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Daido Metal Co., Ltd.
(7245)
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Rating:65Neutral
Price Target:
¥1,631.00
▲(75.38% Upside)
Action:Reiterated
Date:07/08/26
The score is primarily supported by improving financial performance (profit recovery and improving leverage) but tempered by thin margins and uneven free-cash-flow conversion. Technicals are bullish overall, yet overbought readings (RSI/Stochastics) add near-term risk. Valuation is reasonable with a moderate P/E and modest dividend yield.
Positive Factors
Revenue recovery and steady growth
The company recovered from a 2023 loss and delivered steady revenue growth through 2026 with net income rising to ¥4.4B. Sustained top-line expansion and a stable mid‑20% gross margin indicate durable demand and improving operating leverage across product cycles.
Negative Factors
Thin net margins
A ~3.1% net margin leaves limited buffer against raw material, labor, or volume shocks common in auto parts. Low bottom‑line profitability constrains retained earnings, limits reinvestment capacity, and makes long‑term earnings sensitive to modest adverse cost or demand shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and steady growth
The company recovered from a 2023 loss and delivered steady revenue growth through 2026 with net income rising to ¥4.4B. Sustained top-line expansion and a stable mid‑20% gross margin indicate durable demand and improving operating leverage across product cycles.
Read all positive factors
Daido Metal Co., Ltd. (7245) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥67.95B
Dividend Yield2.09%
Average Volume (3M)890.26K
Price to Earnings (P/E)15.1
Beta (1Y)1.33
Revenue Growth4.19%
EPS Growth62.50%
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
Neutral
930.00
Price Trends
1235.64
Positive
1106.79
Positive
1040.95
Positive
Market Momentum
101.88
Positive
46.24
Neutral
4.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7245, the sentiment is Neutral. The current price of 930 is below the 20-day moving average (MA) of 1556.85, below the 50-day MA of 1235.64, and below the 200-day MA of 1040.95, indicating a neutral trend. The MACD of 101.88 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 4.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | ¥169.48B | 9.09 | ― | 4.47% | 1.64% | 19.87% | |
75 Outperform | ¥217.29B | 15.90 | 7.50% | 5.39% | -1.82% | 23.07% | |
74 Outperform | ¥74.15B | 9.37 | 5.20% | 3.67% | 6.47% | 41.09% | |
73 Outperform | ¥89.12B | 6.58 | ― | 4.95% | -1.72% | 8.59% | |
65 Neutral | ¥67.95B | 15.08 | 5.33% | 2.09% | 4.19% | 62.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | ¥227.16B | 184.88 | ― | 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, Repurchases 163,600 Shares in June
Jul 1, 2026
Daido Metal has disclosed the latest progress of its share buyback program authorized under its Articles of Incorporation and the Companies Act. Between June 1 and June 30, 2026, the company repurchased 163,600 shares of its common stock for appro...
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...
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.