Dai Nippon Toryo Company, Limited (4611) AI Stock Analysis

• Market Cap: ¥36.01B
• Dividend Yield: 3.86%
• Average Volume (3M): 47.92K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.89
• Revenue Growth: 7.99%
• EPS Growth: 78.17%
• Country: JP
• Employees: 2,113
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 13.40
• Shares Outstanding: 29,710,678
• 10 Day Avg. Volume: 46,470
• 30 Day Avg. Volume: 47,920
• PEG Ratio: 0.03
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -32.75
• 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: ¥1,417.00
• Price Target Upside: 11.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,417.00 ▲(11.49% Upside)

The overall stock score is driven by strong financial performance and attractive valuation metrics. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Dai Nippon Toryo Company, Limited Business Overview & Revenue Model

Company Description

Dai Nippon Toryo Company,Limited manufactures and sells coatings and jet inks in Japan and internationally. It offers anticorrosive coatings for steel frames of buildings, bridges, industrial plants, and concrete structures; and decorative coatings, such as water-based coatings free of volatile organic compounds for interiors and thermal insulation coatings that reflect sunlight and radiate heat when applied on roofs and walls. The company also provides coatings for automotive components, such as bumpers, door mirrors, and other interior and exterior components; and coating workshops to educate coating workers. In addition, it offers coatings for industrial applications, such as curtain walls, aluminum sashes, steel furniture, agricultural and construction machinery, heavy and light electrical equipment, PCM, and exterior materials. Further, the company provides nanoparticle series products, including metal and inorganic oxides that exhibit optical, electrical, and other functions; and inkjet coating systems, as well as sells coating equipment and works. The company was incorporated in 1929 and is headquartered in Osaka, Japan.

How the Company Makes Money

Dai Nippon Toryo Company, Limited generates revenue through the manufacturing and sale of paint and coating products. Its key revenue streams include the production of automotive coatings, which are supplied to major automobile manufacturers, and industrial coatings that are used across different manufacturing sectors. Additionally, the company sells architectural paints to construction companies and retail consumers. Strategic partnerships with automotive and industrial corporations, as well as a strong distribution network, enhance its market presence and contribute significantly to its earnings. The company's focus on research and development ensures a continuous improvement of product offerings, aligning with market demand and environmental standards.

Dai Nippon Toryo Company, Limited Financial Statement Overview

Summary

Dai Nippon Toryo Company, Limited demonstrates strong financial health with robust profitability and a solid balance sheet. However, negative free cash flow raises concerns about capital expenditure efficiency and cash management.

Income Statement

The company demonstrated a healthy gross profit margin and a strong net profit margin over the period, indicative of effective cost management and profitability. Revenue growth was positive, although somewhat inconsistent, with some fluctuation in EBIT and EBITDA margins. This suggests a generally stable but slightly volatile profitability scenario.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, reflecting prudent financial leverage. The return on equity (ROE) is robust, indicating effective utilization of equity capital. Additionally, a solid equity ratio highlights financial stability and an adequate buffer against liabilities.

Cash Flow

Operating cash flow is positive and generally aligned with net income, suggesting good cash conversion. However, free cash flow has been negative, raising concerns about capital expenditure efficiency and cash management. The free cash flow to net income ratio presents a potential area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.33B	72.51B	71.94B	72.85B	66.95B	62.48B
Gross Profit	23.23B	22.46B	21.80B	20.62B	19.66B	18.48B
EBITDA	13.98B	14.33B	9.74B	7.38B	6.22B	5.26B
Net Income	8.66B	9.44B	4.60B	3.46B	2.03B	1.97B
Balance Sheet
Total Assets	133.27B	133.34B	101.62B	92.81B	87.70B	85.77B
Cash, Cash Equivalents and Short-Term Investments	11.75B	12.65B	8.43B	6.86B	6.78B	6.98B
Total Debt	15.12B	12.22B	6.10B	6.18B	5.54B	7.45B
Total Liabilities	59.10B	57.17B	39.13B	37.60B	35.72B	34.90B
Stockholders Equity	63.35B	65.17B	59.71B	52.20B	49.26B	48.31B
Cash Flow
Free Cash Flow	0.00	-1.01B	-739.00M	-1.88B	1.87B	738.00M
Operating Cash Flow	0.00	3.57B	3.46B	1.28B	3.36B	3.64B
Investing Cash Flow	0.00	-364.00M	-772.00M	-1.45B	-966.00M	-2.33B
Financing Cash Flow	0.00	-75.00M	-1.66B	-473.00M	-2.84B	499.00M

Dai Nippon Toryo Company, Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1271.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4611, the sentiment is Negative. The current price of 1271 is below the 20-day moving average (MA) of 1288.75, below the 50-day MA of 1290.38, and above the 200-day MA of 1204.43, indicating a neutral trend. The MACD of -4.15 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 46.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4611.

Dai Nippon Toryo Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4611	73 Outperform	¥36.01B	4.18	―	3.86%	7.99%	78.17%
4627	72 Outperform	¥12.33B	11.18	―	3.18%	8.63%	11.84%
4628	72 Outperform	¥135.29B	13.87	5.49%	1.35%	3.44%	-28.70%
4619	71 Outperform	¥45.90B	9.22	―	5.58%	-1.25%	16.44%
4620	64 Neutral	¥18.31B	29.77	―	2.95%	0.78%	-53.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	20.50	―	―	8.91%	-42.21%

Dai Nippon Toryo Company, Limited Corporate Events

Dai Nippon Toryo Completes Treasury Shares Disposal for Remuneration

Dai Nippon Toryo Co., Ltd. announced the completion of payment procedures for the disposal of treasury shares as restricted share-based remuneration. This strategic move, resolved by the Board of Directors, involved the disposal of 50,690 shares at a price of ¥1,150 per share, amounting to a total of ¥58,293,500. The allocation was made to six directors and five executive officers, excluding outside directors, potentially impacting the company’s governance and alignment of interests.

Dai Nippon Toryo Announces Treasury Share Disposal for Executive Incentives

Dai Nippon Toryo Co., Ltd. has announced the disposal of 50,690 treasury shares as part of a restricted share-based remuneration plan aimed at incentivizing its directors and executive officers. This move is part of a broader strategy to enhance corporate value and align management interests with shareholders, with a long-term vision of achieving significant financial milestones by its 100th anniversary in 2029.

Dai Nippon Toryo Opposes Shareholder Proposal, Focuses on Strategic Growth

Dai Nippon Toryo Co., Ltd. announced its Board of Directors’ decision to oppose a shareholder proposal that suggested a dividend increase. The company is prioritizing sustainable growth and profitability through strategic investments and partnerships, such as the acquisition of Shinto Paint Co., Ltd., and aims to enhance shareholder value by improving capital efficiency and maintaining stable dividends.

Dai Nippon Toryo Reports Increased Profits and Dividends Amidst Mixed Financial Results

Dai Nippon Toryo Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.8% to ¥72,511 million. Despite a decrease in operating and ordinary profits, the company achieved a significant rise in profit attributable to owners of the parent by 105.1% to ¥9,437 million. The company also announced an increase in annual dividends per share from ¥35.00 to ¥49.00, indicating a positive outlook for stakeholders. The forecast for the fiscal year ending March 31, 2026, anticipates a 26.9% increase in net sales, although profit attributable to owners of the parent is expected to decrease by 64.0%.

Dai Nippon Toryo Releases Investigation Report on Subsidiary’s Inappropriate Acts

Dai Nippon Toryo Co., Ltd. has published an investigation report addressing inappropriate acts by its subsidiary, Okayama Kako Co., Ltd. The report, compiled by a Special Investigation Committee, highlights issues such as falsification of inspection data, out-of-standard shipments, inadequate outsourcing management, and inappropriate inspection practices. These findings have significant implications for the company’s compliance and reputation, prompting measures to prevent recurrence and ensure accountability.

Dai Nippon Toryo Revises Financial Forecasts Following Acquisition

Dai Nippon Toryo Co., Ltd. has recorded extraordinary income due to a gain on negative goodwill following its acquisition of a majority stake in SHINTO PAINT CO., LTD., leading to a revision of its financial forecasts for the fiscal year ended March 31, 2025. Despite a decline in net sales and operating profit due to reduced demand in domestic and overseas markets, the company expects an increase in ordinary profit and profit attributable to owners due to foreign exchange gains and the recorded negative goodwill.