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

• Market Cap: ¥95.45B
• Dividend Yield: N/A
• Average Volume (3M): 5.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• 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: ¥121.00 ▲(49.38% 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 profit margin

A near-30% gross margin indicates that core products or services earn healthy unit economics before overhead. This structural margin provides room to absorb SG&A or scale profitably if revenue stabilizes, supporting a longer-term path to operating leverage.

Improving EPS trend

Material EPS improvement suggests earnings dynamics are moving in a healthier direction versus prior periods. If sustained, this trend can reflect operational improvements or cost reductions that materially lower the hurdle to full profitability over the medium term.

Compact workforce

A small headcount implies lower fixed payroll overhead and greater agility to right-size operations. Structurally, this makes it easier to implement efficiency measures or scale selectively, reducing the absolute cost base needed to return to positive free cash flow.

Negative Factors

Declining revenue

Revenue contraction is a durable warning sign: shrinking top line reduces opportunity to leverage fixed costs, undermines gross-to-net conversion, and makes margin recovery harder. Persistent declines signal market share loss or weakening demand that erodes long-term viability.

High leverage / low equity

Very low equity and elevated leverage materially increase refinancing and solvency risk. Over the medium term this constrains strategic options, raises interest costs, and leaves little buffer against shocks, making sustained investment and recovery more difficult.

Negative operating & free cash flow

Persistently negative operating and free cash flow depletes liquidity and forces reliance on external financing. Structurally, this limits capex, R&D, and working capital flexibility and increases bankruptcy or dilution risk unless cash generation reverses sustainably.

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.

How the Company Makes Money

Daikokuya Holdings generates revenue through the sale of its electronic components and devices, which are critical to the functioning of various electronic systems. The company’s revenue model is primarily based on direct sales to manufacturers and distributors, with a significant portion of its earnings coming from long-term contracts with major players in the electronics market. Key revenue streams include the production of semiconductors, printed circuit boards, and specialized electronic devices. Additionally, Daikokuya may engage in partnerships with technology firms for joint development projects, further enhancing its product offerings and market reach. The company also benefits from economies of scale in production, which contribute to its profitability.

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	-979.08M	-900.48M	-358.71M	118.89M	96.68M	-536.84M
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	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: 81.00
• 50DMA: Negative
• 100DMA: Positive
• 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 81 is below the 20-day moving average (MA) of 144.60, below the 50-day MA of 129.00, and above the 200-day MA of 69.59, indicating a neutral trend. The MACD of -3.58 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 2.65 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
6894	76 Outperform	¥3.19B	7.86	―	3.92%	-1.32%	45.44%
6647	76 Outperform	¥3.77B	5.14	―	2.20%	14.26%	280.42%
6748	70 Outperform	¥10.87B	8.70	―	2.23%	―	―
5820	67 Neutral	¥3.96B	19.14	―	2.69%	2.48%	161.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6943	51 Neutral	¥4.28B	-34.48	―	1.79%	-10.43%	-368.47%
6993	46 Neutral	¥95.45B	-29.85	―	―	-2.35%	16.12%