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

• Market Cap: ¥8.63B
• Dividend Yield: N/A
• Average Volume (3M): 8.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -6.70%
• EPS Growth: -17.49%
• Country: JP
• Employees: 149
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.53
• Shares Outstanding: 221,194,800
• 10 Day Avg. Volume: 7,249,270
• 30 Day Avg. Volume: 8,001,106
• 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: ¥45.00
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ¥45.00 ▲(15.38% Upside)

The overall stock score of 40 reflects significant financial challenges, including declining revenues, persistent losses, and liquidity issues. Technical indicators suggest weak momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively indicate a high-risk investment with limited short-term upside potential.

Daikokuya Holdings Co.Ltd. Business Overview & Revenue Model

Company Description

Daikokuya Holdings Co., Ltd. (6993) is a Japan-based company primarily engaged in the retail and service industry. The company operates a network of pawnshops and second-hand goods stores, offering a diverse range of products such as jewelry, luxury goods, and consumer electronics. Daikokuya Holdings is recognized for its expertise in the appraisal and trade of pre-owned goods, providing customers with both purchase and sale options, as well as offering pawn loans secured by these items.

How the Company Makes Money

Daikokuya Holdings Co., Ltd. generates revenue through multiple streams. The primary source of income is derived from the retail sales of second-hand goods, including luxury items and electronics, which are acquired through customer purchases or pawned items. The company also earns significant revenue from interest and fees associated with its pawn loan services, where customers receive loans secured by personal property. Additionally, Daikokuya Holdings benefits from the appreciation and resale of valuable pre-owned goods. The business model is supported by strong customer trust and efficient logistics for appraising, storing, and selling items. Strategic partnerships with other retail platforms and financial institutions may further enhance their market presence and revenue generation capabilities.

Daikokuya Holdings Co.Ltd. Financial Statement Overview

Summary

Daikokuya Holdings Co. Ltd. is facing significant financial challenges. The income statement shows declining revenues and persistent net losses, resulting in negative profit margins. The balance sheet indicates high leverage and a low equity buffer, increasing financial risk. Cash flows are negative, revealing liquidity issues.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.23B	10.23B	10.97B	12.45B	17.38B	12.61B
Gross Profit	3.06B	3.06B	3.27B	3.48B	3.60B	3.13B
EBITDA	-859.45M	-900.48M	-358.71M	118.89M	96.68M	-536.84M
Net Income	-967.96M	-968.05M	-539.66M	-279.36M	-292.62M	-716.82M
Balance Sheet
Total Assets	6.28B	6.28B	6.52B	6.71B	7.36B	8.11B
Cash, Cash Equivalents and Short-Term Investments	559.23M	559.23M	948.34M	901.44M	1.04B	1.00B
Total Debt	4.45B	4.45B	4.99B	4.70B	5.10B	5.50B
Total Liabilities	5.28B	5.28B	5.88B	5.67B	5.89B	6.34B
Stockholders Equity	423.90M	423.90M	29.63M	427.19M	879.08M	1.19B
Cash Flow
Free Cash Flow	0.00	-1.22B	-508.03M	233.12M	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: Neutral
• Last Price: 39.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6993, the sentiment is Neutral. The current price of 39 is below the 20-day moving average (MA) of 44.60, below the 50-day MA of 54.94, and above the 200-day MA of 33.37, indicating a neutral trend. The MACD of -4.49 indicates Positive momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 19.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6647	78 Outperform	2.68B	4.12	11.02%	2.57%	23.01%	260.84%
6894	76 Outperform	2.73B	8.10	9.21%	4.00%	-10.78%	1.10%
5820	64 Neutral	2.62B	14.91	2.54%	2.39%	2.89%	94.76%
6943	51 Neutral	3.76B	-8.46	-3.18%	1.53%	-16.30%	-281.92%
6993	40 Underperform	¥8.63B	―		―	-6.70%	-17.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%