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

• Market Cap: ¥41.90B
• Dividend Yield: 3.7%
• Average Volume (3M): 47.92K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.93
• Revenue Growth: 14.83%
• EPS Growth: 51.42%
• Country: JP
• Employees: 2,113
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 21.56
• 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: 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: 74 Outperform
• Price Target: ¥1,673.00 ▲(24.20% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

The stock's overall score is driven by strong financial performance and attractive valuation metrics. While technical analysis indicates some short-term bearish trends, the low P/E ratio and solid dividend yield suggest potential for long-term value. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Balance-sheet strength

Low leverage and a solid equity ratio provide durable financial flexibility across cycles. Robust ROE noted in the balance sheet summary implies effective capital allocation, enabling funding for capex, dividends, or M&A without stressing liquidity over the medium term.

Revenue growth trend

A ~21% reported revenue growth rate signals expanding end-market penetration and product demand. Sustained top-line growth supports scale economies, R&D and product development, and strengthens customer relationships across architectural and industrial channels.

Profitability and margins

Consistently healthy gross and net margins point to effective cost control and pricing power in specialty coatings. Durable margin structure supports reinvestment, dividend capacity and resilience to moderate input-cost swings given premium product mix and recurring maintenance demand.

Negative Factors

Negative free cash flow

Negative free cash flow limits internal funding for growth and increases reliance on operational improvement or external financing. Over months this can constrain strategic investment, reduce optionality for dividends or buybacks, and pressure liquidity if not addressed.

Margin volatility

Fluctuating operating margins indicate sensitivity to raw-material costs, mix shifts or cyclical demand. Persistent volatility hampers forecasting, raises the risk of profit compression in downturns and complicates long-term planning for capex and pricing strategies.

Inconsistent revenue pattern

An uneven growth profile suggests exposure to cyclic industrial and construction end-markets and reliance on repainting/maintenance cycles. Inconsistency can lead to lumpy cash flows and makes multi-quarter planning and capacity utilization less predictable.

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 generates revenue primarily through the sale of its paints and coatings, which are utilized across various industries, including automotive, construction, and manufacturing. The company has established key revenue streams through direct sales to industrial clients, partnerships with distributors, and collaborations with manufacturers for custom coating solutions. Additionally, its focus on research and development allows it to introduce new products and enhancements, thereby maintaining competitiveness and capturing market share. Significant partnerships with major corporations in relevant sectors further bolster its earnings, as these alliances often lead to long-term contracts and consistent demand for its products.

Dai Nippon Toryo Company, Limited Financial Statement Overview

Summary

Dai Nippon Toryo Company, Limited exhibits strong financial health with consistent profitability and a solid balance sheet. However, the 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	15.23B	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: Positive
• Last Price: 1347.00
• 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:4611, the sentiment is Positive. The current price of 1347 is below the 20-day moving average (MA) of 1451.20, below the 50-day MA of 1400.86, and above the 200-day MA of 1287.20, indicating a bullish trend. The MACD of 24.77 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4626	75 Outperform	¥611.46B	39.14	―	3.26%	11.78%	8.98%
4611	74 Outperform	¥41.90B	5.50	―	3.70%	14.83%	51.42%
4628	74 Outperform	¥172.01B	14.96	6.87%	1.11%	2.88%	16.60%
4612	69 Neutral	¥2.66T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥461.29B	13.77	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥437.69B	12.96	8.14%	2.61%	-1.45%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Dai Nippon Toryo Company, Limited Corporate Events

Dai Nippon Toryo Corrects Subsidiary Financial Data in FY2026 Forecast Revision Notice

Dai Nippon Toryo Co., Ltd., a Japanese coatings manufacturer listed on the TSE Prime, operates globally with wholly owned production and sales bases such as DNT (Zhejiang) Co., Ltd. in China. The group supplies coatings and raw materials across industrial and commercial sectors as part of its broader international portfolio.

The company issued a correction to its previously announced notice on revising FY2026 consolidated earnings forecasts linked to an equity transfer and an extraordinary loss from group restructuring. The correction adjusts the disclosed three-year financial data of its Chinese subsidiary, DNT (Zhejiang), notably swapping the figures for total assets and net assets, which could affect how investors assess the subsidiary’s financial position and the implications of the restructuring on group performance.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1616.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo Exits Key China Subsidiary to Refocus on Profit Growth

Dai Nippon Toryo has decided to transfer all equity in its Chinese subsidiary DNT (Zhejiang) Co., Ltd. to Chugoku Marine Paints’ Hong Kong unit, effectively ending its long-running effort to revive its Chinese coatings business. The move follows years of weak demand caused by the pandemic and a slowing Chinese economy, as well as prior restructuring steps such as closing its former Shanghai factory.

Management concluded that divesting the loss-making subsidiary, which has posted consecutive years of operating losses and shrinking assets, will help optimize group management resources and strengthen overall financial soundness. With the exit from this Chinese production base, the company plans to reallocate capital and focus on profitability improvement and growth areas identified in its Medium-Term Management Plan through 2026, potentially reshaping its geographic and product portfolio priorities.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1627.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo Reshapes Organization and Executive Lineup to Drive Vision 2029 Growth

Dai Nippon Toryo will implement organizational reforms and rename several Japanese divisions, including its coating, specialty, technical development, and production units, effective April 1, 2026, to unify organizational naming and strengthen structural clarity. The company plans to create a Sales Promotion Department and Business Planning Department under the Coating Business Division, fold the Overseas Operations Division into a newly named Overseas Business Planning Department, and rename the Coating Business Planning Department as the Domestic Business Planning Department.

These changes are aimed at reinforcing sales capabilities, promoting overseas business, and enhancing collaboration between domestic and international units, as the company pursues its Vision 2029 targets of ¥100 billion in consolidated net sales and ¥10 billion in operating profit. In tandem with the reorganization, Dai Nippon Toryo will reassign responsibilities among existing executive officers and appoint a new executive officer to support the expanded Coating Business Division, signaling a management structure aligned with its growth and globalization strategy.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1607.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo to Scrap Anti-Takeover Plan and Revise Articles

Dai Nippon Toryo will end its long-standing anti-takeover plan when it expires at the close of the 143rd Ordinary General Meeting of Shareholders scheduled for June 24, 2026. The company also plans to delete related anti-takeover provisions from its Articles of Incorporation, submitting the amendments for shareholder approval at the same meeting.

The board’s decision follows repeated reviews of the measure in light of evolving market conditions, governance trends, and feedback from domestic and overseas institutional investors. While the formal plan will lapse, Dai Nippon Toryo says it will continue focusing on enhancing corporate value and, if faced with a large-scale share acquisition, will provide extensive information to shareholders and may still adopt lawful defensive steps when deemed necessary, guided by its basic policies and independent outside directors’ views.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1607.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo Sales Surge but Profits Slide, Dividend Hike Maintained

Dai Nippon Toryo reported consolidated net sales of ¥70.25 billion for the nine months ended December 31, 2025, up 27.5% year on year, but operating profit fell 24.5% to ¥2.99 billion and profit attributable to owners of parent dropped 45.6% to ¥2.02 billion, with basic EPS declining to ¥70.88. Total assets increased to ¥138.06 billion while the equity ratio slipped to 47.0%, and the company kept its full-year forecast unchanged, targeting ¥92.0 billion in net sales but expecting double-digit declines in profits, while planning to raise the annual dividend to ¥58 per share, signaling continued shareholder returns despite earnings pressure.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1579.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo to Relocate Osaka Head Office to Boost Collaboration and Efficiency

Dai Nippon Toryo Co., Ltd. has resolved to relocate its head office within Chuo-ku, Osaka, moving from Minami-Semba to a new address in Hiranomachi in October 2026. The company aims to consolidate head office functions onto a single floor at the new site to strengthen its organizational structure, enhance interdepartmental collaboration, and create a work environment that better supports employee initiative and performance, with the stated goal of improving corporate value. While relocation costs are still under review and have not yet been quantified, the company indicated it will disclose any material impact on business performance as needed, and confirmed that no changes to its Articles of Incorporation are required because the move remains within the same ward.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1559.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.

Dai Nippon Toryo Completes Acquisition and Renames Fluororesin Coatings Subsidiary BONNFLON

Dai Nippon Toryo has completed the previously announced acquisition of all shares in AGC COAT-TECH Co., Ltd., a manufacturer and seller of fluororesin paints and coatings for construction, industrial anti-corrosion uses, and electronic parts and films, thereby converting the company into a wholly owned subsidiary. Following the closing on December 22, 2025, the acquired business has been renamed BONNFLON Co., Ltd., its representative director has been changed to Masayuki Nisou, and certain branch offices in Osaka and Fukuoka have been relocated, signaling the integration of the fluororesin coatings specialist into Dai Nippon Toryo’s group structure to bolster its product offering and operational footprint in advanced coating markets.

The most recent analyst rating on (JP:4611) stock is a Buy with a Yen1432.00 price target. To see the full list of analyst forecasts on Dai Nippon Toryo Company, Limited stock, see the JP:4611 Stock Forecast page.