Dkk-Toa Corporation (6848) AI Stock Analysis

• Market Cap: ¥16.68B
• Dividend Yield: 2.61%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.43
• Revenue Growth: 1.66%
• EPS Growth: -12.21%
• Country: JP
• Employees: 583
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.76
• Shares Outstanding: 19,880,620
• 10 Day Avg. Volume: 2,160
• 30 Day Avg. Volume: 3,890
• PEG Ratio: -1.04
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 36.22
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥934.00 ▲(10.66% Upside)

Dkk-Toa Corporation's overall stock score reflects its strong financial health and positive technical indicators. The company's robust balance sheet and effective cost management are significant strengths, while the fair valuation supports its growth potential. However, challenges in profitability and cash flow generation need to be addressed to sustain long-term stability.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio ensures financial stability and flexibility for future investments.

Revenue Growth

Steady revenue growth indicates a consistent demand for products and services, supporting long-term business expansion.

Cash Flow Improvement

Significant improvement in free cash flow enhances the company's ability to fund operations and strategic initiatives without external financing.

Negative Factors

Profitability Pressure

Declining net profit margins suggest challenges in maintaining profitability, which could affect long-term financial performance.

Operational Efficiency

Decreasing EBITDA margin indicates potential issues with operational efficiency, which may impact cost management and profitability.

Cash Flow Constraints

Constraints in free cash flow availability can limit the company's ability to invest in growth opportunities and manage financial obligations.

Dkk-Toa Corporation Business Overview & Revenue Model

Company Description

Dkk-Toa Corporation (6848) is a Japan-based company primarily engaged in the manufacturing and sales of precision measuring instruments and related products. The company operates in sectors such as healthcare, industrial, and environmental measurement, offering a diverse range of core products including medical diagnostic equipment, industrial sensors, and environmental monitoring devices. Dkk-Toa aims to provide innovative measurement solutions that enhance accuracy and efficiency across various applications.

How the Company Makes Money

Dkk-Toa Corporation generates revenue through the sale of its precision measuring instruments and related services. The company's primary revenue streams include the sale of medical diagnostic equipment, which is utilized in hospitals and clinics, and industrial sensors that are deployed in manufacturing and production facilities. Additionally, Dkk-Toa earns income from environmental monitoring devices that help businesses comply with regulatory standards. The company also benefits from partnerships with healthcare organizations and industrial clients, which facilitate the development and distribution of its products. Continuous innovation and a focus on R&D allow Dkk-Toa to maintain a competitive edge, contributing to its overall financial performance.

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. The company maintains low leverage and a strong equity base, which positions it well for future growth. However, there are signs of pressure on profitability and operational efficiency, as well as potential constraints in free cash flow. Continued focus on improving margins and cash flow generation will be crucial for maintaining long-term financial stability.

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	17.99B	18.06B	17.44B	16.54B	16.42B	15.99B
Gross Profit	6.16B	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	1.06B	1.11B	1.29B	1.22B	1.35B	1.37B
Balance Sheet
Total Assets	28.14B	28.65B	29.04B	26.72B	25.40B	24.39B
Cash, Cash Equivalents and Short-Term Investments	5.66B	5.06B	4.11B	6.80B	7.42B	6.64B
Total Debt	1.48B	1.20B	454.00M	423.00M	444.00M	440.00M
Total Liabilities	6.43B	6.73B	6.67B	6.63B	6.28B	6.27B
Stockholders Equity	21.70B	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: 844.00
• 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 844 is above the 20-day moving average (MA) of 831.35, above the 50-day MA of 834.90, and above the 200-day MA of 803.26, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.75 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
6850	80 Outperform	¥24.41B	12.83	―	4.88%	6.15%	2.98%
6863	75 Outperform	¥12.40B	9.28	―	5.68%	6.45%	26.58%
6848	73 Outperform	¥16.68B	16.26	―	2.61%	1.66%	-12.21%
6853	69 Neutral	¥18.75B	17.70	―	3.31%	-1.58%	12.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥2.29B	-644.42	―	2.95%	-0.26%	―
6864	51 Neutral	¥8.77B	-433.07	―	2.49%	10.27%	-106.32%

Dkk-Toa Corporation Corporate Events

DKK-TOA Corporation Reports Decline in Q1 2025 Financial Results

DKK-TOA Corporation reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 1.7% and operating profit dropping by 73.4% compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio of 77.1% and forecasts a modest growth in net sales and profits for the fiscal year ending March 31, 2026, indicating a positive outlook for future operations.