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

• Market Cap: ¥3.94B
• Dividend Yield: N/A
• Average Volume (3M): 333.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 42.97%
• EPS Growth: -335.79%
• Country: JP
• Employees: 10
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -105.87
• 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: 49 Neutral
• Price Target: ¥299.00 ▼(-9.39% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak cash-flow conversion (negative operating and free cash flow in the last two years) and a poor technical setup (price far below key moving averages with negative momentum). Balance-sheet improvement from near-zero debt provides an important offset, but thin/declining margins and an uninformative negative P/E with no dividend yield keep the overall profile below average.

Positive Factors

Balance Sheet Strength

Material deleveraging to essentially no debt provides a durable financial cushion, lowering default and interest-rate risk. This improves strategic optionality for reinvestment or M&A, and supports resilience through business cycles versus peers that remain highly leveraged.

Revenue Growth Momentum

Sustained top-line expansion indicates underlying demand or stronger market penetration. Consistent revenue growth supports scale economics, enables reinvestment in products and distribution, and forms a durable base for future margin recovery if cost control follows revenue gains.

Return to Profitability

Reversal from multiyear losses to sustained net profits shows operational recovery and management effectiveness. Durable profitability improves capital access and internal funding capacity, reducing reliance on external financing and increasing options for reinvestment or balance-sheet strengthening.

Negative Factors

Negative Cash Conversion

Earnings are not reliably converting into cash, indicating weak cash quality and potential working-capital or collection issues. This undermines the durability of reported profits, limits self-funding for growth or capex, and raises reliance on the balance sheet during downturns.

Thin and Declining Margins

Low and falling margins point to weak pricing power or rising costs, constraining the firm's ability to generate sustained operating cash flow. Structural margin pressure reduces buffer against revenue shocks and limits the capacity to fund strategic initiatives without eroding returns.

Historic Leverage and Volatility

Prior episodes of high leverage and volatile results show the business can be cyclical and reliant on external capital when stressed. Even with current low debt, this history implies governance or business-model sensitivity that could re-emerge under adverse conditions.

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

Profitability has recovered and leverage has improved, but cash generation is a major concern. Income statement trends show a return to profitability and modest revenue growth, yet margins are thin and declined versus the prior year. The balance sheet is stronger with debt reduced to essentially none, lowering financial risk. Offsetting this, operating cash flow and free cash flow were negative in 2024–2025 despite positive net income, weakening earnings quality.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 330.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8746, the sentiment is Negative. The current price of 330 is below the 20-day moving average (MA) of 425.80, below the 50-day MA of 409.56, and below the 200-day MA of 403.93, indicating a bearish trend. The MACD of -39.74 indicates Positive momentum. The RSI at 27.34 is Positive, neither overbought nor oversold. The STOCH value of 2.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.25B	34.27	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥7.13B	11.26	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.66B	-70.76	―	1.12%	-34.90%	-1619.67%
8746	49 Neutral	¥3.94B	-1.41	―	―	42.97%	-335.79%
7360	47 Neutral	¥2.34B	-14.06	―	―	20.14%	278.37%

Daiichi Commodities Co., Ltd. Corporate Events

Unbanked Inc. Posts Quarterly Loss Despite Higher Sales and Halts Dividends

Unbanked Inc. reported a strong increase in net sales to ¥7,852 million for the quarter ended December 2025, up 15.2% from a year earlier, but swung to an operating loss of ¥737 million and an ordinary loss of ¥773 million. Profit attributable to owners of parent deteriorated sharply to a loss of ¥2,438 million, driving basic earnings per share down to minus ¥217.44 and compressing the capital adequacy ratio to 11.7% despite a jump in total assets to ¥36,770 million.

The company’s net assets fell to ¥4,883 million from ¥5,752 million as of March 2025, reflecting the deep quarterly loss and weaker equity position. Unbanked Inc. also maintained its stance of not paying dividends for the current fiscal year to March 2026, signaling a continued focus on preserving capital amid profit pressure and a more leveraged balance sheet.

The most recent analyst rating on (JP:8746) stock is a Hold with a Yen519.00 price target. To see the full list of analyst forecasts on Daiichi Commodities Co., Ltd. stock, see the JP:8746 Stock Forecast page.