DaikyoNishikawa Corp. (4246) AI Stock Analysis

• Market Cap: ¥64.30B
• Dividend Yield: 4.59%
• Average Volume (3M): 111.45K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.64
• Revenue Growth: 1.04%
• EPS Growth: 18.43%
• Country: JP
• Employees: 5,601
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 36.41
• Shares Outstanding: 70,997,800
• 10 Day Avg. Volume: 87,900
• 30 Day Avg. Volume: 111,446
• PEG Ratio: 0.53
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.52
• 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: 71 Outperform
• Price Target: ¥1,043.00 ▲(29.40% Upside)
• Action: Upgraded Date: 10/30/25
• Date: Action: Upgraded 10/30/25

DaikyoNishikawa Corp. benefits from strong financial recovery and attractive valuation metrics, despite technical indicators suggesting short-term caution. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Recurring OEM program revenue model

DaikyoNishikawa’s core business is anchored in multi-year OEM supply contracts and embedded engineering services, creating recurring volume revenue and program-level visibility. This program-based model fosters long product lifecycles, higher switching costs and predictable manufacturing demand over the medium term.

Improving margins and revenue growth

Recent improvement in gross and net margins alongside ~6% revenue growth indicates better cost control and pricing execution. Sustained margin expansion and steady top-line growth point to rising operational efficiency and resilience in profitability across production cycles if volume and input cost trends hold.

Solid balance sheet and equity base

Moderate leverage (D/E ~0.31) and a strong equity ratio provide financial flexibility for program investment and capacity spending without excessive solvency risk. Improved ROE signals shareholder return progress while the equity-heavy structure helps the firm weather auto-cycle downturns and support strategic bids.

Negative Factors

Material decline in free cash flow

A 37% drop in free cash flow, despite positive cash conversion metrics, signals potential stress from working capital shifts, timing of capex or weaker cash generation. If the decline persists it could constrain reinvestment, dividends, or buffer capacity against supply shocks over the 2–6 month horizon.

Thin net profit margin

Net margin near 4% leaves limited room to absorb input cost inflation (e.g., resin) or OEM price pressure. Low absolute profitability heightens sensitivity to commodity swings and volume variability, risking earnings compression and reduced capacity to fund strategic initiatives if adverse trends emerge.

Historical earnings volatility

Prior negative EBIT demonstrates exposure to vehicle production cycles and program timing. Although recent metrics improved, this history of volatility indicates earnings can swing materially with customer volumes or model awards, raising the risk of renewed instability within a medium-term timeframe.

DaikyoNishikawa Corp. Business Overview & Revenue Model

Company Description

DaikyoNishikawa Corporation develops, manufactures, and sells automotive and plastic parts in Japan. The company offers bumpers that include radiator grilles and side step moldings; rear spoilers; lift gate modules; license garnishes, such as roof racks, fenders, and roof and hood products; instrument panels; center modules; decoration panels that include console boxes, indicator panels, and gear shift knobs; door trims, such as trunk side trims and boards; door modules; and assist grips comprising pillar trims. It also provides automotive engine parts comprising piping systems; shroud panels comprising cylinder head covers and PS tanks; oil strainers; intake manifolds, such as engine covers. In addition, the company offers plastic housing products, which include bath units and bathtub pans; kitchen counters, BMC artificial marbles, and washstand counters; and gas pipes, eaves troughs, iron-core stair mats, garden storage chests, and dust boxes. Further, it is involved in holding, leasing, and managing premises and equipment; collecting, transporting, and disposing industrial waste; and non-life insurance agency and life insurance soliciting business. DaikyoNishikawa Corporation was founded in 1953 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

DaikyoNishikawa Corp. generates revenue primarily through the sale of its automotive components and industrial materials. The company has established long-term partnerships with major automobile manufacturers, which serve as a significant source of steady revenue. Additionally, DaikyoNishikawa benefits from a diverse product portfolio that includes custom plastic solutions, which allows it to cater to a wide range of customer needs. The company's focus on research and development enables it to innovate and introduce new products, enhancing its market position and profitability. Furthermore, strategic collaborations and contracts within the automotive supply chain contribute to its earnings, as they expand its reach and customer base in both domestic and international markets.

DaikyoNishikawa Corp. Financial Statement Overview

Summary

DaikyoNishikawa Corp. shows a strong recovery with improved profitability and stable revenue growth. The balance sheet is solid with moderate leverage, but the decline in free cash flow is a concern.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	170.09B	168.56B	159.02B	145.74B	116.67B	150.23B
Gross Profit	22.55B	22.38B	20.47B	13.79B	7.74B	13.54B
EBITDA	20.81B	21.91B	20.32B	15.57B	10.38B	14.38B
Net Income	6.17B	6.50B	5.78B	518.00M	-2.08B	2.54B
Balance Sheet
Total Assets	150.13B	154.55B	161.22B	162.90B	156.16B	159.29B
Cash, Cash Equivalents and Short-Term Investments	30.51B	30.92B	39.08B	28.07B	28.45B	39.84B
Total Debt	25.96B	27.02B	40.41B	45.07B	46.20B	37.54B
Total Liabilities	62.80B	64.60B	77.97B	84.48B	79.25B	79.41B
Stockholders Equity	84.75B	87.34B	80.71B	75.60B	74.23B	77.33B
Cash Flow
Free Cash Flow	0.00	9.41B	14.98B	6.39B	-14.97B	56.00M
Operating Cash Flow	0.00	16.78B	20.37B	14.05B	3.71B	16.79B
Investing Cash Flow	0.00	-7.58B	1.59B	-8.99B	-20.11B	-17.57B
Financing Cash Flow	0.00	-18.35B	-8.80B	-7.62B	3.58B	8.56B

DaikyoNishikawa Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 806.00
• 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:4246, the sentiment is Positive. The current price of 806 is below the 20-day moving average (MA) of 887.35, below the 50-day MA of 844.54, and above the 200-day MA of 740.38, indicating a bullish trend. The MACD of 25.40 indicates Negative momentum. The RSI at 72.40 is Negative, neither overbought nor oversold. The STOCH value of 68.30 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
7246	79 Outperform	¥94.96B	13.63	5.20%	3.67%	-3.78%	-16.61%
4246	71 Outperform	¥64.30B	7.27	8.48%	4.59%	1.04%	18.43%
7229	71 Outperform	¥45.12B	10.60	―	2.37%	-13.35%	-19.38%
7231	71 Outperform	¥84.70B	7.70	―	3.66%	-6.79%	303.74%
5992	64 Neutral	¥85.41B	8.10	―	1.61%	6.81%	6.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5989	61 Neutral	¥41.66B	4.81	―	5.16%	-11.67%	―

DaikyoNishikawa Corp. Corporate Events

DaikyoNishikawa Reshapes Executive Team While Maintaining Strategic Continuity

DaikyoNishikawa Corporation has announced a series of executive personnel changes effective April 1, 2026, including the promotion of Hideaki Fukushima and Koshiro Chiba to managing executive officer and the appointment of Kazushi Ikegame and Akihiro Kadoyama as new executive officers overseeing production and marketing & sales. Managing Executive Officer Akitoshi Uchida will retire at the end of his term and assume the role of executive fellow, while the responsibilities of directors and senior managing executive officers remain largely unchanged, signaling continuity in management structure alongside targeted leadership shifts in key operational divisions.

The board’s decisions reflect a calibrated refresh of the upper management team, reinforcing leadership in core areas such as production, quality, purchasing, marketing, and R&D while maintaining stability at the top with the current president and executive vice presidents retaining their roles. This reorganization suggests a focus on strengthening execution in frontline divisions and advancing the company’s digital transformation and operational initiatives without disrupting overall strategic direction, which may reassure customers, employees, and investors about continuity in governance and business priorities.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen1006.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Lifts Full-Year Profit Outlook on Stronger Demand and FX Tailwinds

DaikyoNishikawa Corporation has revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected demand and improved operating conditions. The company now expects net sales of ¥164.8 billion, operating profit of ¥8.8 billion, ordinary profit of ¥9.3 billion, and profit attributable to owners of the parent of ¥6.9 billion, all above its previous projections.

Management attributes the improved outlook primarily to a lower risk of production cuts from semiconductor supply chain issues, which had previously weighed on the auto sector. Additional support comes from favorable foreign-exchange effects in Mexico, solid execution of cost-improvement measures, and foreign-exchange gains, which together signal a more robust earnings profile and may reassure investors about the company’s near-term profitability and operational resilience.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen968.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Lifts Profit Despite Lower Sales, Raises Full-Year Earnings Outlook

DaikyoNishikawa reported nine-month fiscal 2025 consolidated results showing net sales of ¥123.7 billion, down 1.3% year on year, but operating profit rose 16.0% to ¥7.9 billion and profit attributable to owners of parent jumped 67.0% to ¥6.4 billion, lifting basic earnings per share to ¥92.17. While total assets increased and the equity ratio dipped to 53.2%, the company maintained its dividend policy with a planned annual payout of ¥38.00 per share and revised its full-year forecast to lower sales and operating profit but higher bottom-line earnings, signaling improved profitability despite a softer revenue outlook.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen968.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Sets Terms for ¥9.6 Billion Secondary Share Offering

DaikyoNishikawa Corporation has set the terms for a secondary offering of its common stock, fixing the selling price at ¥824 per share for a total selling amount of approximately ¥9.58 billion in a transaction underwritten by securities firms, with settlement scheduled for January 26, 2026. In addition, the company will conduct an over-allotment secondary offering of 1,743,700 shares at the same price, enabling a potential greenshoe option and related syndicate cover transactions through late February 2026, a structure designed to support aftermarket price stability and liquidity for existing and new shareholders.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen919.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Completes ¥2.0 Billion Share Buyback, Largest Shareholder Changes After Nishikawa Rubber Stake Cut

DaikyoNishikawa Corporation has completed a share repurchase of 2,505,200 common shares via an off-auction ToSTNeT-3 transaction on January 9, 2026, at a total cost of approximately ¥2.03 billion, effectively fulfilling the buyback mandate approved by its board earlier in the month. The buyback is aimed at improving capital efficiency, enhancing shareholder returns, and offsetting supply-demand effects from a concurrent secondary offering, and it will significantly reshape the company’s shareholder structure, with long-time shareholder Nishikawa Rubber Co., Ltd. reducing its stake from 17.35% to 8.98%, thereby losing its status as the largest shareholder and prompting a change in the hierarchy of major shareholders.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen802.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Launches ¥2.1 Billion ToSTNeT-3 Share Buyback

DaikyoNishikawa Corporation has resolved to repurchase up to 2.6 million of its common shares, representing about 3.8% of its issued shares excluding treasury stock, via an off-auction own share repurchase transaction (ToSTNeT-3) on the Tokyo Stock Exchange at ¥812 per share, with a maximum outlay of approximately ¥2.11 billion and a repurchase window running from January 8 to January 13, 2026. The buyback, scheduled with an order at 8:45 a.m. on January 9, 2026, may influence the company’s shareholder structure, as NISHIKAWA RUBBER CO., LTD., a seller in a concurrent secondary offering, has indicated it may tender part of its holdings, potentially altering DaikyoNishikawa’s major and largest shareholders depending on execution results.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen802.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Launches ¥2.3 Billion Share Buyback to Offset Secondary Offering Impact

DaikyoNishikawa Corporation has approved a share repurchase program of up to 2.6 million common shares, representing about 3.8% of its outstanding stock (excluding treasury shares), with a maximum total acquisition cost of ¥2.3 billion. The buyback, to be executed via off-auction own share repurchase transactions (ToSTNeT-3) between January 8 and January 13, 2026, is aimed at enhancing capital efficiency, boosting shareholder returns, and offsetting potential supply-demand pressure on its stock arising from a concurrently announced secondary offering, signaling an effort to stabilize the share price and optimize its capital structure for existing investors.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen802.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.

DaikyoNishikawa Plans Large Secondary Share Offering to Boost Market Liquidity

DaikyoNishikawa Corporation has approved a secondary offering of up to 11,625,200 existing shares of its common stock to be sold by several major shareholders, including Nishikawa Rubber, Mitsui & Co., Mitsubishi Corporation Plastics, Sumitomo Shoji Chemicals, The Hiroshima Bank, and Mazda Motor Corporation, via an underwritten transaction on the Tokyo Stock Exchange. In parallel, the company will conduct a secondary offering of up to 1,743,700 additional shares through over-allotment, with the lead manager borrowing shares from certain shareholders to stabilize market demand and pricing, a move that is expected to broaden the stock’s free float and liquidity without raising new capital for the issuer itself, while slightly diluting the influence of existing large shareholders.

The most recent analyst rating on (JP:4246) stock is a Buy with a Yen802.00 price target. To see the full list of analyst forecasts on DaikyoNishikawa Corp. stock, see the JP:4246 Stock Forecast page.