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

• Market Cap: ¥30.13B
• Dividend Yield: 2.48%
• Average Volume (3M): 188.23K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.79
• Revenue Growth: 5.88%
• EPS Growth: 5.86%
• Country: JP
• Employees: 7,055
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 26.50
• Shares Outstanding: 47,520,252
• 10 Day Avg. Volume: 189,040
• 30 Day Avg. Volume: 188,230
• PEG Ratio: 0.05
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -148.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥721.00 ▲(11.44%Upside)

Daido Metal Co., Ltd. demonstrates strong technical momentum and a solid valuation, making it an attractive investment opportunity. Despite cash flow challenges, the company shows stable financial performance with room for operational improvement. The absence of earnings call data and corporate events did not impact the score.

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

Company Description

Daido Metal Co., Ltd. is a Japanese company specializing in the manufacturing and sale of plain bearings. These components are critical for reducing friction between moving parts in machinery across various industries, including automotive, marine, construction, and industrial sectors. The company's product portfolio includes engine bearings, bimetal bearings, and other high-performance bearing products designed to enhance the efficiency and longevity of mechanical systems.

How the Company Makes Money

Daido Metal Co., Ltd. generates revenue primarily through the manufacturing and sale of its bearing products. A significant portion of its income is derived from supplying the automotive industry with engine bearings, which are essential for vehicle performance and reliability. Additionally, the company serves other industries such as marine and construction, providing products tailored to specific environmental and operational needs. The company's earnings are bolstered by its emphasis on innovation and quality, which helps maintain strong relationships with major manufacturers and suppliers across the globe. Strategic partnerships and a focus on expanding its market presence in emerging economies also contribute to its revenue growth.

Daido Metal Co., Ltd. Financial Statement Overview

Summary

Daido Metal Co., Ltd. shows strong revenue growth and stable profitability, though there is room for operational improvements. The balance sheet reflects healthy equity with high leverage typical for the industry. Cash flow challenges are evident due to significant pressure on free cash flow, but operating cash flow remains strong.

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: 647.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 647 is above the 20-day moving average (MA) of 641.80, above the 50-day MA of 592.72, and above the 200-day MA of 512.59, indicating a bullish trend. The MACD of 17.02 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, 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
5989	78 Outperform	¥35.25B	3.28		5.86%	-1.97%	―
7245	76 Outperform	¥30.13B	11.20	3.84%	2.48%	5.88%	5.86%
7236	76 Outperform	¥24.23B	7.06		6.50%	0.36%	248.87%
5185	74 Outperform	¥27.35B	9.06		4.55%	0.91%	-3.92%
7229	66 Neutral	¥37.27B	8.19		2.86%	-17.14%	-13.01%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
6470	52 Neutral	¥16.16B	―		3.59%	0.66%	-340.28%

Daido Metal Co., Ltd. Corporate Events

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.

Daido Metal Continues Stock-Based Remuneration Schemes with New Share Acquisition

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

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

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

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

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.