Daihen Corporation (6622) AI Stock Analysis

• Market Cap: ¥328.31B
• Dividend Yield: 1.65%
• Average Volume (3M): 152.80K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.53
• Revenue Growth: 14.49%
• EPS Growth: -21.17%
• Country: JP
• Employees: 4,669
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 175.41
• Shares Outstanding: 24,903,292
• 10 Day Avg. Volume: 202,710
• 30 Day Avg. Volume: 152,803
• PEG Ratio: -0.48
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 9.56
• 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: ¥12,600.00
• Price Target Upside: -13.70% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 584.79
• Revenue Forecast (FY): ¥237.24B

• Rating: 73 Outperform
• Price Target: ¥16,279.00 ▲(11.50% Upside)
• Action: Upgraded Date: 01/14/26
• Date: Action: Upgraded 01/14/26

The score is primarily driven by strong financial performance (solid growth and improving cash generation) and bullish technical trend strength. These positives are tempered by overbought momentum signals and only moderate valuation with a modest dividend yield.

Positive Factors

Revenue growth & gross margin

Sustained 20.04% revenue growth alongside a 27.34% gross margin indicates durable demand and improving product mix for automation, welding and power products. This supports reinvestment in R&D and systems integration, strengthening long-term competitive position.

Improved cash generation

A material turnaround to positive operating cash flow and FCF provides lasting financial flexibility to fund capex, service contracts and aftermarket support without heavy external financing, reducing refinancing risk in capital-intensive projects.

Prudent leverage and equity base

Moderate leverage and a healthy equity ratio point to a resilient balance sheet able to absorb cyclical demand swings and support larger system-integration contracts. This financial stability aids credibility with customers and suppliers over the medium term.

Negative Factors

Low net profit margin

A net margin near 5% limits retained earnings and reduces the buffer against cost inflation. Persistent operating-cost pressure can constrain investment in automation R&D and service expansion, weakening long-term margin sustainability versus peers.

Rising liabilities risk

Growth in total liabilities can erode liquidity and reduce financial flexibility to bid on large, multi-year infrastructure or automotive automation projects; higher leverage levels could raise funding costs during industry slowdowns.

Historical cash flow volatility

Past volatility in cash generation suggests earnings and cash are sensitive to capex cycles and project timing. Even with recent improvement, such variability can impair long-term planning for capex, dividends and service investments.

Daihen Corporation Business Overview & Revenue Model

Company Description

DAIHEN Corporation manufactures and sells power products, welding machines, and industrial and clean transfer robots. The company operates through Power Products Business, Welding & Mechatronics Business, Semiconductor and FPD Related Business, and Other segments. It offers transformers, power distribution equipment, distribution equipment for electric power companies, solar inverters, and others; and welding/cutting machines, such as CO2/MAG, TIG, MIG, DC/AC, plasma welding and cutting, submerged arc, and resistance welding machines, as well as welding and cutting torches, peripheral devices for welding, thermal spray machines, and welding accessories. The company also provides robots, teach pendants, sensors for robot welding, positioners and sliders, PC software, and welding power sources and welding peripherals for robots. In addition, it offers RF/MW generators and automatic matching units for plasma applications; clean transfer robots; and wireless power transfer systems. Further, the company manufactures electronic devices, luminaire stabilizers, calorifiers, switches, housing equipment, distribution and control panels, monitoring and control systems, etc.; control and telecommunications equipment, and RF generators; hot charge; fuses; ballasts for discharge lamps; and material handling equipment for semiconductor and flat panel manufacturing systems. Additionally, it is involved in the installation, repair, inspection, maintenance, and remodeling of welding machines, cutting machines, and industrial robots, as well as transformers and switchgear systems; manufacture, processing, and coating of transformer parts; dispatch of personnel; health, welfare, and pension work for employees; and metal processing and real estate leasing activities. The company was formerly known as Osaka Transformer Co., Ltd. and changed its name to DAIHEN Corporation in December 1985. DAIHEN Corporation was incorporated in 1919 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daihen Corporation generates revenue primarily through the sale of its industrial equipment and systems. Key revenue streams include the manufacturing and sale of robotic solutions, which cater to the increasing demand for automation in various sectors, particularly in automotive production. Additionally, the company earns from its welding technology products and systems, which are essential for construction and manufacturing processes. Service and maintenance contracts also contribute to its income, providing ongoing support to clients. Strategic partnerships with other tech companies and industry leaders enhance its market presence and drive sales, while the growing demand for automation and advanced manufacturing technologies supports Daihen's overall revenue growth.

Daihen Corporation Financial Statement Overview

Summary

Strong fundamentals supported by robust revenue growth (20.04%) and improved gross margin (27.34%). Offsetting factors include a lower net profit margin (5.28%) due to higher operating expenses, rising liabilities risk, and historically volatile cash flows despite a meaningful operating and free cash flow improvement.

Income Statement

Daihen Corporation shows a strong income statement performance with consistent revenue growth and healthy margins. The Gross Profit Margin improved to 27.34% in the latest annual report. However, the Net Profit Margin declined to 5.28% due to increased operating expenses. Revenue growth was robust at 20.04% from the previous year, indicating strong demand for the company's products. The EBIT and EBITDA margins remain stable at 7.14% and 11.18%, respectively.

Balance Sheet

The balance sheet reflects a solid financial position with a Debt-to-Equity Ratio of 0.50, showcasing prudent leverage management. The Return on Equity (ROE) stands at 8.64%, indicating efficient use of equity to generate profits. The Equity Ratio is healthy at 47.67%, demonstrating financial stability and a strong asset base. However, the increase in total liabilities poses a potential risk if not managed carefully.

Cash Flow

Cash flow analysis reveals mixed performance, with a significant turnaround in operating cash flow to 24.01 billion yen, indicating improved cash generation capabilities. The Free Cash Flow turned positive to 16.06 billion yen from a negative position, reflecting better cash utilization. The Operating Cash Flow to Net Income Ratio at 2.01 signifies strong cash flow relative to profits. However, the historical volatility in cash flows suggests potential risks in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	232.13B	226.38B	188.57B	185.29B	160.62B	145.14B
Gross Profit	64.33B	61.90B	53.41B	53.19B	48.68B	46.85B
EBITDA	27.75B	25.30B	27.02B	23.27B	20.77B	17.30B
Net Income	13.30B	11.96B	16.49B	13.19B	10.98B	9.41B
Balance Sheet
Total Assets	288.90B	290.23B	276.62B	212.69B	194.80B	175.13B
Cash, Cash Equivalents and Short-Term Investments	28.90B	30.35B	23.33B	15.27B	24.82B	19.26B
Total Debt	72.30B	68.94B	66.45B	33.21B	27.60B	29.68B
Total Liabilities	134.33B	136.94B	128.03B	92.79B	89.17B	78.21B
Stockholders Equity	139.09B	138.37B	134.14B	113.80B	99.69B	91.17B
Cash Flow
Free Cash Flow	0.00	16.06B	-16.47B	-12.43B	8.95B	10.31B
Operating Cash Flow	0.00	24.01B	-8.99B	-7.23B	12.95B	13.94B
Investing Cash Flow	0.00	-9.60B	-10.56B	-4.72B	-3.30B	-3.90B
Financing Cash Flow	0.00	-5.98B	25.95B	1.90B	-5.31B	-5.58B

Daihen Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6622, the sentiment is Positive. The current price of 14600 is above the 20-day moving average (MA) of 13548.50, above the 50-day MA of 11989.60, and above the 200-day MA of 8866.81, indicating a bullish trend. The MACD of 836.46 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 78.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6622.

Daihen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6371	81 Outperform	¥280.74B	11.68	8.83%	3.85%	1.48%	8.86%
6420	80 Outperform	¥164.83B	12.82	―	1.94%	11.63%	3.32%
6407	75 Outperform	¥370.54B	28.83	―	2.50%	6.16%	17.11%
6622	73 Outperform	¥328.31B	25.60	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥354.79B	15.98	14.28%	2.40%	8.03%	23.50%
6925	69 Neutral	¥289.63B	51.19	2.20%	2.81%	-3.70%	-36.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Daihen Corporation Corporate Events

Daihen Cancels 300,000 Shares to Streamline Capital Structure

Daihen Corporation has completed the cancellation of 300,000 shares of its common stock, representing 1.2% of its issued shares prior to the move. Following the cancellation, the company now has 24,903,291 shares issued and holds 1,161,369 treasury shares, excluding those held in an employee stock benefit trust.

The share cancellation reduces the overall share count and can enhance capital efficiency, potentially improving per-share metrics and signaling shareholder-friendly capital management. This adjustment in share structure may strengthen Daihen’s equity profile and could support its valuation and positioning in the capital markets.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen15153.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Posts Strong Nine-Month Earnings and Confirms Profit Growth Outlook

Daihen Corporation reported solid results for the nine months ended December 31, 2025, with net sales rising 4.9% year on year to ¥163.4 billion and operating profit climbing 21.7% to ¥12.5 billion, leading to a 22.4% increase in profit attributable to owners of the parent. The company’s financial position also strengthened, as total assets reached ¥304.2 billion and the equity ratio improved to 49.4%, while it maintained its full-year forecast for fiscal 2025/26, projecting modest sales growth, double-digit gains in operating and ordinary profit, and a 17.0% rise in full-year profit, alongside a planned increase in annual dividends, signaling confidence in earnings momentum and shareholder returns.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen12500.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Advances Aggressive Buyback and Cancellation Plan

The company repurchased 250,000 shares—about 1% of outstanding stock—for ¥2.9 billion via the Tokyo exchange’s ToSTNeT-3 system as part of a broader buyback and cancellation plan approved on February 3 to bolster shareholder returns and capital efficiency. Management still has scope to acquire an additional 50,000 shares on the open market before March 31 and plans to cancel 300,000 shares on February 13, signaling an aggressive capital structure tightening that should support per-share metrics and investor confidence.
Further repurchases may follow in the auction market under a discretionary mandate, keeping pressure on float reduction while the upcoming share cancellation permanently retires 1.2% of equity, underscoring Daihen’s commitment to shareholder value amidst ongoing market scrutiny of capital allocation.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen12500.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Launches ¥4 Billion Share Buyback and Plans Cancellation of 300,000 Shares

Daihen Corporation has approved a share repurchase using the Tokyo Stock Exchange’s off-auction own share repurchase trading system (ToSTNeT-3), mandating the buyback of up to 250,000 common shares—equivalent to 1.0% of its issued shares excluding treasury stock—at the February 3 closing price of ¥11,690, with a maximum outlay of approximately ¥2.92 billion on February 4, 2026. Following this ToSTNeT-3 transaction, the company plans additional market purchases under a discretionary investment contract to bring the total repurchase up to the previously authorized ceiling of 300,000 shares or ¥4.0 billion, and intends to cancel 300,000 shares (1.2% of shares outstanding) on February 13, 2026, a move that is expected to enhance capital efficiency and potentially support shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen12500.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Launches Share Buyback and Cancellation to Lift Capital Efficiency

Daihen Corporation’s board has approved a new share repurchase and subsequent cancellation program aimed at boosting shareholder returns and improving capital efficiency, underscoring management’s focus on enhancing shareholder value. The company plans to buy back up to 300,000 shares, representing about 1.2% of its outstanding stock, for a maximum of ¥4.0 billion between February 4 and March 31, 2026, via market purchases including ToSTNeT-3, and will cancel 300,000 shares of common stock on February 13, 2026, a move that will modestly reduce the share count and could provide earnings-per-share support for existing investors.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen12500.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Lifts Profits and Equity Ratio, Confirms Outlook and Higher Dividends

For the nine months ended December 31, 2025, Daihen Corporation reported consolidated net sales of ¥163.4 billion, up 4.9% year on year, with operating profit rising 21.7% to ¥12.5 billion and profit attributable to owners of parent climbing 22.4% to ¥9.4 billion, reflecting improved earnings momentum and a stronger comprehensive income position. The company’s balance sheet also strengthened, with total assets increasing to ¥304.2 billion and the equity ratio improving to 49.4%, while Daihen maintained its full-year fiscal 2025/26 forecast of ¥235.0 billion in net sales and a 17.0% rise in full-year profit, alongside a planned increase in annual dividends to ¥176 per share, underscoring confidence in its earnings outlook and continuing commitment to shareholder returns.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen12500.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.