DIC (4631) AI Stock Analysis

• Market Cap: $257.56B
• Dividend Yield: 3.46%
• Average Volume (3M): 301.86K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.57
• Revenue Growth: 3.12%
• EPS Growth: N/A
• Country: JP
• Employees: 21,184
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 225.10
• Shares Outstanding: 95,156,906
• 10 Day Avg. Volume: 181,680
• 30 Day Avg. Volume: 301,856
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $3,236.79
• Price Target Upside: 17.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

The overall score reflects DIC's solid financial performance and attractive valuation, partially offset by bearish technical indicators. The company's stable balance sheet and moderate leverage are strengths, but improvements in profitability margins and cash flow efficiency are necessary. While the stock appears undervalued, the current negative market momentum may pose short-term challenges.

DIC Business Overview & Revenue Model

Company Description

DIC 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 Money

DIC 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 demonstrated recovery in revenue and profitability, with stable balance sheet metrics and moderate leverage. However, there is room for improvement in profitability margins and cash flow efficiency.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.07T	1.04T	1.05T	855.38B	701.22B
	Gross Profit
222.20B	186.38B	199.22B	177.32B	156.79B
	EBIT
44.52B	17.94B	39.68B	42.89B	39.66B
	EBITDA
98.45B	37.90B	88.47B	80.94B	72.39B
	Net Income Common Stockholders
21.31B	-39.86B	17.61B	6.46B	13.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.87B	87.53B	63.38B	38.25B	44.88B
	Total Assets
1.23T	1.24T	1.26T	1.07T	817.95B
	Total Debt
484.33B	528.96B	509.33B	384.21B	266.74B
	Net Debt
423.39B	444.32B	445.95B	345.96B	221.86B
	Total Liabilities
805.82B	845.62B	840.55B	690.47B	466.59B
	Stockholders Equity
401.42B	363.94B	387.00B	345.93B	318.49B
Cash Flow		Free Cash Flow
3.42B	31.02B	-37.46B	6.17B	20.46B
	Operating Cash Flow
46.21B	89.09B	7.93B	44.81B	54.46B
	Investing Cash Flow
-17.08B	-66.46B	-73.16B	-147.61B	-33.04B
	Financing Cash Flow
-62.59B	-2.92B	83.95B	99.55B	6.34B

DIC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2747.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4631, the sentiment is Neutral. The current price of 2747.5 is above the 20-day moving average (MA) of 2657.87, below the 50-day MA of 2938.39, and below the 200-day MA of 3139.49, indicating a neutral trend. The MACD of -50.68 indicates Negative momentum. The RSI at 48.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4631.

DIC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4204	79 Outperform	¥1.06T	12.88	10.10%	3.13%	3.28%	6.56%
4205	72 Outperform	$275.53B	10.97	7.16%	4.76%	10.04%	-13.43%
4045	71 Outperform	$150.81B	13.68	5.27%	4.17%	5.13%	-8.77%
4188	67 Neutral	$1.01T	13.53	4.16%	5.04%	<0.01%	-58.95%
4183	64 Neutral	$602.92B	11.93	5.83%	4.49%	5.15%	-8.48%
4631	64 Neutral	$257.56B	12.09	5.40%	3.46%	3.12%	―
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%

DIC Corporate Events

DIC Corporation Strengthens Governance and Diversity Initiatives

DIC Corporation has announced its commitment to reducing cross-shareholdings to 4% or less of net assets by the fiscal year ending December 31, 2026. This move is part of their strategy to enhance corporate governance and ensure sustainable growth. The company also emphasizes the importance of diversity and inclusion, setting measurable targets for diversity among its directors and employees. This focus on diversity is part of their long-term management plan to foster human resources and improve organizational cohesiveness.

DIC Corporation’s Board Opposes Shareholder Proposal

DIC Corporation’s Board of Directors has unanimously opposed a shareholder proposal submitted by OASIS INVESTMENTS II MASTER FUND LTD. and OASIS JAPAN STRATEGIC FUND LTD. for the upcoming general meeting. The board determined that the proposals regarding advisory resolutions are inappropriate for submission under existing laws and company regulations. The board argues that the company already has robust mechanisms in place for monitoring related-party transactions, making the proposal unnecessary.

DIC Corporation Ends Shareholder Benefits Program to Enhance Dividends

DIC Corporation has announced the termination of its shareholder benefits program, originally designed to reward and encourage long-term investment. The decision comes as the company seeks to increase corporate value and provide fairer returns on earnings through enhanced dividends. The program will conclude after the final distribution of benefits in April 2025.

DIC Corporation Reports Variances in FY2024 Earnings

DIC Corporation announced a discrepancy between its forecasted and actual consolidated operating results for fiscal year 2024. Although net sales were lower than expected due to reduced sales volume, the company achieved higher operating and ordinary income by adapting pricing strategies effectively and recorded a gain from selling investment securities, leading to a significant increase in net income.