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

• Market Cap: ¥169.81B
• Dividend Yield: 3.49%
• Average Volume (3M): 472.40K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.31
• Revenue Growth: 5.69%
• EPS Growth: 48.81%
• Country: JP
• Employees: 3,411
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 33.78
• 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

• Rating: 74 Outperform
• Price Target: ¥1,848.00 ▲(13.30% Upside)

Daiichikosho Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest weak market momentum, which slightly offsets the positive financial and valuation aspects.

Daiichikosho Co., Ltd. Business Overview & Revenue Model

Company Description

Daiichikosho Co., Ltd. (7458) is a Japanese company primarily engaged in the manufacturing and sale of precision instruments, including various types of optical equipment and measurement systems. The company operates in sectors such as healthcare, industrial measurement, and scientific research, providing advanced solutions that cater to a wide range of applications. Daiichikosho is known for its commitment to innovation and quality, offering products that enhance efficiency and accuracy in measurement.

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: Negative
• Last Price: 1631.00
• 50DMA: Negative
• 100DMA: Positive
• 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 1631 is below the 20-day moving average (MA) of 1654.92, below the 50-day MA of 1675.49, and below the 200-day MA of 1640.57, indicating a bearish trend. The MACD of -13.61 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.13 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	74 Outperform	¥169.81B	9.38	―	3.49%	5.69%	48.81%
7944	74 Outperform	¥86.16B	14.39	―	5.07%	-4.39%	-27.30%
7867	72 Outperform	¥292.08B	16.41	―	1.84%	17.05%	66.00%
6412	68 Neutral	€200.72B	12.82	6.63%	3.94%	31.75%	-9.71%
4343	66 Neutral	¥58.73B	―	―	0.13%	6.00%	-184.09%
9166	65 Neutral	¥151.41B	57.20	―	―	68.78%	-45.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Daiichikosho Co., Ltd. Corporate Events

Daiichikosho Co., Ltd. Announces Asset Transfer and Extraordinary Income

Daiichikosho Co., Ltd. has decided to transfer non-current assets owned by its subsidiary, D.K. FINANCE, Ltd., to Mitsubishi Estate Co., Ltd. This move is part of a strategy to enhance asset efficiency in anticipation of relocating the company’s head office. The transaction is expected to result in a significant capital gain of 4,055 million yen, which will be recorded as extraordinary income in the fiscal year ending March 31, 2026. The company is currently reviewing its performance forecasts for the upcoming fiscal periods and will update stakeholders on any necessary revisions.

Daiichikosho Finalizes Stock Compensation Details

Daiichikosho Co., Ltd. has finalized the details of its stock compensation-type stock options for its directors and senior officers, as resolved in a recent board meeting. This move is aimed at aligning the interests of its executives with shareholders, potentially impacting the company’s governance and stakeholder relations.

Daiichikosho Completes Treasury Share Acquisition

Daiichikosho Co., Ltd. has completed the acquisition of 195,400 treasury shares valued at 313,223,201 yen through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader strategy approved by the Board of Directors to acquire up to 1,180,000 shares, with the aim of enhancing shareholder value and optimizing capital structure.

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.