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Daido Kogyo Co., Ltd. (JP:6373)
:6373
Japanese Market

Daido Kogyo Co., Ltd. (6373) AI Stock Analysis

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JP

Daido Kogyo Co., Ltd.

(6373)

Rating:81Outperform
Price Target:
¥1,285.00
▲(14.73%Upside)
Daido Kogyo Co., Ltd. is well-positioned with strong financial performance and technical indicators signaling bullish momentum. The stock's attractive valuation further supports a positive outlook. Despite some cash flow volatility, the financial foundation remains solid, suggesting continued growth potential.

Daido Kogyo Co., Ltd. (6373) vs. iShares MSCI Japan ETF (EWJ)

Daido Kogyo Co., Ltd. Business Overview & Revenue Model

Company DescriptionDaido Kogyo Co., Ltd. (6373) is a Japanese company primarily engaged in the manufacture and sale of industrial machinery and equipment. The company operates in various sectors, including the production of chains, sprockets, and other power transmission products. Daido Kogyo is known for its robust engineering solutions that cater to a wide range of industries, ensuring high-quality and durable products that meet the needs of its global clientele.
How the Company Makes MoneyDaido Kogyo Co., Ltd. generates revenue through the sale of its industrial machinery and power transmission products. The company's key revenue streams include the manufacture and distribution of chains and sprockets used in various industrial applications. Significant partnerships with companies in the automotive, agricultural, and construction industries also contribute to its earnings. Additionally, Daido Kogyo invests in research and development to innovate and enhance its product offerings, which helps maintain a competitive edge in the market. The company may also engage in after-sales services and support, providing maintenance and repair services that add to its revenue.

Daido Kogyo Co., Ltd. Financial Statement Overview

Summary
Daido Kogyo Co., Ltd. has demonstrated robust financial performance with significant improvements in revenue growth, profitability, and cash flow generation. The balance sheet is strong with a healthy equity position and manageable debt levels, though some cash flow metrics show volatility.
Income Statement
78
Positive
Daido Kogyo Co., Ltd. has shown significant revenue growth over the past years, with a notable increase of 2.63% in the latest year. The gross profit margin stands at 19.36%, indicating efficient production processes. Net profit margin improved to 2.07% from a negative position two years prior, showing a turnaround in profitability. EBIT and EBITDA margins are relatively stable at 2.40% and 9.30% respectively, reflecting operational efficiency. However, the company experienced a dip in EBIT margin compared to the previous year.
Balance Sheet
82
Very Positive
The company's balance sheet reflects strong equity with an equity ratio of 39.49%, signifying a solid financial foundation. The debt-to-equity ratio is 0.80, showcasing a balanced approach to leveraging. Return on equity has improved to 3.88% from negative values, indicating enhanced shareholder value. However, the overall asset base has slightly contracted, which may limit future growth opportunities.
Cash Flow
74
Positive
Operating cash flow has strengthened, with a significant increase to 3.89 times the net income, indicating strong cash generation relative to profit. Free cash flow has transitioned from negative to positive, showing improved cash management. However, the free cash flow growth rate is volatile, showing a high fluctuation over the years, which could pose risks to consistent cash flow stability.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue57.06B57.52B56.04B55.05B49.85B42.48B
Gross Profit10.97B11.14B9.73B9.94B9.77B7.54B
EBITDA3.95B5.35B4.09B4.28B5.46B3.81B
Net Income486.00M1.19B342.00M-257.00M2.35B1.05B
Balance Sheet
Total Assets77.79B77.80B79.12B73.03B71.49B67.91B
Cash, Cash Equivalents and Short-Term Investments7.22B8.71B8.28B8.29B11.52B12.75B
Total Debt25.05B24.59B25.58B24.88B25.06B25.64B
Total Liabilities41.45B41.01B42.44B40.75B40.24B38.81B
Stockholders Equity30.63B30.72B31.16B26.89B26.42B22.99B
Cash Flow
Free Cash Flow0.00954.00M-1.47B-1.83B811.00M1.09B
Operating Cash Flow0.004.64B2.78B2.23B4.06B3.57B
Investing Cash Flow0.00-2.81B-2.84B-4.48B-3.34B-2.47B
Financing Cash Flow0.00-1.70B-241.00M-1.38B-2.12B3.80B

Daido Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1120.00
Price Trends
50DMA
1039.68
Positive
100DMA
915.87
Positive
200DMA
839.20
Positive
Market Momentum
MACD
15.53
Positive
RSI
62.53
Neutral
STOCH
81.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6373, the sentiment is Positive. The current price of 1120 is above the 20-day moving average (MA) of 1107.45, above the 50-day MA of 1039.68, and above the 200-day MA of 839.20, indicating a bullish trend. The MACD of 15.53 indicates Positive momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6373.

Daido Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥12.22B9.60
2.23%2.63%268.28%
80
Outperform
¥12.79B10.13
3.66%-6.96%-1.72%
80
Outperform
¥14.64B10.46
357.18%20.91%18.64%
75
Outperform
¥13.05B13.53
3.04%25.64%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
57
Neutral
¥12.15B15.76
2.04%25.48%
54
Neutral
¥12.68B
5.66%-6.30%34.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6373
Daido Kogyo Co., Ltd.
1,120.00
210.90
23.20%
JP:6203
Howa Machinery, Ltd.
979.00
60.21
6.55%
JP:6210
Toyo Machinery & Metal Co., Ltd.
618.00
-82.01
-11.72%
JP:6262
PEGASUS CO. LTD
526.00
-50.52
-8.76%
JP:6317
Kitagawa Corporation
1,366.00
-101.95
-6.95%
JP:6496
Nakakita Seisakusho Co., Ltd.
4,320.00
85.36
2.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025