Daiken Co., Ltd. (5900) AI Stock Analysis

• Market Cap: ¥4.90B
• Dividend Yield: 2.05%
• Average Volume (3M): 2.53K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.35
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 328
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 3.67
• Shares Outstanding: 5,970,480
• 10 Day Avg. Volume: 1,390
• 30 Day Avg. Volume: 2,533
• PEG Ratio: -0.72
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -16.14
• 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: ¥931.00 ▲(14.94% Upside)

The score is primarily driven by solid financial stability (debt-free balance sheet) and strong recent revenue growth, tempered by weak cash conversion (negative free cash flow) and margin pressure. Technicals are supportive with an established uptrend, but valuation is a headwind due to a high P/E and only modest dividend yield.

Daiken Co., Ltd. Business Overview & Revenue Model

Company Description

Daiken Co.,Ltd. manufactures and supplies various metal products primarily in Japan. It offers various building materials, including door hardware/hanger rails; ceiling, floor, and wall hatches; outdoor sheds; clean, multi, and touch less multi stockers; key storage boxes; push bars for doors; hybrid door devices; folding door system hardware; bike racks, curtain rails, and HACCP; and exterior building materials. The company also exports products related to houses and buildings. Daiken Co.,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daiken Co., Ltd. Financial Statement Overview

Summary

Strong 2025 revenue acceleration (~44% YoY) supports the score, and the balance sheet is very conservative with zero debt and high equity backing. Offsetting this, profitability is thin and weakening (net margin down to ~2.2%), and cash conversion is a concern with negative free cash flow in 2024–2025 despite operating cash flow turning positive in 2025.

Income Statement

Revenue growth accelerated sharply in 2025 (annual revenue up ~44% versus ~3% in 2024), indicating strong top-line momentum. However, profitability is thin and weakening: net margin fell to ~2.2% in 2025 from ~3.0% in 2023–2024, and EBIT/EBITDA margins also compressed year over year. Overall, the business shows improving scale but still modest and somewhat volatile earnings power.

Balance Sheet

The balance sheet is notably conservative with zero reported debt across the period, which reduces financial risk and provides flexibility through industry cycles. Equity remains large relative to assets (equity roughly 84% of assets in 2025), and returns on equity are positive but low (about 1.9% in 2025, down from ~2.5% in 2023–2024), suggesting strong capitalization but limited profitability on that capital.

Cash Flow

Cash generation is inconsistent. Operating cash flow turned positive in 2025 (~¥281M) after being negative in 2024, but it still covers only a small portion of net income in 2025, and free cash flow is negative in both 2024 and 2025. Earlier years (2020–2022) showed healthier, consistently positive free cash flow, so the recent two-year downturn points to elevated investment needs and/or working-capital pressure that warrants monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.96B	11.02B	10.88B	10.60B	9.86B	10.10B
Gross Profit	3.35B	3.25B	3.24B	3.25B	3.17B	3.19B
EBITDA	492.48M	712.24M	816.14M	771.46M	698.59M	740.56M
Net Income	166.65M	246.19M	328.75M	316.10M	257.44M	296.16M
Balance Sheet
Total Assets	15.84B	15.78B	15.85B	15.93B	15.56B	15.29B
Cash, Cash Equivalents and Short-Term Investments	3.21B	3.59B	3.95B	4.73B	4.92B	4.65B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.59B	2.57B	2.80B	3.27B	2.97B	2.89B
Stockholders Equity	13.25B	13.21B	13.05B	12.66B	12.59B	12.41B
Cash Flow
Free Cash Flow	0.00	-274.45M	-692.31M	98.63M	367.38M	658.75M
Operating Cash Flow	0.00	280.87M	-165.93M	355.74M	655.37M	802.72M
Investing Cash Flow	0.00	-555.58M	-530.44M	-249.92M	-294.86M	-168.32M
Financing Cash Flow	0.00	-82.37M	-82.14M	-303.85M	-87.35M	-144.98M

Daiken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5287	80 Outperform	¥3.60B	14.61	―	2.00%	-3.03%	-14.50%
5283	79 Outperform	¥5.80B	10.88	―	1.49%	3.10%	-31.38%
5268	69 Neutral	¥13.02B	60.98	―	1.24%	-2.82%	-44.93%
5900	64 Neutral	¥4.90B	26.51	―	2.05%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5271	54 Neutral	¥3.13B	29.03	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥19.25B	-145.84	―	3.24%	-3.73%	-143.19%

Daiken Co., Ltd. Corporate Events

Daiken Posts Modest Q3 Profits on Solid Equity Base

Daiken Co., Ltd. reported consolidated net sales of ¥8,103 million for the third quarter of the fiscal year ending February 28, 2026, generating operating profit of ¥29 million, ordinary profit of ¥63 million, and profit attributable to owners of parent of ¥3 million, equivalent to basic earnings per share of ¥0.57. As of the end of the quarter, Daiken held total assets of ¥16,322 million and net assets of ¥13,347 million, reflecting a high capital adequacy ratio of 81.8%, which indicates a solid equity base and comparatively low financial leverage for stakeholders assessing the company’s financial stability.

The most recent analyst rating on (JP:5900) stock is a Hold with a Yen931.00 price target. To see the full list of analyst forecasts on Daiken Co., Ltd. stock, see the JP:5900 Stock Forecast page.