Daiei Kankyo Co., Ltd. (9336) AI Stock Analysis

• Market Cap: ¥357.62B
• Dividend Yield: 1.39%
• Average Volume (3M): 109.55K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.42
• Revenue Growth: 8.10%
• EPS Growth: -1.24%
• Country: JP
• Employees: 2,194
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 29.51
• Shares Outstanding: 99,892,900
• 10 Day Avg. Volume: 129,080
• 30 Day Avg. Volume: 109,553
• PEG Ratio: 2.93
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 3.51
• P/FCF Ratio: 41.37
• 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: ¥3,378.00
• Price Target Upside: -5.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥3,378.00 ▼(-5.64% Downside)

Daiei Kankyo Co., Ltd. receives a strong overall stock score of 73, driven primarily by its robust financial performance and solid technical indicators. The company's consistent revenue and profit growth, along with a healthy capital structure, are significant strengths. However, the technical analysis suggests caution due to overbought conditions, and the valuation indicates the stock is fairly valued, which slightly tempers the overall score.

Daiei Kankyo Co., Ltd. Business Overview & Revenue Model

Company Description

Daiei Kankyo Co., Ltd. (9336) is a Japanese environmental services company specializing in waste management and recycling solutions. The company operates primarily in the waste treatment sector, providing comprehensive services that include the collection, processing, and recycling of industrial and municipal waste. Daiei Kankyo focuses on sustainable practices, aiming to minimize environmental impact and promote resource recovery through innovative technologies and efficient waste management systems.

How the Company Makes Money

Daiei Kankyo generates revenue primarily through its waste management services, which encompass waste collection, transportation, and processing for both industrial and municipal clients. The company charges fees for these services based on the volume and type of waste handled. Additionally, Daiei Kankyo earns income from recycling operations, where valuable materials recovered from waste are sold to manufacturers. The company may also benefit from government contracts and partnerships aimed at promoting sustainable waste management practices. Factors contributing to its earnings include increasing regulatory demands for environmental compliance, growing public awareness of sustainability issues, and the establishment of long-term contracts with clients in various sectors.

Daiei Kankyo Co., Ltd. Financial Statement Overview

Summary

Daiei Kankyo Co., Ltd. shows strong financial performance with consistent revenue and profit growth. The balance sheet reflects a healthy capital structure with improved leverage and equity ratios. The company demonstrates solid cash flow management, although caution is warranted due to the significant debt level. Overall, the financial health is strong, with positive trends in growth and profitability.

Income Statement

Daiei Kankyo Co., Ltd. has demonstrated consistent revenue growth, with a 9.8% increase from 2024 to 2025. The gross profit margin improved to 43.4%, indicating efficient cost management. Net profit margin is solid at 17.9%, reflecting strong profitability. EBIT and EBITDA margins are robust at 26.9% and 34.5% respectively, showcasing operational efficiency and effective cost control.

Balance Sheet

The company's debt-to-equity ratio decreased, reflecting improved leverage. Return on Equity (ROE) is strong at 15.2%, indicating efficient use of equity. The equity ratio increased to 51.0%, suggesting a strong capital structure. However, the total debt remains substantial, posing potential risk.

Cash Flow

Operating cash flow has increased, supporting operational needs. Free cash flow showed a decrease but remains positive, indicating adequate cash generation after capital expenditures. The operating cash flow to net income ratio is favorable, highlighting good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.84B	80.18B	73.03B	67.66B	64.99B	61.61B
Gross Profit	34.34B	34.77B	31.77B	28.97B	25.91B	26.66B
EBITDA	28.06B	28.51B	27.34B	22.39B	21.05B	21.39B
Net Income	13.77B	14.36B	13.59B	10.49B	8.87B	9.23B
Balance Sheet
Total Assets	192.74B	184.91B	172.80B	163.62B	158.28B	151.62B
Cash, Cash Equivalents and Short-Term Investments	55.47B	53.37B	51.05B	54.81B	61.06B	62.98B
Total Debt	74.63B	66.49B	61.07B	63.16B	79.27B	79.69B
Total Liabilities	97.32B	90.23B	84.79B	84.65B	98.21B	98.38B
Stockholders Equity	94.35B	94.27B	87.56B	78.48B	59.74B	52.90B
Cash Flow
Free Cash Flow	0.00	6.79B	8.55B	3.33B	386.00M	-3.16B
Operating Cash Flow	0.00	23.02B	21.67B	16.27B	18.05B	11.41B
Investing Cash Flow	0.00	-18.96B	-15.56B	-12.30B	-16.45B	-14.58B
Financing Cash Flow	0.00	-3.54B	-7.64B	-8.97B	-3.17B	1.10B

Daiei Kankyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9336, the sentiment is Positive. The current price of 3580 is above the 20-day moving average (MA) of 3456.07, above the 50-day MA of 3325.79, and above the 200-day MA of 3018.66, indicating a bullish trend. The MACD of 71.47 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 43.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9336.

Daiei Kankyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1712	77 Outperform	¥31.01B	21.71	―	0.81%	15.80%	11.11%
9336	73 Outperform	¥357.62B	25.50	―	1.39%	8.10%	-1.24%
9793	73 Outperform	$149.13B	16.40	10.88%	2.39%	6.63%	-3.05%
5857	73 Outperform	¥178.79B	12.18	―	3.44%	58.33%	-41.60%
9247	72 Outperform	¥78.39B	4.83	―	2.95%	29.51%	283.81%
5698	69 Neutral	¥15.11B	12.63	―	2.98%	-5.98%	117.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Daiei Kankyo Co., Ltd. Corporate Events

Daiei Kankyo Co., Ltd. Reports Q1 2025 Financial Results

Daiei Kankyo Co., Ltd. reported its financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 3.4% year-on-year, reaching ¥20,020 million. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 16.4%, 20.4%, and 16.9% respectively. The equity-to-asset ratio also slightly decreased from 51.0% to 49.0%. Despite these challenges, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating stability in shareholder returns.

Daiei Kankyo Completes Treasury Stock Disposal for Compensation

Daiei Kankyo Co., Ltd. has completed the payment procedures for the disposal of treasury stock as restricted stock compensation, following a resolution made at the Board of Directors meeting on July 7, 2025. This disposal involved 30,450 shares at a price of 3,040 yen per share, totaling 92,568,000 yen, and was allocated to directors, executive officers, employees, and directors of subsidiaries.

Daiei Kankyo Announces Treasury Stock Disposal for Employee Incentives

Daiei Kankyo Co., Ltd. announced the disposal of treasury stock as restricted stock compensation to align the interests of its directors and employees with shareholders. This move is intended to motivate key personnel by linking their compensation to stock performance, thereby potentially enhancing the company’s market value and operational effectiveness.

Daiei Kankyo Updates Medium-Term Management Plan

Daiei Kankyo Co., Ltd. announced corrections to its Medium-Term Management Plan (D-Plan2028) due to inaccuracies in previously published information. The revised plan, which is crucial for the company’s strategic direction, will be available on their website, reflecting their commitment to transparency and accurate reporting.

Daiei Kankyo Announces Dividend Payout and Future Plans

Daiei Kankyo Co., Ltd. announced a resolution to pay dividends of surplus with a record date of March 31, 2025, amounting to 25 yen per share, bringing the total annual dividend to 48 yen per share. The company aims to strengthen shareholder returns in line with profit growth and plans to increase the consolidated dividend payout ratio to 40%, reflecting its commitment to sustainable and stable dividends.

Daiei Kankyo Ensures Fair Transactions with Controlling Shareholder

Daiei Kankyo Co., Ltd. announced details regarding its controlling shareholder, Wing Towa K.K., which holds a 62.34% voting rights stake. The company emphasizes its commitment to protecting minority shareholders by ensuring that transactions with controlling shareholders are fair and subject to rigorous oversight by a special committee of independent directors.

Daiei Kankyo Unveils Ambitious D-Plan 2028 for Sustainable Growth

Daiei Kankyo Co., Ltd. has announced its Medium-Term Management Plan, D-Plan 2028, aiming for sustainable growth over the next three years. The plan includes financial targets such as increasing net sales to 100 billion yen and enhancing EBITDA and operating profit margins. Key strategies involve expanding treatment facility capacity, advancing recycling systems, and strengthening partnerships with municipalities and through M&A. The plan underscores the company’s commitment to addressing material issues and promoting transparency and human capital management.

Daiei Kankyo Co., Ltd. Reports Strong Financial Growth and Increased Dividends

Daiei Kankyo Co., Ltd. reported a 9.8% increase in net sales for the fiscal year ended March 31, 2025, with operating profit rising by 9.3%. The company plans to increase its dividends per share to 48 yen, reflecting a commitment to shareholder returns. The financial results indicate a stable growth trajectory, with a slight increase in net assets and cash flows from operating activities. The company forecasts continued growth for the fiscal year ending March 31, 2026, despite a projected decrease in operating profit and ordinary profit for the first six months.