DIC (4631) AI Stock Analysis

• Market Cap: ¥270.72B
• Dividend Yield: 3.5%
• Average Volume (3M): 367.32K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.61
• Revenue Growth: 3.67%
• EPS Growth: N/A
• Country: JP
• Employees: 21,184
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 64.41
• Shares Outstanding: 95,156,906
• 10 Day Avg. Volume: 266,070
• 30 Day Avg. Volume: 367,316
• PEG Ratio: 0.07
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.88
• 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: ¥3,307.08
• Price Target Upside: 15.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥3,176.00 ▲(11.05%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 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 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

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
EBITDA	100.09B	37.90B	88.47B	80.94B	72.39B
Net Income	21.31B	-39.86B	17.61B	6.46B	13.23B
Balance Sheet
Total Assets	1.23T	1.24T	1.26T	1.07T	817.95B
Cash, Cash Equivalents and Short-Term Investments	61.87B	87.53B	63.38B	38.25B	44.88B
Total Debt	484.33B	528.96B	509.33B	384.21B	266.74B
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: 2860.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2860 is above the 20-day moving average (MA) of 2852.78, above the 50-day MA of 2802.24, and below the 200-day MA of 3068.16, indicating a neutral trend. The MACD of 15.96 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 29.99 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
4631	74 Outperform	¥270.72B	8.97	7.73%	3.50%	3.67%	―
Sector *	58 Neutral	HK$16.77B	4.60	-5.52%	5.25%	-3.57%	-61.41%
DACHF		$2.18B	6.92	13.58%	4.86%	―	―
KANKF		$1.71B	10.26	5.38%	0.02%	―	―
ZEOOF		$2.06B	11.81	7.16%	4.73%	―	―
SZ8		€2.23B	18.96	6.45%	0.24%	―	―
4626	77 Outperform	¥373.26B	33.96		4.57%	13.59%	24.32%

DIC Corporate Events

DIC Corporation Sees Profit Surge in Q1 FY2025

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

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.