Daifuku Co (6383) AI Stock Analysis

• Market Cap: ¥1.84T
• Dividend Yield: 1.32%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 11,042
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 56.69
• Shares Outstanding: 379,830,230
• 10 Day Avg. Volume: 1,257,220
• 30 Day Avg. Volume: 1,346,703
• PEG Ratio: 0.26
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 12.93
• 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: ¥5,649.37
• Price Target Upside: 12.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 202.92
• Revenue Forecast (FY): ¥657.58B

• Rating: 72 Outperform
• Price Target: ¥5,604.00 ▲(11.50% Upside)

Daifuku Co's overall stock score is driven by strong financial performance, with robust revenue growth and profitability. The technical analysis supports a positive outlook with bullish trends, although the stock may be overbought. Valuation is a concern due to a high P/E ratio, which suggests the stock may be overvalued. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Daifuku's products, enhancing its market position and supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Daifuku to invest in growth opportunities.

Profitability Margins

Sustained profitability margins reflect efficient operations and pricing power, supporting long-term financial health and shareholder value.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit Daifuku's ability to fund new projects and return capital to shareholders if it continues.

Debt Levels

Increasing debt levels, although currently manageable, could pose risks to financial flexibility if not controlled.

Cash Flow Conversion

While cash generation is adequate, the lower conversion ratio suggests potential inefficiencies in converting income to cash, impacting liquidity.

Daifuku Co Business Overview & Revenue Model

Company Description

Daifuku Co., Ltd. provides consulting, engineering, design, manufacture, installation, and after-sales services for logistics systems and material handling equipment in Japan and internationally. The company offers automated warehousing, various storage and transport, and sorting and picking systems to distributors, including e-commerce, retail, wholesale, transportation, and warehousing customers, as well as to food, pharmaceuticals, and chemicals manufactures; and cleanroom transport and storage systems used in manufacturing semiconductors and flat panel displays for smartphones and tablet computers. It also provides systems for automobile production processes; and solutions for airports comprising baggage handling systems, automated baggage check-in systems, baggage screening systems, and software and controls. In addition, the company offers car wash machines to filling stations and automobile dealers; and high-end industrial personal computers, controllers used in medical devices, computers built in digital signage, and measuring/control systems for solar facilities, as well as IT systems and wireless power supply solutions. The company was formerly known as Daifuku Machinery Works Co., Ltd. Daifuku Co., Ltd. was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daifuku generates revenue through multiple key streams, primarily by designing, manufacturing, and selling its automated material handling systems and services. The company earns income from the initial sale of equipment and systems, as well as from long-term maintenance and support contracts. Additionally, Daifuku benefits from recurring revenue through software solutions that enhance warehouse management and logistics operations. Significant partnerships with major corporations in the automotive and e-commerce sectors bolster its market presence and contribute to stable earnings. The company also engages in international expansion, allowing it to tap into emerging markets and diversify its revenue sources.

Daifuku Co Financial Statement Overview

Summary

Daifuku Co demonstrates strong financial performance with robust profitability and cash flow generation. Despite a slight revenue decline in the TTM period, the company maintains healthy margins and a solid balance sheet with low leverage, positioning it well for future growth.

Income Statement

Daifuku Co's income statement showcases a robust financial performance with a consistent increase in total revenue over the years, reaching JPY 723,484 million in TTM. The gross profit margin stands at 22.38%, and the net profit margin at 10.22% for TTM, indicating healthy profitability. The EBIT margin is 13.10%, and the EBITDA margin is 14.63%, reflecting strong operational efficiency. The revenue growth rate from 2024 to TTM is -3.66%, suggesting a slight decline due to market conditions, but the overall growth trajectory remains positive over the past five years.

Balance Sheet

The balance sheet of Daifuku Co exhibits strong financial health with a debt-to-equity ratio of 0.16, indicating low leverage and prudent financial management. The return on equity (ROE) is 18.85%, showcasing effective utilization of shareholder funds. An equity ratio of 57.96% indicates a solid financial structure with a significant portion of assets funded by equity, providing stability. Overall, the company maintains a strong balance sheet with a low-risk profile.

Cash Flow

Daifuku Co's cash flow statement reflects impressive cash generation capabilities. The free cash flow growth rate is 10.90% from the previous period, indicating strong growth in cash reserves. The operating cash flow to net income ratio is 1.83, and the free cash flow to net income ratio is 1.56, both highlighting efficient cash flow management and conversion of income into cash. The company's cash flow position is robust, supporting sustainable growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	746.62B	750.97B	611.48B	601.92B	512.27B	473.90B
Gross Profit	176.13B	170.18B	119.78B	109.80B	94.30B	88.16B
EBITDA	125.43B	111.18B	74.03B	64.60B	59.30B	52.85B
Net Income	85.84B	76.12B	45.46B	41.25B	35.88B	32.39B
Balance Sheet
Total Assets	707.01B	698.57B	646.15B	551.55B	483.32B	445.46B
Cash, Cash Equivalents and Short-Term Investments	227.74B	221.52B	142.04B	102.75B	118.77B	94.17B
Total Debt	62.23B	69.22B	70.62B	11.46B	26.36B	35.14B
Total Liabilities	285.47B	300.14B	287.40B	219.23B	191.26B	183.44B
Stockholders Equity	421.53B	398.09B	358.41B	332.02B	290.77B	257.06B
Cash Flow
Free Cash Flow	68.55B	104.25B	17.39B	6.32B	46.23B	30.75B
Operating Cash Flow	93.77B	116.13B	37.12B	20.03B	56.69B	38.23B
Investing Cash Flow	-17.40B	-2.39B	-29.58B	-11.87B	-9.83B	-6.13B
Financing Cash Flow	-45.85B	-36.82B	22.73B	-30.19B	-27.55B	-8.93B

Daifuku Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5026.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6383, the sentiment is Neutral. The current price of 5026 is above the 20-day moving average (MA) of 4975.50, above the 50-day MA of 4946.46, and above the 200-day MA of 4189.89, indicating a neutral trend. The MACD of -8.94 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6383.

Daifuku Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	78 Outperform	¥1.32T	22.46	11.96%	1.23%	4.63%	12.32%
5333	73 Outperform	¥954.59B	18.62	7.13%	2.02%	8.91%	12.03%
6383	72 Outperform	¥1.84T	26.36	16.30%	1.32%	―	―
6406	70 Outperform	¥430.35B	28.57	―	3.00%	0.32%	-15.41%
6268	65 Neutral	¥436.55B	28.04	5.25%	2.14%	-2.23%	130.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6361	60 Neutral	¥1.66T	22.11	16.00%	1.42%	13.96%	12.97%