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Dai Nippon Toryo Company, Limited (JP:4611)
:4611
Japanese Market
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Dai Nippon Toryo Company, Limited (4611) AI Stock Analysis

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JP:4611

Dai Nippon Toryo Company, Limited

(4611)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
¥1,343.00
▲(2.28% Upside)
Dai Nippon Toryo Company, Limited scores well due to its robust financial performance and attractive valuation. The strong dividend yield and low P/E ratio indicate potential value, while technical indicators reflect moderate momentum. The negative free cash flow is a concern but is offset by other financial strengths.

Dai Nippon Toryo Company, Limited (4611) vs. iShares MSCI Japan ETF (EWJ)

Dai Nippon Toryo Company, Limited Business Overview & Revenue Model

Company DescriptionDai 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 MoneyDai 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue72.51B72.51B71.94B72.85B66.95B62.48B
Gross Profit22.46B22.46B21.80B20.62B19.66B18.48B
EBITDA14.04B14.33B9.74B7.38B6.22B5.26B
Net Income9.44B9.44B4.60B3.46B2.03B1.97B
Balance Sheet
Total Assets133.34B133.34B101.62B92.81B87.70B85.77B
Cash, Cash Equivalents and Short-Term Investments12.65B12.65B8.43B6.86B6.78B6.98B
Total Debt12.22B12.22B6.10B6.18B5.54B7.45B
Total Liabilities57.17B57.17B39.13B37.60B35.72B34.90B
Stockholders Equity65.17B65.17B59.71B52.20B49.26B48.31B
Cash Flow
Free Cash Flow0.00-1.01B-739.00M-1.88B1.87B738.00M
Operating Cash Flow0.003.57B3.46B1.28B3.36B3.64B
Investing Cash Flow0.00-364.00M-772.00M-1.45B-966.00M-2.33B
Financing Cash Flow0.00-75.00M-1.66B-473.00M-2.84B499.00M

Dai Nippon Toryo Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1313.00
Price Trends
50DMA
1275.92
Positive
100DMA
1229.48
Positive
200DMA
1191.12
Positive
Market Momentum
MACD
9.76
Positive
RSI
59.09
Neutral
STOCH
57.41
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 1313 is above the 20-day moving average (MA) of 1304.90, above the 50-day MA of 1275.92, and above the 200-day MA of 1191.12, indicating a bullish trend. The MACD of 9.76 indicates Positive momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥47.16B9.478.60%4.15%-1.25%16.44%
78
Outperform
¥37.20B4.323.73%7.99%78.17%
77
Outperform
¥137.12B14.066.56%1.33%3.44%-28.70%
72
Outperform
¥12.71B11.533.09%8.63%11.84%
67
Neutral
¥18.70B30.411.25%2.88%0.78%-53.36%
44
Neutral
¥4.42B-17.06-0.44%8.91%-42.21%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4611
Dai Nippon Toryo Company, Limited
1,313.00
265.56
25.35%
JP:4627
Natoco Co
1,685.00
295.30
21.25%
JP:4628
SK Kaken Co
9,000.00
643.69
7.70%
JP:4615
Shinto Paint Co., Ltd.
130.00
-3.00
-2.26%
JP:4619
Nihon Tokushu Toryo Co., Ltd.
2,171.00
1,050.58
93.77%
JP:4620
Fujikura Kasei Co., Ltd.
624.00
165.74
36.17%

Dai Nippon Toryo Company, Limited Corporate Events

Dai Nippon Toryo Completes Treasury Shares Disposal for Remuneration
Jul 18, 2025

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
Jun 24, 2025

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
May 15, 2025

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
May 15, 2025

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
May 12, 2025

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
May 7, 2025

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.

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.Date of analysis: Jul 09, 2025