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

• Market Cap: ¥391.08B
• Dividend Yield: 1.3%
• Average Volume (3M): 106.74K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.32
• Revenue Growth: 8.33%
• EPS Growth: 1.73%
• Country: JP
• Employees: 2,194
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 38.54
• 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): 150.14
• Revenue Forecast (FY): ¥85.14B

• Rating: 73 Outperform
• Price Target: ¥4,365.00 ▲(12.36% Upside)
• Action: Reiterated Date: 08/28/25
• Date: Action: Reiterated 08/28/25

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 growth (9.8% y/y) indicates expanding service demand or market share in core waste-management operations. Durable revenue expansion supports reinvestment, scale advantages, and underpins medium-term cash generation and strategic initiatives.

High and Improving Margins

Robust gross and operating margins show efficient operations and pricing power in the business model. Sustained margin levels strengthen cash conversion, allow investment in service quality, and provide resilience against input-cost swings over the coming months.

Strong Capital Structure and ROE

Improved leverage and a solid equity ratio give the company financial flexibility. A 15.2% ROE signals effective capital deployment. This combination supports medium-term stability, capacity for targeted investment, and reduced solvency risk vs. peers.

Negative Factors

Substantial Remaining Debt

Although leverage metrics improved, the absolute level of debt remains high, constraining strategic optionality. Elevated debt increases interest exposure and could limit capital allocation to growth or shareholder returns if macro or rate conditions worsen.

Declining Free Cash Flow Trend

A falling free cash flow trend, even if still positive, reduces the internal funding available for debt reduction, capex, or dividends. Continued FCF erosion would weaken liquidity cushions and operational flexibility over the medium term.

Negative EPS Growth

Material negative EPS growth despite revenue gains points to earnings volatility or non-operating/headline impacts. This divergence raises questions about profit sustainability and may signal pressure on per-share profitability in the coming quarters.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	80.84B	80.18B	73.03B	67.66B	64.99B	61.61B
Gross Profit	34.57B	34.95B	31.62B	29.09B	25.91B	26.66B
EBITDA	27.51B	28.17B	26.30B	22.25B	19.83B	20.04B
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	53.66B	52.90B	54.81B	61.06B	62.98B
Total Debt	74.63B	66.53B	61.20B	66.78B	79.81B	80.63B
Total Liabilities	97.32B	90.22B	84.78B	84.64B	98.21B	98.38B
Stockholders Equity	94.35B	94.27B	87.56B	78.49B	59.74B	52.91B
Cash Flow
Free Cash Flow	0.00	6.67B	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: Negative
• 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 3885 is above the 20-day moving average (MA) of 3806.25, below the 50-day MA of 3974.90, and above the 200-day MA of 3514.85, indicating a neutral trend. The MACD of -39.08 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 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	¥81.63B	5.37	―	2.77%	24.61%	185.90%
9336	73 Outperform	¥391.08B	25.34	―	1.30%	8.33%	1.73%
9793	73 Outperform	¥187.90B	17.30	11.00%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥28.86B	7.02	―	2.62%	-9.37%	590.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5857	59 Neutral	¥280.22B	7.02	―	3.14%	22.74%	-28.17%