Daishinku Corp., (6962) AI Stock Analysis

• Market Cap: ¥17.86B
• Dividend Yield: 4.98%
• Average Volume (3M): 202.99K
• Price to Earnings (P/E): 63.4
• Beta (1Y): 1.20
• Revenue Growth: -1.84%
• EPS Growth: -84.66%
• Country: JP
• Employees: 3,278
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.23
• Shares Outstanding: 32,138,880
• 10 Day Avg. Volume: 201,900
• 30 Day Avg. Volume: 202,986
• PEG Ratio: -0.44
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.50
• 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

• Rating: 60 Neutral
• Price Target: ¥548.00 ▼(-2.49%Downside)

The overall stock score of 60 reflects significant challenges in financial performance, with declining revenues and profitability impacting the outlook. Despite some bullish technical indicators, the high P/E ratio suggests overvaluation, offset by an attractive dividend yield. Strategic improvements are necessary to enhance financial stability and growth prospects.

Daishinku Corp., Business Overview & Revenue Model

Company Description

Daishinku Corp. manufactures and sells electronic components and equipment in Japan and internationally. The company offers crystal resonators, crystal and MEMS oscillators, monolithic crystal filters, optical quartz products, and hermetic seal products. Its products are used in various applications, including wearable devices, smart phones/mobile phones, IoT/M2M, wireless communication, network, automotive electronics, information communication equipment, audio and visual equipment, gaming equipment, and FA equipment. Daishinku Corp. was founded in 1959 and is headquartered in Kakogawa, Japan.

How the Company Makes Money

Daishinku Corp. generates revenue through the design, production, and sale of crystal devices such as quartz crystal units and oscillators. The company's key revenue streams include direct sales to manufacturers in various industries that require precise frequency control components. This includes sectors like telecommunications, where timing devices are crucial for network synchronization, and the consumer electronics industry, where they are used in devices like smartphones and computers. Additionally, the automotive industry represents a significant market, as modern vehicles demand sophisticated electronic systems. Daishinku's strategic partnerships with major electronics manufacturers, along with its emphasis on innovation and quality, contribute significantly to its earnings.

Daishinku Corp., Financial Statement Overview

Summary

Daishinku Corp. faces challenges across all financial verticals. The income statement reveals declining revenue and profitability, while the balance sheet suggests stability in leverage with a need for improving returns. The cash flow statement highlights cash conversion inefficiencies, impacting the company's capacity to fund operations and growth. Overall, strategic adjustments are necessary to address operational and financial inefficiencies.

Income Statement

The company shows a declining revenue trend over recent years, with a negative revenue growth rate from 2024 to 2025. Gross and net profit margins have also decreased, indicating pressure on profitability. The EBIT and EBITDA margins have been under strain, reflecting operational inefficiencies. Overall, the income statement reveals challenges in sustaining growth and maintaining profitability.

Balance Sheet

Daishinku Corp. maintains a moderate debt-to-equity ratio, indicating balanced leverage. However, the return on equity has decreased significantly, reflecting lower profitability on shareholders' investments. The equity ratio is stable, suggesting a solid capital structure. While the company has a robust asset base, the declining ROE and leverage require careful management.

Cash Flow

The cash flow statement shows fluctuating free cash flow, with a negative trend in recent years. The operating cash flow to net income ratio highlights challenges in converting revenue into cash flow. The significant drop in free cash flow indicates potential issues in sustaining operations and investments, necessitating improvements in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.21B	38.62B	39.34B	38.43B	41.31B	33.19B
Gross Profit	9.91B	9.33B	9.79B	11.64B	12.22B	8.32B
EBITDA	5.58B	5.98B	8.44B	9.41B	9.77B	5.46B
Net Income	1.08B	285.59M	1.88B	3.21B	3.85B	1.22B
Balance Sheet
Total Assets	93.75B	89.89B	91.06B	83.62B	81.32B	68.63B
Cash, Cash Equivalents and Short-Term Investments	19.85B	18.71B	24.54B	18.56B	18.52B	14.32B
Total Debt	35.42B	33.65B	34.01B	30.84B	27.84B	26.14B
Total Liabilities	46.15B	44.67B	44.02B	40.44B	41.09B	34.86B
Stockholders Equity	38.60B	37.05B	38.71B	35.90B	33.12B	27.89B
Cash Flow
Free Cash Flow	0.00	-4.59B	3.36B	-661.04M	2.96B	-2.23B
Operating Cash Flow	0.00	2.30B	8.24B	5.86B	8.76B	2.71B
Investing Cash Flow	0.00	-6.31B	-3.99B	-6.52B	-5.18B	-5.39B
Financing Cash Flow	0.00	-1.71B	1.10B	1.30B	382.83M	870.75M

Daishinku Corp., Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 562.00
• 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:6962, the sentiment is Positive. The current price of 562 is above the 20-day moving average (MA) of 542.90, above the 50-day MA of 519.20, and above the 200-day MA of 551.06, indicating a bullish trend. The MACD of 11.59 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 74.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6962.

Daishinku Corp., Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6915	83 Outperform	¥28.95B	9.95		5.79%	1.17%	8.92%
6779	75 Outperform	¥16.58B	9.70		3.98%	5.48%	-23.11%
6787	71 Outperform	¥172.40B	11.77		1.19%	15.24%	35.69%
6962	60 Neutral	¥17.86B	63.38	0.75%	4.98%	-1.84%	-84.66%
6976	58 Neutral	¥321.88B	137.29		3.51%	5.82%	-71.97%
Sector *	56 Neutral	$3.16B	4.94	-5.68%	5.75%	8.05%	-41.83%
6844	46 Neutral	¥22.79B	―		2.94%	3.49%	-241.98%

Daishinku Corp., Corporate Events

Daishinku Corp. Announces Treasury Share Disposal for Director Compensation

Daishinku Corp. has announced the disposal of 27,807 treasury shares as part of a restricted stock compensation plan for its directors, aiming to enhance corporate and share value over the medium to long term. This move is designed to align the interests of the directors with those of the shareholders, promoting sustained growth and value creation for the company.

Daishinku Corp. Introduces Restricted Stock Compensation Plan

Daishinku Corp. has announced the introduction of a restricted stock compensation plan aimed at incentivizing its directors to enhance corporate value and align their interests with shareholders. This plan, subject to shareholder approval, will allow eligible directors to receive company shares as part of their remuneration, with the total annual remuneration capped at 60 million yen and up to 100,000 shares issued per year. The plan is designed to foster long-term value sharing with shareholders, with specific terms and conditions outlined by the company’s Board of Directors.

Daishinku Corp. Corrects Financial Results Due to Inventory Errors

Daishinku Corp. has announced a partial correction to its consolidated financial results for the second quarter of the fiscal year ended March 31, 2025, due to errors in inventory asset amounts and cost of sales. These corrections, resulting from operational mistakes in inventory management, may impact the company’s financial reporting and stakeholder confidence.

Daishinku Corp. Corrects Financial Results Due to Inventory Errors

Daishinku Corp. has announced corrections to its previously disclosed consolidated financial results for the first quarter of the fiscal year ended March 31, 2025, due to errors in inventory assets and cost of sales. These corrections are necessary due to repeated operational mistakes in inventory management, potentially impacting stakeholders’ perception of the company’s financial management and operational efficiency.

Daishinku Corp. Revises Financial Forecast Amid Market Challenges

Daishinku Corp. has revised its financial performance forecast for the fiscal year ending March 31, 2025, due to challenges in the Chinese smartphone market and global economic uncertainties. The company faced intensified price competition and delays in meeting supply demands, leading to expected shortfalls in sales and profits compared to previous forecasts.