Daiko Denshi Tsushin,Ltd. (8023) AI Stock Analysis

• Market Cap: ¥14.18B
• Dividend Yield: 2.89%
• Average Volume (3M): 36.00K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.65
• Revenue Growth: -1.59%
• EPS Growth: -7.30%
• Country: JP
• Employees: 1,294
• Sector: Technology
• Sector Strength: 82
• Industry: Technology Distributors
• EPS (TTM): 73.37
• Shares Outstanding: 13,868,408
• 10 Day Avg. Volume: 20,840
• 30 Day Avg. Volume: 36,000
• PEG Ratio: -1.24
• Price to Book (P/B): 1.04
• 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

• Rating: 80 Outperform
• Price Target: ¥1,185.00 ▲(14.05%Upside)

The stock is rated favorably, with strong technical momentum and attractive valuation metrics being the primary drivers. Solid financial fundamentals support the score, though declining profitability and cash flow are areas to watch. The absence of recent earnings call and corporate events data limits further insight into recent operational and strategic developments.

Daiko Denshi Tsushin,Ltd. Business Overview & Revenue Model

Company Description

Daiko Denshi Tsushin, Ltd. (8023) is a Japanese company operating primarily in the telecommunications sector. The company focuses on providing communication infrastructure, solutions, and services, catering to both individual consumers and business clients. Its core offerings include network systems integration, telecommunications consulting, and the sale of related equipment.

How the Company Makes Money

Daiko Denshi Tsushin, Ltd. generates revenue through multiple streams, primarily focusing on the integration and maintenance of network systems for businesses and telecommunication service providers. The company earns by offering comprehensive solutions that include the design, setup, and optimization of communication networks. Additionally, it generates income from consulting services that help businesses enhance their telecommunications infrastructure and efficiency. Sales of telecommunications equipment to various sectors further contribute to its earnings. The company's financial performance is supported by strategic partnerships with technology providers and service companies, enabling it to offer cutting-edge solutions to a diverse clientele.

Daiko Denshi Tsushin,Ltd. Financial Statement Overview

Summary

Daiko Denshi Tsushin, Ltd. demonstrates solid financial fundamentals with a strong balance sheet characterized by low leverage and a solid equity position. However, the declining net profit margin and cash flow generation are areas of concern, suggesting potential operational challenges impacting profitability and liquidity.

Income Statement

The company has shown a stable revenue performance with a slight decline in 2025. Gross profit margin remains strong at approximately 24.7%, indicating good cost management. However, the net profit margin has decreased to 3.9% in 2025 from 4.2% in 2024, suggesting some pressure on bottom-line profitability. EBIT and EBITDA margins have also contracted, indicating potential operating challenges.

Balance Sheet

The balance sheet reflects a healthy equity base with an equity ratio of 47.2%, suggesting financial stability. The debt-to-equity ratio is low at 0.19, indicating conservative leverage. Return on equity has decreased to 13.3% from 15.7% in the previous year, which raises concerns about declining profitability relative to equity.

Cash Flow

The cash flow situation shows a significant decline in operating cash flow, with a 68.1% drop from the previous year. Free cash flow has also decreased substantially, impacting the free cash flow to net income ratio. The operating cash flow to net income ratio has decreased to 0.78, indicating reduced cash generation efficiency. This could pose liquidity risks if the trend continues.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
43.44B	42.69B	43.38B	37.62B	35.47B	36.27B
	Gross Profit
10.69B	10.56B	11.11B	9.48B	8.75B	8.39B
	EBIT
2.63B	2.41B	2.90B	1.87B	1.56B	1.13B
	EBITDA
2.68B	2.81B	3.28B	1.92B	2.06B	-137.90M
	Net Income Common Stockholders
1.59B	1.68B	1.84B	996.36M	1.23B	-452.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.42B	10.46B	10.05B	7.29B	7.53B	6.42B
	Total Assets
23.79B	26.84B	27.83B	25.62B	24.18B	23.79B
	Total Debt
3.93B	2.36B	2.39B	2.65B	3.13B	3.93B
	Net Debt
-2.49B	-6.10B	-7.65B	-4.64B	-4.40B	-2.49B
	Total Liabilities
15.61B	14.12B	16.10B	15.71B	15.03B	15.61B
	Stockholders Equity
8.14B	12.67B	11.68B	9.86B	9.11B	8.14B
Cash Flow		Free Cash Flow
0.00	1.28B	3.99B	394.65M	2.21B	792.20M
	Operating Cash Flow
0.00	1.32B	4.13B	556.15M	2.27B	1.08B
	Investing Cash Flow
0.00	-71.25M	-543.46M	366.40M	-78.33M	-63.87M
	Financing Cash Flow
0.00	-830.97M	-826.11M	-1.11B	-1.09B	-108.93M

Daiko Denshi Tsushin,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1039.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8023, the sentiment is Positive. The current price of 1039 is above the 20-day moving average (MA) of 1024.45, above the 50-day MA of 924.76, and above the 200-day MA of 833.38, indicating a bullish trend. The MACD of 31.25 indicates Positive momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8023.

Daiko Denshi Tsushin,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	€154.66B	8.66	10.70%	3.91%	0.94%	-16.06%
8023	80 Outperform	¥14.18B	8.00		2.89%	-1.59%	-7.30%
9880	80 Outperform	¥17.74B	15.11		5.17%	1.50%	-18.82%
8137	78 Outperform	¥36.83B	14.46		0.86%	-15.98%	-51.13%
7537	73 Outperform	¥26.58B	6.23		8.06%	-10.85%	25.59%
8093	68 Neutral	¥18.17B	4.97		4.67%	21.35%	221.64%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%