Daihatsu Diesel Mfg Co (6023) AI Stock Analysis

• Market Cap: ¥63.75B
• Dividend Yield: 1.88%
• Average Volume (3M): 209.10K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.67
• Revenue Growth: -0.04%
• EPS Growth: 15.59%
• Country: JP
• Employees: 1,327
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 62.56
• Shares Outstanding: 31,850,000
• 10 Day Avg. Volume: 158,310
• 30 Day Avg. Volume: 209,103
• PEG Ratio: 0.86
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 17.88
• 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): 186.8
• Revenue Forecast (FY): ¥87.00B

• Rating: 71 Outperform
• Price Target: ¥2,774.00 ▼(-11.94% Downside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

Daihatsu Diesel Mfg Co. has a solid financial performance with strong revenue and profit growth, which is the most significant factor in its overall score. The technical analysis suggests mixed momentum, with short-term bearish signals but longer-term support. The valuation is reasonable, with a moderate dividend yield adding to its appeal. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Free cash flow conversion

Consistent positive Free Cash Flow and strong Operating Cash Flow provide durable internal funding for maintenance, aftermarket support, and selective capex. Reliable cash conversion supports reinvestment in service networks, predictable dividend capacity, and capacity to deleverage over intermediate cycles.

Improving profitability margins

Rising gross and net margins alongside improved EBIT/EBITDA indicate structural operational efficiency gains. Margin expansion enhances resilience to cyclical demand, funds product development and warranty/service capabilities, and provides a lasting buffer against cost volatility over the medium term.

Solid balance sheet and leverage

A healthy equity base, stable leverage and rising ROE create financial flexibility to fund long-term contracts, support R&D and absorb industry cyclicality. Reasonable debt levels reduce refinancing risk and enable strategic capital allocation without immediate recourse to volatile external markets.

Negative Factors

Recent revenue & EPS weakness

Declines in reported revenue and EPS signal demand softness or mix shifts in capital goods end markets. If these trends persist, they can erode the company's ability to fund long-term initiatives, weaken bargaining power with OEMs, and pressure margins and cash returns over the next several quarters.

Competitive industry pressure

The industrial engine market is competitive and can compress pricing and margins. Maintaining revenue and margin expansion requires sustained differentiation, contract wins, and service penetration; failure to do so would make growth and profitability gains vulnerable over a multi-quarter horizon.

Variable CapEx and financing flows

Volatility in capital spending and financing cash flows implies uneven investment and funding patterns. This variability can strain free cash flow predictability, force opportunistic borrowing in downturns, and complicate long-term planning for product upgrades and service infrastructure.

Daihatsu Diesel Mfg Co Business Overview & Revenue Model

Company Description

Daihatsu Diesel Mfg Co (6023) is a Japanese company specializing in the manufacturing of diesel engines and related products. Established in 1950, the company operates primarily in the sectors of marine engineering, power generation, and industrial machinery. Daihatsu Diesel is recognized for its high-quality, reliable engine solutions that cater to various applications, including commercial shipping, power plants, and industrial equipment.

How the Company Makes Money

Daihatsu Diesel generates revenue primarily through the sale of diesel engines and related products, which constitute a significant portion of its revenue stream. The company also earns income from providing maintenance and repair services for its engines, ensuring long-term customer relationships. Additionally, Daihatsu Diesel benefits from partnerships with other manufacturers for joint ventures and collaborations, which can lead to new market opportunities and enhanced product offerings. The company also engages in export activities, supplying engines to international markets, thereby diversifying its revenue sources.

Daihatsu Diesel Mfg Co Financial Statement Overview

Summary

Daihatsu Diesel Mfg Co. shows strong revenue and profit growth, efficient operational management, and a stable financial foundation. The company has robust cash flow generation, but attention to debt management and strategic capital allocation is crucial for sustaining long-term growth.

Income Statement

Daihatsu Diesel Mfg Co. has demonstrated a strong revenue growth trajectory with a substantial increase in Total Revenue from 2021 to 2025. Gross Profit Margin and Net Profit Margin have shown positive trends, indicating robust profitability. The EBIT and EBITDA margins have improved, reflecting efficient operational management. However, the company should be cautious of maintaining these growth rates in a competitive industry.

Balance Sheet

The company's balance sheet shows a healthy equity position with a stable Debt-to-Equity ratio, indicating reasonable leverage. The Return on Equity (ROE) has improved over the years, showcasing effective use of equity to generate profits. The Equity Ratio has maintained stability, showing a solid financial foundation. However, the industry dynamics necessitate caution in managing liabilities.

Cash Flow

Cash flow analysis reveals positive growth in Free Cash Flow, supported by consistent Operating Cash Flow generation. The Free Cash Flow to Net Income ratio suggests effective conversion of earnings into cash. However, fluctuations in Capital Expenditure and Financing Cash Flow indicate potential variations in cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	89.39B	88.78B	81.78B	72.11B	57.60B	56.75B
Gross Profit	20.80B	20.90B	17.01B	14.61B	13.28B	11.03B
EBITDA	9.96B	10.71B	9.48B	6.85B	5.66B	4.19B
Net Income	5.57B	5.72B	5.15B	2.95B	1.97B	712.07M
Balance Sheet
Total Assets	96.63B	96.11B	101.43B	95.38B	89.27B	80.38B
Cash, Cash Equivalents and Short-Term Investments	24.82B	21.52B	29.62B	26.63B	27.15B	20.33B
Total Debt	14.15B	14.35B	12.39B	13.60B	14.89B	14.18B
Total Liabilities	52.87B	51.90B	50.58B	49.65B	46.20B	39.17B
Stockholders Equity	43.70B	44.15B	50.79B	45.68B	43.03B	41.17B
Cash Flow
Free Cash Flow	0.00	3.03B	2.05B	1.28B	6.43B	1.13B
Operating Cash Flow	0.00	9.35B	4.67B	4.49B	7.87B	3.04B
Investing Cash Flow	0.00	-6.51B	450.66M	-3.08B	-1.30B	-1.85B
Financing Cash Flow	0.00	-10.80B	-2.10B	-1.98B	84.35M	-2.31B

Daihatsu Diesel Mfg Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3150.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6023, the sentiment is Negative. The current price of 3150 is above the 20-day moving average (MA) of 2540.15, above the 50-day MA of 2616.86, and above the 200-day MA of 2616.45, indicating a bearish trend. The MACD of -22.67 indicates Negative momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6023.

Daihatsu Diesel Mfg Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6517	78 Outperform	¥75.79B	15.50	―	2.63%	-6.00%	-13.74%
6016	75 Outperform	¥127.10B	27.98	―	0.55%	9.04%	-7.84%
6023	71 Outperform	¥63.75B	13.52	11.47%	1.88%	-0.04%	15.59%
6018	71 Outperform	¥16.13B	19.37	―	2.78%	38.48%	100.84%
6376	70 Outperform	¥148.78B	11.89	8.17%	2.04%	1.48%	58.59%
6363	70 Outperform	¥70.88B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%