Daishinku Corp., (6962) AI Stock Analysis

• Market Cap: ¥16.46B
• Dividend Yield: 5.83%
• Average Volume (3M): 151.52K
• Price to Earnings (P/E): 58.4
• Beta (1Y): 1.18
• Revenue Growth: -1.84%
• EPS Growth: -84.75%
• Country: JP
• Employees: 3,278
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.23
• Shares Outstanding: 32,138,880
• 10 Day Avg. Volume: 166,810
• 30 Day Avg. Volume: 151,523
• PEG Ratio: 0.06
• Price to Book (P/B): 0.44
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥548.00 ▲(5.79%Upside)

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. is a Japanese company that specializes in the manufacturing and sale of crystal devices. Operating in the electronics sector, Daishinku primarily focuses on producing high-quality quartz crystal units, oscillators, and other related electronic components. These products are essential in a wide range of applications, including telecommunications, consumer electronics, and automotive industries, due to their role in ensuring precise frequency control and timing.

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. exhibits strengths in gross profit stability and a solid equity base, but faces challenges with declining net profitability and cash flow volatility. The balance sheet remains healthy, though rising debt levels and decreased ROE are potential concerns. Overall, while the company has resilient aspects, it must address operational efficiency and cash flow management to enhance its financial position.

Income Statement

The company shows a stable gross profit margin of approximately 25.8% in the TTM period, indicating efficient cost management. However, the net profit margin has declined from 4.8% to 2.7% in the same period, reflecting pressure on net income. Revenue growth has been inconsistent, with a decline in recent years, but a slight recovery in the latest annual figures. EBIT and EBITDA margins also illustrate reduced profitability over time, signaling potential challenges in operational efficiency.

Balance Sheet

Daishinku Corp. maintains a relatively stable balance sheet with an equity ratio of 41.2%, indicating a good level of financial health. The debt-to-equity ratio stands at 0.92, which is manageable, though it has increased over the past few years, suggesting rising leverage. Return on equity declined to 2.8% in the TTM period, reflecting decreased profitability, which could be a risk factor if not addressed.

Cash Flow

Cash flow figures demonstrate volatility, with free cash flow turning negative in recent periods, indicating challenges in generating cash from operations after capital expenses. The operating cash flow to net income ratio is unavailable, adding uncertainty to cash flow adequacy analysis. The lack of consistent free cash flow growth indicates potential liquidity challenges that need strategic attention.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
39.21B	39.34B	38.43B	41.31B	33.19B	29.88B
	Gross Profit
10.12B	9.79B	11.64B	12.22B	8.32B	6.44B
	EBIT
1.90B	2.14B	4.21B	5.19B	2.09B	277.71M
	EBITDA
5.58B	8.44B	9.41B	9.77B	5.46B	3.67B
	Net Income Common Stockholders
1.08B	1.88B	3.21B	3.85B	1.22B	276.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.54B	24.54B	18.56B	18.52B	14.32B	15.35B
	Total Assets
91.06B	91.06B	83.62B	81.32B	68.63B	63.00B
	Total Debt
34.01B	34.01B	30.84B	27.84B	26.14B	24.52B
	Net Debt
9.66B	9.48B	12.32B	9.33B	11.82B	9.20B
	Total Liabilities
44.02B	44.02B	40.44B	41.09B	34.86B	32.81B
	Stockholders Equity
38.71B	38.71B	35.90B	33.12B	27.89B	25.07B
Cash Flow		Free Cash Flow
0.00	3.36B	-661.04M	2.96B	-2.23B	-2.85B
	Operating Cash Flow
0.00	8.24B	5.86B	8.76B	2.71B	688.25M
	Investing Cash Flow
0.00	-3.99B	-6.52B	-5.18B	-5.39B	-2.59B
	Financing Cash Flow
0.00	1.10B	1.30B	382.83M	870.75M	3.59B

Daishinku Corp., Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 518.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 518 is above the 20-day moving average (MA) of 504.15, above the 50-day MA of 511.34, and below the 200-day MA of 554.23, indicating a neutral trend. The MACD of 3.03 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 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	78 Outperform	¥28.99B	9.97		5.78%	1.17%	8.92%
6779	68 Neutral	¥15.66B	9.16		4.20%	5.48%	-23.11%
6787	64 Neutral	¥150.02B	10.24		1.51%	15.24%	32.83%
Sector *	62 Neutral	$11.80B	10.37	-7.10%	2.91%	7.41%	-7.94%
6962	60 Neutral	¥16.46B	58.42	0.75%	5.83%	-1.84%	-84.75%
6976	55 Neutral	¥304.17B	129.74		3.71%	5.82%	-71.99%
6844	46 Neutral	¥21.23B	―		3.15%	3.49%	-241.98%

Daishinku Corp., Corporate Events

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.