Daisan Co., Ltd. (4750) AI Stock Analysis

• Market Cap: ¥3.80B
• Dividend Yield: 3.77%
• Average Volume (3M): 18.13K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.35
• Revenue Growth: 1.12%
• EPS Growth: 65.72%
• Country: JP
• Employees: 537
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 7,618,000
• 10 Day Avg. Volume: 32,570
• 30 Day Avg. Volume: 18,130
• PEG Ratio: 0.02
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 2.61
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥624.00 ▲(5.41% Upside)

Daisan Co., Ltd. has a stable financial foundation and attractive valuation, but technical indicators suggest weak market momentum. The company's financial performance is solid, particularly in cash flow management, but it faces challenges in revenue growth and profitability margins.

Positive Factors

Cash Flow Management

Efficient cash generation relative to profits indicates robust cash flow management, supporting long-term operational stability and investment capacity.

Balance Sheet Health

A balanced approach to leveraging with a moderate debt-to-equity ratio enhances financial stability and provides flexibility for future growth initiatives.

Return on Equity Improvement

Improved return on equity indicates better profitability from shareholders' investments, reflecting effective management and potential for increased investor confidence.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth poses challenges to predictability and planning, potentially impacting long-term strategic initiatives and market competitiveness.

Low Net Profit Margin

A low net profit margin limits profitability and may hinder the company's ability to reinvest in growth opportunities or weather economic downturns effectively.

Operational Efficiency

Modest EBIT and EBITDA margins suggest room for operational efficiency improvements, which are crucial for enhancing profitability and competitive positioning.

Daisan Co., Ltd. Business Overview & Revenue Model

Company Description

Daisan Co., Ltd. develops, manufactures, assembles, and sells scaffolding equipment for temporary construction and other related services in Japan. It also provides setting up and removing services for wedge lock scaffolding equipment; and construction services for wedge-type scaffolding. In addition, the company manufactures and sells architectural hardware and temporary equipment, single tube joint with visible lock, retractable tread, HAP security system, simple morning glory, curing material for opening, DL and BL guard, DS coupler, DS bracket, DS step, DS hanger stage, and le-volt. Daisan Co., Ltd. was incorporated in 1975 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daisan Co., Ltd. generates revenue through the sale of its core products, which include a diverse range of electrical components and devices. The company's revenue model is primarily based on direct sales to manufacturers and businesses in various industries. Key revenue streams include bulk orders from major clients in the electronics and automotive sectors, as well as partnerships with technology firms that integrate Daisan's components into their products. Additionally, Daisan may benefit from long-term contracts and agreements with suppliers and distributors, enhancing its market presence and ensuring a steady flow of income.

Daisan Co., Ltd. Financial Statement Overview

Summary

Daisan Co., Ltd. demonstrates a stable financial position with strengths in cash flow management and a solid balance sheet. However, challenges exist in maintaining consistent revenue growth and improving profitability margins.

Income Statement

Daisan Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is relatively stable around 29-31%, indicating consistent cost management. However, the net profit margin has been low, with a slight improvement in the latest year to 3.09%. Revenue growth has been inconsistent, with a recent decline of 4.2%. The EBIT and EBITDA margins have improved but remain modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet of Daisan Co., Ltd. reflects a moderate debt-to-equity ratio of 0.44, indicating a balanced approach to leveraging. The return on equity has improved to 6.02%, showing better profitability from shareholders' investments. The equity ratio is strong, suggesting a solid capital structure, but the company should focus on enhancing its return metrics.

Cash Flow

Cash flow analysis reveals a strong free cash flow to net income ratio of 0.96, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is lower, suggesting potential improvements in operational cash efficiency. The company has shown significant free cash flow growth, reflecting improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.44B	10.84B	10.41B	10.51B	9.70B	8.65B
Gross Profit	3.97B	3.21B	2.82B	2.93B	2.85B	2.45B
EBITDA	775.27M	705.26M	346.26M	-601.14M	456.76M	424.45M
Net Income	438.73M	335.24M	60.60M	-1.02B	50.14M	34.76M
Balance Sheet
Total Assets	9.89B	10.19B	10.37B	10.10B	10.22B	10.00B
Cash, Cash Equivalents and Short-Term Investments	1.97B	2.22B	1.70B	1.27B	1.39B	1.49B
Total Debt	1.92B	2.47B	3.00B	2.68B	1.50B	1.42B
Total Liabilities	4.34B	4.63B	5.02B	4.72B	3.65B	3.29B
Stockholders Equity	5.55B	5.57B	5.35B	5.38B	6.53B	6.65B
Cash Flow
Free Cash Flow	0.00	1.31B	256.49M	-785.32M	-217.40M	-309.01M
Operating Cash Flow	0.00	1.37B	312.48M	-439.60M	-36.54M	-14.45M
Investing Cash Flow	0.00	40.23M	143.06M	-415.32M	175.22M	-114.89M
Financing Cash Flow	0.00	-910.07M	-61.61M	680.07M	-258.95M	-468.42M

Daisan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 592.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4750, the sentiment is Positive. The current price of 592 is above the 20-day moving average (MA) of 583.55, above the 50-day MA of 585.92, and above the 200-day MA of 570.61, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4750.

Daisan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.68B	10.32	―	1.88%	-16.60%	-19.91%
1795	81 Outperform	¥3.92B	9.85	―	3.63%	19.00%	46.05%
1758	75 Outperform	¥6.35B	11.00	―	2.03%	14.17%	―
1764	66 Neutral	¥3.33B	7.25	―	4.09%	14.64%	48.31%
4750	64 Neutral	¥3.80B	10.53	―	3.77%	1.12%	65.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%