Daiki Aluminium Industry Co., Ltd. (5702) AI Stock Analysis

• Market Cap: €39.25B
• Dividend Yield: 6.29%
• Average Volume (3M): 87.78K
• Price to Earnings (P/E): 54.7
• Beta (1Y): 0.72
• Revenue Growth: 14.13%
• EPS Growth: -78.53%
• Country: JP
• Employees: 1,265
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Aluminum
• EPS (TTM): -19.27
• Shares Outstanding: 43,629,234
• 10 Day Avg. Volume: 56,720
• 30 Day Avg. Volume: 87,780
• PEG Ratio: -0.17
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.62
• 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

• Rating: 51 Neutral
• Price Target: ¥935.00 ▼(-2.20%Downside)

The overall score of 51.1 reflects mixed financial performance and technical indicators. The company's operational challenges and declining profitability metrics weigh heavily on the score. Technical indicators show a bearish trend, further impacting the score. Valuation concerns due to a high P/E ratio are somewhat offset by an attractive dividend yield.

Daiki Aluminium Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Daiki Aluminium Industry Co., Ltd. (5702) is a Japanese company primarily engaged in the manufacturing and sale of aluminum products. It operates in the non-ferrous metals sector, focusing on the production of secondary aluminum alloy ingots. These products are utilized in various industries, including automotive, electronics, and construction, due to their lightweight and durable properties. The company is known for its commitment to quality and innovation in aluminum processing and recycling technologies.

How the Company Makes Money

Daiki Aluminium Industry Co., Ltd. generates revenue primarily through the production and sale of secondary aluminum alloy ingots. The company sources aluminum scrap and other raw materials, which it processes into high-quality aluminum alloys for sale to manufacturers in the automotive, electronics, and construction sectors. Key revenue streams include direct sales to automotive manufacturers, who use the alloys for lightweight vehicle components, and electronics companies requiring materials for their products. The company's earnings are bolstered by its strong recycling capabilities, reducing raw material costs and promoting sustainability. Additionally, Daiki Aluminium Industry Co., Ltd. may engage in strategic partnerships and collaborations to expand its market reach and enhance its technological capabilities, further contributing to its revenue.

Daiki Aluminium Industry Co., Ltd. Financial Statement Overview

Summary

Daiki Aluminium Industry Co., Ltd. presents a mixed financial picture. While revenue growth is promising, declining margins and profitability metrics suggest operational challenges. Increasing leverage and negative cash flow trends warrant careful management to ensure financial stability.

Income Statement

Daiki Aluminium Industry Co., Ltd. showed a mixed performance in its income statement. The gross profit margin has experienced slight fluctuations but remained stable, while net profit margin showed a steep decline over the years, reaching a mere 0.23% in 2025 from a healthier 6.3% in 2023. Revenue growth has been inconsistent, with a significant increase in 2025 by 14.13% but a decline in 2024. The EBIT and EBITDA margins have also decreased over time, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio increased, indicating rising leverage, which could pose a risk if not managed carefully. The return on equity (ROE) is declining, showing a decrease in profitability. However, the equity ratio remains stable, suggesting a balanced asset management approach. The company's increasing liabilities may pose a financial risk if revenue generation does not improve.

Cash Flow

The cash flow position is concerning, with negative free cash flow in recent years. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio indicates inefficiencies in converting income to cash. Despite positive operating cash flow in 2023, the company struggled to maintain a healthy cash flow balance due to high capital expenditures and financing activities.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
273.91B	299.80B	262.67B	273.03B	236.06B	139.19B
	Gross Profit
12.81B	13.43B	13.03B	23.00B	29.26B	16.13B
	EBIT
4.54B	4.83B	4.62B	13.74B	20.38B	9.24B
	EBITDA
8.58B	8.15B	10.16B	17.24B	23.57B	12.26B
	Net Income Common Stockholders
2.28B	698.00M	3.24B	9.73B	14.88B	6.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.17B	7.34B	6.38B	4.96B	4.86B	5.78B
	Total Assets
164.31B	163.29B	138.68B	133.22B	141.62B	97.57B
	Total Debt
72.06B	67.27B	48.25B	42.16B	58.78B	38.07B
	Net Debt
61.89B	59.93B	41.87B	37.20B	53.92B	32.29B
	Total Liabilities
91.80B	89.58B	66.62B	64.85B	83.11B	53.78B
	Stockholders Equity
71.91B	73.07B	71.39B	67.63B	57.72B	43.23B
Cash Flow		Free Cash Flow
-5.24B	-13.95B	-2.05B	22.10B	-19.04B	-9.30B
	Operating Cash Flow
-4.44B	-10.04B	2.80B	26.16B	-15.62B	-4.52B
	Investing Cash Flow
-956.00M	-4.20B	-3.64B	-4.58B	-3.42B	-4.97B
	Financing Cash Flow
6.29B	14.57B	2.22B	-21.66B	17.91B	6.22B

Daiki Aluminium Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 956.00
• 50DMA: Positive
• 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:5702, the sentiment is Neutral. The current price of 956 is above the 20-day moving average (MA) of 947.45, above the 50-day MA of 926.10, and below the 200-day MA of 1004.78, indicating a neutral trend. The MACD of 9.56 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5702.

Daiki Aluminium Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5703	76 Outperform	¥99.29B	7.92	5.42%	6.23%	5.05%	37.08%
5741	68 Neutral	¥225.57B	8.33	9.70%	3.28%	11.87%	103.91%
5410	67 Neutral	¥55.15B	4.78		7.43%	-7.92%	-25.47%
5726	65 Neutral	¥53.47B	7.49		2.75%	-6.16%	-26.82%
5480	64 Neutral	¥58.92B	4.69		1.02%	-4.57%	-12.16%
5702	51 Neutral	€39.25B	54.71	0.92%	6.29%	14.13%	-78.53%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%

Daiki Aluminium Industry Co., Ltd. Corporate Events

Daiki Aluminium Reports Increased Sales but Decline in Profits

Daiki Aluminium Industry Co., Ltd. reported a significant increase in net sales for the fiscal year ended March 31, 2025, with a 14.1% rise compared to the previous year. However, the company experienced a notable decline in profit attributable to owners of the parent, which dropped by 78.5%. Despite the challenging profit figures, the company has increased its annual dividend payout, reflecting a commitment to shareholder returns. The financial forecast for the next fiscal year anticipates continued growth in net sales and a substantial recovery in profit attributable to owners, indicating a positive outlook for the company’s future performance.

Daiki Aluminium Revises Financial Forecasts Amid Extraordinary Losses

Daiki Aluminium Industry Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, due to an impairment loss on fixed assets in its Indian subsidiary and a loss on valuation of shares of subsidiaries. The revised forecast indicates a slight increase in net sales but a significant decrease in profit attributable to owners of the parent, reflecting the impact of these extraordinary losses on the company’s financial performance.

Daiki Aluminium Reports Extraordinary Losses Amid Challenging Conditions

Daiki Aluminium Industry Co., Ltd. has announced extraordinary losses for the fourth quarter of the fiscal year ending March 31, 2025. The losses include an impairment loss of ¥1.5 billion due to a challenging business environment faced by its subsidiary in India, and a ¥3.9 billion loss on the valuation of shares of the same subsidiary. These financial setbacks highlight the company’s current operational challenges, although the loss on valuation of shares does not affect the consolidated financial results.