Daitron Co., Ltd. (7609) AI Stock Analysis

• Market Cap: ¥63.94B
• Dividend Yield: 2.87%
• Average Volume (3M): 41.35K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.90
• Revenue Growth: 10.24%
• EPS Growth: 61.61%
• Country: JP
• Employees: 1,061
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 68.25
• Shares Outstanding: 21,266,699
• 10 Day Avg. Volume: 30,140
• 30 Day Avg. Volume: 41,346
• PEG Ratio: 0.59
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 8.81
• 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
• EPS Forecast (FY): 232.6
• Revenue Forecast (FY): ¥103.00B

• Rating: 80 Outperform
• Price Target: ¥3,467.00 ▲(42.85% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial quality (especially the conservative balance sheet and solid profitability) and a favorable valuation (low P/E with a healthy dividend). Technicals are supportive with price above key moving averages and positive MACD, though momentum indicators are not deeply oversold and Stochastics are elevated, tempering the technical component.

Positive Factors

Conservative balance sheet / low leverage

Extremely low leverage and a growing equity base provide durable financial flexibility: the company can fund working capital swings, invest in solutions capability, sustain dividends, or pursue opportunistic deals without reliance on debt, lowering solvency risk across cycles.

Consistent multi-year revenue growth

Steady revenue expansion through 2025 signals durable market traction and broadened customer relationships. Re-acceleration in 2025 suggests improving demand or share gains, which supports scale benefits for sales, service capabilities and long-term contract leverage.

Recent positive free cash flow / cash generation

Return to positive free cash flow in 2024–2025 demonstrates the business can convert profits into cash, supporting reinvestment in technical services, steady dividends, and balance-sheet resilience. This underpins longer-term capital allocation choices.

Negative Factors

Historical cash-flow volatility

Volatile cash conversion driven by working-capital and investment swings raises execution risk: uneven cash flows can constrain consistent capex, R&D or dividend pacing and force reactive financing in down cycles, weakening predictability of long-term funding.

Limited margin expansion / weak operating leverage

Range-bound margins despite revenue growth indicate limited operating leverage and pricing power. Without material margin expansion, incremental revenue may yield muted profit improvement, constraining long-term ROIC upside and reinvestment capacity.

Exposure to manufacturing/electronics cycles

As a distributor/solutions provider tied to manufacturing and electronics demand, structural cyclicality can cause revenue and order volatility. This sector exposure makes cash flows and utilization sensitive to macro and industry cycles over multi-quarter horizons.

Daitron Co., Ltd. Business Overview & Revenue Model

Company Description

Daitron Co., Ltd., an electronics engineering trading company, primarily imports, exports, and sells electronic components and assembly goods in Japan and internationally. The company also manufactures, imports, exports, and sells semiconductors, embedded systems, power supply equipment, image-related equipment and components, and information systems. In addition, it provides production equipment and inspection requipment for silicon wafers, ICs, LSIs, FPDs, electronic materials, semiconductors, optical devices, energy devices, and OEM products, as well as flat panels, including LCDs, CFs, PDPs, organic Els. Further, the company engages in the development, manufacture, and sale of wafer edge grinding machines and chip sorting machines; LED testers/probers and processing equipment; and original-system low noise switching power supply custom UPS products and transformers. Additionally, it designs, manufactures, assembles, and customizes image device dedicated harness and other electronic equipment. The company was formerly known as Daito Electron Co., Ltd. and changed its name to Daitron Co., Ltd. in 2017. Daitron Co., Ltd. was founded in 1952 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daitron generates revenue primarily through the sale of electronic components and related products. Key revenue streams include direct sales to manufacturers in sectors such as automotive, telecommunications, and consumer electronics. The company also benefits from long-term partnerships with major suppliers and manufacturers, allowing it to offer competitive pricing and exclusive products. Additionally, Daitron may engage in value-added services such as technical support and customized solutions, further enhancing its revenue potential. The company's ability to adapt to market trends and customer needs plays a significant role in driving its earnings.

Daitron Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth through 2025 with solid, stable profitability. Balance sheet strength is exceptional with extremely low leverage and consistently good ROE. The main constraint is historical cash-flow volatility (notably negative periods in 2022–2023) despite a rebound in 2024–2025.

Income Statement

Revenue has expanded steadily from 2020 to 2025, with growth re-accelerating in 2025 after a softer 2024. Profitability is solid and fairly stable: gross margin has held near ~20% while operating and net margins improved versus 2020 and remain healthy in 2025. The main drawback is that margins have not meaningfully expanded over time (they are relatively range-bound), suggesting limited operating leverage despite higher scale.

Balance Sheet

The balance sheet is very conservative, with extremely low leverage (debt-to-equity consistently ~0.01–0.03) and a growing equity base over time. Returns on equity are consistently strong (generally low-to-mid teens, peaking higher in 2022), indicating efficient use of capital without relying on debt. The primary watch item is not solvency but rather sustaining returns if growth slows, given the already low leverage.

Cash Flow

Cash generation is strong in the most recent years, with positive free cash flow in 2024 and 2025 and free cash flow broadly tracking net income in those periods. However, cash flow has been volatile across the cycle: operating cash flow and free cash flow were negative in 2022 and free cash flow was negative again in 2023, before rebounding sharply in 2024. This variability suggests working-capital and/or investment swings that can create uneven cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.62B	103.14B	93.54B	92.16B	87.64B	72.34B
Gross Profit	20.29B	20.67B	18.87B	18.15B	17.59B	14.28B
EBITDA	7.48B	7.66B	6.82B	6.45B	6.55B	4.69B
Net Income	5.05B	4.92B	4.38B	4.01B	4.24B	2.95B
Balance Sheet
Total Assets	71.44B	79.30B	73.15B	67.79B	63.20B	58.45B
Cash, Cash Equivalents and Short-Term Investments	19.63B	21.80B	19.56B	11.24B	12.90B	14.20B
Total Debt	375.03M	478.11M	619.16M	761.17M	583.36M	467.49M
Total Liabilities	38.80B	43.71B	40.15B	38.34B	37.19B	36.00B
Stockholders Equity	32.63B	35.54B	32.98B	29.43B	26.01B	22.45B
Cash Flow
Free Cash Flow	0.00	5.84B	9.79B	-150.57M	-445.66M	2.50B
Operating Cash Flow	0.00	6.05B	10.01B	315.75M	-275.13M	2.80B
Investing Cash Flow	0.00	-1.47B	-353.32M	-627.24M	-237.26M	-371.71M
Financing Cash Flow	0.00	-3.59B	-1.60B	-1.50B	-1.00B	-672.21M

Daitron Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2427.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7609, the sentiment is Positive. The current price of 2427 is below the 20-day moving average (MA) of 2769.95, below the 50-day MA of 2605.15, and above the 200-day MA of 2166.19, indicating a bullish trend. The MACD of 118.29 indicates Negative momentum. The RSI at 80.17 is Negative, neither overbought nor oversold. The STOCH value of 88.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7609.

Daitron Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	80 Outperform	¥63.94B	12.98	―	2.87%	10.24%	61.61%
7510	75 Outperform	¥42.06B	14.91	―	3.02%	7.09%	13.13%
6855	71 Outperform	¥101.71B	20.87	―	1.72%	36.31%	101.77%
2737	66 Neutral	¥95.22B	11.65	―	2.41%	16.05%	3.58%
7420	66 Neutral	¥28.91B	9.89	―	4.88%	3.32%	31.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6614	60 Neutral	¥4.03B	-41.04	―	2.25%	-2.80%	-129.64%

Daitron Co., Ltd. Corporate Events

Daitron Revises Percentage Change Figures in FY2026 Earnings Forecasts

Daitron Co., Ltd. has issued a correction to its recently released consolidated financial results for the fiscal year ended December 31, 2025, specifically revising the year-on-year percentage change figures in its earnings forecasts for the fiscal year ending December 31, 2026. While the absolute forecast figures for net sales, operating income, ordinary income, and net income attributable to owners of the parent remain unchanged, the corrected data now show low single‑digit growth in full-year net sales and profits and, notably, declines in first-half operating and ordinary income and net income, suggesting a more moderate earnings trajectory and potentially tempering earlier expectations for the company’s near-term performance.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen2942.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.

Daitron Raises FY2025 Year-End Dividend, Boosts Annual Payout on Strong Performance

Daitron Co., Ltd. has announced that its board of directors resolved to increase the fiscal 2025 year-end dividend to 120 yen per share, up from the previously forecast 100 yen and higher than the prior year’s 100 yen, with a record date of December 31, 2025 and payment scheduled for March 31, 2026, subject to approval at the March 30, 2026 shareholders’ meeting. The company cited its basic policy of prioritizing profit returns to shareholders while maintaining financial soundness and internal reserves, and on the back of FY2025 performance it will lift the total annual dividend to 190 yen per share from 155 yen a year earlier, signaling confidence in earnings strength and a continued commitment to enhanced shareholder value despite a recent two-for-one stock split.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen2942.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.

Daitron Reports Board Effectiveness as Appropriate, Sets New Focus on Succession Planning

Daitron has completed its annual evaluation of the effectiveness of its board of directors using a detailed self-assessment survey of all nine directors, covering board composition, operations, deliberations, and support systems. The board concluded that its effectiveness is appropriately ensured, noted improvements in diversity following prior efforts to increase gender and international representation among directors, and identified a new priority to deepen discussions on succession planning for representative directors. Going forward, the company plans to continue annual effectiveness reviews and focus on strengthening succession planning and related governance practices as part of an ongoing program to reinforce board effectiveness and overall corporate governance.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen2942.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.

Daitron Delivers Double-Digit Profit Growth, Boosts Dividend and Executes Stock Split

Daitron reported solid growth for the fiscal year ended December 31, 2025, with net sales rising 10.3% year on year to ¥103.1 billion and operating income increasing 13.1% to ¥7.0 billion, driving a 12.4% gain in net income attributable to owners of parent to ¥4.9 billion and lifting basic earnings per share to ¥232.32. The company strengthened its financial position with total assets climbing to ¥79.3 billion and cash and cash equivalents reaching ¥20.6 billion, while also raising its annual dividend to ¥190 per share for 2025 and implementing a two-for-one stock split effective January 1, 2026, a combination that signals confidence in earnings sustainability and aims to enhance share liquidity for investors. Daitron’s 2026 forecast is broadly stable, projecting slight increases in full-year sales and profit and maintaining a payout policy that keeps the dividend in line with earnings, underscoring a focus on steady growth and shareholder returns rather than aggressive expansion.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen2942.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.