DAIKO TSUSAN CO.,LTD. (7673) AI Stock Analysis

• Market Cap: ¥9.55B
• Dividend Yield: 3.22%
• Average Volume (3M): 2.58K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.47
• Revenue Growth: 21.26%
• EPS Growth: 20.51%
• Country: JP
• Employees: 146
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 5,332,780
• 10 Day Avg. Volume: 2,950
• 30 Day Avg. Volume: 2,580
• PEG Ratio: 0.26
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 5.90
• 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: ¥2,005.00 ▲(25.78% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

DAIKO TSUSAN CO.,LTD. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis presents a mixed picture with neutral to bearish signals, slightly tempering the overall score.

Positive Factors

Consistent revenue growth

Sustained double-digit revenue growth indicates expanding trade volumes and market reach rather than a one-off spike. Over 2-6 months this trend supports stable top-line momentum, reinforces commercial relationships, and provides a base to invest in distribution or scale efficiencies that bolster long-term earnings power.

Prudent capital structure

Low leverage and a strong equity ratio reduce solvency risk and preserve strategic optionality. This durable balance-sheet strength supports funding for opportunistic deals, withstands trade cycle volatility, and enables steady capital allocation for dividends or reinvestment without jeopardizing financial flexibility.

Robust cash generation

Growing operating and free cash flow show efficient conversion of profits into real liquidity. Over the medium term this underpins self-funded growth initiatives, working capital needs, and resilience to shocks, while enabling sustained shareholder returns or strategic investments without reliance on external financing.

Negative Factors

Asset utilization lag

Suboptimal asset utilization signals the company may not be extracting full revenue from its asset base, limiting return on invested capital. Persisting inefficiencies can cap margin expansion and slow scalability; improving turnover is needed to translate top-line growth into durable profitability gains.

Cash conversion efficiency

A weaker operating cash flow-to-net-income conversion suggests working capital or accrual timing pressures. Over several months, this can strain liquidity if receivables or inventory rise, limiting reinvestment capacity and making the firm more sensitive to trade-cycle swings despite healthy reported profits.

Trading-dependent revenue model

A trading-centric model relies on transaction margins and competitive sourcing. Structural pressures—intense competition, low switching costs, and exposure to commodity and FX swings—can compress margins over time unless scale, exclusive partnerships, or value-added services are expanded to create durable differentiation.

DAIKO TSUSAN CO.,LTD. Business Overview & Revenue Model

Company Description

Daiko Tsusan Co.,Ltd. operates as a trading company in the fields of CATV and information and telecommunications in Japan and internationally. The company is involved in manufacturing, selling, leasing, and rental of information communication cables, materials, equipment and accessories, tools and measuring equipment; and office automation equipment and software. It also offers consulting services, as well as undertakes design and construction, and maintenance works. Daiko Tsusan Co.,Ltd. was incorporated in 1975 and is headquartered in Matsuyama, Japan.

How the Company Makes Money

DAIKO TSUSAN CO.,LTD. generates revenue primarily through its trading activities, which include the buying and selling of goods across different markets. The company earns money by marking up the prices of products sourced from manufacturers before selling them to retailers or end consumers. Key revenue streams include commission from transactions, import/export fees, and value-added services such as logistics and warehousing. Additionally, DAIKO TSUSAN may establish significant partnerships with manufacturers and distributors to secure exclusive rights to certain products, enhancing its competitive edge and profitability.

DAIKO TSUSAN CO.,LTD. Financial Statement Overview

Summary

DAIKO TSUSAN CO.,LTD. demonstrates strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The company's low leverage and strong equity position provide stability, though there is potential to enhance asset efficiency and cash flow ratios further.

Income Statement

DAIKO TSUSAN CO.,LTD. has shown strong revenue growth of 12.89% in the latest year, indicating a positive trajectory. The gross profit margin and net profit margin are healthy, reflecting efficient cost management and profitability. EBIT and EBITDA margins are stable, supporting operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity is solid, showcasing effective use of shareholder funds. The equity ratio suggests a strong capital structure, though there is room for improvement in asset utilization.

Cash Flow

Operating cash flow is robust, and free cash flow has grown significantly, highlighting strong cash generation capabilities. The free cash flow to net income ratio indicates efficient conversion of profits into cash, although the operating cash flow to net income ratio could be improved.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	21.88B	21.73B	17.22B	17.15B	17.58B	18.09B
Gross Profit	3.14B	3.10B	2.61B	2.63B	2.74B	2.87B
EBITDA	1.25B	1.26B	934.35M	963.04M	1.10B	1.22B
Net Income	819.01M	816.34M	602.06M	615.07M	703.63M	790.26M
Balance Sheet
Total Assets	16.31B	17.59B	16.03B	14.10B	14.88B	14.08B
Cash, Cash Equivalents and Short-Term Investments	6.14B	7.40B	6.46B	4.81B	6.40B	6.13B
Total Debt	722.00M	739.19M	790.34M	336.47M	412.69M	452.60M
Total Liabilities	8.05B	9.18B	8.17B	6.59B	7.73B	7.38B
Stockholders Equity	8.26B	8.41B	7.86B	7.51B	7.15B	6.70B
Cash Flow
Free Cash Flow	0.00	1.26B	1.47B	-718.19M	652.54M	424.62M
Operating Cash Flow	0.00	1.40B	2.16B	-634.39M	1.22B	682.62M
Investing Cash Flow	0.00	102.60M	-2.16B	879.93M	-946.83M	-903.49M
Financing Cash Flow	0.00	-317.72M	192.58M	-336.11M	-335.91M	-140.45M

DAIKO TSUSAN CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1594.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7673, the sentiment is Positive. The current price of 1594 is below the 20-day moving average (MA) of 1755.10, below the 50-day MA of 1719.34, and above the 200-day MA of 1577.64, indicating a bullish trend. The MACD of 23.10 indicates Negative momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7673.

DAIKO TSUSAN CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	77 Outperform	¥6.67B	5.28	―	0.53%	4.93%	23.92%
7673	74 Outperform	¥9.55B	11.06	―	3.22%	21.26%	20.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥4.86B	7.17	―	2.01%	13.56%	―
6904	59 Neutral	¥10.66B	8.66	―	1.64%	-11.47%	―