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

• Market Cap: ¥174.22B
• Dividend Yield: 3.43%
• Average Volume (3M): 472.40K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.28
• Revenue Growth: 6.12%
• EPS Growth: -3.75%
• Country: JP
• Employees: 3,411
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 25.15
• Shares Outstanding: 103,968,400
• 10 Day Avg. Volume: 320,900
• 30 Day Avg. Volume: 472,396
• PEG Ratio: 0.21
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 18.88
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,815.00 ▲(9.37% Upside)

Daiichikosho Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and solid dividend yield. Technical analysis indicates a neutral trend, with no significant bullish or bearish signals. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and maintain demand for its precision instruments, supporting long-term business stability.

Profitability

Improved net profit margins reflect enhanced operational efficiency and cost management, contributing to sustainable profitability and competitive advantage.

Balance Sheet Health

A moderate debt-to-equity ratio indicates prudent financial management, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Free Cash Flow Challenges

Lower free cash flow conversion may limit the company's ability to reinvest in growth and innovation, potentially impacting long-term competitiveness and financial resilience.

EBIT Fluctuations

Inconsistent EBIT performance may indicate operational inefficiencies or market volatility, which could affect the company's ability to maintain steady profit growth over time.

Cash Flow Management

While recent improvements are positive, past negative cash flow highlights potential risks in capital expenditure management, which could impact future financial stability.

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 generates revenue through the sale of its precision instruments and measurement systems. The company’s revenue model is predominantly based on direct sales to various industries, including healthcare, where it supplies diagnostic equipment, and industrial sectors that require high-quality measurement tools. Key revenue streams include the sale of optical measuring instruments, maintenance and service contracts, and possibly royalties from patented technologies. Partnerships with healthcare providers and industrial companies enhance its market reach and contribute to its earnings, as well as ongoing investments in research and development to maintain a competitive edge in product offerings.

Daiichikosho Co., Ltd. Financial Statement Overview

Summary

Daiichikosho Co., Ltd. exhibits a robust financial profile with strong 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.69B	153.02B	146.75B	128.16B	94.79B	93.32B
Gross Profit	54.58B	53.12B	52.60B	44.44B	28.84B	26.24B
EBITDA	32.36B	38.66B	31.88B	24.48B	19.85B	-2.69B
Net Income	18.29B	18.18B	12.57B	8.32B	5.20B	-18.78B
Balance Sheet
Total Assets	198.07B	209.32B	211.39B	188.62B	180.39B	186.79B
Cash, Cash Equivalents and Short-Term Investments	24.12B	41.95B	49.69B	71.81B	68.21B	68.51B
Total Debt	44.38B	53.57B	64.42B	44.65B	47.80B	50.08B
Total Liabilities	81.53B	91.45B	102.40B	80.71B	75.23B	80.77B
Stockholders Equity	115.48B	116.80B	107.96B	106.74B	103.76B	104.65B
Cash Flow
Free Cash Flow	0.00	9.60B	-23.84B	12.96B	7.64B	-2.10B
Operating Cash Flow	0.00	24.66B	26.80B	24.87B	18.16B	7.75B
Investing Cash Flow	0.00	-11.45B	-55.91B	-12.10B	-9.30B	-9.54B
Financing Cash Flow	0.00	-20.90B	6.93B	-9.49B	-8.49B	22.17B

Daiichikosho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1659.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1659.5 is above the 20-day moving average (MA) of 1652.78, above the 50-day MA of 1624.81, and above the 200-day MA of 1625.89, indicating a bullish trend. The MACD of 11.17 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 78.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7458.

Daiichikosho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	75 Outperform	¥93.48B	13.47	―	4.76%	-1.25%	9.33%
7458	72 Outperform	¥174.22B	11.90	―	3.43%	6.12%	-3.75%
9166	64 Neutral	¥124.72B	43.75	―	―	62.69%	-37.72%
6412	63 Neutral	¥197.07B	15.82	5.03%	4.03%	45.31%	-36.42%
7867	63 Neutral	¥243.85B	15.17	―	2.22%	10.50%	27.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4343	52 Neutral	¥57.38B	-133.71	―	―	6.00%	-184.09%

Daiichikosho Co., Ltd. Corporate Events

Daiichikosho Reports Sales Growth and Dividend Increase Amid Profit Decline

Daiichikosho Co., Ltd. reported an 8% increase in net sales for the six months ending September 30, 2025, but experienced declines in operating and ordinary profits compared to the previous year. The company announced a forecasted increase in annual dividends, including a commemorative dividend for its 55th anniversary, indicating a positive outlook despite the profit decline.

Daiichikosho Co., Ltd. to Absorb Subsidiary Airside Inc. for Enhanced Efficiency

Daiichikosho Co., Ltd. has announced its decision to absorb its wholly owned subsidiary, Airside Inc., which operates the Karaoke Mac chain, to enhance group management efficiency. This merger, set to be effective from March 1, 2026, will streamline operations as Airside will be dissolved, with no new shares issued or capital increase involved, reflecting a strategic move to consolidate resources and strengthen Daiichikosho’s market position.