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Daihen Corporation (JP:6622)
:6622
Japanese Market
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Daihen Corporation (6622) AI Stock Analysis

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JP:6622

Daihen Corporation

(6622)

Rating:72Outperform
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 (6622) vs. iShares MSCI Japan ETF (EWJ)

Daihen Corporation Business Overview & Revenue Model

Company DescriptionDAIHEN 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 MoneyDaihen 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
80
Positive
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
75
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue226.38B188.57B185.29B160.62B145.14B
Gross Profit61.90B53.41B53.19B48.68B46.85B
EBITDA25.30B27.02B21.64B19.36B17.30B
Net Income11.96B16.49B13.19B10.98B9.41B
Balance Sheet
Total Assets290.23B276.62B212.69B194.80B175.13B
Cash, Cash Equivalents and Short-Term Investments30.35B23.33B15.27B24.82B19.26B
Total Debt68.94B66.45B33.21B27.60B29.68B
Total Liabilities136.94B128.03B92.79B89.17B78.21B
Stockholders Equity138.37B134.14B113.80B99.69B91.17B
Cash Flow
Free Cash Flow16.06B-16.47B-12.43B8.95B10.31B
Operating Cash Flow24.01B-8.99B-7.23B12.95B13.94B
Investing Cash Flow-9.60B-10.56B-4.72B-3.30B-3.90B
Financing Cash Flow-5.98B25.95B1.90B-5.31B-5.58B

Daihen Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6990.00
Price Trends
50DMA
6383.20
Positive
100DMA
6338.07
Positive
200DMA
6712.10
Positive
Market Momentum
MACD
160.15
Negative
RSI
70.01
Negative
STOCH
81.75
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€213.57B9.578.48%3.93%4.64%24.45%
76
Outperform
€249.99B13.5214.03%1.69%4.59%64.99%
75
Outperform
¥183.35B13.51
2.92%15.78%62.07%
72
Outperform
¥159.28B14.17
2.36%20.05%-26.75%
70
Outperform
$162.11B25.623.09%3.89%-1.01%-26.89%
68
Neutral
¥132.62B10.51
2.35%12.12%5.56%
67
Neutral
€8.39B20.546.46%2.81%1.89%-39.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6622
Daihen Corporation
7,000.00
-114.95
-1.62%
JP:6407
CKD Corporation
2,723.00
-81.26
-2.90%
JP:6420
FUKUSHIMA GALILEI CO., LTD.
3,170.00
-70.68
-2.18%
JP:6371
Tsubakimoto Chain Co.
2,047.00
63.41
3.20%
JP:6508
Meidensha Corporation
5,510.00
2,201.38
66.53%
JP:6925
Ushio
1,829.00
-232.49
-11.28%

Daihen Corporation Corporate Events

Daihen Corporation Considers Lowering Investment Unit to Boost Stock Liquidity
Jun 26, 2025

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
Jun 26, 2025

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
May 13, 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
May 8, 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
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025