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Daiko Denshi Tsushin,Ltd. (JP:8023)
:8023
Japanese Market

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

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JP

Daiko Denshi Tsushin,Ltd.

(8023)

Rating:80Outperform
Price Target:
¥1,185.00
▲(21.29%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. (8023) vs. iShares MSCI Japan ETF (EWJ)

Daiko Denshi Tsushin,Ltd. Business Overview & Revenue Model

Company DescriptionDaiko 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 MoneyDaiko 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue43.44B42.69B43.38B37.62B35.47B36.27B
Gross Profit10.69B10.56B11.11B9.48B8.75B8.39B
EBITDA2.68B2.81B3.28B1.92B2.06B-137.90M
Net Income1.59B1.68B1.84B996.36M1.23B-452.45M
Balance Sheet
Total Assets23.79B26.84B27.83B25.62B24.18B23.79B
Cash, Cash Equivalents and Short-Term Investments6.42B10.46B10.05B7.29B7.53B6.42B
Total Debt3.93B2.36B2.39B2.65B3.13B3.93B
Total Liabilities15.61B14.12B16.10B15.71B15.03B15.61B
Stockholders Equity8.14B12.67B11.68B9.86B9.11B8.14B
Cash Flow
Free Cash Flow0.001.28B3.99B394.65M2.21B792.20M
Operating Cash Flow0.001.32B4.13B556.15M2.27B1.08B
Investing Cash Flow0.00-71.25M-543.46M366.40M-78.33M-63.87M
Financing Cash Flow0.00-830.97M-826.11M-1.11B-1.09B-108.93M

Daiko Denshi Tsushin,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price977.00
Price Trends
50DMA
975.86
Positive
100DMA
921.02
Positive
200DMA
850.50
Positive
Market Momentum
MACD
-1.82
Positive
RSI
43.94
Neutral
STOCH
23.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8023, the sentiment is Neutral. The current price of 977 is below the 20-day moving average (MA) of 1000.60, above the 50-day MA of 975.86, and above the 200-day MA of 850.50, indicating a neutral trend. The MACD of -1.82 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8023.

Daiko Denshi Tsushin,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥13.33B7.52
3.07%-1.59%-6.38%
80
Outperform
¥18.38B15.66
4.99%1.50%-18.81%
78
Outperform
¥38.13B14.97
0.83%-15.98%-51.13%
74
Outperform
¥153.78B8.6110.70%3.93%0.94%-16.06%
72
Outperform
¥27.10B6.35
7.91%-10.85%25.59%
70
Outperform
¥18.20B4.98
4.66%21.35%221.66%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8023
Daiko Denshi Tsushin,Ltd.
977.00
143.93
17.28%
JP:7537
Marubun Corporation
1,037.00
-138.63
-11.79%
JP:8093
Kyokuto Boeki Kaisha, Ltd.
1,501.00
-187.57
-11.11%
JP:8137
Sun-Wa Technos Corporation
2,412.00
286.43
13.48%
JP:9880
Innotech Corporation
1,402.00
-273.77
-16.34%
JP:8154
Kaga Electronics Co., Ltd.
2,799.00
34.70
1.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025