Daihen Corporation (6622) AI Stock Analysis

• Market Cap: ¥159.28B
• Dividend Yield: 2.36%
• Average Volume (3M): 88.10K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.39
• Revenue Growth: 20.05%
• EPS Growth: -26.75%
• Country: JP
• Employees: 4,669
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): 178.55
• Shares Outstanding: 25,203,290
• 10 Day Avg. Volume: 80,280
• 30 Day Avg. Volume: 88,100
• PEG Ratio: -2.08
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥8,000.00
• Price Target Upside: 14.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥7,781.00 ▲(11.32%Upside)

Daihen Corporation's strong financial performance, supported by robust revenue growth and profitability, is a significant factor in the overall score. The technical analysis suggests bullish momentum, but the overbought RSI indicates potential caution. Valuation metrics are reasonable, offering a blend of growth and income potential. Overall, the stock is well-positioned, albeit with attention needed on managing increased expenses and market positioning.

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 makes money primarily through the sale of its industrial electrical equipment and systems. The company's revenue model is based on manufacturing and supplying a diverse range of products such as transformers, which are essential for power transmission and distribution infrastructure. Additionally, Daihen generates income from its industrial automation solutions, including robotic systems that cater to the needs of manufacturing industries aiming for increased productivity and efficiency. Welding equipment sales also contribute significantly to its earnings, especially in sectors like automotive and construction. The company benefits from its strong market presence in Japan and expanding international footprint, as well as strategic partnerships that enhance its technological capabilities and market reach.

Daihen Corporation Financial Statement Overview

Summary

Daihen Corporation demonstrates strong financial performance with consistent revenue growth and healthy profitability metrics. The balance sheet is stable with prudent leverage, although liabilities are increasing. Cash flow has improved, but historical volatility remains a concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	226.38B	188.57B	185.29B	160.62B	145.14B
Gross Profit	61.90B	53.41B	53.19B	48.68B	46.85B
EBITDA	25.30B	27.02B	21.64B	19.36B	17.30B
Net Income	11.96B	16.49B	13.19B	10.98B	9.41B
Balance Sheet
Total Assets	290.23B	276.62B	212.69B	194.80B	175.13B
Cash, Cash Equivalents and Short-Term Investments	30.35B	23.33B	15.27B	24.82B	19.26B
Total Debt	68.94B	66.45B	33.21B	27.60B	29.68B
Total Liabilities	136.94B	128.03B	92.79B	89.17B	78.21B
Stockholders Equity	138.37B	134.14B	113.80B	99.69B	91.17B
Cash Flow
Free Cash Flow	16.06B	-16.47B	-12.43B	8.95B	10.31B
Operating Cash Flow	24.01B	-8.99B	-7.23B	12.95B	13.94B
Investing Cash Flow	-9.60B	-10.56B	-4.72B	-3.30B	-3.90B
Financing Cash Flow	-5.98B	25.95B	1.90B	-5.31B	-5.58B

Daihen Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6990.00
• 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:6622, the sentiment is Positive. The current price of 6990 is above the 20-day moving average (MA) of 6683.50, above the 50-day MA of 6383.20, and above the 200-day MA of 6712.10, indicating a bullish trend. The MACD of 160.15 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 81.75 is Negative, 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	79 Outperform	€213.57B	9.57	8.48%	3.93%	4.64%	24.45%
6508	76 Outperform	€249.99B	13.52	14.03%	1.69%	4.59%	64.99%
6407	75 Outperform	¥183.35B	13.51		2.92%	15.78%	62.07%
6622	72 Outperform	¥159.28B	14.17		2.36%	20.05%	-26.75%
6925	70 Outperform	$162.11B	25.62	3.09%	3.89%	-1.01%	-26.89%
6420	68 Neutral	¥132.62B	10.51		2.35%	12.12%	5.56%
Sector *	67 Neutral	€8.39B	20.54	6.46%	2.81%	1.89%	-39.33%

Daihen Corporation Corporate Events

Daihen Corporation Considers Lowering Investment Unit to Boost Stock Liquidity

Daihen Corporation has announced its consideration of lowering the investment unit for its stocks. This move is aimed at expanding the investor base and improving stock liquidity, with the company evaluating factors such as stock price levels and trading trends to determine the feasibility and timing of such a change.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen8200.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Corporation Announces Treasury Stock Disposal for Director Compensation

Daihen Corporation has announced a resolution to dispose of 2,900 shares of its treasury stock as restricted stock compensation to six of its directors, excluding outside directors. This move is part of a stock-based compensation plan aimed at aligning the interests of the directors with those of the shareholders by tying their compensation to the company’s stock performance. The initiative is expected to incentivize directors to contribute to the company’s corporate value and share price improvement, potentially impacting stakeholder interests positively.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen8200.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Corporation Reports Increased Sales but Declining Profits for FY 2025

Daihen Corporation reported a 20% increase in net sales for the fiscal year ending March 31, 2025, reaching 226,375 million yen. Despite the rise in sales, the profit attributable to owners of the parent fell by 27.5% to 11,961 million yen, indicating challenges in profitability. The company also announced a forecast for modest growth in net sales and profits for the next fiscal year, with a focus on expanding operations in India through the inclusion of OTC DAIHEN INDIA Pvt. Ltd. in its consolidation scope. This expansion and financial results suggest a strategic shift towards strengthening its market position in Asia.

The most recent analyst rating on (JP:6622) stock is a Buy with a Yen8200.00 price target. To see the full list of analyst forecasts on Daihen Corporation stock, see the JP:6622 Stock Forecast page.

Daihen Corporation Reports Higher Than Expected Net Sales for FY 2025

Daihen Corporation announced a discrepancy between its projected and actual financial results for the fiscal year ending March 2025, with net sales surpassing forecasts due to strong investments in electrical infrastructure and semiconductors. Despite the higher net sales, operating and net profits were largely in line with expectations, indicating stable operational performance.

Daihen Corporation Reports 20% Increase in Net Sales Amid Profit Decline

Daihen Corporation reported a significant increase in net sales by 20% for the fiscal year ended March 31, 2025, compared to the previous year. However, the profit attributable to owners of the parent declined by 27.5%, indicating challenges in maintaining profitability despite revenue growth. The company also announced the inclusion of a new subsidiary, OTC DAIHEN INDIA Pvt. Ltd., which may impact its future market expansion and operational strategy.