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

• Market Cap: ¥49.01B
• Dividend Yield: 2.94%
• Average Volume (3M): 41.35K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.84
• Revenue Growth: 10.24%
• EPS Growth: 61.61%
• Country: JP
• Employees: 1,061
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 88.49
• Shares Outstanding: 10,633,349
• 10 Day Avg. Volume: 30,140
• 30 Day Avg. Volume: 41,346
• PEG Ratio: 0.76
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.11
• 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): 68,106.67
• Revenue Forecast (FY): ¥15.13T

• Rating: 81 Outperform
• Price Target: ¥5,128.00 ▲(7.62% Upside)

Daitron Co., Ltd. scores well due to its strong financial performance, characterized by solid profitability and effective cash management. The stock's valuation is attractive with a low P/E ratio and a healthy dividend yield. Technical analysis supports a positive trend, although potential overbought conditions should be monitored. 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 presence and adapt to customer needs, supporting long-term stability.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, allowing the company to invest in growth opportunities and manage liabilities effectively.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and reduced risk, providing a solid foundation for sustainable growth and resilience against economic fluctuations.

Negative Factors

Increasing Liabilities

Rising liabilities may strain resources and limit financial flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Margin Pressure

While profitability has improved, maintaining and expanding margins in a competitive industry is crucial for long-term financial health and shareholder returns.

Industry Competition

High competition in the industry may pressure pricing and margins, requiring continuous innovation and efficiency to maintain market position and profitability.

Daitron Co., Ltd. Business Overview & Revenue Model

Company Description

Daitron Co., Ltd. (7609) is a Japanese company specializing in the distribution and manufacturing of electronic components and equipment. Operating primarily in the sectors of industrial automation and electronic devices, Daitron offers a broad range of products including semiconductors, connectors, and sensors. The company serves various industries, providing solutions that enhance operational efficiency and technological advancement.

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

Daitron Co., Ltd. presents a strong financial profile with steady revenue growth, solid profitability, and effective cash generation. The company maintains a conservative balance sheet with low leverage, enhancing financial stability. However, increasing liabilities warrant close monitoring.

Income Statement

Daitron Co., Ltd. has shown consistent revenue growth over the years, with a 1.5% increase from 2023 to 2024. The gross profit margin is robust at 20.2% for 2024, indicating strong pricing power and cost management. The net profit margin improved to 4.7%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 6.6% and 7.1%, respectively, suggesting efficient operations. Overall, the company demonstrates solid profitability and stable growth.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.02, indicating conservative leverage. The return on equity (ROE) is healthy at 13.3%, showcasing effective use of shareholder funds. The equity ratio stands at 45.1%, reflecting a balanced capital structure. While the balance sheet is strong, the total liabilities have been increasing over time, which could pose some risk if not managed appropriately.

Cash Flow

Daitron Co., Ltd. exhibited a significant turnaround in free cash flow, increasing significantly from the previous year's negative flow to a positive ¥9.79 billion in 2024. The operating cash flow to net income ratio is 2.28, indicating strong cash conversion. The free cash flow to net income ratio is also positive, highlighting good cash generation relative to earnings. The cash flow statement indicates strong liquidity and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.62B	93.54B	92.16B	87.64B	72.34B	57.42B
Gross Profit	20.29B	18.87B	18.15B	17.59B	14.28B	11.48B
EBITDA	7.48B	6.82B	6.45B	6.55B	4.69B	2.80B
Net Income	5.05B	4.38B	4.01B	4.24B	2.95B	1.61B
Balance Sheet
Total Assets	71.44B	73.15B	67.79B	63.20B	58.45B	46.25B
Cash, Cash Equivalents and Short-Term Investments	19.63B	19.56B	11.24B	12.90B	14.20B	12.28B
Total Debt	375.03M	619.16M	761.17M	583.36M	467.49M	374.36M
Total Liabilities	38.80B	40.15B	38.34B	37.19B	36.00B	26.45B
Stockholders Equity	32.63B	32.98B	29.43B	26.01B	22.45B	19.80B
Cash Flow
Free Cash Flow	0.00	9.79B	-150.57M	-445.66M	2.50B	2.97B
Operating Cash Flow	0.00	10.01B	315.75M	-275.13M	2.80B	3.07B
Investing Cash Flow	0.00	-353.32M	-627.24M	-237.26M	-371.71M	-156.69M
Financing Cash Flow	0.00	-1.60B	-1.50B	-1.00B	-672.21M	-762.32M

Daitron Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4765.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 4765 is above the 20-day moving average (MA) of 4613.25, above the 50-day MA of 4496.80, and above the 200-day MA of 3760.12, indicating a bullish trend. The MACD of 57.24 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.46 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	81 Outperform	¥49.01B	9.44	―	2.94%	10.24%	61.61%
2737	81 Outperform	¥68.15B	10.74	―	3.18%	16.05%	3.58%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
7420	66 Neutral	¥27.24B	9.60	―	4.99%	3.32%	31.11%
7510	66 Neutral	¥33.58B	12.09	―	3.13%	7.09%	13.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6614	46 Neutral	¥3.32B	-68.31	―	2.07%	-2.80%	-129.64%

Daitron Co., Ltd. Corporate Events

Daitron Co., Ltd. Announces Stock Split and Articles Amendment

Daitron Co., Ltd. has announced a stock split to enhance the liquidity of its common stock and broaden its investor base. The stock split will occur at a ratio of two shares for each share held, effectively doubling the total number of shares issued to 21,266,698. This move is accompanied by an amendment to the company’s Articles of Incorporation, increasing the total number of authorized shares to 80,000,000. The changes are set to take effect on January 1, 2026, and are expected to make the company’s stock more accessible to investors.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen5128.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.

Daitron Co., Ltd. Revises Dividend Forecast for Fiscal 2025

Daitron Co., Ltd. has announced a revision to its dividend forecast for fiscal 2025, increasing the year-end dividend to 100 yen per share and the annual dividend to 170 yen per share. This decision reflects the company’s commitment to returning profits to shareholders while considering business performance and financial stability.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen5128.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.

Daitron Co., Ltd. Reports Strong Financial Growth and Raises Dividend Forecast

Daitron Co., Ltd. reported a significant improvement in its financial performance for the nine-month period ending September 30, 2025, with net sales increasing by 9.3% and net income attributable to owners of the parent rising by 35.3% compared to the previous year. The company also revised its dividend forecast upwards, reflecting a positive outlook and commitment to shareholder returns, which may enhance its market position and stakeholder confidence.

The most recent analyst rating on (JP:7609) stock is a Buy with a Yen5128.00 price target. To see the full list of analyst forecasts on Daitron Co., Ltd. stock, see the JP:7609 Stock Forecast page.