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Daiichikosho Co., Ltd. (JP:7458)
:7458
Japanese Market

Daiichikosho Co., Ltd. (7458) AI Stock Analysis

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JP

Daiichikosho Co., Ltd.

(7458)

Rating:75Outperform
Price Target:
¥1,848.00
▲(15.86%Upside)
Daiichikosho Co., Ltd. receives a solid overall stock score of 74.5, driven primarily by its strong financial performance and attractive valuation. The technical analysis indicates a neutral trend, which tempers the impact of other positive factors. The absence of earnings call and corporate events data did not affect the final score.

Daiichikosho Co., Ltd. (7458) vs. iShares MSCI Japan ETF (EWJ)

Daiichikosho Co., Ltd. Business Overview & Revenue Model

Company DescriptionDaiichikosho Co., Ltd. engages in the sale and rental of commercial karaoke systems in Japan. It also provides music and videos for online karaoke, and BGM broadcasting and Web services; and produces and distributes music and video software. In addition, the company manages karaoke rooms and restaurants under the BIG ECHO name; and provides real estate leasing and other services. Daiichikosho Co., Ltd. was founded in 1971 and is based in Tokyo, Japan.
How the Company Makes MoneyDaiichikosho Co., Ltd. generates revenue through several key streams. Primarily, it earns money from the sale and rental of karaoke equipment to both individual and commercial clients, such as karaoke box operators. The company also profits from music content distribution services, where it licenses and distributes a vast library of songs for karaoke use. Additionally, Daiichikosho operates karaoke establishments, generating income from customer usage fees. The company's involvement in real estate and restaurants also contributes to its revenue, through property leasing and dining services. Strategic partnerships and collaborations with music publishers and entertainment companies further enhance its earnings potential.

Daiichikosho Co., Ltd. Financial Statement Overview

Summary
Daiichikosho Co., Ltd. exhibits strong financial performance characterized by consistent revenue growth, solid profitability, and effective equity utilization. Despite some fluctuations in EBIT and challenges in consistent free cash flow generation, the company maintains a stable balance sheet with moderate leverage, positioning it favorably within the leisure industry.
Income Statement
78
Positive
Daiichikosho Co., Ltd. has shown a strong recovery in its financial performance with consistent revenue growth over recent years. The gross profit margin stands at 34.7% for 2025, indicating solid profitability. The net profit margin improved significantly from previous years, reaching 11.9% in 2025, reflecting enhanced efficiency and cost management. The EBIT margin of 11.7% and EBITDA margin of 25.3% also portray a healthy operational structure. However, fluctuations in the EBIT over previous years suggest some instability in operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.46 in 2025, indicating moderate leverage. The return on equity (ROE) improved significantly to 15.6% in 2025, showcasing effective use of equity to generate profits. The equity ratio of 55.8% further underscores a solid foundational equity base. While debt levels have increased over the years, the company's equity has grown, maintaining a balanced financial structure.
Cash Flow
72
Positive
Daiichikosho Co., Ltd. has demonstrated a positive trend in its cash flow management with a free cash flow of ¥9.6 billion in 2025. The operating cash flow to net income ratio of 1.36 indicates strong cash generation relative to its earnings. The company has rebounded from a negative free cash flow position in 2024, reflecting improved capital expenditure management. However, the free cash flow to net income ratio of 0.53 suggests potential challenges in translating earnings into free cash flow.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue153.02B146.75B128.16B94.79B93.32B
Gross Profit53.12B52.60B44.44B28.84B26.24B
EBITDA38.66B31.88B24.48B19.85B-2.69B
Net Income18.18B12.57B8.32B5.20B-18.78B
Balance Sheet
Total Assets209.32B211.39B188.62B180.39B186.79B
Cash, Cash Equivalents and Short-Term Investments41.95B49.69B71.81B68.21B68.51B
Total Debt53.57B64.42B44.65B47.80B50.08B
Total Liabilities91.45B102.40B80.71B75.23B80.77B
Stockholders Equity116.80B107.96B106.74B103.76B104.65B
Cash Flow
Free Cash Flow9.60B-23.84B12.96B7.64B-2.10B
Operating Cash Flow24.66B26.80B24.87B18.16B7.75B
Investing Cash Flow-11.45B-55.91B-12.10B-9.30B-9.54B
Financing Cash Flow-20.90B6.93B-9.49B-8.49B22.17B

Daiichikosho Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1595.00
Price Trends
50DMA
1604.26
Positive
100DMA
1630.30
Negative
200DMA
1710.90
Negative
Market Momentum
MACD
0.02
Positive
RSI
49.01
Neutral
STOCH
22.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7458, the sentiment is Negative. The current price of 1595 is below the 20-day moving average (MA) of 1625.40, below the 50-day MA of 1604.26, and below the 200-day MA of 1710.90, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7458.

Daiichikosho Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥176.02B9.33
3.64%4.28%47.52%
63
Neutral
$16.67B10.98-6.97%2.95%1.72%-24.21%
DEHWC
€1.18B14.585.27%3.87%
76
Outperform
¥80.80B12.43
5.50%-1.74%-11.79%
75
Outperform
¥295.85B18.11
1.74%20.12%69.12%
64
Neutral
¥56.03B107.25
0.36%6.67%-238.12%
57
Neutral
¥151.36B54.91
77.47%-45.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7458
Daiichikosho Co., Ltd.
1,610.00
-1.59
-0.10%
DE:HWC
Heiwa
12.00
0.81
7.24%
JP:4343
AEON Fantasy Co., Ltd.
2,833.00
676.71
31.38%
JP:7867
Tomy Company, Ltd.
3,300.00
171.85
5.49%
JP:7944
Roland Corporation
3,040.00
-760.75
-20.02%
JP:9166
GENDA Inc.
818.00
-177.50
-17.83%

Daiichikosho Co., Ltd. Corporate Events

Daiichikosho Co., Ltd. Announces Treasury Share Acquisition
Jul 1, 2025

Daiichikosho Co., Ltd. has announced the acquisition of 647,400 treasury shares from June 1 to June 30, 2025, with a total value of approximately 1.04 billion yen. This acquisition is part of a larger plan approved by the Board of Directors to purchase up to 1.18 million shares, reflecting the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Daiichikosho Issues Stock Options to Boost Long-term Performance
Jun 20, 2025

Daiichikosho Co., Ltd. has announced the issuance of stock compensation-type stock options to its directors and senior officers, aiming to align their interests with shareholders and motivate long-term business performance. This strategic move is expected to enhance corporate value by sharing the risks and benefits of stock price fluctuations with key company personnel, potentially impacting the company’s operational dynamics and stakeholder engagement.

Daiichikosho Co., Ltd. Reports Progress on Treasury Share Acquisition
Jun 2, 2025

Daiichikosho Co., Ltd. announced the acquisition of 337,200 treasury shares valued at 527,825,147 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,180,000 shares, aiming to enhance shareholder value and optimize capital structure.

Daiichikosho Announces Strategic Personnel Changes
May 19, 2025

Daiichikosho Co., Ltd. announced a series of personnel changes, including reappointments, new appointments, and retirements of directors and corporate officers, to be finalized at the upcoming shareholders’ meeting. These changes are expected to impact the company’s strategic direction and operational management, reflecting a shift in leadership that could influence its market positioning and stakeholder relations.

Daiichikosho Co., Ltd. Proposes Head Office Relocation
May 19, 2025

Daiichikosho Co., Ltd. announced a proposal to amend its Articles of Incorporation to relocate its head office from Shinagawa-ku to Minato-ku, Tokyo. This move aims to enhance the head office’s functionality and streamline operations, with the change expected to be finalized by March 31, 2026, pending shareholder approval.

Daiichikosho Co., Ltd. Maintains Dividend Payout for 2025
May 19, 2025

Daiichikosho Co., Ltd. has announced a dividend of ¥29 per share for the fiscal year ending March 31, 2025, maintaining the same dividend as the previous year. This decision underscores the company’s focus on long-term value creation and shareholder returns, with the total annual dividend amounting to ¥57 per share, including an interim dividend.

Daiichikosho Announces Treasury Share Acquisition to Boost Shareholder Returns
May 19, 2025

Daiichikosho Co., Ltd. has resolved to acquire up to 1,180,000 of its own common shares, representing 1.13% of its total issued shares, excluding treasury shares. This move, with a maximum value of 2,000 million yen, is intended to improve capital efficiency and shareholder returns, indicating a strategic focus on enhancing shareholder value.

Daiichikosho Co., Ltd. Reports Steady Financial Performance for FY2024
May 12, 2025

Daiichikosho Co., Ltd. reported a slight increase in net sales for the fiscal year ending March 31, 2025, despite a decrease in operating and ordinary profits. The company’s financial position remains strong with an improved equity ratio and a consistent dividend payout. The forecast for the next fiscal year indicates a modest growth in net sales and profits, reflecting steady market performance.

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 01, 2025