Dkk-Toa Corporation (6848) AI Stock Analysis

• Market Cap: ¥16.54B
• Dividend Yield: 2.64%
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.43
• Revenue Growth: 2.16%
• EPS Growth: -15.53%
• Country: JP
• Employees: 583
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 4.95
• Shares Outstanding: 19,880,620
• 10 Day Avg. Volume: 6,500
• 30 Day Avg. Volume: 6,990
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥877.00
• Price Target Upside: 5.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥877.00 ▲(5.16% Upside)

Dkk-Toa Corporation's overall stock score reflects strong financial health and attractive valuation. However, technical indicators suggest a neutral to slightly bearish momentum, which weighs down the score. Continued focus on improving margins and operational efficiency will be crucial for enhancing future prospects.

Dkk-Toa Corporation Business Overview & Revenue Model

Company Description

Dkk-Toa Corporation manufactures and sells measuring instruments in Japan and internationally. The company offers analytical instruments, such as laboratory analyzers, and portable and handheld analyzers; and industrial, environmental, medical, and other measuring and analytical instruments. It also provides process analyzers; analyzers for water and waste water treatment, boiler water applications, and oil refineries; water quality analyzers/systems and ambient air/emission gas analyzers; and pH measurement and oxidation-reduction potential measurement products. In addition, the company manufactures and sells toxic and deleterious agents and reagents; undertakes contracts for instrumentation, electrical, telecommunications, and other related works; and provides real estate rental services. Dkk-Toa Corporation was founded in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Dkk-Toa Corporation makes money through the sale of its scientific instruments and environmental monitoring systems to a wide array of industries, including healthcare, environmental protection, and industrial sectors. The company's revenue streams primarily come from the sale of its products, which are used for various applications such as environmental monitoring, industrial safety, and scientific research. Additionally, Dkk-Toa may engage in partnerships with other technology firms and institutions to enhance its product offerings or expand its market reach, thus contributing to its earnings.

Dkk-Toa Corporation Financial Statement Overview

Summary

Dkk-Toa Corporation exhibits strong financial health with stable revenue growth, effective cost management, and a robust balance sheet. However, there are signs of pressure on profitability and operational efficiency, as well as potential constraints in free cash flow.

Income Statement

Dkk-Toa Corporation shows a steady revenue growth trajectory, with a revenue growth rate of 3.52% from 2024 to 2025. The gross profit margin for 2025 is 34.33%, indicating strong cost management. However, the net profit margin has decreased slightly to 6.16%, reflecting potential profitability challenges. The EBIT margin for 2025 is 7.41%, and EBITDA margin is 12.94%, showing a decline from previous years, which could indicate pressure on operational efficiency.

Balance Sheet

The company maintains a strong financial position with a debt-to-equity ratio of 0.05 as of 2025, indicating low leverage. Return on equity is at 5.08%, showing moderate profitability. The equity ratio stands at 76.51%, highlighting a solid capital structure with a high proportion of equity financing. Overall, the balance sheet reflects financial stability with manageable liabilities.

Cash Flow

Dkk-Toa Corporation has demonstrated a significant improvement in free cash flow, turning positive in 2025 with a growth rate of 119.36% compared to 2024. The operating cash flow to net income ratio is 1.65, suggesting efficient cash generation relative to earnings. However, the free cash flow to net income ratio is 0.40, indicating potential constraints in free cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.06B	18.06B	17.44B	16.54B	16.42B	15.99B
Gross Profit	6.28B	6.20B	6.49B	5.98B	6.13B	6.21B
EBITDA	1.74B	2.34B	2.35B	2.25B	2.38B	2.35B
Net Income	1.11B	1.11B	1.29B	1.22B	1.35B	1.37B
Balance Sheet
Total Assets	28.65B	28.65B	29.04B	26.72B	25.40B	24.39B
Cash, Cash Equivalents and Short-Term Investments	5.06B	5.06B	4.11B	6.80B	7.42B	6.64B
Total Debt	1.20B	1.20B	454.00M	423.00M	444.00M	440.00M
Total Liabilities	6.73B	6.73B	6.67B	6.63B	6.28B	6.27B
Stockholders Equity	21.92B	21.92B	22.37B	20.08B	19.12B	18.12B
Cash Flow
Free Cash Flow	0.00	448.00M	-2.31B	-231.00M	1.15B	1.39B
Operating Cash Flow	0.00	1.84B	165.00M	307.00M	1.49B	1.81B
Investing Cash Flow	0.00	-596.00M	-1.73B	-374.00M	-366.00M	-451.00M
Financing Cash Flow	0.00	266.00M	-376.00M	-553.00M	-343.00M	-482.00M

Dkk-Toa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 834.00
• 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:6848, the sentiment is Positive. The current price of 834 is above the 20-day moving average (MA) of 820.75, above the 50-day MA of 814.50, and above the 200-day MA of 775.86, indicating a bullish trend. The MACD of 5.18 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6848.

Dkk-Toa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6863	80 Outperform	13.54B	9.96	9.32%	4.75%	4.80%	32.85%
6850	79 Outperform	22.78B	11.92	9.06%	2.60%	9.88%	11.83%
6848	71 Outperform	¥16.54B	15.56		2.64%	2.16%	-15.53%
6853	69 Neutral	19.22B	18.58	5.88%	3.13%	2.10%	4.70%
6864	66 Neutral	9.61B	26.39	3.59%	2.34%	4.03%	-2.88%
6867	45 Neutral	2.27B	-636.81	-5.78%	2.99%	-4.70%	97.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Dkk-Toa Corporation Corporate Events

DKK-TOA Corporation Reports Fiscal Year 2025 Financial Results with Modest Sales Growth

DKK-TOA Corporation reported a slight increase in net sales for the fiscal year ending March 31, 2025, despite a decline in operating and current profits. The company’s net profit attributable to owners also decreased, reflecting challenges in maintaining profitability. However, the company showed a positive cash flow from operating activities, indicating strong operational efficiency. The financial forecast for the next fiscal year anticipates modest growth in net sales and profits, suggesting a cautious optimism for future performance.