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DaikyoNishikawa Corp. (JP:4246)
:4246

DaikyoNishikawa Corp. (4246) AI Stock Analysis

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JP

DaikyoNishikawa Corp.

(Berlin:4246)

Rating:80Outperform
Price Target:
¥731.00
▲(11.77%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. (4246) vs. iShares MSCI Japan ETF (EWJ)

DaikyoNishikawa Corp. Business Overview & Revenue Model

Company DescriptionDaikyoNishikawa 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 MoneyDaikyoNishikawa Corp. generates revenue through the design, production, and sale of automotive plastic components. The company's primary revenue streams include the sale of its products to major automobile manufacturers, who integrate these components into their vehicles. Additionally, DaikyoNishikawa may engage in partnerships or joint ventures with automotive companies to enhance product offerings and expand market reach. The company's focus on innovation, quality, and cost-effective manufacturing processes also contributes to its profitability in the competitive 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
75
Positive
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
70
Positive
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
68
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
163.99B168.56B159.02B145.74B116.67B150.23B
Gross Profit
20.69B22.38B22.04B13.79B7.74B13.54B
EBIT
8.36B10.01B8.69B3.45B-2.63B4.46B
EBITDA
17.10B21.91B20.32B15.35B10.38B15.23B
Net Income Common Stockholders
4.34B6.50B5.78B518.00M-2.08B2.54B
Balance SheetCash, Cash Equivalents and Short-Term Investments
35.24B30.92B39.08B28.07B28.45B39.84B
Total Assets
158.58B154.55B161.22B162.90B156.16B159.29B
Total Debt
34.54B27.02B40.41B45.07B46.20B37.54B
Net Debt
-704.00M-3.90B1.33B17.00B17.75B-2.30B
Total Liabilities
74.62B64.60B77.97B84.48B79.25B79.41B
Stockholders Equity
81.19B87.34B80.71B75.60B74.23B77.33B
Cash FlowFree Cash Flow
0.009.41B14.98B6.39B-14.97B56.00M
Operating Cash Flow
0.0016.78B20.37B14.05B3.71B16.79B
Investing Cash Flow
0.00-7.58B1.59B-8.99B-20.11B-17.57B
Financing Cash Flow
0.00-18.35B-8.80B-7.62B3.58B8.56B

DaikyoNishikawa Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price654.00
Price Trends
50DMA
595.30
Positive
100DMA
600.80
Positive
200DMA
608.12
Positive
Market Momentum
MACD
11.80
Positive
RSI
60.51
Neutral
STOCH
44.05
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 654 is above the 20-day moving average (MA) of 640.95, above the 50-day MA of 595.30, and above the 200-day MA of 608.12, indicating a bullish trend. The MACD of 11.80 indicates Positive momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€45.88B7.077.68%5.26%6.00%12.33%
66
Neutral
$4.46B12.155.40%4.71%4.16%-11.97%
DE2YO
€306.02M8.535.43%6.22%
78
Outperform
¥34.78B3.23
6.00%-1.97%
77
Outperform
¥51.45B7.85
6.64%-9.99%37.21%
72
Outperform
¥46.50B25.38
2.25%9.09%-6.75%
66
Neutral
¥39.05B8.59
2.73%-17.14%-13.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4246
DaikyoNishikawa Corp.
654.00
8.20
1.27%
DE:2YO
Press Kogyo Co., Ltd.
3.20
-0.32
-9.09%
JP:5989
H-One Co., Ltd.
1,258.00
304.62
31.95%
JP:5992
Chuo Spring Co., Ltd.
1,999.00
683.35
51.94%
JP:7229
Yutaka Giken Co., Ltd.
2,681.00
613.53
29.68%
JP:7231
Topy Industries, Limited
2,203.00
-156.22
-6.62%

DaikyoNishikawa Corp. Corporate Events

DaikyoNishikawa Announces Treasury Stock Disposition Under Compensation Plan
Jun 18, 2025

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
Jun 18, 2025

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
Jun 2, 2025

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
May 16, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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.

DaikyoNishikawa Acquires Full Ownership of Thai Subsidiary to Boost Strategic Growth
Mar 27, 2025

DaikyoNishikawa Corporation has acquired all shares of its Thai subsidiary, DMS Tech Co., Ltd., making it a wholly owned subsidiary. This strategic move aims to enhance decision-making, streamline management, and strengthen sales of strategic products in response to the growing EV market in Thailand. The acquisition is expected to improve the medium-to-long-term corporate value of the DNC Group, although its immediate financial impact is anticipated to be minor.

DaikyoNishikawa Announces Executive Personnel Changes
Mar 19, 2025

DaikyoNishikawa Corporation announced executive personnel changes effective April 1, 2025, including promotions and new appointments. These changes are part of the company’s strategy to strengthen its leadership team and enhance operational efficiency, potentially impacting its market positioning and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.