Daiwa Co., Ltd. (8247) AI Stock Analysis

• Market Cap: ¥2.19B
• Dividend Yield: N/A
• Average Volume (3M): 3.99K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.07
• Revenue Growth: -2.19%
• EPS Growth: -58.67%
• Country: JP
• Employees: 615
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Department Stores
• EPS (TTM): 33.76
• Shares Outstanding: 6,003,400
• 10 Day Avg. Volume: 2,800
• 30 Day Avg. Volume: 3,993
• 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: ¥415.00
• Price Target Upside: 5.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥415.00 ▲(5.06% Upside)

The stock's overall score is primarily influenced by its valuation, which suggests it may be undervalued. However, financial performance challenges, including revenue declines and high leverage, weigh heavily. Technical indicators provide a mixed view, with neutral trends and bearish momentum.

Daiwa Co., Ltd. Business Overview & Revenue Model

Company Description

Daiwa Co., Ltd. (8247) is a Japan-based company primarily engaged in the retail and wholesale sectors. The company operates a chain of department stores offering a wide range of products, including clothing, household goods, electronics, and food items. Daiwa is known for its focus on providing high-quality products and exceptional customer service, catering to a diverse clientele across Japan.

How the Company Makes Money

Daiwa Co., Ltd. generates revenue primarily through the sale of goods in its department stores. The company earns money by purchasing products from manufacturers and suppliers at wholesale prices and selling them at retail prices to customers. Key revenue streams include sales from clothing, household goods, electronics, and food items. The company also benefits from strategic partnerships with various suppliers and brands, which allow it to offer a diverse product range and competitive pricing. Additionally, Daiwa may generate income from leasing space within its retail locations to other businesses or through promotional activities and events held in its stores.

Daiwa Co., Ltd. Financial Statement Overview

Summary

Daiwa Co., Ltd. faces financial challenges with revenue declines, fluctuating profitability, and high leverage. Improvements in equity and cash flow management are noted, but consistent financial performance is needed.

Income Statement

Over the past five years, Daiwa Co., Ltd. has shown a volatile income statement performance. The company experienced a significant revenue decline from 2020 to 2025, with a noticeable drop in gross profit. Both EBIT and net income margins have fluctuated, with recent negative EBIT indicating operational challenges. Although there were improvements in EBITDA margin in certain years, sustaining profitability remains a concern.

Balance Sheet

The balance sheet reflects a gradual improvement in stockholders' equity from 2022, yet the debt-to-equity ratio remains high, suggesting leverage risks. The equity ratio has been increasing, indicating a better capital structure over time. Nevertheless, the company needs to manage its liabilities more effectively to enhance financial stability.

Cash Flow

Daiwa Co., Ltd.'s cash flow performance shows inconsistency, with free cash flow turning positive in recent years after past deficits. Operating cash flow has partially covered net income, indicating some efficiency in cash generation. However, fluctuations in free cash flow growth highlight potential operational and financial risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.43B	16.43B	16.54B	15.85B	37.70B	33.93B
Gross Profit	8.61B	7.85B	8.47B	8.14B	8.00B	7.15B
EBITDA	940.35M	1.15B	1.32B	1.06B	748.52M	589.36M
Net Income	193.16M	192.55M	652.41M	70.89M	-303.29M	-412.93M
Balance Sheet
Total Assets	27.40B	27.40B	27.60B	27.14B	26.73B	28.08B
Cash, Cash Equivalents and Short-Term Investments	1.90B	1.90B	2.36B	2.38B	2.04B	2.48B
Total Debt	7.77B	7.77B	8.52B	8.72B	8.82B	8.37B
Total Liabilities	22.07B	22.07B	23.12B	23.61B	23.76B	24.90B
Stockholders Equity	5.33B	5.33B	4.48B	3.53B	2.98B	3.18B
Cash Flow
Free Cash Flow	0.00	457.08M	-145.29M	407.60M	-964.30M	483.20M
Operating Cash Flow	0.00	665.56M	410.30M	569.42M	-702.23M	1.40B
Investing Cash Flow	0.00	-269.09M	-203.66M	-101.04M	-147.25M	-861.63M
Financing Cash Flow	0.00	-804.30M	-232.45M	-131.22M	410.81M	236.06M

Daiwa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 395.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8247, the sentiment is Positive. The current price of 395 is below the 20-day moving average (MA) of 396.10, above the 50-day MA of 392.42, and below the 200-day MA of 406.64, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 18.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8247.

Daiwa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8237	72 Outperform	¥71.58B	37.69		0.89%	9.88%	-37.53%
8273	68 Neutral	¥232.52B	19.30		2.77%	18.53%	-36.19%
8260	67 Neutral	¥4.74B	5.10		1.45%	-2.12%	8.28%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
8254	61 Neutral	¥2.49B	20.50		―	-10.22%	-23.30%
8247	60 Neutral	¥2.19B	8.87		―	-2.19%	-58.67%
8244	60 Neutral	¥80.75B	37.48		0.98%	2.35%	-36.99%