DIC (4631) AI Stock Analysis

• Market Cap: ¥358.18B
• Dividend Yield: 2.64%
• Average Volume (3M): 296.89K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• Revenue Growth: -1.45%
• EPS Growth: N/A
• Country: JP
• Employees: 21,184
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 91.25
• Shares Outstanding: 95,156,906
• 10 Day Avg. Volume: 328,600
• 30 Day Avg. Volume: 296,893
• PEG Ratio: -0.10
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 93.63
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,987.00 ▲(5.36% Upside)

DIC's stock score is driven by solid financial performance and reasonable valuation. Technical indicators show positive momentum, supporting the stock's outlook. However, improvements in profitability margins and cash flow efficiency are needed for a higher score.

Positive Factors

Business Model Strength

DIC's diversified revenue streams across multiple industries provide resilience against sector-specific downturns, supporting long-term stability.

Strategic Partnerships

Partnerships with leading brands enhance DIC's market position and ensure a steady demand for its innovative products, fostering sustained growth.

Research and Development

Continuous R&D investment keeps DIC at the forefront of innovation, maintaining competitive advantage and attracting new customers over time.

Negative Factors

Net Profit Margin

A low net profit margin indicates limited profitability, which could hinder reinvestment and shareholder returns if not addressed.

Operating Cash Flow Decline

Declining operating cash flow may impact DIC's ability to fund operations and growth initiatives, posing a risk to financial health.

Leverage

Moderate leverage can limit financial flexibility and increase risk during economic downturns, affecting long-term sustainability.

DIC Business Overview & Revenue Model

Company Description

DIC Corporation manufactures and sells printing inks, organic pigments, and polyphenylene sulfide (PPS) compounds worldwide. It operates through three segments: Packaging & Graphic, Color & Display, and Functional Products. The Packaging & Graphic segment offers printing materials, including gravure, flexo, metal decoration, security, jet, offset, and news inks; packaging adhesives; coextruded multilayer films; and polystyrene, as well as other products and solutions for packaging applications. The Color & Display segment provides color material products, such as organic pigments, pigments for color filters, effect pigments, pigments for cosmetics, health foods, and natural colorants; and display materials comprising liquid crystal materials. The Functional Products segment offers performance materials that include coating, UV-curable, waterborne, acrylic, polyurethane, epoxy, phenolic, polyester/alkyd, unsaturated polyester, and other resins, as well as fluorochemicals, modifiers, alkylphenols, metal carboxylates, sulphur chemicals, and textile printing agents/leather colorants. It also provides composite materials, which comprise PPS and functional compounds, masterbatch for fibers/films, industrial adhesive and magnetic tapes, hollow fiber membrane modules, building material, decorative papers and sheets, decorative films, and plastic pallets; and DLP 3D printing materials and blue green Algal Polysaccharide. DIC Corporation offers its products to electronics, automotive, packaging, healthcare, color, display, house equipment/infrastructure, and functional material industries. The company was formerly known as Dainippon Ink and Chemicals, Incorporated and changed its name to DIC Corporation in April 2008. DIC Corporation was founded in 1908 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DIC generates revenue primarily through the sale of printing inks, which serve a wide range of industries, including publishing and packaging. The company also earns income from its organic pigments used in plastics, coatings, and cosmetics, which are essential for various consumer products. Additionally, DIC's revenue model includes providing customized solutions and value-added services to its clients, enhancing customer loyalty and driving repeat business. Significant partnerships with major brands and manufacturers in the packaging and printing sectors further bolster DIC's earnings, as they rely on the company's innovative products to enhance their own offerings. Moreover, DIC's strategic investments in research and development ensure a steady pipeline of new products, allowing the company to maintain a competitive edge in the market and attract new customers.

DIC Financial Statement Overview

Summary

DIC has shown a solid recovery in revenue and profitability, with stable balance sheet metrics and moderate leverage. However, the net profit margin and cash flow efficiency indicate room for improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06T	1.07T	1.04T	1.05T	855.38B	701.22B
Gross Profit	225.87B	222.20B	186.38B	199.22B	177.32B	156.79B
EBITDA	99.81B	100.09B	37.90B	88.47B	72.34B	60.05B
Net Income	27.99B	21.31B	-39.86B	17.61B	4.37B	13.23B
Balance Sheet
Total Assets	1.20T	1.23T	1.24T	1.26T	1.07T	817.95B
Cash, Cash Equivalents and Short-Term Investments	57.35B	61.87B	87.53B	63.38B	38.25B	44.88B
Total Debt	467.43B	484.33B	528.96B	509.33B	384.21B	266.74B
Total Liabilities	789.67B	805.82B	845.62B	840.55B	690.47B	466.59B
Stockholders Equity	396.13B	401.42B	363.94B	387.00B	345.93B	318.49B
Cash Flow
Free Cash Flow	0.00	3.42B	31.02B	-37.46B	6.17B	20.46B
Operating Cash Flow	0.00	46.21B	89.09B	7.93B	44.81B	54.46B
Investing Cash Flow	0.00	-17.08B	-66.46B	-73.16B	-147.61B	-33.04B
Financing Cash Flow	0.00	-62.59B	-2.92B	83.95B	99.55B	6.34B

DIC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3784.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 3784 is above the 20-day moving average (MA) of 3768.70, above the 50-day MA of 3713.34, and above the 200-day MA of 3216.61, indicating a bullish trend. The MACD of 6.75 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4631.

DIC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥368.54B	10.23	9.34%	4.33%	-0.48%	-35.29%
4205	79 Outperform	¥352.66B	9.79	9.65%	3.97%	0.87%	16.71%
4118	74 Outperform	¥275.72B	10.45	5.47%	3.44%	2.60%	9.50%
4626	73 Outperform	¥540.16B	41.35	―	3.36%	11.78%	8.98%
4631	71 Outperform	¥358.18B	11.05	8.14%	2.64%	-1.45%	―
4203	71 Outperform	¥456.93B	23.30	6.52%	1.82%	3.25%	-11.31%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

DIC Corporate Events

DIC Corporation Reports Mixed Financial Results Amid Strategic Adjustments

DIC Corporation reported a decrease in net sales by 2.7% for the nine months ending September 30, 2025, compared to the same period in the previous year. Despite the decline in sales, the company saw significant increases in operating income and net income attributable to owners, with the latter more than doubling. The company also announced changes in the scope of consolidation, excluding two subsidiaries, which may impact its operational focus and financial results.