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

• Market Cap: ¥46.50B
• Dividend Yield: 4.72%
• Average Volume (3M): 84.42K
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.64
• Revenue Growth: 18.98%
• EPS Growth: -67.11%
• Country: JP
• Employees: 1,265
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 16.67
• Shares Outstanding: 43,629,234
• 10 Day Avg. Volume: 67,830
• 30 Day Avg. Volume: 84,420
• PEG Ratio: -0.73
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -2.85
• 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: 59 Neutral
• 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. Business Overview & Revenue Model

Company Description

Daiki 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 Money

Daiki 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.98B	299.80B	262.67B	273.03B	236.06B	139.19B
Gross Profit	14.17B	13.43B	13.03B	23.00B	29.26B	16.13B
EBITDA	8.70B	8.15B	10.16B	17.24B	24.41B	12.26B
Net Income	833.00M	698.00M	3.24B	9.73B	14.88B	6.14B
Balance Sheet
Total Assets	154.30B	163.29B	138.68B	133.22B	141.62B	97.57B
Cash, Cash Equivalents and Short-Term Investments	8.14B	7.34B	6.38B	4.96B	4.86B	5.78B
Total Debt	60.45B	67.27B	48.25B	42.16B	58.78B	38.07B
Total Liabilities	83.68B	89.58B	66.62B	64.85B	83.11B	53.78B
Stockholders Equity	70.04B	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: Positive
• Last Price: 1148.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5741	75 Outperform	€327.45B	22.69	5.25%	5.44%	9.03%	-41.77%
5726	74 Outperform	¥85.26B	18.08	―	1.02%	-3.92%	-53.69%
5480	70 Outperform	¥65.41B	6.03	―	5.10%	-7.69%	-18.05%
5703	69 Neutral	€128.75B	10.41	5.70%	3.52%	5.43%	23.72%
5410	67 Neutral	¥57.27B	4.99	―	6.08%	-7.29%	-17.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5702	59 Neutral	¥46.50B	56.61	1.19%	4.72%	18.98%	-67.11%

Daiki Aluminium Industry Co., Ltd. Corporate Events

Daiki Aluminium Reports Strong Quarterly Growth Amidst Market Challenges

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.