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

• Market Cap: €37.06B
• Dividend Yield: 6.47%
• Average Volume (3M): 96.01K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.70
• Revenue Growth: 5.44%
• EPS Growth: -45.76%
• Country: JP
• Employees: 1,265
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Aluminum
• EPS (TTM): -19.27
• Shares Outstanding: 43,629,234
• 10 Day Avg. Volume: 70,610
• 30 Day Avg. Volume: 96,013
• PEG Ratio: 17.46
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.87
• 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

Daiki Aluminium Industry Co., Ltd. has a mixed financial performance with moderate revenue growth and declining profitability margins. The technical analysis indicates a bearish trend, while the valuation is moderately attractive due to a reasonable P/E ratio and high dividend yield. Overall, the stock shows potential risks due to cash flow challenges and high leverage.

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. shows mixed financial performance. Revenue has grown modestly, but profitability margins have compressed, and the company faces cash flow challenges. The balance sheet is stable with a strong equity position, yet high leverage poses a risk. Improvement in cash flow management and operational efficiency is needed.

Income Statement

The company demonstrates a stable gross profit margin of around 5% for the TTM, with a slight decline from previous periods. The net profit margin also shows a decrease, currently at 0.83% for the TTM. Revenue has experienced a minor growth of 4.28% in the latest TTM compared to the previous annual period. However, the EBIT and EBITDA margins have decreased, indicating a decline in operating efficiency.

Balance Sheet

Daiki Aluminium has a high debt-to-equity ratio of approximately 1.00, suggesting a leveraged position but manageable considering industry standards. The return on equity has decreased to 3.17% in the TTM from previous periods, reflecting lower profitability. The equity ratio stands at a solid 43.76%, indicating a healthy balance between equity and total assets.

Cash Flow

The cash flow statement reveals a concerning negative trend in operating cash flow, which is currently at -¥4.44 billion for the TTM, and free cash flow is also negative. The free cash flow to net income ratio is negative, reflecting cash flow challenges. However, the company has managed to improve its financing cash flow, indicating reliance on external funding.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
273.91B	262.67B	273.03B	236.06B	139.19B	159.08B
	Gross Profit
12.81B	13.03B	23.00B	29.26B	16.13B	14.70B
	EBIT
4.54B	4.62B	13.74B	20.38B	9.24B	7.72B
	EBITDA
8.58B	10.16B	17.24B	23.57B	12.26B	11.17B
	Net Income Common Stockholders
2.28B	3.24B	9.73B	14.88B	6.14B	5.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.17B	6.38B	4.96B	4.86B	5.78B	9.28B
	Total Assets
164.31B	138.68B	133.22B	141.62B	97.57B	83.23B
	Total Debt
72.06B	48.25B	42.16B	58.78B	38.07B	31.44B
	Net Debt
61.89B	41.87B	37.20B	53.92B	32.29B	22.17B
	Total Liabilities
91.80B	66.62B	64.85B	83.11B	53.78B	44.55B
	Stockholders Equity
71.91B	71.39B	67.63B	57.72B	43.23B	38.29B
Cash Flow		Free Cash Flow
-5.24B	-2.05B	22.10B	-19.04B	-9.30B	14.29B
	Operating Cash Flow
-4.44B	2.80B	26.16B	-15.62B	-4.52B	20.24B
	Investing Cash Flow
-956.00M	-3.64B	-4.58B	-3.42B	-4.97B	-5.93B
	Financing Cash Flow
6.29B	2.22B	-21.66B	17.91B	6.22B	-11.15B

Daiki Aluminium Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 914.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5702, the sentiment is Negative. The current price of 914 is above the 20-day moving average (MA) of 909.50, below the 50-day MA of 960.46, and below the 200-day MA of 1026.79, indicating a bearish trend. The MACD of -10.82 indicates Negative momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5741	74 Outperform	¥230.66B	8.52	9.70%	3.11%	8.50%	668.49%
5706	72 Outperform	$230.02B	3.56	20.86%	3.95%	10.45%	873.78%
5726	69 Neutral	¥61.64B	6.44		2.69%	2.96%	20.22%
5703	69 Neutral	¥95.14B	7.29	5.77%	4.69%	3.91%	50.98%
5711	65 Neutral	$300.49B	5.53	8.04%	4.30%	32.71%	24.06%
5702	60 Neutral	€37.06B	16.25	3.11%	6.47%	5.44%	-45.76%
Sector *	49 Neutral	$1.98B	-1.10	-21.24%	3.61%	1.31%	-31.23%

Daiki Aluminium Industry Co., Ltd. Corporate Events

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.

Daiki Aluminium Reports Mixed Financial Results Amid Rising Sales

Daiki Aluminium Industry Co., Ltd. reported consolidated financial results for the nine months ending December 31, 2024, showing a 5.6% increase in net sales compared to the previous year. However, despite the rise in sales, the company experienced a significant decline in profit attributable to owners of the parent, which dropped by 39.5%. The financial results indicate challenges in maintaining profit margins, which could impact the company’s strategic positioning and stakeholder interests moving forward.