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

• Market Cap: ¥12.22B
• Dividend Yield: 2.23%
• Average Volume (3M): 43.83K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.74
• Revenue Growth: 2.63%
• EPS Growth: 268.28%
• Country: JP
• Employees: 2,480
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 44.12
• Shares Outstanding: 10,924,201
• 10 Day Avg. Volume: 36,660
• 30 Day Avg. Volume: 43,833
• PEG Ratio: 0.29
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.46
• 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

• Rating: 81 Outperform
• 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. Business Overview & Revenue Model

Company Description

Daido 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 Money

Daido 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	57.06B	57.52B	56.04B	55.05B	49.85B	42.48B
Gross Profit	10.97B	11.14B	9.73B	9.94B	9.77B	7.54B
EBITDA	3.95B	5.35B	4.09B	4.28B	5.46B	3.81B
Net Income	486.00M	1.19B	342.00M	-257.00M	2.35B	1.05B
Balance Sheet
Total Assets	77.79B	77.80B	79.12B	73.03B	71.49B	67.91B
Cash, Cash Equivalents and Short-Term Investments	7.22B	8.71B	8.28B	8.29B	11.52B	12.75B
Total Debt	25.05B	24.59B	25.58B	24.88B	25.06B	25.64B
Total Liabilities	41.45B	41.01B	42.44B	40.75B	40.24B	38.81B
Stockholders Equity	30.63B	30.72B	31.16B	26.89B	26.42B	22.99B
Cash Flow
Free Cash Flow	0.00	954.00M	-1.47B	-1.83B	811.00M	1.09B
Operating Cash Flow	0.00	4.64B	2.78B	2.23B	4.06B	3.57B
Investing Cash Flow	0.00	-2.81B	-2.84B	-4.48B	-3.34B	-2.47B
Financing Cash Flow	0.00	-1.70B	-241.00M	-1.38B	-2.12B	3.80B

Daido Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6373	81 Outperform	¥12.22B	9.60		2.23%	2.63%	268.28%
6317	80 Outperform	¥12.79B	10.13		3.66%	-6.96%	-1.72%
6496	80 Outperform	¥14.64B	10.46		357.18%	20.91%	18.64%
6262	75 Outperform	¥13.05B	13.53		3.04%	25.64%	―
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%
6203	57 Neutral	¥12.15B	15.76		2.04%	25.48%	―
6210	54 Neutral	¥12.68B	―		5.66%	-6.30%	34.61%