp. Financial Statement Overview

Summary

DaikyoNishikawa Corp. shows a strong recovery with improved profitability and stable revenues. The balance sheet is solid with moderate leverage and a strong equity base. However, the decline in free cash flow and slight asset reduction pose potential risks.

Income Statement

DaikyoNishikawa Corp. has demonstrated a solid recovery in its financial performance. The gross profit margin improved to 13.27% in 2025 from 13.86% in 2024, reflecting a stable cost structure. Net profit margin increased to 3.86% from 3.64%, indicating enhanced profitability. Revenue grew by 5.99%, showcasing a healthy top-line trajectory. EBIT and EBITDA margins improved to 5.94% and 13.00%, respectively, contributing to better operating efficiency. However, historical volatility remains a concern given the previous negative EBIT in 2022.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity (ROE) rose to 7.44% in 2025 from 7.16% in 2024, signifying improved profitability for shareholders. The equity ratio stands at a solid 56.51%, highlighting a strong equity base relative to total assets. However, the slight decrease in total assets over the years could pose a risk if not managed effectively.

Cash Flow

DaikyoNishikawa Corp.'s cash flow performance shows resilience, with an operating cash flow to net income ratio of 2.58, indicating strong cash generation relative to net income. Free cash flow to net income ratio of 1.45 further supports positive cash conversion. However, free cash flow declined by 37.18% from the previous year, which could suggest potential challenges in sustaining cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	168.56B	159.02B	145.74B	116.67B	150.23B
Gross Profit	22.38B	22.04B	13.79B	7.74B	13.54B
EBITDA	21.91B	20.32B	15.35B	10.38B	15.23B
Net Income	6.50B	5.78B	518.00M	-2.08B	2.54B
Balance Sheet
Total Assets	154.55B	161.22B	162.90B	156.16B	159.29B
Cash, Cash Equivalents and Short-Term Investments	30.92B	39.08B	28.07B	28.45B	39.84B
Total Debt	27.02B	40.41B	45.07B	46.20B	37.54B
Total Liabilities	64.60B	77.97B	84.48B	79.25B	79.41B
Stockholders Equity	87.34B	80.71B	75.60B	74.23B	77.33B
Cash Flow
Free Cash Flow	9.41B	14.98B	6.39B	-14.97B	56.00M
Operating Cash Flow	16.78B	20.37B	14.05B	3.71B	16.79B
Investing Cash Flow	-7.58B	1.59B	-8.99B	-20.11B	-17.57B
Financing Cash Flow	-18.35B	-8.80B	-7.62B	3.58B	8.56B

DaikyoNishikawa Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 683.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4246, the sentiment is Positive. The current price of 683 is above the 20-day moving average (MA) of 664.85, above the 50-day MA of 648.48, and above the 200-day MA of 611.25, indicating a bullish trend. The MACD of 12.95 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 72.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4246.

DaikyoNishikawa Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4246	80 Outperform	¥48.50B	7.48	7.68%	4.93%	6.00%	12.33%
7246	79 Outperform	€53.24B	9.25	5.43%	4.96%	-4.01%	-23.26%
5989	78 Outperform	¥36.55B	3.40		5.69%	-1.97%	―
7231	77 Outperform	¥57.46B	8.77		5.89%	-9.99%	37.21%
5992	72 Outperform	¥53.18B	29.03		2.09%	9.09%	-6.77%
Sector *	71 Outperform	¥255.75B	13.62	8.48%	3.02%	6.34%	13.16%
7229	66 Neutral	¥38.56B	8.48		2.77%	-17.14%	-13.01%

DaikyoNishikawa Corp. Corporate Events

DaikyoNishikawa Completes Treasury Stock Disposition for Compensation Plan

DaikyoNishikawa Corporation has completed the payment procedures for the disposition of its treasury stock under a restricted stock compensation plan. This move, resolved at a Board of Directors meeting, involves the allocation of 41,116 shares to its directors and executive officers, reflecting a strategic approach to incentivize its leadership team.

DaikyoNishikawa Corp. Announces Share Buyback Strategy

DaikyoNishikawa Corporation has announced the acquisition of 669,200 of its own shares, costing approximately 432.6 million yen, as part of a broader strategy to acquire up to 4.25 million shares by October 2025. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a strategic decision by the Board of Directors to manage equity effectively.

DaikyoNishikawa Announces Treasury Stock Disposition Under Compensation Plan

DaikyoNishikawa Corporation announced the disposition of 41,116 shares of its treasury stock under a Restricted Stock Compensation Plan, aimed at incentivizing its directors and executive officers. This move is part of a broader strategy to align management interests with those of shareholders and enhance corporate value, potentially impacting the company’s market positioning and stakeholder relationships.

DaikyoNishikawa Announces New Management Structure to Boost Efficiency

DaikyoNishikawa Corporation has announced a new management structure effective June 18, 2025, following a Board of Directors meeting. This restructuring includes the appointment of new directors and executive officers, aiming to enhance operational efficiency and strategic planning. The changes are expected to strengthen the company’s market position and improve its competitive edge in the automotive industry.

DaikyoNishikawa Corp. Announces Share Buyback Progress

DaikyoNishikawa Corporation announced the acquisition of 313,300 of its own shares, costing approximately 200.8 million yen, as part of a resolution to acquire up to 4.25 million shares by October 31, 2025. This strategic move aims to optimize the company’s capital structure and potentially enhance shareholder value.

DaikyoNishikawa Announces Executive Personnel Changes

DaikyoNishikawa Corporation has announced changes in its executive personnel, with Yoko Ishida being appointed as a new Outside Director, while Shigeki Sasaki will retire from his position as an Outside Director. These changes, pending approval at the upcoming Annual General Meeting of Shareholders, reflect the company’s ongoing efforts to strengthen its leadership and governance structure.

DaikyoNishikawa Reports Growth but Anticipates Profit Decline

DaikyoNishikawa Corp. reported a 6% increase in net sales for the fiscal year ending March 31, 2025, with significant growth in operating and ordinary profits. However, the company forecasts a decline in profits for the next fiscal year, indicating potential challenges ahead. The dividend payout has increased, reflecting a stable return to shareholders, but the financial outlook suggests a cautious approach due to anticipated lower earnings.

DaikyoNishikawa Corp. Updates Shareholder Return Policy

DaikyoNishikawa Corporation announced a change in its shareholder return policy to increase the consolidated dividend on equity ratio to at least 3.0%, while maintaining a dividend payout ratio of around 30%. This change reflects the company’s strategy to emphasize capital efficiency and financial stability, aligning with its medium-term management plan to achieve a 9% return on equity by FY2027.

DaikyoNishikawa Announces Dividend Increase

DaikyoNishikawa Corporation announced a dividend increase following a Board of Directors meeting, raising the year-end dividend by 2 yen to 19 yen per share. This decision aligns with their shareholder return policy, which targets a dividend on equity ratio of at least 3.0% and a payout ratio of around 30%, reflecting a focus on capital efficiency and financial stability.

DaikyoNishikawa Announces Share Buyback and Cancellation Plan

DaikyoNishikawa Corporation announced its decision to repurchase and subsequently cancel a portion of its own shares, as resolved in the Board of Directors meeting on May 13, 2025. This move is aimed at improving capital efficiency and increasing earnings per share, thereby enhancing shareholder returns. The company plans to acquire up to 4,250,000 common shares, representing 6% of its issued shares, with a maximum expenditure of 2 billion yen. The acquisition will take place on the Tokyo Stock Exchange from May 14 to October 31, 2025, with the cancellation of these shares scheduled for November 28, 2025.

DaikyoNishikawa Introduces Employee Stock Incentive Plan

DaikyoNishikawa Corporation has announced the introduction of a restricted stock incentive plan for its employees through the Employee Stock Ownership Plan (ESOP). This initiative aims to align employees’ interests with those of shareholders by allowing them to acquire restricted stock, thereby enhancing motivation and contributing to the company’s business performance and share price.