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

• Market Cap: ¥176.02B
• Dividend Yield: 3.64%
• Average Volume (3M): 327.26K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.29
• Revenue Growth: 4.28%
• EPS Growth: 47.52%
• Country: JP
• Employees: 3,411
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 44.71
• Shares Outstanding: 109,468,400
• 10 Day Avg. Volume: 299,280
• 30 Day Avg. Volume: 327,263
• PEG Ratio: 0.53
• Price to Book (P/B): 1.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• 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. Business Overview & Revenue Model

Company Description

Daiichikosho 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 Money

Daiichikosho 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	153.02B	146.75B	128.16B	94.79B	93.32B
Gross Profit	53.12B	52.60B	44.44B	28.84B	26.24B
EBITDA	38.66B	31.88B	24.48B	19.85B	-2.69B
Net Income	18.18B	12.57B	8.32B	5.20B	-18.78B
Balance Sheet
Total Assets	209.32B	211.39B	188.62B	180.39B	186.79B
Cash, Cash Equivalents and Short-Term Investments	41.95B	49.69B	71.81B	68.21B	68.51B
Total Debt	53.57B	64.42B	44.65B	47.80B	50.08B
Total Liabilities	91.45B	102.40B	80.71B	75.23B	80.77B
Stockholders Equity	116.80B	107.96B	106.74B	103.76B	104.65B
Cash Flow
Free Cash Flow	9.60B	-23.84B	12.96B	7.64B	-2.10B
Operating Cash Flow	24.66B	26.80B	24.87B	18.16B	7.75B
Investing Cash Flow	-11.45B	-55.91B	-12.10B	-9.30B	-9.54B
Financing Cash Flow	-20.90B	6.93B	-9.49B	-8.49B	22.17B

Daiichikosho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1595.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7458	75 Outperform	¥176.02B	9.33		3.64%	4.28%	47.52%
Sector *	63 Neutral	$16.67B	10.98	-6.97%	2.95%	1.72%	-24.21%
HWC		€1.18B	14.58	5.27%	3.87%	―	―
7944	76 Outperform	¥80.80B	12.43		5.50%	-1.74%	-11.79%
7867	75 Outperform	¥295.85B	18.11		1.74%	20.12%	69.12%
4343	64 Neutral	¥56.03B	107.25		0.36%	6.67%	-238.12%
9166	57 Neutral	¥151.36B	54.91		―	77.47%	-45.82%

Daiichikosho Co., Ltd. Corporate Events

Daiichikosho Co., Ltd. Announces Treasury Share Acquisition

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

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

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

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

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

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

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

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.