DAIWA (6459) AI Stock Analysis

• Market Cap: $88.87B
• Dividend Yield: 3.45%
• Average Volume (3M): 27.56K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.81
• Revenue Growth: 3.52%
• EPS Growth: -2.32%
• Country: JP
• Employees: 1,872
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 29.65
• Shares Outstanding: 51,717,216
• 10 Day Avg. Volume: 20,990
• 30 Day Avg. Volume: 27,563
• 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: 0.27
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: 13.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

DAIWA's strong financial performance, characterized by robust profitability, zero debt, and solid cash flow, is the primary driver of its high score. While technical analysis presents mixed signals, the stock's fair valuation and attractive dividend yield provide additional support. The absence of earnings call and corporate events data leaves the financials and technicals as the key factors in this assessment.

DAIWA Business Overview & Revenue Model

Company Description

Daiwa Industries Ltd. (6459) is a Japanese company that operates primarily in the manufacturing sector. The company is engaged in the production and sale of commercial kitchen equipment, refrigeration units, and showcases. With a strong focus on innovation and quality, Daiwa serves a diverse range of clients in the food service and retail industries, providing solutions that enhance efficiency and sustainability.

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

DAIWA presents a compelling financial profile characterized by strong profitability, excellent balance sheet health, and solid cash flow generation. The absence of debt and strong equity position mitigate financial risks, while consistent revenue growth and profitability enhancements highlight effective strategic execution.

Income Statement

DAIWA demonstrates strong profitability with a consistent Gross Profit Margin and improving Net Profit Margin over time. The company has experienced steady revenue growth, particularly notable in the transition from 2022 to 2023. EBIT and EBITDA margins are robust, reflecting operational efficiency and effective cost management.

Balance Sheet

DAIWA exhibits a very healthy balance sheet with no debt, which significantly reduces financial risk. The Equity Ratio is strong, indicating financial stability and a solid asset base. The company demonstrates an excellent Return on Equity, showcasing effective utilization of shareholder investment.

Cash Flow

DAIWA's cash flow management is solid, with positive Free Cash Flow indicating good liquidity. Although there was a decline in Operating Cash Flow from 2023 to 2024, the company maintains a strong Operating Cash Flow to Net Income Ratio, underscoring efficient cash generation relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.49B	47.94B	45.97B	43.94B	43.98B	39.82B
Gross Profit	5.99B	27.03B	26.13B	24.45B	24.84B	22.94B
EBITDA	1.76B	8.98B	8.62B	7.49B	5.97B	5.61B
Net Income	1.01B	5.44B	5.54B	4.45B	3.61B	3.13B
Balance Sheet
Total Assets	90.01B	93.57B	92.20B	86.07B	82.72B	80.38B
Cash, Cash Equivalents and Short-Term Investments	55.66B	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	22.43B	25.28B	27.92B	25.87B	12.93B	12.53B
Stockholders Equity	67.59B	68.28B	64.28B	60.20B	69.79B	67.85B
Cash Flow
Free Cash Flow	0.00	898.14M	7.71B	3.69B	4.22B	2.94B
Operating Cash Flow	0.00	3.45B	8.89B	4.29B	6.43B	3.85B
Investing Cash Flow	0.00	-2.45B	-1.22B	-1.14B	-3.14B	-983.10M
Financing Cash Flow	0.00	-1.48B	-1.48B	-3.39B	-1.66B	-1.03B

DAIWA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1741.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1741 is above the 20-day moving average (MA) of 1697.40, above the 50-day MA of 1684.62, and above the 200-day MA of 1602.72, indicating a bullish trend. The MACD of 12.74 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6459.

DAIWA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6459	76 Outperform	$88.87B	16.16	8.01%	3.45%	3.52%	-2.32%
6479	73 Outperform	¥1.14T	20.04	8.00%	1.60%	4.71%	-11.61%
6367	71 Outperform	¥5.11T	18.06	9.44%	1.60%	3.59%	16.45%
6471	70 Outperform	¥386.42B	39.32	1.53%	4.30%	-1.15%	-13.31%
6473	69 Neutral	¥487.53B	52.29	1.84%	3.26%	-1.82%	-72.16%
7012	66 Neutral	¥1.63T	21.18	10.45%	1.44%	15.11%	142.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DAIWA Corporate Events

Daiwa Industries Reports 2024 Financial Results with Dividend Increase

Daiwa Industries Ltd. reported its non-consolidated financial results for 2024, showing a slight increase in net sales by 4.3% to 47,938 million yen, while operating and ordinary profits experienced minor declines. The company plans to raise annual dividends from 30 yen to 50 yen per share. The financial forecast for 2025 anticipates continued modest growth in profits and sales, indicating stable industry positioning.