Daiichi Co., Ltd. (7643) AI Stock Analysis

• Market Cap: ¥18.88B
• Dividend Yield: 2.17%
• Average Volume (3M): 4.39K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.56
• Revenue Growth: 11.24%
• EPS Growth: -17.27%
• Country: JP
• Employees: 285
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 24.67
• Shares Outstanding: 11,438,640
• 10 Day Avg. Volume: 2,250
• 30 Day Avg. Volume: 4,390
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 71 Outperform
• Price Target: ¥1,825.00 ▲(11.76% Upside)

Daiichi Co., Ltd. scores well on financial performance due to strong revenue growth and profitability, supported by a solid balance sheet. However, technical indicators suggest a bearish trend, and the valuation is fair, leading to a moderate overall stock score.

Daiichi Co., Ltd. Business Overview & Revenue Model

Company Description

Daiichi Co., Ltd. (7643) is a prominent Japanese company primarily engaged in the manufacturing and distribution of pharmaceuticals and healthcare products. The company operates in several sectors, including prescription pharmaceuticals, over-the-counter drugs, and medical devices. With a commitment to innovation and research, Daiichi develops a wide range of therapeutic solutions aimed at improving patient outcomes and enhancing quality of life.

How the Company Makes Money

Daiichi Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products, which include both prescription medications and over-the-counter health solutions. A significant portion of its income comes from sales of patented drugs, which are often developed through extensive research and clinical trials. The company also earns revenue from collaborations and partnerships with other pharmaceutical firms, including licensing agreements for drug development and distribution. Additionally, Daiichi benefits from government contracts and reimbursements in various markets, which contribute to its earnings. By continuously investing in R&D and maintaining a strong product pipeline, the company seeks to sustain and grow its revenue streams over time.

Daiichi Co., Ltd. Financial Statement Overview

Summary

Daiichi Co., Ltd. demonstrates strong financial performance with consistent revenue growth, improved gross and net profit margins, and a robust balance sheet with low debt levels. However, there is room for improvement in operational efficiency and cash flow management.

Income Statement

Daiichi Co., Ltd. shows a consistent increase in total revenue over the years, with a 7.8% revenue growth from 2023 to 2024. The gross profit margin has improved, reaching 26.4% in 2024, indicating efficient cost management. The net profit margin also improved to 2.7%, reflecting better profitability. Despite this, the EBIT and EBITDA margins remained stable, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet, with a debt-to-equity ratio of 0.04, indicating low leverage and financial stability. The return on equity (ROE) is healthy at 8.5%, showing effective use of equity. The equity ratio stands at 64.3%, highlighting a robust equity base. The low debt levels mitigate financial risk, but growth could be constrained by conservative leverage.

Cash Flow

Operating cash flow has increased, supporting the company's growth initiatives. However, free cash flow decreased by 20% from 2023 to 2024, which might affect capital investments. The operating cash flow to net income ratio is 1.62, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is lower at 0.91, suggesting a need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.30B	52.39B	48.60B	47.10B	44.57B	43.17B
Gross Profit	12.93B	13.81B	11.97B	12.05B	11.49B	11.24B
EBITDA	2.45B	2.73B	2.39B	2.34B	2.49B	2.28B
Net Income	1.26B	1.42B	1.23B	1.16B	1.29B	1.17B
Balance Sheet
Total Assets	24.83B	26.20B	23.48B	22.28B	20.90B	19.51B
Cash, Cash Equivalents and Short-Term Investments	7.78B	7.94B	7.78B	6.70B	5.67B	5.03B
Total Debt	139.99M	753.25M	1.13B	1.12B	1.02B	805.31M
Total Liabilities	8.81B	9.35B	7.63B	7.45B	7.23B	6.91B
Stockholders Equity	16.02B	16.85B	15.85B	14.83B	13.88B	12.60B
Cash Flow
Free Cash Flow	1.40B	1.30B	1.63B	1.70B	575.03M	2.15B
Operating Cash Flow	1.40B	2.31B	1.95B	1.96B	2.01B	2.39B
Investing Cash Flow	0.00	-1.44B	-244.37M	-290.04M	-1.50B	-256.00M
Financing Cash Flow	0.00	-810.14M	-615.61M	-622.47M	-383.04M	-695.09M

Daiichi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1633.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7643, the sentiment is Positive. The current price of 1633 is below the 20-day moving average (MA) of 1633.25, below the 50-day MA of 1740.87, and above the 200-day MA of 1524.70, indicating a neutral trend. The MACD of -25.22 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7643.

Daiichi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3096	―	¥13.23B	12.17	―	1.57%	5.93%	-14.18%
9890	―	¥12.13B	7.60	―	2.27%	14.35%	11.49%
7643	―	¥18.88B	16.50	―	2.17%	11.24%	-17.27%
9846	―	¥11.05B	8.20	―	1.46%	-0.02%	-7.09%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9993	―	¥12.79B	―	―	2.30%	2.43%	50.53%
3094	―	¥10.05B	―	―	―	-12.69%	22.75%