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

• Market Cap: ¥10.59B
• Dividend Yield: 3.36%
• Average Volume (3M): 21.28K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.33
• Revenue Growth: -5.57%
• EPS Growth: -1.82%
• Country: JP
• Employees: 490
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -19.72
• Shares Outstanding: 19,058,588
• 10 Day Avg. Volume: 8,200
• 30 Day Avg. Volume: 21,283
• PEG Ratio: 0.29
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Dainichi Co., Ltd. has a strong balance sheet with zero debt, providing financial stability. However, declining revenue and volatile cash flows present challenges. The technical analysis indicates a bearish trend, with the stock price below key moving averages. The valuation is reasonable, with a moderate P/E ratio and an attractive dividend yield. Overall, the stock presents a mixed outlook with financial stability but operational challenges and bearish market sentiment.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
18.84B	19.65B	21.21B	21.09B	22.88B	18.83B
	Gross Profit
5.34B	5.21B	5.75B	5.78B	6.48B	4.67B
	EBIT
1.02B	1.10B	1.45B	1.36B	2.01B	180.59M
	EBITDA
1.65B	1.91B	2.52B	2.46B	2.86B	1.10B
	Net Income Common Stockholders
870.16M	888.24M	1.21B	1.07B	1.47B	116.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.57B	11.57B	12.21B	11.90B	13.22B	8.34B
	Total Assets
31.18B	31.18B	30.26B	28.96B	29.29B	27.53B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-10.57B	-7.06B	-10.20B	-9.89B	-12.71B	-8.33B
	Total Liabilities
4.09B	4.09B	4.16B	3.89B	4.86B	4.35B
	Stockholders Equity
27.09B	27.09B	26.10B	25.07B	24.43B	23.18B
Cash Flow		Free Cash Flow
0.00	-283.04M	1.46B	-342.60M	5.23B	-1.88B
	Operating Cash Flow
0.00	111.10M	2.02B	546.39M	5.53B	-86.36M
	Investing Cash Flow
0.00	-893.50M	-1.36B	-2.01B	-290.82M	-1.79B
	Financing Cash Flow
0.00	-355.67M	-355.92M	-355.49M	-355.54M	-355.66M

Dainichi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 646.00
• 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 646 is below the 20-day moving average (MA) of 647.80, above the 50-day MA of 642.53, and above the 200-day MA of 618.61, indicating a bullish trend. The MACD of 2.47 indicates Positive momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
6345	82 Outperform	¥100.31B	16.23		4.01%	11.63%	20.80%
6301	80 Outperform	¥3.97T	9.09		4.46%	5.97%	13.78%
Sector *	61 Neutral	$6.92B	11.84	3.00%	3.95%	2.60%	-21.94%
5951	58 Neutral	¥10.59B	12.18		3.36%	-5.57%	-1.82%
6471	52 Neutral	¥291.72B	29.01		5.38%	-3.42%	-35.09%