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

• Market Cap: ¥21.42B
• Dividend Yield: 0.96%
• Average Volume (3M): 6.47K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.56
• Revenue Growth: 11.24%
• EPS Growth: -17.27%
• Country: JP
• Employees: 285
• Sector: Consumer Defensive
• Sector Strength: 44
• Industry: Grocery Stores
• EPS (TTM): 24.67
• Shares Outstanding: 11,438,640
• 10 Day Avg. Volume: 4,750
• 30 Day Avg. Volume: 6,470
• 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: ¥2,059.00
• Price Target Upside: 10.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,059.00 ▲(10.05% Upside)

Daiichi Co., Ltd.'s strong financial performance and fair valuation lead to a solid overall score. Technical analysis suggests caution due to potential overbought conditions, but the company's low leverage and consistent growth provide stability. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and competitiveness.

Balance Sheet Health

Low leverage enhances financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Profit Margin Improvement

Improved profit margins reflect effective cost control and pricing strategies, enhancing profitability and competitive positioning.

Negative Factors

Operational Efficiency

Stable EBIT and EBITDA margins indicate potential inefficiencies in operations, which could limit profitability and growth if not addressed.

Cash Flow Management

Declining free cash flow could constrain the company's ability to invest in growth initiatives, impacting long-term strategic goals.

Earnings Per Share Decline

A decline in EPS growth suggests challenges in profitability, which may affect investor confidence and the company's ability to reinvest in its business.

Daiichi Co., Ltd. Business Overview & Revenue Model

Company Description

Daiichi Co., Ltd. (7643) is a Japan-based company primarily engaged in the wholesale and retail of electrical appliances. The company offers a wide range of products, including home appliances, consumer electronics, lighting fixtures, and related equipment. Daiichi Co., Ltd. operates through various retail outlets and wholesale channels, catering to both individual consumers and business clients, with a focus on delivering high-quality, innovative products and excellent customer service.

How the Company Makes Money

Daiichi Co., Ltd. generates revenue through the sale of electrical appliances and consumer electronics. The company's primary revenue streams include retail sales through its network of physical stores and online platforms, as well as wholesale distribution to other retailers and business clients. Significant partnerships with leading electronics manufacturers allow Daiichi Co., Ltd. to offer a diverse product range and remain competitive in the market. Additionally, the company may leverage economies of scale and strategic marketing initiatives to enhance its profitability and market presence.

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: 1871.00
• 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:7643, the sentiment is Positive. The current price of 1871 is above the 20-day moving average (MA) of 1818.35, above the 50-day MA of 1789.08, and above the 200-day MA of 1483.42, indicating a bullish trend. The MACD of 24.17 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 96.34 is Negative, 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	78 Outperform	¥14.18B	13.05		1.26%	5.93%	-14.18%
9890	75 Outperform	¥12.92B	8.09		1.94%	14.35%	11.49%
7643	73 Outperform	¥21.42B	18.73		0.96%	11.24%	-17.27%
9846	67 Neutral	¥11.03B	8.04		1.46%	0.43%	2.70%
Sector *	62 Neutral	$20.32B	14.51	-3.18%	3.18%	1.92%	-6.57%
9993	49 Neutral	¥12.48B	―		2.36%	1.28%	-449.59%
3094	38 Underperform	¥8.22B	―		―	-10.64%	-13.47%