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DIC Corporation (JP:4631)
:4631

DIC (4631) AI Stock Analysis

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JP

DIC

(OTC:4631)

Rating:74Outperform
Price Target:
¥3,176.00
▲(10.20%Upside)
DIC's overall score is driven by solid financial recovery and attractive valuation. The technical analysis suggests a positive trend but with some caution. Key areas for improvement include enhancing profitability margins and cash flow efficiency.

DIC (4631) vs. iShares MSCI Japan ETF (EWJ)

DIC Business Overview & Revenue Model

Company DescriptionDIC Corporation is a leading Japanese chemical company that operates in various sectors, including printing inks, fine chemicals, and polymers. The company, established in 1908, is headquartered in Tokyo, Japan. DIC specializes in manufacturing and distributing a wide range of products, including organic pigments, synthetic resins, and functional products that serve various industries such as automotive, electronics, and packaging. DIC is recognized for its innovation and commitment to sustainability, contributing significantly to its market presence globally.
How the Company Makes MoneyDIC Corporation generates revenue through diverse streams, primarily from the sale of its chemical products across several industries. The company's core revenue streams include printing inks, which are used extensively in publication and packaging; fine chemicals, which cater to high-tech applications in electronics and automotive industries; and polymers, which are utilized in various industrial and consumer applications. DIC also benefits from strategic partnerships and collaborations with other companies in the chemical sector, enhancing its product offerings and market reach. Additionally, the company's focus on research and development enables it to innovate and introduce new products, further driving its sales and profitability.

DIC Financial Statement Overview

Summary
DIC has shown recovery in revenue and profitability with a stable balance sheet and moderate leverage. However, the net profit margin and ROE indicate room for improvement in profitability and shareholder returns.
Income Statement
74
Positive
DIC demonstrated a solid performance in the latest fiscal year, with a gross profit margin of 20.74% and an EBIT margin of 4.16%, indicating efficient cost management. The company also achieved a revenue growth rate of 3.12%, reflecting a positive sales trajectory. However, the net profit margin of 1.99% could be improved, and there's a notable recovery from a negative net income in the previous year.
Balance Sheet
68
Positive
DIC maintains a stable balance sheet with a debt-to-equity ratio of 1.21, which shows a moderate level of leverage. The equity ratio stands at 32.74%, indicating a solid capital structure. Return on Equity (ROE) at 5.31% shows room for improvement in generating returns for shareholders.
Cash Flow
62
Positive
The company has shown a significant decline in operating cash flow compared to the previous year. Free cash flow has shown growth, but the operating cash flow to net income ratio of 2.17 suggests current earnings are well-supported by cash flow. The free cash flow to net income ratio at 0.16 indicates limited cash flow generated relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.07T1.04T1.05T855.38B701.22B
Gross Profit222.20B186.38B199.22B177.32B156.79B
EBITDA100.09B37.90B88.47B80.94B72.39B
Net Income21.31B-39.86B17.61B6.46B13.23B
Balance Sheet
Total Assets1.23T1.24T1.26T1.07T817.95B
Cash, Cash Equivalents and Short-Term Investments61.87B87.53B63.38B38.25B44.88B
Total Debt484.33B528.96B509.33B384.21B266.74B
Total Liabilities805.82B845.62B840.55B690.47B466.59B
Stockholders Equity401.42B363.94B387.00B345.93B318.49B
Cash Flow
Free Cash Flow3.42B31.02B-37.46B6.17B20.46B
Operating Cash Flow46.21B89.09B7.93B44.81B54.46B
Investing Cash Flow-17.08B-66.46B-73.16B-147.61B-33.04B
Financing Cash Flow-62.59B-2.92B83.95B99.55B6.34B

DIC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2882.00
Price Trends
50DMA
2797.63
Positive
100DMA
2895.39
Negative
200DMA
3069.01
Negative
Market Momentum
MACD
18.10
Positive
RSI
48.20
Neutral
STOCH
44.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4631, the sentiment is Negative. The current price of 2882 is above the 20-day moving average (MA) of 2854.13, above the 50-day MA of 2797.63, and below the 200-day MA of 3069.01, indicating a neutral trend. The MACD of 18.10 indicates Positive momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4631.

DIC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥323.24B6.7013.58%4.93%5.10%-8.39%
77
Outperform
¥381.22B34.68
4.48%13.59%24.32%
76
Outperform
¥381.50B20.026.45%0.24%6.09%-10.60%
74
Outperform
$298.68B11.907.16%4.60%10.04%-13.38%
74
Outperform
¥272.80B9.047.73%3.47%3.67%
73
Outperform
$248.97B9.825.38%3.56%5.89%11.95%
70
Neutral
¥175.70B11.176.37%3.52%3.93%6.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4631
DIC
2,838.50
-90.67
-3.10%
JP:4626
Taiyo Holdings Co., Ltd.
6,620.00
3,405.92
105.97%
JP:4203
Sumitomo Bakelite Co., Ltd.
4,115.00
-450.51
-9.87%
JP:4205
Zeon
1,516.00
197.03
14.94%
JP:4202
Daicel
1,204.00
-264.32
-18.00%
JP:4118
Kaneka
3,883.00
-200.30
-4.91%

DIC Corporate Events

DIC Corporation Sees Profit Surge in Q1 FY2025
May 15, 2025

DIC Corporation reported a 2.5% increase in net sales for the first quarter of FY2025, driven by higher sales of pigments and electronics-related products. The company saw a significant improvement in profitability, with operating income up by 54% and a return to net income, aided by reduced extraordinary losses and restructuring measures. The Color & Display segment also returned to profitability, and the company maintained its full-year forecasts and shareholder return plans.

The most recent analyst rating on (JP:4631) stock is a Hold with a Yen3250.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.

DIC Corporation Reports Strong Q1 2025 Financial Results
May 15, 2025

DIC Corporation reported a 2.5% increase in net sales for the first quarter of 2025, reaching JPY 262,111 million. The company also saw significant growth in operating income, which rose by 54% to JPY 13,057 million, and ordinary income, which increased by 48.6% to JPY 9,881 million. Net income attributable to owners of the parent was JPY 6,099 million, a notable improvement from a loss in the previous year. Despite these positive results, comprehensive income was negative, and the shareholders’ equity ratio slightly decreased. The company maintained its dividend forecast for the fiscal year ending December 31, 2025, indicating stability in shareholder returns.

The most recent analyst rating on (JP:4631) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.

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 08, 2025