Daisui Co., Ltd. (7538) AI Stock Analysis

• Market Cap: ¥4.53B
• Dividend Yield: 1.76%
• Average Volume (3M): 7.79K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.35
• Revenue Growth: 0.86%
• EPS Growth: 17.20%
• Country: JP
• Employees: 424
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): 40.31
• Shares Outstanding: 13,774,819
• 10 Day Avg. Volume: 11,980
• 30 Day Avg. Volume: 7,793
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.49
• 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: 69 Neutral
• Price Target: ¥350.00 ▲(9.38%Upside)

The overall score of 69 is driven primarily by a strong valuation, indicating the stock is undervalued with a low P/E ratio and decent dividend yield. Financial performance also contributes positively due to improved profitability metrics, though cash flow issues remain a concern. Technical analysis shows a stable trend with neutral momentum indicators.

Daisui Co., Ltd. Business Overview & Revenue Model

Company Description

Daisui Co., Ltd. (7538) is a Japan-based company primarily engaged in the wholesale of marine products. The company operates in sectors such as seafood distribution, processing, and trading. Daisui Co., Ltd. focuses on providing a wide range of fresh and processed seafood products to various markets, including domestic and international clients.

How the Company Makes Money

Daisui Co., Ltd. generates revenue primarily through the wholesale distribution of marine products. The company sources seafood from various suppliers and sells it to retailers, restaurants, and food service businesses. Key revenue streams include the sale of fresh and frozen seafood products, as well as value-added processed seafood items. Daisui Co., Ltd.'s earnings are significantly influenced by its ability to establish strong relationships with suppliers and maintain a reliable supply chain to meet customer demand. Additionally, the company may engage in strategic partnerships to expand its market reach and enhance its product offerings.

Daisui Co., Ltd. Financial Statement Overview

Summary

Daisui Co., Ltd. demonstrated improvements in profitability and operational efficiency, with positive EBIT and EBITDA margins and a strong return on equity. However, significant challenges in cash flow management, including negative operating cash flow and a decline in free cash flow, pose risks to liquidity and require urgent attention.

Income Statement

Daisui Co., Ltd. demonstrated a moderate revenue growth of 0.86% in the latest fiscal year, with a notable improvement from the previous year's negative EBIT and EBITDA margins to positive values of 0.69% and 1% respectively. The gross profit margin remained stable at approximately 6.67%. Net profit margin improved to 1.20%, indicating better profitability after a challenging period. The company managed to recover from losses in prior years, showcasing resilience and operational efficiency improvements.

Balance Sheet

The balance sheet indicates a stable financial structure with a debt-to-equity ratio of 0.26, suggesting a manageable level of leverage. Return on equity (ROE) improved to 10.38%, reflecting enhanced profitability and equity utilization. The equity ratio stands at 46.11%, indicating a solid equity base. However, cash reserves have decreased, which might impact liquidity management.

Cash Flow

Daisui Co., Ltd. faced challenges in cash flow management, with a negative operating cash flow of -1.06 billion yen. Free cash flow also declined significantly to -1.34 billion yen, suggesting potential issues in covering capital expenditures. The operating cash flow to net income ratio was negative, indicating potential inefficiencies in translating earnings into cash. This could pose risks if not addressed promptly.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	98.33B	99.30B	98.46B	98.46B	88.79B	114.24B
Gross Profit	6.65B	6.62B	6.68B	6.77B	5.93B	6.80B
EBITDA	1.03B	994.00M	1.18B	632.00M	-111.00M	58.00M
Net Income	892.00M	1.19B	1.01B	701.00M	-18.00M	653.00M
Balance Sheet
Total Assets	30.49B	24.84B	24.75B	22.49B	21.07B	20.16B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.00B	4.34B	2.93B	2.28B	3.58B
Total Debt	4.85B	3.00B	2.90B	4.10B	3.20B	2.70B
Total Liabilities	19.73B	13.38B	14.70B	14.26B	13.52B	12.49B
Stockholders Equity	10.76B	11.46B	10.04B	8.23B	7.55B	7.67B
Cash Flow
Free Cash Flow	0.00	-1.34B	2.57B	-402.00M	-2.11B	222.00M
Operating Cash Flow	0.00	-1.06B	2.65B	-349.00M	-2.00B	285.00M
Investing Cash Flow	0.00	-296.00M	227.00M	123.00M	280.00M	338.00M
Financing Cash Flow	0.00	12.00M	-1.27B	841.00M	428.00M	-194.00M

Daisui Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7538, the sentiment is Positive. The current price of 320 is below the 20-day moving average (MA) of 320.65, below the 50-day MA of 320.78, and above the 200-day MA of 312.46, indicating a bullish trend. The MACD of 2.80 indicates Negative momentum. The RSI at 71.95 is Negative, neither overbought nor oversold. The STOCH value of 79.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7538.

Daisui Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8030	76 Outperform	¥13.84B	4.77		3.17%	8.95%	35.94%
7114	76 Outperform	¥4.17B	28.68		―	8.10%	-26.53%
7687	75 Outperform	¥2.96B	11.47		1.83%	14.88%	8.27%
7538	69 Neutral	¥4.53B	3.87		1.76%	0.86%	17.20%
Sector *	67 Neutral	£10.36B	6.03	4.94%	3.22%	-0.88%	2.57%
2683	58 Neutral	¥2.72B	87.01		0.94%	0.80%	-25.72%
8039	57 Neutral	¥7.91B	27.40		0.99%	6.33%	40.40%