Daihatsu Diesel Mfg Co (6023) AI Stock Analysis

• Market Cap: ¥56.82B
• Dividend Yield: 1.88%
• Average Volume (3M): 209.10K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.65
• 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: ¥2,472.00 ▼(-21.52% 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

Revenue & Cash Conversion

Consistent revenue and profit growth, paired with strong operating cash flow and effective conversion of earnings into free cash flow, supports durable internal funding. This underpins reinvestment in product development, spare-parts/service networks, and lifecycle support contracts that sustain long-term competitiveness.

Balance Sheet Strength

A healthy equity base, stable leverage and improving ROE provide financial flexibility for a capital-intensive engine maker. Reasonable debt levels reduce refinancing risk, enabling the company to fund capex, absorb order-cycle volatility, and pursue strategic investments without overreliance on external funding.

Margin Sustainability

Improving gross, EBIT and net margins indicate operational efficiency and pricing power. For industrial engines, durable margins are supported by higher-margin after-sales parts, maintenance services and customized system integration, which create recurring revenue streams and better protect profitability across cycles.

Negative Factors

Recent Top-line & Earnings Weakness

Recent negative revenue and EPS growth point to near-term demand softness or lumpy order timing in marine and industrial markets. If these trends persist, they could erode operating leverage, compress margins and reduce free cash flow, constraining investment in product upgrades and service capacity over the medium term.

Liability Management Risk

The business is capital intensive and exposed to cyclical order flows; the pack explicitly flags caution on liabilities. Even with current equity strength, adverse cycles or higher funding needs could stress liquidity or force higher-cost borrowing, limiting flexibility to invest or weather downturns without cutting other priorities.

Variable Cash Flow from Investing/Financing

Fluctuating capex and financing flows reduce predictability of free cash flow and complicate long-term planning. For an equipment supplier, variable investment needs for new product development or service infrastructure can force trade-offs between maintenance capex, R&D and shareholder returns, increasing execution risk over multiple quarters.

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 primarily makes money by selling engines and engine-based systems to OEMs and end users, with revenue typically coming from (1) new equipment sales—such as marine propulsion/auxiliary engines and land-based generator sets for industrial and power applications—and (2) after-sales support, including spare parts, maintenance, and repair services over the operating life of installed equipment. Additional revenue can come from engineering and system integration work (e.g., tailoring engine-generator packages and related control/auxiliary systems) and service contracts tied to uptime and lifecycle support. Specific customer mix, segment-level revenue breakdown, and named partnerships: null.

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	96.71B	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	52.50B	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 2371.55, above the 50-day MA of 2531.32, and above the 200-day MA of 2647.32, indicating a bearish trend. The MACD of -79.33 indicates Negative momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.99 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	¥72.32B	9.50	―	2.63%	-6.00%	-13.74%
6016	75 Outperform	¥114.59B	19.34	―	0.55%	9.04%	-7.84%
6018	73 Outperform	¥19.01B	20.01	―	2.78%	38.48%	100.84%
6023	71 Outperform	¥56.82B	10.14	11.47%	1.88%	-0.04%	15.59%
6376	70 Outperform	¥141.76B	7.70	8.17%	2.04%	1.48%	58.59%
6363	70 Outperform	¥69.96B	4.09	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%