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

• Market Cap: ¥37.54B
• Dividend Yield: 3.7%
• Average Volume (3M): 47.92K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.91
• Revenue Growth: 14.83%
• EPS Growth: 51.42%
• Country: JP
• Employees: 2,113
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 35.92
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,432.00 ▲(8.16% Upside)

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

Strong Financial Health

Dai Nippon Toryo's robust balance sheet and consistent profitability indicate a solid financial foundation, enhancing its ability to invest in growth opportunities and weather economic fluctuations.

Revenue Growth

Positive revenue growth reflects the company's ability to expand its market presence and adapt to changing industry demands, supporting long-term business sustainability.

Low Debt Levels

A low debt-to-equity ratio indicates prudent financial management, reducing risk and providing flexibility for future strategic investments or downturns.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests potential inefficiencies in capital expenditure and cash management, which could hinder the company's ability to fund operations and growth initiatives.

Volatile Profitability

Volatility in profitability margins can indicate challenges in maintaining consistent cost control and pricing power, potentially impacting long-term earnings stability.

Cash Conversion Concerns

Concerns in cash conversion efficiency may limit the company's ability to reinvest in business operations or return value to shareholders, affecting future growth prospects.

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	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	15.23B	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: 1324.00
• 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 1324 is above the 20-day moving average (MA) of 1312.15, above the 50-day MA of 1287.98, and above the 200-day MA of 1237.72, indicating a bullish trend. The MACD of 8.28 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.91 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
4619	75 Outperform	¥50.63B	9.39	―	5.04%	-3.21%	27.18%
4611	74 Outperform	¥37.54B	4.64	―	3.70%	14.83%	51.42%
4628	74 Outperform	¥160.12B	12.74	6.87%	1.11%	2.88%	16.60%
4627	72 Outperform	$11.57B	10.19	―	3.58%	7.33%	18.98%
4620	64 Neutral	¥18.43B	28.46	―	2.86%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.15B	-21.40	―	―	8.66%	-239.07%

Dai Nippon Toryo Company, Limited Corporate Events

Dai Nippon Toryo Resumes JIS Marked Product Shipments After Suspension Lifted

Dai Nippon Toryo Co., Ltd. announced the lifting of the temporary suspension of JIS mark labels, which was previously imposed by the Japan Paint Inspection and Testing Association due to inappropriate acts. The company has taken corrective actions and will resume manufacturing and shipping products with the JIS mark, ensuring compliance with industry standards. This development is expected to positively impact the company’s operations and reassure stakeholders of its commitment to quality and compliance.

Dai Nippon Toryo Reports Increased Sales but Declining Profits in H1 2025

Dai Nippon Toryo reported a significant increase in net sales by 27.2% for the first half of 2025, reaching ¥45,965 million. However, the company faced a decline in operating profit and profit attributable to owners of the parent, with the latter dropping by 48.3% compared to the previous year. The comprehensive income also saw a substantial decrease of 84.3%. Despite these challenges, the company has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating a positive outlook with expected net sales of ¥92,000 million, though profits are anticipated to decline. This financial performance reflects the company’s efforts to navigate market conditions while managing profitability.

Dai Nippon Toryo to Receive Dividend from Thai Subsidiary

Dai Nippon Toryo Co., Ltd. announced it will receive a significant dividend from its subsidiary, Thai DNT Paint Mfg. Co., Ltd., amounting to THB 261 million. This dividend will be recorded as non-operating income in the company’s non-consolidated financial results for the fiscal year ending March 31, 2026, without impacting the consolidated financial results.

Dai Nippon Toryo Announces Auditor Resignation and Appointment

Dai Nippon Toryo Co., Ltd. announced the resignation of Corporate Auditor Naoyuki Kimura, effective September 30, 2025, due to personal reasons. To maintain compliance with statutory requirements, Kei Nishida will be appointed as an Outside Corporate Auditor on the same date, ensuring the company’s governance structure remains intact.