DAIWA TSUSHIN Co.,Ltd (7116) AI Stock Analysis

• Market Cap: ¥2.21B
• Dividend Yield: 4.28%
• Average Volume (3M): 4.64K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.52
• Revenue Growth: 3.91%
• EPS Growth: 16.58%
• Country: JP
• Employees: 115
• Sector: Industrials
• Sector Strength: 78
• Industry: Security & Protection Services
• EPS (TTM): N/A
• Shares Outstanding: 2,707,000
• 10 Day Avg. Volume: 3,960
• 30 Day Avg. Volume: 4,640
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: 69 Neutral
• Price Target: ―

Daiwa Tsushin Co., Ltd. shows solid financial health with strong revenue growth and low leverage. The valuation is attractive, offering a good P/E ratio and a high dividend yield. However, technical indicators suggest caution as the stock price is below key moving averages, indicating potential downward momentum.

DAIWA TSUSHIN Co.,Ltd Business Overview & Revenue Model

Company Description

DAIWA TSUSHIN Co., Ltd engages in security and mobile businesses. The company is involved in development, sales, installation, and maintenance of security and surveillance cameras; AI robots; and entry/exit control systems. It also sells mobile communication and peripheral devices; AI facial recognition temperature detection system; mechanical security systems; communication and OA equipment; and network design, construction, and LAN construction services. DAIWA TSUSHIN Co., Ltd was founded in 1996 and is headquartered in Kanazawa, Japan.

How the Company Makes Money

DAIWA TSUSHIN Co.,Ltd generates revenue through the sale of its diverse range of electronic and telecommunication products. The company earns money by distributing these products to different market segments, including businesses and individual consumers. Key revenue streams include the direct sale of communication devices and electronic components. Additionally, the company may have strategic partnerships with manufacturers or service providers, allowing it to expand its product offerings and enhance its distribution capabilities, thus contributing to its earnings.

DAIWA TSUSHIN Co.,Ltd Financial Statement Overview

Summary

Daiwa Tsushin Co., Ltd. demonstrates solid financial performance with consistent revenue growth and efficient operations. The balance sheet is strong with low leverage, but there's a need to improve profitability metrics such as net profit margin and return on equity. Cash flow has improved, enhancing the company's financial flexibility.

Income Statement

Daiwa Tsushin Co., Ltd. has experienced a healthy revenue growth rate from 2022 to 2024, with a notable increase in total revenue from 2023 to 2024. The company maintains a solid gross profit margin, though the net profit margin has decreased over the years. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position, with an improving equity ratio. The debt-to-equity ratio is favorable, indicating manageable leverage. However, the return on equity has decreased, suggesting a drop in net income generation relative to equity.

Cash Flow

Free cash flow has shown improvement, and the operating cash flow to net income ratio indicates effective cash conversion. Despite previous negative free cash flow, the latest period shows positive growth, suggesting a recovery in cash flow generation.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.16B	4.82B	4.79B	6.74B
Gross Profit	1.66B	1.61B	1.75B	3.37B
EBITDA	448.46M	445.77M	683.31M	2.19B
Net Income	257.37M	242.81M	394.48M	1.40B
Balance Sheet
Total Assets	3.99B	3.75B	3.34B	3.90B
Cash, Cash Equivalents and Short-Term Investments	805.19M	767.65M	399.68M	1.13B
Total Debt	751.85M	766.05M	952.80M	845.61M
Total Liabilities	1.30B	1.32B	1.16B	2.11B
Stockholders Equity	2.68B	2.43B	2.18B	1.79B
Cash Flow
Free Cash Flow	86.71M	534.56M	-754.39M	1.23B
Operating Cash Flow	170.71M	810.56M	-498.88M	1.24B
Investing Cash Flow	-46.29M	-256.17M	-288.06M	14.42M
Financing Cash Flow	-88.28M	-186.44M	102.01M	-891.54M

DAIWA TSUSHIN Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 817.00
• 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:7116, the sentiment is Neutral. The current price of 817 is above the 20-day moving average (MA) of 811.15, above the 50-day MA of 798.66, and below the 200-day MA of 963.39, indicating a neutral trend. The MACD of 7.15 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7116.

DAIWA TSUSHIN Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4754	82 Outperform	¥7.11B	7.33		2.20%	5.24%	91.21%
9686	76 Outperform	¥17.50B	11.78		2.41%	24.48%	204.62%
7464	75 Outperform	¥3.21B	13.50		5.25%	0.09%	-42.75%
7058	72 Outperform	¥4.01B	45.17		3.25%	6.83%	-59.50%
Sector *	71 Outperform	¥267.71B	14.94	8.32%	2.77%	6.08%	11.04%
4264	71 Outperform	¥9.24B	74.23		―	12.33%	-44.28%
7116	69 Neutral	¥2.21B	8.81		4.28%	3.91%	16.58%