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

• Market Cap: ¥19.41B
• Dividend Yield: 2.12%
• Average Volume (3M): 2.43K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.56
• Revenue Growth: 12.92%
• EPS Growth: -30.67%
• Country: JP
• Employees: 285
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 13.08
• Shares Outstanding: 11,438,640
• 10 Day Avg. Volume: 2,300
• 30 Day Avg. Volume: 2,426
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,904.00 ▲(12.00% Upside)

Daiichi Co., Ltd. is performing well with strong revenue growth and a stable balance sheet. Technical indicators show positive momentum, though caution is advised due to overbought signals. Valuation is fair, but not exceptionally attractive.

Positive Factors

Revenue Growth

The robust sales performance indicates strong market demand and effective product positioning, supporting long-term revenue sustainability.

Balance Sheet Health

A stable balance sheet with low leverage enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Cash Generation Ability

Strong cash generation relative to profits indicates efficient operations and the ability to fund growth initiatives and meet financial obligations.

Negative Factors

Profit Margin Challenges

Declining profit margins suggest cost management issues or rising expenses, which could pressure profitability if not addressed.

Cash Flow Efficiency

Reduced cash efficiency may limit the company's ability to reinvest in growth or manage debt effectively, impacting long-term financial health.

Operational Inefficiencies

Operational inefficiencies can erode profitability and competitiveness, necessitating improvements in cost control and process optimization.

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 health with consistent revenue growth and improved profitability. The balance sheet is robust with low leverage, and cash flow generation is solid, though there is room for better cash 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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.30B	59.16B	52.39B	48.60B	47.10B	44.57B
Gross Profit	12.93B	15.41B	13.81B	11.97B	12.05B	11.49B
EBITDA	2.45B	2.39B	2.73B	2.39B	2.34B	2.49B
Net Income	1.26B	979.42M	1.42B	1.23B	1.16B	1.29B
Balance Sheet
Total Assets	24.83B	27.34B	26.20B	23.48B	22.28B	21.23B
Cash, Cash Equivalents and Short-Term Investments	7.78B	7.65B	7.94B	7.78B	6.70B	5.67B
Total Debt	139.99M	1.23B	753.25M	1.13B	1.12B	1.02B
Total Liabilities	8.81B	10.12B	9.35B	7.63B	7.45B	7.35B
Stockholders Equity	16.02B	17.21B	16.85B	15.85B	14.83B	13.88B
Cash Flow
Free Cash Flow	1.40B	930.79M	1.30B	1.63B	1.70B	575.03M
Operating Cash Flow	1.40B	1.70B	2.31B	1.95B	1.96B	2.01B
Investing Cash Flow	0.00	-976.69M	-1.44B	-244.37M	-290.04M	-1.50B
Financing Cash Flow	0.00	-1.02B	-810.14M	-615.61M	-622.47M	-383.04M

Daiichi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1700.00
• 50DMA: Positive
• 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 1700 is above the 20-day moving average (MA) of 1677.60, above the 50-day MA of 1646.20, and above the 200-day MA of 1585.02, indicating a bullish trend. The MACD of 17.21 indicates Negative momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 23.92 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
7643	74 Outperform	¥19.41B	19.56	―	2.12%	12.92%	-30.67%
3096	74 Outperform	¥13.74B	12.95	―	1.48%	5.86%	-16.20%
9890	73 Outperform	¥12.08B	7.82	―	2.30%	10.43%	12.10%
9846	67 Neutral	¥11.08B	8.23	―	1.45%	-0.02%	-7.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9993	51 Neutral	¥12.70B	-15.58	―	2.32%	2.43%	50.53%
3094	49 Neutral	¥10.02B	-5.73	―	―	-12.69%	22.75%