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

• Market Cap: ¥407.06B
• Dividend Yield: 1.3%
• Average Volume (3M): 106.74K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.39
• Revenue Growth: 8.33%
• EPS Growth: 1.73%
• Country: JP
• Employees: 2,194
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 32.19
• Shares Outstanding: 99,892,900
• 10 Day Avg. Volume: 138,610
• 30 Day Avg. Volume: 106,740
• 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: 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: 73 Outperform
• Price Target: ¥4,544.00 ▲(16.96% Upside)

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.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion (9.8% year) signals durable demand for core waste-management services and steady contract renewals. This trend supports predictable cash flows, enables reinvestment in operations, and underpins medium-term growth and debt servicing capacity.

Robust Margins and Operational Efficiency

High and improving margins reflect efficient cost control and scalable operations in a capital-intensive industry. Strong EBITDA and EBIT margins suggest pricing power and operational leverage that enhance resilience to volume swings and support sustained cash generation over several months.

Improved Capital Structure and ROE

A higher equity ratio and reduced leverage materially strengthen the balance sheet, lowering refinancing and liquidity risk. Combined with a healthy ROE, this provides financial flexibility for capex, strategic investments, and gradual deleveraging without sacrificing core operations.

Negative Factors

Substantial Absolute Debt Level

Despite improved leverage ratios, material absolute debt raises refinancing and interest-rate exposure risk. High nominal debt can constrain strategic flexibility, increase fixed obligations, and amplify downside in a sustained economic shock or higher interest environment over the medium term.

Decreased Free Cash Flow Trend

A declining free cash flow trend, even if still positive, weakens the firm’s buffer for debt repayment, acquisitions, or shareholder returns. If the decline persists, it could slow deleveraging, limit reinvestment, and reduce resilience to capital-intensive needs over the coming months.

Modest Dividend Income

A low dividend yield limits appeal to income-focused investors and signals restrained cash returns relative to peers. Coupled with substantial debt and reduced FCF, modest payout capacity may reflect prioritization of balance-sheet repair over shareholder distributions in the medium term.

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

Company Description

Daiei Kankyo Co., Ltd. engages in waste-related and valuable resource recycling businesses in Japan. It offers waste management and recycling, soil remediation, generates power from biogas, forest management, facility construction and administration, and consulting services. The company also involved in other waste-related businesses, including the provision of temporary staffing and recruitment services, as well as agribusiness. In addition, it manufactures and sells recycled aluminum pellets and plastic pallets. The company was incorporated in 1979 and is headquartered in Kobe, Japan. Daiei Kankyo Co., Ltd. operates as a subsidiary of Wingtowa Co., Ltd.

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: 3885.00
• 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:9336, the sentiment is Positive. The current price of 3885 is below the 20-day moving average (MA) of 4093.25, below the 50-day MA of 3910.70, and above the 200-day MA of 3370.09, indicating a neutral trend. The MACD of 57.33 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.86 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
9247	76 Outperform	¥88.05B	5.15	―	2.77%	24.61%	185.90%
9336	73 Outperform	¥407.06B	29.07	―	1.30%	8.33%	1.73%
9793	73 Outperform	¥165.06B	18.20	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5857	60 Neutral	¥276.41B	14.98	―	3.14%	22.74%	-28.17%