Daido Metal Co., Ltd. (JP:7245)
:7245
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Daido Metal Co., Ltd.
(7245)
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Rating:67Neutral
Price Target:
¥1,315.00
▲(41.40% Upside)
Action:Reiterated
Date:05/14/26
The score is primarily driven by improving financial performance but tempered by thin margins and uneven free cash flow. Technicals are moderately positive with price above key moving averages, though momentum is mixed. Valuation is a relative strength due to the low P/E and solid dividend yield.
Positive Factors
Steady Revenue Growth
Consistent top-line expansion across 2021–2026 reflects durable demand for bearings across automotive and industrial markets. Long OEM relationships and exposure to engines, powertrains, and heavy equipment support repeat mass-production contracts and aftermarket revenue over multiple model cycles.
Negative Factors
Thin Net Margins
Very low net margins leave earnings highly sensitive to commodity, labor, and volume swings typical in auto parts. With gross margins mid‑20% but slim bottom-line margins, a modest downturn or input-cost uptick could materially compress net income and limit reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Consistent top-line expansion across 2021–2026 reflects durable demand for bearings across automotive and industrial markets. Long OEM relationships and exposure to engines, powertrains, and heavy equipment support repeat mass-production contracts and aftermarket revenue over multiple model cycles.
Read all positive factors
Daido Metal Co., Ltd. (7245) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥56.53B
Dividend Yield2.09%
Average Volume (3M)890.26K
Price to Earnings (P/E)12.9
Beta (1Y)1.23
Revenue Growth4.19%
EPS Growth62.47%
CountryJP
Employees7,055
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)93.74
Shares Outstanding47,520,252
10 Day Avg. Volume481,900
30 Day Avg. Volume890,263
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.49
Price to Sales (P/S)0.28
P/FCF Ratio9.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)93.9
Revenue Forecast (FY)¥140.00B
Daido Metal Co., Ltd. Business Overview & Revenue Model
Company Description
Daido Metal Co., Ltd., founded in 1939 and headquartered in Nagoya, Japan, is a global enterprise that manufactures and sells a comprehensive range of bearings and related industrial solutions. Operating across Japan, North America, Europe, Asia, ...
How the Company Makes Money
Daido Metal makes money mainly by manufacturing and selling plain bearings and related products to equipment manufacturers. Its core revenue stream comes from supplying bearings used in internal combustion engines and other automotive drivetrain c...
Daido Metal Co., Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 142.01B | 136.30B | 128.74B | 115.48B | 104.02B |
| Gross Profit | 34.18B | 32.17B | 31.30B | 26.17B | 26.76B |
| EBITDA | 19.14B | 18.79B | 16.46B | 12.77B | 15.01B |
| Net Income | 4.40B | 2.72B | 2.57B | -2.21B | 1.90B |
Balance Sheet | |||||
| Total Assets | 209.43B | 196.66B | 188.37B | 173.32B | 166.16B |
| Cash, Cash Equivalents and Short-Term Investments | 29.47B | 29.15B | 30.96B | 24.11B | 23.02B |
| Total Debt | 65.89B | 65.79B | 63.38B | 61.93B | 57.13B |
| Total Liabilities | 118.01B | 114.56B | 109.64B | 102.86B | 97.45B |
| Stockholders Equity | 82.09B | 72.75B | 68.82B | 61.14B | 60.34B |
Cash Flow | |||||
| Free Cash Flow | 4.09B | 342.00M | 8.67B | -162.00M | 6.27B |
| Operating Cash Flow | 13.72B | 10.92B | 16.66B | 5.00B | 13.21B |
| Investing Cash Flow | -7.82B | -8.39B | -8.30B | -6.34B | -8.07B |
| Financing Cash Flow | -4.77B | -2.39B | -2.50B | 790.00M | -5.08B |
Daido Metal Co., Ltd. Technical Analysis
Positive
930.00
Price Trends
977.64
Positive
1006.00
Positive
972.79
Positive
Market Momentum
70.26
Negative
70.01
Negative
67.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7245, the sentiment is Positive. The current price of 930 is below the 20-day moving average (MA) of 1087.15, below the 50-day MA of 977.64, and below the 200-day MA of 972.79, indicating a bullish trend. The MACD of 70.26 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7245.
Daido Metal Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥164.16B | 8.85 | ― | 4.47% | 1.64% | 19.87% | |
75 Outperform | ¥216.93B | 15.87 | 7.50% | 5.39% | -1.82% | 23.07% | |
74 Outperform | ¥74.52B | 9.32 | 5.20% | 3.67% | 6.47% | 40.87% | |
73 Outperform | ¥88.95B | 6.59 | ― | 4.95% | -1.72% | 8.59% | |
67 Neutral | ¥56.53B | 12.92 | 5.33% | 2.09% | 4.19% | 62.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | ¥320.25B | 253.27 | ― | 1.93% | <0.01% | -83.75% |
* Consumer Cyclical Sector Average
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Daido Metal Co., Ltd. Corporate Events
Daido Metal Advances Share Buyback, Repurchasing 341,200 Shares Under Ongoing Program
Jun 1, 2026
Daido Metal Co., Ltd. has reported progress on a previously approved share buyback program, acquiring 223,300 of its own common shares on the Tokyo Stock Exchange between May 1 and May 31, 2026, for a total of ¥210.9 million. Under the broade...
Daido Metal Hikes Annual Dividend as Earnings Strengthen on Demand Recovery
May 28, 2026
Daido Metal Co., Ltd. has approved a year-end dividend of 19 yen per share for the fiscal year ended March 31, 2026, matching its recent forecast and raising the total annual dividend to 31 yen, up from 18 yen the previous year. The total payout w...
Daido Metal Launches 2025–2030 Restructuring Plan to Lift Profitability
May 12, 2026
Daido Metal has outlined a new midterm plan for 2025–2030 that designates this six-year period as a business restructuring phase aimed at achieving sustainable growth above its cost of capital. The company targets an operating profit level o...
Daido Metal Lifts Year-End Dividend Forecast on Stronger Earnings
May 12, 2026
Daido Metal Co., Ltd. has raised its forecast for the year-end dividend for the fiscal year ended March 31, 2026, lifting the planned payout from 16 yen to 19 yen per share and setting the total annual dividend at 31 yen. This represents a sharp i...
Daido Metal lifts profit, outlook and dividends on autos and generator demand
May 12, 2026
Daido Metal reported higher net sales and operating profit for the fiscal year ended March 31, 2026, driven by recovering automotive demand, a robust newbuild ship market, and expanding demand for generators used in marine and data center applicat...
Daido Metal Boosts Earnings and Dividends on Strong FY2026 Results
May 12, 2026
Daido Metal reported consolidated net sales of ¥142.0 billion for the fiscal year ended March 31, 2026, up 4.2% year on year, with operating profit rising 18.1% to ¥8.37 billion and profit attributable to owners of the parent surging 61....
Daido Metal Begins Share Buyback, Acquires 117,900 Shares Under Board Authorization
May 1, 2026
Daido Metal Co., Ltd. has disclosed that it acquired 117,900 shares of its own common stock on the Tokyo Stock Exchange between April 20 and April 30, 2026, at a total cost of 104,988,200 yen. The buyback is being executed under a board authorizat...
Daido Metal Reshapes Board and Global Executive Ranks Ahead of June 2026
Mar 26, 2026
Daido Metal Co., Ltd. has announced a broad reshuffle of its leadership, with board and audit positions to be confirmed at the June 26, 2026 shareholders’ meeting, including the promotion of Shigemasa Hakakoshi to director and senior managin...
Daido Metal Sets Terms for ¥5.8 Billion Secondary Share Offering
Mar 17, 2026
Daido Metal has set the terms for a secondary offering of its common stock, following a March 10, 2026 board resolution, fixing the selling price at ¥925 per share. Underwriters will purchase the shares at an underwriting value of ¥886.8...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.