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

• Market Cap: ¥8.91B
• Dividend Yield: N/A
• Average Volume (3M): 5.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -2.35%
• EPS Growth: 16.12%
• Country: JP
• Employees: 149
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.75
• Shares Outstanding: 222,767,200
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥81.00 ▲(6.58% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, persistent losses, and high leverage. While technical analysis indicates strong bullish momentum, the negative valuation metrics, including a negative P/E ratio, highlight significant risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Product Innovation

The company's focus on innovation in electronic components and devices positions it well to adapt to technological advancements and maintain competitive advantages.

Long-term Contracts

Long-term contracts with major electronics market players provide stable revenue streams and enhance financial predictability, supporting sustained business operations.

Economies of Scale

Economies of scale in production help reduce costs per unit, enhancing profitability and competitive pricing, which can drive market share growth over time.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, which can impact long-term growth and profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, affecting the company's ability to fund operations and invest in future growth, necessitating strategic financial restructuring.

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

Daikokuya Holdings Co. Ltd. is facing significant financial challenges across all key areas. Declining revenues and persistent losses have pressured profitability, while high leverage and dwindling equity pose risks to financial stability. The negative cash flows highlight liquidity issues, suggesting a need for strategic restructuring to improve financial health.

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	10.04B	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: Positive
• Last Price: 76.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 76 is above the 20-day moving average (MA) of 52.00, above the 50-day MA of 42.20, and above the 200-day MA of 37.35, indicating a bullish trend. The MACD of 11.05 indicates Negative momentum. The RSI at 81.58 is Negative, neither overbought nor oversold. The STOCH value of 90.62 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
6647	80 Outperform	¥3.09B	4.76	―	2.23%	14.26%	280.42%
6894	76 Outperform	¥2.77B	8.17	―	3.84%	-1.32%	45.44%
5820	64 Neutral	¥2.48B	12.62	―	2.59%	2.48%	161.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6993	53 Neutral	¥8.91B	-6.18	―	―	-2.35%	16.12%
6943	51 Neutral	¥3.79B	-8.54	―	1.53%	-10.43%	-368.47%