Daikokuya Holdings Co.Ltd. (6993) AI Stock Analysis

• Market Cap: ¥109.50B
• Dividend Yield: N/A
• Average Volume (3M): 5.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -2.35%
• EPS Growth: 16.12%
• Country: JP
• Employees: 149
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.43
• Shares Outstanding: 739,896,550
• 10 Day Avg. Volume: 4,285,910
• 30 Day Avg. Volume: 5,939,990
• PEG Ratio: -0.08
• Price to Book (P/B): 7.98
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -2.78
• 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: 46 Neutral
• Price Target: ¥145.00 ▲(79.01% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

Overall score is held down primarily by weak financial performance (revenue decline, ongoing losses, high leverage/low equity, and negative operating/free cash flow). Technicals are strong and supportive of near-term momentum, but overbought signals increase reversal risk, and valuation remains pressured due to loss-making earnings and no stated dividend yield.

Positive Factors

Gross margin

A ~29.9% gross margin indicates the company earns healthy unit economics before overhead. Over a multi-month horizon, this margin provides a durable cushion to absorb SG&A, support pricing flexibility, and enable operational improvements to restore operating profitability if revenue stabilizes.

Lean workforce

A small headcount (149 employees) suggests a lean cost base and operational agility. This structural advantage helps control fixed overhead, makes targeted restructuring or product investment faster and less costly, and supports faster margin recovery with modest revenue gains.

Exchange listing

Listing on the Tokyo Stock Exchange provides sustained access to Japanese capital markets, regulatory transparency, and local investor relationships. This structural position improves long-term ability to raise equity/debt or form partnerships to support refinancing and strategic initiatives.

Negative Factors

Revenue decline & losses

A -6.7% top-line decline combined with recurring net losses and negative EBIT/EBITDA margins signals durable demand or execution shortfalls. Continued revenue erosion undermines operating leverage, limits reinvestment capacity, and makes a sustainable profit recovery more difficult over several quarters.

Weak equity buffer

An equity ratio near 6.75% and high debt-to-equity reflect a highly leveraged balance sheet. This low equity buffer increases solvency and refinancing risk, reduces financial flexibility for strategic initiatives, and magnifies the impact of further operational setbacks over the medium term.

Negative cash generation

Persistent negative operating and free cash flow, and a >139% FCF deterioration, show the company struggles to convert sales into cash. Poor cash generation forces reliance on external funding, constrains capex and working capital, and raises multi-quarter liquidity and solvency concerns.

Daikokuya Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

Daikokuya Holdings Co.,Ltd. operates electric and investment business in Japan. The company offers industrial lighting fixtures, which include explosion-proof type and sealed anti-corrosion lighting equipment, hand lamp and emergency /portable explosion proof lighting equipment; industrial electric circuit plumbing fittings, such as explosion-proof type, enclosed, and waterproof electric circuit piping fixture, pull box, waterproof flexible tube; control equipment including connector; and various OEM products. It also engages in the purchase and sale of second-hand branded items, which include bags, watches, and jewelry; and pawn shop business. The company was formerly known as Asia Growth Capital, Ltd. and changed its name to Daikokuya Holdings Co.,Ltd. in August 2016. Daikokuya Holdings Co.,Ltd. was founded in 1914 and is headquartered in Tokyo, Japan.

Daikokuya Holdings Co.Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue (-6.7% from 2024 to 2025), persistent net losses with negative EBIT/EBITDA margins, high leverage and very low equity ratio (6.75%), plus negative operating and free cash flow with sharply deteriorating FCF.

Income Statement

The company has experienced a significant decline in revenue over recent years, with a revenue growth rate of -6.7% from 2024 to 2025. The gross profit margin remains positive at 29.87%, but the net profit margin is negative due to consistent net losses, indicating a challenging profitability situation. Both EBIT and EBITDA margins are negative, showing operational difficulties in generating profit.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting significant leverage which poses financial risk. Stockholders' equity has declined considerably, reducing the equity ratio to 6.75%, indicating a low equity buffer. The return on equity is negative due to losses, highlighting ongoing financial challenges.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with free cash flow deteriorating sharply by over 139% from 2024 to 2025. The company's cash flow to net income ratios are unfavorable, reflecting struggles in converting revenue into cash and maintaining liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.04B	10.23B	10.97B	12.45B	17.38B	12.61B
Gross Profit	2.95B	3.06B	3.27B	3.48B	3.60B	3.13B
EBITDA	-958.66M	-832.11M	-73.94M	197.75M	145.58M	-258.48M
Net Income	-1.03B	-968.05M	-539.66M	-279.36M	-292.62M	-716.82M
Balance Sheet
Total Assets	6.00B	6.28B	6.52B	6.71B	7.36B	8.11B
Cash, Cash Equivalents and Short-Term Investments	495.84M	559.23M	948.34M	901.44M	1.04B	1.00B
Total Debt	4.22B	4.45B	4.99B	4.70B	5.10B	5.50B
Total Liabilities	5.02B	5.28B	5.88B	5.67B	5.89B	6.34B
Stockholders Equity	419.51M	423.90M	29.63M	427.19M	879.08M	1.19B
Cash Flow
Free Cash Flow	0.00	-1.22B	-508.03M	236.43M	389.50M	-413.54M
Operating Cash Flow	0.00	-1.19B	-430.28M	254.00M	422.54M	-398.34M
Investing Cash Flow	0.00	-20.95M	-3.40M	-837.00K	6.63M	-1.57M
Financing Cash Flow	0.00	824.16M	466.06M	-400.01M	-400.02M	-400.00M

Daikokuya Holdings Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6993, the sentiment is Positive. The current price of 81 is below the 20-day moving average (MA) of 128.25, below the 50-day MA of 140.38, and above the 200-day MA of 77.72, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 81.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6993.

Daikokuya Holdings Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6946	77 Outperform	¥118.66B	17.71	19.52%	0.13%	28.27%	27.15%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
5310	70 Outperform	¥116.82B	18.50	5.82%	2.50%	-8.00%	-17.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6993	46 Neutral	¥109.50B	-64.08	―	―	-2.35%	16.12%