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Daido Metal Co., Ltd. (JP:7245)
:7245
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Daido Metal Co., Ltd. (7245) AI Stock Analysis

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JP:7245

Daido Metal Co., Ltd.

(Frankfurt:7245)

Rating:77Outperform
Price Target:
¥808.00
▲(22.42%Upside)
Daido Metal Co., Ltd. scores well due to strong technical indicators and attractive valuation with a solid P/E ratio and dividend yield. While financial performance shows strong revenue growth, high leverage and cash flow challenges are present. Overall, the stock appears promising with positive momentum and good valuation metrics.

Daido Metal Co., Ltd. (7245) vs. iShares MSCI Japan ETF (EWJ)

Daido Metal Co., Ltd. Business Overview & Revenue Model

Company DescriptionDaido Metal Co., Ltd. is a Japanese company specializing in the manufacturing and supply of plain bearings and other related components. The company operates primarily in the automotive and industrial sectors, providing essential parts for engines, transmissions, and machinery. With a focus on innovation and quality, Daido Metal Co., Ltd. serves a global customer base, contributing to the efficiency and longevity of various mechanical systems.
How the Company Makes MoneyDaido Metal Co., Ltd. generates revenue through the production and sale of plain bearings and related components. Key revenue streams include the automotive sector, where the company supplies bearings for engines and transmissions, and the industrial sector, which involves machinery and equipment manufacturers. The company leverages its engineering expertise and technological advancements to maintain long-term partnerships with major automotive and industrial firms. Additionally, Daido Metal Co., Ltd. invests in research and development to innovate its product offerings, ensuring sustained demand and competitiveness in the market.

Daido Metal Co., Ltd. Financial Statement Overview

Summary
Daido Metal Co., Ltd. exhibits solid revenue growth and stable profitability margins, with room for operational improvement. The balance sheet reflects healthy equity but high leverage, which is common in the industry. Cash flow challenges are evident, with significant pressure on free cash flow.
Income Statement
78
Positive
Daido Metal Co., Ltd. has demonstrated strong revenue growth with consistent improvements over the past years, achieving a 5.88% increase in revenue from 2024 to 2025. The gross profit margin remains robust at 23.6% for 2025. The company shows a slight increase in net profit margin to 1.99% in 2025, reflecting improved profitability. However, the EBIT and EBITDA margins remain moderate at 5.20% and 13.78%, respectively, indicating room for operational efficiency enhancements.
Balance Sheet
72
Positive
The company maintains a healthy equity ratio of 37.00% in 2025, indicating a solid capital structure. The debt-to-equity ratio is relatively high at 0.90, which suggests significant leverage but is typical within the industry. ROE has seen improvement, reaching 3.74% in 2025, demonstrating better returns on equity, although still modest.
Cash Flow
65
Positive
The cash flow statement reveals a challenging environment with a significant decline in free cash flow, decreasing from ¥8.67 billion in 2024 to ¥342 million in 2025. Operating cash flow remains strong, providing a good cover for net income at a ratio of 4.02. However, the free cash flow to net income ratio is extremely low at 0.13, signifying tight cash flow management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue136.30B128.74B115.48B104.02B84.72B
Gross Profit32.17B31.30B26.17B26.76B19.52B
EBITDA18.79B16.46B12.77B15.01B10.81B
Net Income2.72B2.57B-2.21B1.90B104.00M
Balance Sheet
Total Assets196.66B188.37B173.32B166.16B155.18B
Cash, Cash Equivalents and Short-Term Investments29.15B30.96B24.11B23.02B22.01B
Total Debt65.79B63.38B61.93B57.13B58.47B
Total Liabilities114.56B109.65B102.87B97.46B90.64B
Stockholders Equity72.75B68.82B61.13B60.34B56.39B
Cash Flow
Free Cash Flow342.00M8.67B-162.00M6.27B1.84B
Operating Cash Flow10.92B16.66B5.00B13.21B10.10B
Investing Cash Flow-8.39B-8.30B-6.34B-8.07B-7.04B
Financing Cash Flow-2.39B-2.50B790.00M-5.08B-3.10B

Daido Metal Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price660.00
Price Trends
50DMA
640.28
Positive
100DMA
567.99
Positive
200DMA
526.90
Positive
Market Momentum
MACD
16.17
Negative
RSI
71.99
Negative
STOCH
91.30
Negative
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 660 is below the 20-day moving average (MA) of 663.65, above the 50-day MA of 640.28, and above the 200-day MA of 526.90, indicating a bullish trend. The MACD of 16.17 indicates Negative momentum. The RSI at 71.99 is Negative, neither overbought nor oversold. The STOCH value of 91.30 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥28.89B9.53
4.31%0.91%-3.92%
77
Outperform
¥32.46B12.063.84%2.11%5.88%5.86%
77
Outperform
¥39.89B3.71
3.51%-1.97%
76
Outperform
¥25.51B7.43
4.85%0.36%248.87%
66
Neutral
¥39.51B8.60
2.70%-17.14%-13.01%
65
Neutral
€19.74B9.827.83%3.19%0.64%-38.42%
58
Neutral
¥18.77B
3.23%0.66%-340.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7245
Daido Metal Co., Ltd.
712.00
139.91
24.46%
JP:5185
Fukoku Co., Ltd.
1,745.00
-209.98
-10.74%
JP:5989
H-One Co., Ltd.
1,425.00
482.15
51.14%
JP:6470
Taiho Kogyo Co., Ltd.
620.00
-116.43
-15.81%
JP:7229
Yutaka Giken Co., Ltd.
2,635.00
582.00
28.35%
JP:7236
T.RAD Co., Ltd.
4,945.00
1,444.65
41.27%

Daido Metal Co., Ltd. Corporate Events

Daido Metal Co., Ltd. Announces Stable Dividend Amid Economic Challenges
May 29, 2025

Daido Metal Co., Ltd. announced a dividend of 11 yen per share for the fiscal year ending March 31, 2025, reflecting a stable payout despite challenges such as a slowing Chinese economy and rising global costs. The company achieved increased revenue and profit due to strong demand in the automotive and shipping sectors, resulting in an annual dividend of 18 yen per share.

Daido Metal Continues Stock-Based Remuneration Schemes with New Share Acquisition
May 13, 2025

Daido Metal Co., Ltd. has announced the continuation of its stock-based remuneration schemes for its Directors and Executive Officers, initially introduced in 2019. The company plans to acquire additional shares worth up to 208 million Yen to support these schemes, with the acquisition scheduled between May 21 and May 30, 2025. This move is aimed at aligning the interests of its executives with company performance, potentially impacting its operational strategy and stakeholder interests.

Daido Metal Unveils ‘Bridge to Daido 2030’ Midterm Plan for Sustainable Growth
May 13, 2025

Daido Metal Co., Ltd. has announced its new Midterm Plan, ‘Bridge to Daido 2030,’ aimed at increasing corporate value and achieving sustainable growth from 2025 to 2030. The plan focuses on restructuring the business to exceed capital costs and adapt to changes in the business environment. Despite challenges in the previous midterm plan due to global economic factors, the company achieved significant sales growth in FY2024. The new plan includes strategies to expand beyond traditional automotive and marine sectors, targeting general industry and frontier businesses, to enhance its business portfolio and address environmental regulations.

Daido Metal Co., Ltd. Increases Year-End Dividend Forecast Amid Strong Financial Performance
May 13, 2025

Daido Metal Co., Ltd. has revised its year-end dividend forecast for the fiscal year ending March 31, 2025, increasing the dividend to 11.00 yen per share, up from the previously forecasted 8.00 yen. This decision reflects the company’s strong financial performance, with increased sales and profits, and aligns with its policy to provide stable and sustainable dividends while considering future business development and market conditions.

Daido Metal Records Extraordinary Loss Due to Subsidiary’s Performance
May 13, 2025

Daido Metal Co., Ltd. announced an extraordinary loss of 1,788 million yen due to provision for doubtful accounts related to its subsidiary, DM Casting Technology (Thailand) Co., Ltd. Despite the subsidiary’s improving performance, the loss was recorded after assessing future recoverability. This loss, however, does not affect the company’s consolidated financial results as it is eliminated in the consolidated accounts.

Daido Metal Co., Ltd. Reports Strong Financial Performance for FY 2025
May 13, 2025

Daido Metal Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.9% increase in net sales and a 16.5% rise in operating profit. Despite a decrease in comprehensive income by 31.8%, the company improved its dividend payout and anticipates further growth in the upcoming fiscal year, indicating a positive outlook for stakeholders.

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.Date of analysis: Jul 26, 2025