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

• Market Cap: ¥2.17B
• Dividend Yield: N/A
• Average Volume (3M): 4.20K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.06
• Revenue Growth: -3.35%
• EPS Growth: -63.96%
• Country: JP
• Employees: 615
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -6.44
• Shares Outstanding: 6,003,400
• 10 Day Avg. Volume: 3,800
• 30 Day Avg. Volume: 4,200
• PEG Ratio: -0.18
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 5.23
• 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: 60 Neutral
• Price Target: ¥416.00 ▲(8.33% Upside)

The stock's overall score reflects financial challenges and neutral technical indicators, balanced by a favorable valuation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Improved Equity Ratio

An improving equity ratio suggests a stronger financial foundation, enhancing the company's ability to manage debt and invest in growth.

Positive Free Cash Flow

Positive free cash flow indicates improved cash generation, providing more resources for reinvestment and debt reduction, supporting long-term stability.

Strategic Partnerships

Strategic partnerships enhance product diversity and competitive pricing, strengthening market position and customer appeal over time.

Negative Factors

Revenue Decline

Ongoing revenue decline indicates potential market share loss or demand issues, which could impact long-term growth and profitability.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially affecting the company's ability to weather economic downturns.

Fluctuating Profitability

Inconsistent profitability reflects operational challenges, which could hinder sustainable growth and investor confidence over the medium term.

Daiwa Co., Ltd. Business Overview & Revenue Model

Company Description

Daiwa Co.,Ltd. operates departmental stores in Japan. The company operates through Korinbo and Toyama stores. It also operates an online shop. In addition, the company engages in hotel, restaurant, printing, and publishing businesses. Daiwa Co.,Ltd. was founded in 1923 and is headquartered in Kanazawa, 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 stability 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	16.24B	16.43B	16.54B	15.85B	37.70B	33.93B
Gross Profit	8.67B	7.85B	8.47B	8.14B	8.00B	7.15B
EBITDA	1.06B	1.15B	1.32B	1.06B	748.52M	589.36M
Net Income	223.51M	192.55M	652.41M	70.89M	-303.29M	-412.93M
Balance Sheet
Total Assets	27.76B	27.40B	27.60B	27.14B	26.73B	28.08B
Cash, Cash Equivalents and Short-Term Investments	1.92B	1.90B	2.36B	2.38B	2.04B	2.48B
Total Debt	7.27B	7.77B	8.52B	8.72B	8.82B	8.37B
Total Liabilities	21.82B	22.07B	23.12B	23.61B	23.76B	24.90B
Stockholders Equity	5.94B	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: Neutral
• Last Price: 384.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8247, the sentiment is Neutral. The current price of 384 is above the 20-day moving average (MA) of 383.35, above the 50-day MA of 382.92, and below the 200-day MA of 391.77, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	¥95.09B	104.46	―	0.83%	1.38%	-87.76%
8244	65 Neutral	¥74.62B	12.92	―	1.09%	7.55%	89.45%
8260	64 Neutral	¥4.97B	5.19	―	1.33%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	61 Neutral	¥215.86B	18.12	―	3.01%	18.89%	-34.43%
8247	60 Neutral	¥2.17B	9.70	―	―	-3.35%	-63.96%
8254	46 Neutral	¥2.07B	18.78	―	―	-6.41%	51.66%