Daido Metal Co., Ltd. (JP:7245)
:7245
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Daido Metal Co., Ltd.
(7245)
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Rating:65Neutral
Price Target:
¥933.00
▲(0.32% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by improving financial performance (better margins and reduced leverage) but constrained by thin net profitability and volatile/weak free-cash-flow conversion. Technicals are supportive with a clear uptrend and positive momentum, while valuation is reasonable with a mid-range P/E and modest yield.
Positive Factors
Improving operating margins
Sustained improvement in gross and EBIT margins reflects better pricing, cost control and manufacturing efficiency. These operating gains increase structural earnings power, providing lasting cushion through automotive cycles and supporting reinvestment into higher‑spec products and process upgrades.
Negative Factors
Thin net profitability
A low net margin limits the firm's ability to absorb raw-material or volume shocks and constrains retained earnings for investment. Over the medium term, thin bottom-line profits reduce flexibility on dividends, capex and R&D, and make returns more contingent on margin preservation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving operating margins
Sustained improvement in gross and EBIT margins reflects better pricing, cost control and manufacturing efficiency. These operating gains increase structural earnings power, providing lasting cushion through automotive cycles and supporting reinvestment into higher‑spec products and process upgrades.
Read all positive factors
Daido Metal Co., Ltd. (7245) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥40.48B
Dividend Yield2.09%
Average Volume (3M)890.26K
Price to Earnings (P/E)14.8
Beta (1Y)1.18
Revenue Growth1.26%
EPS Growth56.37%
CountryJP
Employees7,055
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)16.56
Shares Outstanding47,520,252
10 Day Avg. Volume481,900
30 Day Avg. Volume890,263
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)0.32
Price to Sales (P/S)0.17
P/FCF Ratio68.09
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)N/A
Revenue Forecast (FY)N/A
Daido Metal Co., Ltd. Business Overview & Revenue Model
Company Description
Daido Metal Co., Ltd. (7245) is a leading manufacturer specializing in high-performance bearing materials and components, primarily serving the automotive and industrial machinery sectors. The company is known for its innovative products, includin...
How the Company Makes Money
Daido Metal makes money primarily by manufacturing and selling plain bearings and related engineered components used in internal combustion engines and other mechanical systems. Revenue is largely generated through (1) OEM supply of bearing produc...
Daido Metal Co., Ltd. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 140.26B | 136.30B | 128.74B | 115.48B | 104.02B | 84.72B |
| Gross Profit | 34.90B | 32.17B | 31.30B | 26.17B | 26.76B | 19.52B |
| EBITDA | 20.15B | 18.79B | 16.46B | 12.77B | 15.01B | 11.65B |
| Net Income | 3.71B | 2.72B | 2.57B | -2.21B | 1.90B | 104.00M |
Balance Sheet | ||||||
| Total Assets | 203.84B | 196.66B | 188.37B | 173.32B | 166.16B | 155.18B |
| Cash, Cash Equivalents and Short-Term Investments | 29.38B | 29.15B | 30.96B | 24.11B | 23.02B | 22.01B |
| Total Debt | 68.24B | 65.79B | 63.38B | 61.93B | 57.13B | 58.47B |
| Total Liabilities | 118.19B | 114.56B | 109.64B | 102.86B | 97.45B | 90.63B |
| Stockholders Equity | 76.19B | 72.75B | 68.82B | 61.14B | 60.34B | 56.39B |
Cash Flow | ||||||
| Free Cash Flow | 3.33B | 342.00M | 8.67B | -162.00M | 6.27B | 1.84B |
| Operating Cash Flow | 12.54B | 10.92B | 16.66B | 5.00B | 13.21B | 10.10B |
| Investing Cash Flow | -6.49B | -8.39B | -8.30B | -6.34B | -8.07B | -7.04B |
| Financing Cash Flow | -2.21B | -2.39B | -2.50B | 790.00M | -5.08B | -3.10B |
Daido Metal Co., Ltd. Technical Analysis
Negative
930.00
Price Trends
1069.00
Negative
1024.33
Negative
911.72
Negative
Market Momentum
-51.38
Positive
29.76
Positive
2.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7245, the sentiment is Negative. The current price of 930 is below the 20-day moving average (MA) of 1050.20, below the 50-day MA of 1069.00, and above the 200-day MA of 911.72, indicating a bearish trend. The MACD of -51.38 indicates Positive momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 2.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥78.94B | 7.82 | ― | 4.95% | -5.89% | 8.95% | |
79 Outperform | ¥75.98B | 7.83 | 5.20% | 3.67% | -3.78% | -16.61% | |
74 Outperform | ¥156.41B | 13.70 | ― | 4.47% | 2.01% | 25.09% | |
71 Outperform | ¥164.88B | -8.32 | ― | 1.93% | -3.23% | 24.93% | |
69 Neutral | ¥209.62B | 10.65 | 7.50% | 5.39% | -2.26% | ― | |
65 Neutral | ¥40.48B | 14.81 | 5.33% | 2.09% | 1.26% | 56.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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Daido Metal Co., Ltd. Corporate Events
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...
Daido Metal to Grant Restricted Treasury Shares to Employee Shareholding Association
Mar 10, 2026
Daido Metal Co., Ltd. has approved the disposal of up to 322,800 treasury shares as restricted stock to its Employee Shareholding Association, with a disposal price of 1,005 yen per share and a potential total value of 324,414,000 yen. The final n...
Daido Metal Sets ¥1 Billion Share Buyback to Offset Secondary Offering Impact
Mar 10, 2026
Daido Metal has approved a share buyback of up to 1.2 million common shares, equivalent to about 2.5% of its issued shares excluding treasury stock, with a maximum outlay of ¥1 billion. The repurchase will be conducted via market purchases on...
Daido Metal’s Major Shareholders Launch Large Secondary Share Offering
Mar 10, 2026
Daido Metal Co., Ltd. has announced a large secondary offering of 5,429,000 existing common shares, to be sold by major shareholders including Tokio Marine Nichido Fire Insurance, Sumitomo Mitsui Trust Bank, Mizuho Bank and several other banks an...
Daido Metal Posts Strong Nine-Month Earnings as Interim Review Clears Secondary Share Offering
Mar 10, 2026
Daido Metal reported consolidated net sales of ¥103.4 billion for the nine months ended December 31, 2025, a 4.0% year-on-year increase, with operating profit up 27.7% to ¥5.87 billion and profit attributable to owners of parent surging ...
Daido Metal lifts profit and dividend outlook on gain from sale of investment securities
Feb 12, 2026
Daido Metal Co., Ltd. said it will book about ¥1.06 billion in extraordinary income from the sale of five listed investment securities between September 2025 and March 2026. The move is aimed at reducing policy shareholdings, improving capita...
Daido Metal Lifts FY2025 Q3 Profitability on Modest Sales Growth
Feb 12, 2026
Daido Metal Co., Ltd. reported consolidated net sales of ¥103.39 billion for the first nine months of FY2025, a year-on-year increase of 4.0%, reflecting stable demand and modest top-line growth. Operating profit rose to ¥5.87 billion, l...
Daido Metal Lifts Profit Outlook and Dividends on Strong Nine-Month Results
Feb 12, 2026
Daido Metal reported consolidated net sales of ¥103.4 billion for the nine months to December 31, 2025, up 4.0% year on year, with operating profit rising 27.7% to ¥5.9 billion and profit attributable to owners of parent jumping 67.1% to...
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.