Daiichi Commodities Co., Ltd. (8746) AI Stock Analysis

• Market Cap: ¥6.44B
• Dividend Yield: N/A
• Average Volume (3M): 333.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: 42.97%
• EPS Growth: -335.79%
• Country: JP
• Employees: 10
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 10.38
• Shares Outstanding: 13,570,982
• 10 Day Avg. Volume: 565,910
• 30 Day Avg. Volume: 333,200
• PEG Ratio: -0.30
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -26.66
• 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: 55 Neutral
• Price Target: ¥517.00 ▲(56.67% Upside)

The score is held back mainly by weak cash flow despite the return to profitability, raising concerns about earnings quality. Balance-sheet risk has improved substantially with debt reduced to near zero, and technicals show a strong uptrend, but overbought momentum indicators and limited valuation support keep the overall score moderate.

Positive Factors

Balance Sheet Improvement

Substantially lower debt materially reduces financial risk and interest burden, giving management flexibility to fund operations, absorb shocks, or selectively invest without relying on costly external financing. This improvement supports durable solvency and strategic optionality over months.

Return to Profitability

The multi-year earnings turnaround and positive revenue growth indicate the company has stabilized core operations and can generate recurring profits. Sustained profitability enables reinvestment, restores credibility with counterparties, and supports sustained operating improvements over the medium term.

Equity Base & ROE Recovery

A stable equity base and returning ROE reflect regained ability to generate shareholder returns from invested capital. This suggests the firm can leverage its capital for growth or buffers against volatility, improving long-term resilience and capacity to pursue strategic initiatives.

Negative Factors

Weak Cash Generation

Persistent negative operating and free cash flow despite accounting profits indicates poor cash conversion and working-capital pressure. Over months this constrains funding for capex, dividends or debt reduction and may force reliance on external financing, limiting strategic flexibility.

Thin and Falling Margins

Eroding gross and net margins signal weak pricing power or rising costs, leaving little buffer against inflation or revenue shocks. Over the medium term, thin margins hamper cash generation, reduce reinvestment capacity, and make earnings more vulnerable to adverse industry or macro shifts.

Earnings Quality & Past Leverage

The mix of accounting profits with poor cash conversion and a recent history of high leverage raises questions about earnings sustainability and operational consistency. Over several months this undermines confidence in reported profits and increases sensitivity to working-capital or funding shocks.

Daiichi Commodities Co., Ltd. Business Overview & Revenue Model

Company Description

Unbanked,Inc. engages in the commodity trading business in Japan. It also involved in the purchase and sale of precious metals. The company was incorporated in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daiichi Commodities Co., Ltd. generates revenue through a variety of channels, primarily centered around its trading activities. The company earns money by facilitating the buying and selling of commodities on behalf of its clients, earning commissions and fees for these services. Additionally, Daiichi Commodities may engage in proprietary trading, where they trade commodities for their own account, seeking to profit from market fluctuations. The company's earnings are also influenced by its ability to manage risks effectively and leverage market trends. Key partnerships with financial institutions and other trading entities also play a role in amplifying its market reach and trading volume, contributing to its overall revenue streams.

Daiichi Commodities Co., Ltd. Financial Statement Overview

Summary

Earnings have recovered and leverage has improved significantly (debt essentially eliminated), but recent cash generation is weak: operating cash flow and free cash flow were negative in both 2024 and 2025 despite positive net income, indicating poor cash conversion and lower-quality earnings.

Income Statement

The company shows a clear earnings recovery: net income improved from sizable losses in 2021–2023 to solid profitability in 2024 and 2025, with 2025 revenue up 6.4% year over year. However, profitability quality is mixed—gross margin and net margin in 2025 (about 5.2% and 2.5%) fell sharply versus 2024, indicating weaker pricing/transaction economics or cost pressure. Operating profitability also swung from negative EBIT in 2024 to positive EBIT in 2025, but margins remain thin and somewhat volatile.

Balance Sheet

Balance sheet strength improved materially. Total debt fell from elevated levels in 2021–2023 (debt-to-equity near or above 1.0 in 2022–2023) to essentially no debt in 2025, reducing financial risk. Equity remains sizable and relatively stable across recent years, and returns on equity turned positive in 2024–2025. The key weakness is the history of high leverage and negative returns earlier in the period, highlighting that balance-sheet quality has improved, but the business has not been consistently stable through cycles.

Cash Flow

Cash generation is the main weak spot. Operating cash flow was negative in 2024 and 2025, and free cash flow is also negative in both years, which is a concern given the return to accounting profitability. While 2023 had slightly positive operating and free cash flow, the recent two-year pattern suggests earnings are not consistently converting into cash, raising questions around working-capital swings and the durability of profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.39B	9.49B	5.31B	4.64B	5.15B	6.90B
Gross Profit	618.87M	495.11M	448.62M	440.34M	525.96M	829.93M
EBITDA	351.95M	314.72M	-62.05M	-303.15M	-1.70B	-1.15B
Net Income	-1.17B	236.75M	390.93M	-369.81M	-1.71B	-996.13M
Balance Sheet
Total Assets	12.03B	7.39B	5.83B	9.44B	10.03B	9.76B
Cash, Cash Equivalents and Short-Term Investments	3.58B	3.28B	2.39B	2.74B	2.34B	2.33B
Total Debt	0.00	0.00	259.80M	5.21B	5.59B	4.27B
Total Liabilities	7.54B	1.64B	256.65M	4.79B	5.06B	4.26B
Stockholders Equity	4.30B	5.53B	5.57B	4.65B	4.97B	5.50B
Cash Flow
Free Cash Flow	0.00	-106.35M	-1.01B	11.67M	-516.30M	-2.21B
Operating Cash Flow	0.00	-72.39M	-1.01B	38.65M	-511.77M	-2.20B
Investing Cash Flow	0.00	960.86M	489.85M	362.40M	-403.58M	195.56M
Financing Cash Flow	0.00	-2.79M	80.00M	-25.00K	1.37B	-79.19M

Daiichi Commodities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 330.00
• 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:8746, the sentiment is Positive. The current price of 330 is below the 20-day moving average (MA) of 472.10, below the 50-day MA of 365.00, and below the 200-day MA of 391.88, indicating a bullish trend. The MACD of 40.80 indicates Positive momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8746.

Daiichi Commodities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥5.81B	32.08	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.12B	11.25	―	3.66%	4.48%	19.69%
8746	55 Neutral	¥6.44B	-4.59	―	―	42.97%	-335.79%
8617	50 Neutral	¥5.02B	-63.32	―	1.12%	-34.90%	-1619.67%
7360	47 Neutral	¥2.29B	-13.93	―	―	20.14%	278.37%