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

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JP:5702

Daiki Aluminium Industry Co., Ltd.

(Frankfurt:5702)

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Neutral 59 (OpenAI - 4o)
Rating:59Neutral
Price Target:
¥1,193.00
▲(3.92% Upside)
The overall stock score for Daiki Aluminium Industry Co., Ltd. is primarily influenced by its mixed financial performance, with operational challenges and negative cash flow trends. Positive technical indicators provide some support, but the high P/E ratio suggests potential overvaluation concerns.

Daiki Aluminium Industry Co., Ltd. (5702) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionDaiki Aluminium Industry Co., Ltd. (5702) is a leading manufacturer in the aluminum industry, primarily focused on the production and sales of aluminum and aluminum alloy products. The company operates in various sectors, including construction, automotive, and industrial applications, providing a wide range of products such as extrusions, sheets, and fabricated components. With a commitment to innovation and sustainability, Daiki Aluminium aims to meet the increasing demand for lightweight and durable materials across multiple industries.
How the Company Makes MoneyDaiki Aluminium generates revenue through the production and sale of aluminum products, which are supplied to various sectors such as construction, automotive, and industrial manufacturing. The company benefits from a diversified revenue model that includes direct sales to end-users, as well as partnerships with manufacturers and distributors. Key revenue streams include custom aluminum extrusions, fabricated components, and standard aluminum products. Additionally, Daiki Aluminium invests in research and development to enhance product performance and expand its market reach, further contributing to its earnings. The company's strategic focus on sustainability and eco-friendly practices also positions it favorably in a market increasingly driven by environmental concerns.

Daiki Aluminium Industry Co., Ltd. Financial Statement Overview

Summary
Daiki Aluminium Industry Co., Ltd. shows a mixed financial picture with promising revenue growth but declining margins and profitability metrics. The increasing leverage and negative cash flow trends pose financial risks, necessitating strategic measures to improve efficiency and profitability.
Income Statement
52
Neutral
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
60
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue311.98B299.80B262.67B273.03B236.06B139.19B
Gross Profit14.17B13.43B13.03B23.00B29.26B16.13B
EBITDA8.70B8.15B10.16B17.24B24.41B12.26B
Net Income833.00M698.00M3.24B9.73B14.88B6.14B
Balance Sheet
Total Assets154.30B163.29B138.68B133.22B141.62B97.57B
Cash, Cash Equivalents and Short-Term Investments8.14B7.34B6.38B4.96B4.86B5.78B
Total Debt60.45B67.27B48.25B42.16B58.78B38.07B
Total Liabilities83.68B89.58B66.62B64.85B83.11B53.78B
Stockholders Equity70.04B73.07B71.39B67.63B57.72B43.23B
Cash Flow
Free Cash Flow-5.24B-13.95B-2.05B22.10B-19.04B-9.30B
Operating Cash Flow-4.44B-10.04B2.80B26.16B-15.62B-4.52B
Investing Cash Flow-956.00M-4.20B-3.64B-4.58B-3.42B-4.97B
Financing Cash Flow6.29B14.57B2.22B-21.66B17.91B6.22B

Daiki Aluminium Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1148.00
Price Trends
50DMA
1122.28
Positive
100DMA
1049.88
Positive
200DMA
1001.13
Positive
Market Momentum
MACD
11.10
Negative
RSI
62.66
Neutral
STOCH
82.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5702, the sentiment is Positive. The current price of 1148 is above the 20-day moving average (MA) of 1132.27, above the 50-day MA of 1122.28, and above the 200-day MA of 1001.13, indicating a bullish trend. The MACD of 11.10 indicates Negative momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 82.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5702.

Daiki Aluminium Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€327.45B22.695.25%5.44%9.03%-41.77%
74
Outperform
¥85.26B18.081.02%-3.92%-53.69%
70
Outperform
¥65.41B6.035.10%-7.69%-18.05%
69
Neutral
€128.75B10.415.70%3.52%5.43%23.72%
67
Neutral
¥57.27B4.996.08%-7.29%-17.17%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
¥46.50B56.611.19%4.72%18.98%-67.11%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5702
Daiki Aluminium Industry Co., Ltd.
1,165.00
136.80
13.30%
JP:5703
Nippon Light Metal Holdings Co
2,131.00
620.06
41.04%
JP:5741
UACJ
1,837.00
629.11
52.08%
JP:5410
Godo Steel,Ltd.
3,945.00
298.15
8.18%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,365.00
356.15
8.88%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
2,458.00
260.97
11.88%

Daiki Aluminium Industry Co., Ltd. Corporate Events

Daiki Aluminium Reports Strong Quarterly Growth Amidst Market Challenges
Aug 8, 2025

Daiki Aluminium Industry Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 19.5% and operating profit surging by 86% compared to the previous year. Despite the positive quarterly results, the company experienced a decline in comprehensive income, and its financial forecast for the fiscal year ending March 31, 2026, anticipates a moderate growth in net sales and operating profit, indicating a cautious outlook amidst market uncertainties.

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.Date of analysis: Oct 23, 2025