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

• Market Cap: ¥36.94B
• Dividend Yield: 1.9%
• Average Volume (3M): 172.51K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.87
• Revenue Growth: 3.51%
• EPS Growth: -0.74%
• Country: JP
• Employees: 7,055
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 12.60
• Shares Outstanding: 47,520,252
• 10 Day Avg. Volume: 253,230
• 30 Day Avg. Volume: 172,510
• 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: ¥807.79
• Price Target Upside: 2.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥808.00 ▲(2.15% 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. Business Overview & Revenue Model

Company Description

Daido 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 Money

Daido 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	136.30B	128.74B	115.48B	104.02B	84.72B
Gross Profit	32.17B	31.30B	26.17B	26.76B	19.52B
EBITDA	18.79B	16.46B	12.77B	15.01B	10.81B
Net Income	2.72B	2.57B	-2.21B	1.90B	104.00M
Balance Sheet
Total Assets	196.66B	188.37B	173.32B	166.16B	155.18B
Cash, Cash Equivalents and Short-Term Investments	29.15B	30.96B	24.11B	23.02B	22.01B
Total Debt	65.79B	63.38B	61.93B	57.13B	58.47B
Total Liabilities	114.56B	109.65B	102.87B	97.46B	90.64B
Stockholders Equity	72.75B	68.82B	61.13B	60.34B	56.39B
Cash Flow
Free Cash Flow	342.00M	8.67B	-162.00M	6.27B	1.84B
Operating Cash Flow	10.92B	16.66B	5.00B	13.21B	10.10B
Investing Cash Flow	-8.39B	-8.30B	-6.34B	-8.07B	-7.04B
Financing Cash Flow	-2.39B	-2.50B	790.00M	-5.08B	-3.10B

Daido Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 791.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 791 is above the 20-day moving average (MA) of 714.60, above the 50-day MA of 672.54, and above the 200-day MA of 543.44, indicating a bullish trend. The MACD of 31.27 indicates Negative momentum. The RSI at 77.03 is Negative, neither overbought nor oversold. The STOCH value of 90.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	78 Outperform	¥30.44B	11.01		4.09%	0.65%	-21.13%
7245	77 Outperform	¥36.94B	13.12	4.24%	1.90%	3.51%	-0.74%
7236	76 Outperform	¥35.49B	7.16		3.35%	1.00%	413.42%
5989	73 Outperform	¥38.32B	3.95		3.70%	-7.52%	―
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%
7229	66 Neutral	¥40.88B	10.41		2.61%	-18.46%	-48.08%
6470	58 Neutral	¥19.15B	―		2.95%	2.93%	-349.98%

Daido Metal Co., Ltd. Corporate Events

Daido Metal Reports Q1 2025 Financial Results with Profit Growth

Daido Metal Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.9% to ¥33,516 million. The company experienced substantial growth in operating profit by 31.9% and profit attributable to owners of the parent by 26.8%. Despite these positive results, comprehensive income showed a significant decline, indicating potential challenges in other financial areas. The company maintained its dividend forecast for the fiscal year ending March 31, 2026, with an expected increase in total annual dividends, reflecting confidence in its financial stability.

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

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.