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DIC Corporation (JP:4631)
:4631

DIC (4631) AI Stock Analysis

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JP

DIC

(OTC:4631)

Rating:65Neutral
Price Target:
¥3,424.00
▲(19.22%Upside)
DIC's strong technical indicators and attractive valuation are the primary drivers of its stock score. Financial performance, while stable, could benefit from improved profitability margins and cash flow efficiency. The absence of earnings call and corporate events data did not affect the score.

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

DIC Business Overview & Revenue Model

Company DescriptionDIC 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 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.07T1.04T1.05T855.38B701.22B
Gross Profit
222.20B186.38B199.22B177.32B156.79B
EBIT
44.52B17.94B39.68B42.89B39.66B
EBITDA
100.09B37.90B88.47B80.94B72.39B
Net Income Common Stockholders
21.31B-39.86B17.61B6.46B13.23B
Balance SheetCash, Cash Equivalents and Short-Term Investments
61.87B87.53B63.38B38.25B44.88B
Total Assets
1.23T1.24T1.26T1.07T817.95B
Total Debt
484.33B528.96B509.33B384.21B266.74B
Net Debt
423.39B444.32B445.95B345.96B221.86B
Total Liabilities
805.82B845.62B840.55B690.47B466.59B
Stockholders Equity
401.42B363.94B387.00B345.93B318.49B
Cash FlowFree Cash Flow
3.42B31.02B-37.46B6.17B20.46B
Operating Cash Flow
46.21B89.09B7.93B44.81B54.46B
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 Price2872.00
Price Trends
50DMA
2766.26
Positive
100DMA
3020.38
Negative
200DMA
3134.03
Negative
Market Momentum
MACD
43.51
Positive
RSI
49.22
Neutral
STOCH
16.85
Positive
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 2872 is below the 20-day moving average (MA) of 2882.62, above the 50-day MA of 2766.26, and below the 200-day MA of 3134.03, indicating a neutral trend. The MACD of 43.51 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 16.85 is Positive, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$279.23B9.257.73%3.43%3.67%
51
Neutral
$2.04B-1.23-21.09%3.96%2.90%-30.45%
$2.23B6.9413.58%4.76%
$1.72B10.265.38%0.02%
$2.00B11.897.16%4.70%
DESZ8
€2.19B18.336.45%2.51%
70
Outperform
¥347.65B31.63
4.90%13.59%24.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4631
DIC
2,872.00
-217.14
-7.03%
DACHF
Daicel
8.26
-0.96
-10.41%
KANKF
Kaneka
26.97
0.97
3.73%
ZEOOF
Zeon
9.90
1.41
16.61%
DE:SZ8
Sumitomo Bakelite Co., Ltd.
23.40
-3.70
-13.65%
JP:4626
Taiyo Holdings Co., Ltd.
5,990.00
2,886.25
92.99%

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.

DIC Corporation Strengthens Governance and Diversity Initiatives
Mar 27, 2025

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.

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.