Daikoku Denki Co., Ltd. (6430) AI Stock Analysis

• Market Cap: ¥40.01B
• Dividend Yield: 4.44%
• Average Volume (3M): 93.92K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.95
• Revenue Growth: -4.16%
• EPS Growth: -29.41%
• Country: JP
• Employees: 644
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 167.06
• Shares Outstanding: 14,818,175
• 10 Day Avg. Volume: 96,060
• 30 Day Avg. Volume: 93,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 80 Outperform
• Price Target: ―

Daikoku Denki Co., Ltd. is a strong performer with impressive financial health, characterized by significant revenue growth, high profitability, and minimal leverage. The technical analysis presents some cautionary signals, but the company's valuation is compelling with a low P/E ratio and high dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Financial Stability

Minimal leverage enhances financial stability, allowing Daikoku Denki to withstand economic fluctuations and invest in growth opportunities without the burden of high interest obligations.

Cash Flow Generation

Strong free cash flow growth indicates effective cash management and the ability to fund operations and strategic initiatives, supporting long-term business sustainability.

Profitability Margins

High profitability margins reflect efficient cost management and pricing strategies, providing a buffer against market volatility and enabling reinvestment into business growth.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future profitability and market position if not addressed.

Earnings Decline

A significant drop in EPS growth suggests potential operational inefficiencies or market challenges, which could affect investor confidence and the company's ability to fund future growth.

Market Dependence

Heavy reliance on a niche market like pachinko and pachislot exposes Daikoku Denki to industry-specific risks, such as regulatory changes or shifts in consumer preferences, which could impact long-term growth.

Daikoku Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Daikoku Denki Co., Ltd. develops, manufactures, and sells computer and other information system equipment for pachinko halls in Japan. The company also develops software; and develops, manufactures, and sells units for pachinko and pachislo game machines. In addition, it provides information on pachinko halls and game machines through PC and cell-phone Web sites, and pay TV channels. The company was incorporated in 1947 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Daikoku Denki generates revenue mainly through its two business segments. The Information System Segment offers comprehensive data management and operational support systems to pachinko halls, allowing them to optimize operations and enhance customer experiences. Revenue from this segment is derived from the sale, installation, and maintenance of these systems. The Control System Segment contributes to the company's earnings by supplying essential components for pachinko and pachislot machines, including LCD displays and circuit boards. This segment's revenue comes from the direct sale of these components to manufacturers of gaming machines. Additionally, the company may engage in strategic partnerships and collaborations within the gaming industry to further its technological advancements and market reach.

Daikoku Denki Co., Ltd. Financial Statement Overview

Summary

Daikoku Denki Co., Ltd. exhibits strong financial performance with impressive revenue growth, robust profitability margins, minimal leverage, and healthy cash flows. The company's financial health is well-supported by effective operational management and a stable balance sheet. Potential risks are low, given the strong equity position and efficient cash flow management.

Income Statement

Daikoku Denki Co., Ltd. has demonstrated strong revenue growth, with a significant 69.2% increase in total revenue from the previous year. The company maintains healthy profitability margins, with a gross profit margin of 44.6% and a net profit margin of 15.7%. Additionally, the EBIT margin stands at 22.3% and the EBITDA margin at 25.4%, indicating efficient operational performance.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.00, reflecting minimal leverage and strong financial stability. The equity ratio is 68.7%, showcasing a solid equity position relative to total assets. Return on equity (ROE) is also strong at 20.8%, indicating effective utilization of shareholders' equity to generate profits.

Cash Flow

Daikoku Denki's cash flow is healthy, with a substantial 224.8% growth in free cash flow. The operating cash flow to net income ratio is approximately 1.00, demonstrating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.74, indicating a solid ability to generate free cash flow from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.41B	57.42B	53.86B	31.82B	24.39B	23.23B
Gross Profit	26.69B	26.69B	24.98B	14.51B	10.14B	9.39B
EBITDA	13.92B	13.19B	13.67B	5.75B	3.07B	2.96B
Net Income	7.73B	7.73B	8.46B	2.93B	1.23B	612.64M
Balance Sheet
Total Assets	57.27B	57.27B	59.28B	48.30B	41.49B	41.08B
Cash, Cash Equivalents and Short-Term Investments	16.96B	16.96B	20.43B	17.42B	16.58B	16.24B
Total Debt	0.00	0.00	464.00K	2.00B	2.00B	3.00B
Total Liabilities	11.98B	11.98B	18.56B	14.90B	10.35B	10.42B
Stockholders Equity	45.29B	45.29B	40.72B	33.40B	31.14B	30.66B
Cash Flow
Free Cash Flow	0.00	2.08B	6.30B	1.94B	2.28B	2.22B
Operating Cash Flow	0.00	7.67B	8.43B	2.98B	3.22B	3.40B
Investing Cash Flow	0.00	-7.85B	-1.73B	-1.98B	-564.73M	-2.24B
Financing Cash Flow	0.00	-3.30B	-3.18B	-666.28M	-1.81B	-891.66M

Daikoku Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6430, the sentiment is Positive. The current price of 2700 is above the 20-day moving average (MA) of 2590.05, above the 50-day MA of 2363.20, and above the 200-day MA of 2552.44, indicating a bullish trend. The MACD of 92.80 indicates Negative momentum. The RSI at 77.91 is Negative, neither overbought nor oversold. The STOCH value of 95.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6430.

Daikoku Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6430	80 Outperform	¥40.01B	6.30		4.44%	-4.16%	-29.41%
7739	75 Outperform	¥109.79B	15.19		2.61%	7.82%	3.26%
6413	71 Outperform	¥73.92B	24.27		4.11%	0.39%	-40.10%
6737	71 Outperform	¥96.55B	25.04		6.94%	-0.61%	-16.31%
6676	68 Neutral	¥46.64B	7.26		3.19%	-5.61%	158.73%
6918	67 Neutral	¥13.81B	15.40		3.04%	-18.21%	-81.79%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%