Dainichi Co., Ltd. (5951) AI Stock Analysis

• Market Cap: ¥15.36B
• Dividend Yield: 2.3%
• Average Volume (3M): 15.23K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.35
• Revenue Growth: 9.86%
• EPS Growth: 119.10%
• Country: JP
• Employees: 490
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 32.07
• Shares Outstanding: 19,058,588
• 10 Day Avg. Volume: 25,690
• 30 Day Avg. Volume: 15,233
• PEG Ratio: 0.30
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 4.47
• 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: 82 Outperform
• Price Target: ¥1,111.00 ▲(26.83% Upside)

The score is driven primarily by strong financial quality—especially the very low-leverage balance sheet—alongside improving profitability. Technicals are supportive with price above key moving averages and positive momentum indicators, while a moderate P/E and solid dividend yield reinforce the overall attractiveness. The key risk is cash-flow consistency given historical volatility.

Positive Factors

Balance Sheet Health

A very low-leverage balance sheet enhances financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Profitability Improvement

Improving profitability through revenue growth and margin expansion indicates effective cost management and pricing power, strengthening long-term financial health.

Cash Generation

Strong cash generation supports operational needs and strategic investments, enhancing the company's ability to fund growth and return value to shareholders.

Negative Factors

Cash Flow Volatility

Volatile cash flows can challenge financial planning and stability, potentially limiting the company's ability to consistently invest in growth or return capital to shareholders.

Cyclical Revenue

Cyclical revenue patterns can lead to unpredictable earnings and cash flow, complicating long-term strategic planning and potentially affecting investor confidence.

Moderate Returns

While returns are stable, moderate returns on equity may indicate limited efficiency in generating profits from shareholders' investments, potentially impacting growth prospects.

Dainichi Co., Ltd. Business Overview & Revenue Model

Company Description

Dainichi Co., Ltd. manufactures and sells oil fan heaters, ceramic fan heaters, gas fan heaters, humidifiers, coffee makers, and other products in Japan. The company was incorporated in 1964 and is headquartered in Niigata, Japan.

How the Company Makes Money

Dainichi Co., Ltd. generates revenue primarily through the sale of its home appliance products, particularly its heating equipment. The company capitalizes on seasonal demand, especially in colder months, when there is an increased need for heating solutions. The company sells its products both domestically in Japan and in international markets, leveraging its reputation for quality and innovation. In addition to direct sales, Dainichi may also engage in partnerships or collaborations with retailers and distributors to expand its market reach and improve sales performance.

Dainichi Co., Ltd. Financial Statement Overview

Summary

Dainichi Co., Ltd. shows strong financial stability with zero debt and a robust equity position, but faces challenges with declining revenue and fluctuating cash flows. The stable gross profit margin is a positive factor, but declining EBIT margins and volatile free cash flow highlight the need for strategic growth initiatives.

Income Statement

Dainichi Co., Ltd. has shown a decline in total revenue over the recent periods, with a significant drop from 2021. Despite this, the company maintains a stable gross profit margin (around 28% for TTM) and a positive net profit margin of 4.6% for TTM. However, the declining revenue and EBIT margins indicate potential challenges in maintaining profitability.

Balance Sheet

The company has a strong balance sheet with total debt at zero, resulting in a healthy equity ratio of approximately 85% for TTM. The return on equity (ROE) is respectable at 3.1% for TTM, although it has declined from previous years. The absence of debt minimizes financial risk and provides stability.

Cash Flow

Free cash flow has been volatile, with a negative free cash flow for the most recent periods. Operating cash flow is currently unavailable, making cash flow analysis challenging. The declining free cash flow to net income ratio suggests that cash generation is an area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.33B	19.90B	19.65B	21.21B	21.09B	22.88B
Gross Profit	5.65B	5.74B	5.42B	5.75B	5.78B	6.48B
EBITDA	2.16B	2.22B	1.91B	2.31B	2.32B	2.84B
Net Income	1.28B	1.16B	888.24M	1.21B	1.07B	1.47B
Balance Sheet
Total Assets	30.03B	31.91B	31.18B	30.26B	28.96B	29.29B
Cash, Cash Equivalents and Short-Term Investments	10.86B	14.09B	11.57B	12.21B	11.90B	13.22B
Total Debt	164.15M	4.11M	0.00	0.00	0.00	0.00
Total Liabilities	2.62B	3.97B	4.09B	4.16B	3.89B	4.86B
Stockholders Equity	27.40B	27.94B	27.09B	26.10B	25.07B	24.43B
Cash Flow
Free Cash Flow	0.00	2.37B	-283.04M	1.46B	-342.60M	5.23B
Operating Cash Flow	0.00	2.82B	111.10M	2.02B	546.39M	5.53B
Investing Cash Flow	0.00	-2.95B	-893.50M	-1.36B	-2.01B	-290.82M
Financing Cash Flow	0.00	-356.11M	-355.67M	-355.92M	-355.49M	-355.54M

Dainichi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 876.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5951, the sentiment is Positive. The current price of 876 is below the 20-day moving average (MA) of 951.50, below the 50-day MA of 925.92, and above the 200-day MA of 780.05, indicating a neutral trend. The MACD of 7.96 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5951.

Dainichi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5951	82 Outperform	¥15.36B	11.39	―	2.30%	9.86%	119.10%
6484	81 Outperform	¥21.66B	9.13	―	3.46%	3.87%	5.89%
7981	79 Outperform	¥197.77B	14.10	―	3.41%	6.17%	61.39%
7955	78 Outperform	¥32.57B	12.90	―	3.56%	3.03%	160.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5909	56 Neutral	¥27.94B	39.92	―	2.94%	0.41%	-51.02%