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

• Market Cap: ¥4.78B
• Dividend Yield: N/A
• Average Volume (3M): 333.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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: 54 Neutral
• Price Target: ¥360.00 ▲(9.09% Upside)

The score is held back primarily by weak cash-flow conversion (negative operating and free cash flow in 2024–2025) and thin/volatile margins despite a return to profitability. Balance-sheet risk has improved meaningfully due to the reduction to essentially no debt, but technicals are only moderately supportive and valuation is hard to assess with a negative P/E and no dividend yield provided.

Positive Factors

Balance-sheet strength

The company materially reduced total debt to essentially zero by 2025, substantially lowering financial risk. A stronger balance sheet increases resilience to shocks, preserves strategic optionality for investments or M&A, and supports operations without reliance on high leverage.

Top-line momentum

Sustained revenue growth, including a 6.4% year-over-year increase in 2025, signals expanding business activity and customer demand. Durable top-line momentum can enable scale benefits, support gradual margin recovery, and provide a base for longer-term earnings improvement if maintained.

Return to profitability

Net income swung from losses into solid profitability in 2024–2025 and operating profit turned positive in 2025. A sustained return to operating profitability strengthens reinvestment capacity, underpins cash generation potential if conversion improves, and supports credible long-term earnings prospects.

Negative Factors

Poor cash conversion

Operating and free cash flow were negative in 2024–2025 despite accounting profits, indicating weak cash conversion. This undermines the durability of reported earnings, may necessitate external financing for working capital or capex, and constrains the firm's ability to self-fund growth or returns.

Thin, volatile margins

Margins are narrow and deteriorated in 2025, with gross ~5.2% and net ~2.5%. Thin, volatile profitability leaves limited buffer against cost shocks or pricing pressure, reduces capacity to absorb downturns, and makes future earnings highly sensitive to modest revenue or expense swings.

Historical leverage & earnings quality

The company has a history of elevated leverage (debt/equity ~1.0 in 2022–2023) and mixed earnings quality. Past reliance on debt and recent volatility in cash conversion raise the risk that adverse cycles could re-emerge, pressuring liquidity and forcing trade-offs in capital allocation.

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

Daiichi Commodities Co., Ltd. shows a mixed financial performance. The income statement reveals growth in revenue and a return to profitability, although operational margins need enhancement. The balance sheet is a strong point, showcasing a high equity ratio and no debt, signifying financial stability. However, the cash flow statement indicates challenges in cash generation, which could impact future operations if not addressed. Overall, the company is on a positive trajectory but must focus on improving operational efficiency and cash flow generation.

Income Statement

The company has experienced a notable increase in total revenue from 2023 to the TTM period, with a revenue growth rate of 67.9%. The gross profit margin for the TTM is 4.7%, which is relatively low, indicating potential challenges in managing cost of goods sold. The net profit margin for the TTM stands at 19.1%, showing a significant improvement from previous losses. Despite this turnaround, the EBIT and EBITDA margins are still modest at 0.4% and 1.6% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a strong equity position with a high equity ratio of 92.0% in the TTM, reflecting financial stability. The absence of debt further strengthens the company's financial health. The return on equity (ROE) for the TTM is 3.1%, which, while positive, indicates potential for better returns on shareholder investments. Overall, the company maintains a robust balance sheet with minimal leverage risk.

Cash Flow

The cash flow statement highlights some concerns, particularly with operating and free cash flows being zero in the TTM, pointing to no cash generation in these areas. The free cash flow to net income ratio is not calculable due to zero free cash flow, suggesting potential issues in converting earnings into cash. The historical negative free cash flows indicate a need for improvement in cash flow management.

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: 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:8746, the sentiment is Positive. The current price of 330 is above the 20-day moving average (MA) of 299.60, below the 50-day MA of 351.80, and below the 200-day MA of 372.70, indicating a neutral trend. The MACD of 3.22 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 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%
7360	65 Neutral	¥2.65B	33.69	―	―	20.14%	278.37%
8700	65 Neutral	¥6.81B	12.96	―	3.66%	4.48%	19.69%
8742	64 Neutral	¥5.67B	31.29	―	1.13%	6.30%	-43.53%
8746	54 Neutral	¥4.78B	-3.53	―	―	42.97%	-335.79%
8617	42 Neutral	¥4.49B	-26.10	―	1.12%	-34.90%	-1619.67%