Daytona Corporation (7228) AI Stock Analysis

• Market Cap: ¥8.86B
• Dividend Yield: 3.41%
• Average Volume (3M): 1.66K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.23
• Revenue Growth: 7.41%
• EPS Growth: 7.38%
• Country: JP
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 151.81
• Shares Outstanding: 3,604,600
• 10 Day Avg. Volume: 2,240
• 30 Day Avg. Volume: 1,660
• 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: ¥4,200.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥4,200.00 ▲(11.11% Upside)

Daytona Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The company shows robust financial health with consistent growth and efficient cost management. Its low P/E ratio and high dividend yield further enhance its appeal. While technical indicators suggest a positive trend, caution is advised due to potential short-term weakness.

Daytona Corporation Business Overview & Revenue Model

Company Description

Daytona Corporation (7228) is a prominent player in the automotive and motorsport sectors, specializing in the manufacturing and distribution of high-performance automotive parts and accessories. The company operates primarily in the aftermarket segment, offering a diverse range of products including tires, performance upgrades, and maintenance supplies. Daytona Corporation also engages in motorsport events and promotions, further enhancing its brand presence within the racing community.

How the Company Makes Money

Daytona Corporation generates revenue through multiple key streams. Primarily, the company earns money from the sale of automotive parts and accessories, catering to both individual consumers and automotive retailers. This includes a robust line of performance-enhancing products, which tend to carry higher margins. Additionally, Daytona Corporation has established strategic partnerships with various automotive brands and racing teams, allowing it to benefit from co-branding opportunities and sponsorship deals. The company also organizes motorsport events, which not only serve as a marketing tool but also contribute to revenue through ticket sales, merchandise, and sponsorships. Overall, Daytona Corporation's diverse revenue model ensures stability and growth within the competitive automotive market.

Daytona Corporation Financial Statement Overview

Summary

Daytona Corporation exhibits a strong financial position with solid revenue growth, efficient operations, and prudent financial management. The company has maintained a stable net profit margin, indicative of effective cost control, and a robust balance sheet with a low debt-to-equity ratio. However, minor revenue and cash flow volatility were noted.

Income Statement

Daytona Corporation has demonstrated strong revenue growth over recent years, with a notable increase in total revenue from 2020 to 2024. The company maintains a solid gross profit margin averaging around 38.5% over the past few years. The net profit margin has been stable, indicating efficient cost management, and both EBIT and EBITDA margins reflect healthy operational performance. However, there was a slight dip in revenue in 2023, highlighting potential volatility in revenue streams.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of approximately 0.12, indicating prudent financial leverage. The return on equity (ROE) has been strong, averaging over 14% in recent years, reflecting effective utilization of equity capital. The equity ratio of around 79% suggests a solid equity foundation. The decrease in total debt over time enhances financial stability, although there was a noticeable increase in total assets, which could imply potential overextension.

Cash Flow

Daytona Corporation's cash flow statement indicates a strong free cash flow growth, with significant improvement from negative free cash flow in 2022 to positive in subsequent years. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income. Free cash flow to net income has also improved, showing a strong capacity to reinvest in the business or return capital to shareholders. However, operating cash flow experienced a dip in 2022, signaling potential cash flow volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.58B	13.96B	14.59B	12.54B	9.91B
Gross Profit	5.60B	5.45B	5.86B	5.21B	4.20B
EBITDA	1.98B	1.97B	2.35B	2.12B	1.42B
Net Income	1.21B	1.18B	1.43B	1.32B	811.79M
Balance Sheet
Total Assets	10.93B	10.33B	9.64B	8.17B	7.28B
Cash, Cash Equivalents and Short-Term Investments	2.34B	1.73B	1.13B	1.35B	1.29B
Total Debt	1.04B	1.33B	1.52B	1.28B	1.70B
Total Liabilities	2.30B	2.67B	2.90B	2.72B	3.07B
Stockholders Equity	8.60B	7.64B	6.72B	5.44B	4.21B
Cash Flow
Free Cash Flow	1.19B	1.07B	-100.10M	593.90M	1.42B
Operating Cash Flow	1.43B	1.22B	-4.23M	752.54M	1.48B
Investing Cash Flow	-252.64M	-164.22M	-278.26M	-172.69M	-78.60M
Financing Cash Flow	-576.33M	-486.49M	39.43M	-538.56M	-893.06M

Daytona Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3780.00
• 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:7228, the sentiment is Positive. The current price of 3780 is above the 20-day moving average (MA) of 3706.00, above the 50-day MA of 3699.80, and above the 200-day MA of 3576.61, indicating a bullish trend. The MACD of 32.58 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 88.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7228.

Daytona Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7254	78 Outperform	¥11.00B	4.24		2.57%	-4.83%	5.31%
7228	77 Outperform	¥8.86B	7.23		3.41%	7.41%	7.38%
7235	70 Outperform	¥10.34B	6.00		4.76%	0.69%	7.21%
5985	68 Neutral	¥15.67B	4.54		3.25%	20.25%	―
7273	67 Neutral	¥17.80B	282.43		0.37%	2.22%	-90.98%
Sector *	56 Neutral	HK$25.48B	5.05	-2.69%	5.69%	-0.45%	-52.99%
7277	56 Neutral	¥8.97B	―		2.53%	-3.20%	-454.63%