DAIWA (6459) AI Stock Analysis

• Market Cap: ¥79.28B
• Dividend Yield: 3.69%
• Average Volume (3M): 36.42K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.75
• Revenue Growth: 2.13%
• EPS Growth: -1.16%
• Country: JP
• Employees: 1,872
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 31.28
• Shares Outstanding: 51,717,216
• 10 Day Avg. Volume: 44,330
• 30 Day Avg. Volume: 36,423
• PEG Ratio: -8.09
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 84.31
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,788.00 ▲(10.37% Upside)

The score is driven primarily by solid financial quality anchored by a debt-free balance sheet and healthy margins, tempered by weak cash-flow conversion in the most recent year. Supportive technical momentum and a reasonable valuation with a ~3% dividend add to the overall attractiveness.

Positive Factors

Balance Sheet Health

A debt-free balance sheet eliminates financial leverage risk, providing stability and flexibility for future investments and growth.

Profitability

Strong profitability with solid margins indicates efficient operations and competitive pricing power, supporting long-term business sustainability.

Revenue Growth

Consistent revenue growth reflects resilient demand and effective market positioning, enhancing the company's long-term prospects.

Negative Factors

Cash Flow Volatility

Volatile cash flow reduces predictability in financial planning, potentially impacting the company's ability to fund operations and growth consistently.

Net Margin Pressure

Easing net margins suggest increasing costs or pricing pressure, which could affect profitability if not managed effectively over time.

Recent Sales Decline

Recent declines in sales and operating profit indicate potential challenges in maintaining growth momentum, which could impact future performance.

DAIWA Business Overview & Revenue Model

Company Description

Daiwa Industries Ltd. manufactures, sells, and leases freezers, refrigerators, undercounters, showcases, ice makers, vending machines, and cooling system applied products in Japan and internationally. The company also offers kitchen equipment, devices, and parts; plans, designs, and constructs stores and kitchens; generates and sells electricity; and installs cooling equipment, as well as provides related parts. In addition, it provides healthcare and science related equipment, as well as undertakes construction works. Daiwa Industries Ltd. was incorporated in 1950 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daiwa Industries Ltd. generates revenue primarily through the sale of its commercial kitchen equipment and refrigeration units. The company caters to commercial establishments such as restaurants, supermarkets, and convenience stores, offering products that include refrigerators, freezers, showcases, and ice makers. Daiwa's business model emphasizes manufacturing excellence and customer satisfaction, leveraging its reputation and product reliability to maintain a steady income stream. Significant factors contributing to its earnings include its strong distribution network and partnerships with major retailers and food service providers, which help in reaching a broad customer base. The company's continuous investment in research and development also plays a crucial role in sustaining its competitive edge in the market.

DAIWA Financial Statement Overview

Summary

Strong profitability and an exceptionally conservative balance sheet (zero debt) support the score, but it is held back by weak and volatile cash generation in the latest year (low operating cash flow vs. net income and a sharp drop in free cash flow).

Income Statement

Revenue shows a generally upward trajectory from 2019 to 2024 (2024 up ~4% vs. 2023), indicating resilient demand. Profitability is strong for the sector, with 2024 gross margin ~56% and operating margin ~17%, though net margin eased to ~11% from ~12% in 2023, signaling some pressure below the operating line. Overall, the company is profitable with solid margins, but recent net margin softening and modest growth keep the score below top-tier.

Balance Sheet

The balance sheet is very conservatively positioned with zero total debt across the periods provided, eliminating financial leverage risk. Equity and assets remain sizable and stable, and returns on equity are positive (mid-to-high single digits in recent years), though down modestly in 2024 versus 2023. Strength is clearly balance-sheet safety; the main trade-off is that returns are good but not exceptional.

Cash Flow

Cash generation is the key weak spot. In 2024, operating cash flow (~¥3.4B) covered only a small portion of net income (operating cash flow to net income ~0.14), and free cash flow (~¥0.9B) was only ~26% of net income, with free cash flow down ~26% year over year. While 2023 showed very strong free cash flow conversion, the sharp reversal in 2024 suggests volatility in working capital and/or investment needs, reducing confidence in near-term cash consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.61B	47.94B	45.97B	43.94B	43.98B	39.82B
Gross Profit	12.88B	27.03B	26.13B	24.45B	24.84B	22.94B
EBITDA	4.12B	8.98B	8.62B	7.49B	5.97B	5.61B
Net Income	2.48B	5.44B	5.54B	4.45B	3.61B	3.13B
Balance Sheet
Total Assets	92.73B	93.57B	92.20B	86.07B	82.72B	80.38B
Cash, Cash Equivalents and Short-Term Investments	58.17B	59.59B	60.07B	53.87B	55.20B	53.96B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	23.67B	25.28B	27.92B	25.87B	12.93B	12.53B
Stockholders Equity	69.05B	68.28B	64.28B	60.20B	69.79B	67.85B
Cash Flow
Free Cash Flow	313.44M	898.14M	7.71B	3.69B	4.22B	2.94B
Operating Cash Flow	1.31B	3.45B	8.89B	4.29B	6.43B	3.85B
Investing Cash Flow	-1.00B	-2.45B	-1.22B	-1.14B	-3.14B	-983.10M
Financing Cash Flow	-1.73B	-1.48B	-1.48B	-3.39B	-1.66B	-1.03B

DAIWA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1620.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6459, the sentiment is Negative. The current price of 1620 is above the 20-day moving average (MA) of 1589.85, above the 50-day MA of 1579.25, and above the 200-day MA of 1595.52, indicating a bearish trend. The MACD of -6.85 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6459.

DAIWA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥93.53B	44.43	5.02%	3.23%	-10.00%	-51.92%
6349	77 Outperform	¥85.51B	9.16	6.26%	5.31%	5.45%	90.90%
6376	74 Outperform	¥108.61B	10.62	8.17%	2.04%	1.48%	58.59%
6371	74 Outperform	¥248.42B	10.90	8.83%	3.85%	1.48%	8.86%
6459	72 Outperform	¥79.28B	14.72	7.46%	3.69%	2.13%	-1.16%
6277	72 Outperform	¥92.10B	20.03	―	2.16%	-8.71%	-17.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DAIWA Corporate Events

Daiwa Industries Reports Nine-Month Financial Results with Positive Year-End Outlook

Daiwa Industries Ltd. reported a slight decline in its non-consolidated financial results for the nine months ending September 30, 2025, with net sales decreasing by 1.1% and operating profit falling by 6.8% compared to the previous year. Despite these declines, the company forecasts a modest growth in net sales and profits for the full fiscal year ending December 31, 2025, indicating a positive outlook for the future.