DaikyoNishikawa Corp. (4246) AI Stock Analysis

• Market Cap: ¥55.65B
• Dividend Yield: 4.59%
• Average Volume (3M): 111.45K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.58
• Revenue Growth: 1.04%
• EPS Growth: 18.43%
• Country: JP
• Employees: 5,601
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 27.56
• 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: ¥914.00 ▲(13.40% Upside)

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

Improved profitability and revenue recovery

Sustained top-line growth and rising operating margins signal durable operational improvement. Better EBIT/EBITDA margins and a higher net margin support long-term cash generation and competitive pricing flexibility, strengthening partner relationships with automakers.

Solid balance sheet and moderate leverage

Low leverage and a strong equity ratio provide financial resilience through automotive cycles and capacity to fund R&D or capex. A rising ROE indicates improving shareholder returns, enabling strategic investments without overreliance on external financing.

Strong operating cash conversion

High operating cash conversion versus reported earnings demonstrates genuine cash-generating ability, supporting dividends, working capital and modest reinvestment. Reliable cash conversion is a durable foundation for sustaining operations in cyclical markets.

Negative Factors

Significant decline in free cash flow

A large year-over-year drop in free cash flow weakens the company’s capacity to fund capex, R&D, dividends or reduce debt without tapping external sources. Persistently lower FCF would constrain strategic flexibility and heighten reliance on balance sheet management.

Historical operating volatility

A past negative EBIT highlights sensitivity to cyclical automotive demand and cost pressures. Earnings volatility makes long-term planning and capital allocation harder, increasing execution risk for margin improvement and making sustained profitability less predictable.

Slight decline in total assets

A shrinking asset base may reflect underinvestment or asset disposals, potentially limiting capacity to scale with OEM orders. Over time, constrained asset growth could cap revenue expansion, reduce operational flexibility and weaken competitiveness in product development.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 above the 20-day moving average (MA) of 795.10, above the 50-day MA of 768.08, and above the 200-day MA of 688.19, indicating a bullish trend. The MACD of 15.64 indicates Negative momentum. The RSI at 70.06 is Negative, neither overbought nor oversold. The STOCH value of 73.08 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	¥80.51B	14.67	5.20%	3.67%	-3.78%	-16.61%
7229	72 Outperform	¥46.97B	8.98	―	2.37%	-13.35%	-19.38%
4246	71 Outperform	¥55.65B	8.16	8.48%	4.59%	1.04%	18.43%
7231	71 Outperform	¥76.20B	9.13	―	3.66%	-6.79%	303.74%
5992	64 Neutral	¥87.43B	45.06	―	1.61%	6.81%	6.68%
5989	62 Neutral	¥41.89B	4.67	―	5.16%	-11.67%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

DaikyoNishikawa Corp. Corporate Events

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.

DaikyoNishikawa Completes Treasury Stock Disposition for Employee Plan

DaikyoNishikawa Corporation announced the completion of payment procedures for the disposition of its treasury stock under the restricted stock incentive for its Employee Stock Ownership Plan. The revision in the number of shares and total value of disposition was due to a partial forfeiture of rights, reflecting the number of employees participating in the plan.

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 Announces Merger to Boost Competitiveness

DaikyoNishikawa Corporation has announced an absorption-type merger with its wholly owned subsidiary, KantoDaikyo Co., Ltd., to improve profitability and competitiveness. This strategic move is expected to enhance the company’s manufacturing capabilities and management efficiency, leading to business expansion and sustainable growth in the automotive and housing sectors.

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 Announces Subsidiary Merger to Boost Market Position

DaikyoNishikawa Corporation has announced an absorption-type merger between its wholly-owned subsidiaries, DaikyoNishikawa (Thailand) Co., Ltd. and DMS Tech Co., Ltd., with the former as the surviving entity. This merger is part of the company’s growth strategy to integrate management resources, improve operational efficiency, and strengthen its market position in Thailand, ultimately enhancing its corporate value.

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 Revises Financial Forecast, Expects Higher Profits Despite Sales Decline

DaikyoNishikawa Corporation has revised its financial forecast for the fiscal year ending March 31, 2026, due to recent operating trends. Despite an anticipated decline in net sales, the company expects an increase in operating profit, ordinary profit, and profit attributable to owners of the parent, driven by foreign exchange gains, cost recovery improvements, and effective cost management strategies.

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 Reports Decline in Sales but Increased Profits

DaikyoNishikawa Corporation reported a decline in net sales and operating profit for the six months ending September 30, 2025, compared to the previous year. Despite these declines, the company saw a notable increase in profit attributable to owners of the parent, indicating potential efficiency improvements or cost management strategies. The company has revised its financial forecast for the fiscal year ending March 31, 2026, reflecting anticipated challenges in maintaining previous growth levels. Stakeholders may need to consider the implications of these financial adjustments on future performance and strategic positioning.

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.