Daiseki Co (9793) AI Stock Analysis

• Market Cap: ¥185.52B
• Dividend Yield: 2.2%
• Average Volume (3M): 160.90K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.64
• Revenue Growth: 6.63%
• EPS Growth: -3.05%
• Country: JP
• Employees: 1,215
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 49.68
• Shares Outstanding: 48,000,000
• 10 Day Avg. Volume: 206,750
• 30 Day Avg. Volume: 160,896
• PEG Ratio: 117.56
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 31.50
• 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: ¥4,233.33
• Price Target Upside: 23.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 242.09
• Revenue Forecast (FY): ¥76.64B

• Rating: 73 Outperform
• Price Target: ¥4,438.00 ▲(29.77% Upside)
• Action: Reiterated Date: 09/23/25
• Date: Action: Reiterated 09/23/25

Daiseki Co's overall stock score is driven by its strong financial performance, characterized by solid profitability and a robust balance sheet. The technical analysis suggests potential bearish momentum, but not in oversold territory, while the valuation indicates fair pricing with a decent dividend yield. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio give Daiseki durable financial flexibility. This capital structure supports capital spending, voluntary deleveraging, and resilience to cyclical pressures in industrial waste demand, enabling long-term strategic investments without forcing external financing.

Sustainable Profitability

Healthy gross and net margins indicate consistent pricing power and operational efficiency in core waste-treatment services. In a service-oriented industry with regulated demand, such margins underpin durable cash generation and support reinvestment, dividends, and margin protection versus commodity swings.

Strong Cash Conversion

Robust operating cash conversion demonstrates the business converts earnings into cash reliably, funding capex and working capital without heavy external funding. This structural cash strength supports steady operations, maintenance of treatment facilities, and strategic tech upgrades over the medium term.

Negative Factors

Recent Revenue Decline

A year-over-year revenue decline signals potential demand weakness or competitive pressure in industrial waste services. If persistent, revenue erosion could reduce scale economies and stress margin maintenance, forcing management to win new contracts or expand service segments to restore growth.

Declining Free Cash Flow

A material drop in free cash flow constrains the company's ability to fund growth initiatives, upgrade infrastructure, or pursue M&A without adjusting capital allocation. Sustained FCF declines could limit strategic flexibility and require prioritizing maintenance capex over expansion projects.

Negative EPS Growth Trend

Negative EPS growth suggests profitability pressures beyond single-period volatility. Over time this can erode investor confidence in earnings sustainability, limit retained earnings for reinvestment, and constrain dividend increases unless underlying revenue or margin drivers are restored.

Daiseki Co Business Overview & Revenue Model

Company Description

Daiseki Co.,Ltd. engages industrial waste treatment and resource recycling activities in Japan. The company is involved in the treatment and recycling of waste oil and sludge, as well as collection, transportation, treatment, and recycling of industrial waste. It also develops, produces, and sells Pane-roll and Daiseki Coat concrete release agents; Daiseki Pla-coat plastic release agents; and Daiseki Proof rustpoofing agents. In addition, the company offers industrial lubricating oil for press machines and sharpeners, as well as fuel oils, and industrial and automotive lubricants; and environmental research and analysis services for industrial waste, such as waste oil, waste acid, waste alkali, sludge, and other waste. Further, it engages in the research and restoration of polluted soil, etc.; refining of lubricating oil; sale of petrol products; refinement of lead; recycling used automotive and industrial batteries; washing and treatment of tanks; and recycling of waste plasterboard. Daiseki Co.,Ltd. was founded in 1945 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Daiseki generates revenue primarily through its waste treatment and disposal services, which include the collection, processing, and recycling of various types of waste. Key revenue streams include fees charged for the disposal of industrial and hazardous waste, as well as income from the sale of recycled materials. Additionally, Daiseki may benefit from government contracts and partnerships with private companies seeking to comply with environmental regulations. The company's investments in advanced waste processing technologies also enhance operational efficiency and contribute to profitability.

Daiseki Co Financial Statement Overview

Summary

Daiseki Co's financial position is strong, marked by solid profitability, a robust capital structure, and healthy cash flow generation. Despite a recent dip in revenue and free cash flow, the company's low leverage and high equity ratio provide a buffer against potential financial fluctuations.

Income Statement

Daiseki Co has demonstrated strong profitability with consistent gross and net profit margins. The TTM gross profit margin is approximately 33.15%, and the net profit margin is about 13.82%, reflecting efficient cost management. However, the recent revenue shows a declining trend, with a year-over-year decrease of 2.77% from 2024 to 2025, which is a concern.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of approximately 0.07, indicating low leverage and financial stability. The return on equity for the TTM is strong at around 11.03%, suggesting efficient use of equity. The equity ratio stands at a solid 74.21%, highlighting a strong capital structure.

Cash Flow

Cash flow generation is stable, with a free cash flow to net income ratio of approximately 0.60, indicating healthy cash conversion. However, the free cash flow has decreased by approximately 25.91% year-over-year, which may impact future investments. The operating cash flow to net income ratio is robust at 1.49, showing strong cash flow relative to earnings.

Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2021
Income Statement
Total Revenue	70.63B	67.30B	69.22B	58.57B	56.87B	51.53B
Gross Profit	23.10B	22.31B	22.68B	19.60B	19.24B	16.32B
EBITDA	18.00B	18.26B	18.25B	15.48B	15.50B	12.52B
Net Income	9.14B	9.31B	9.46B	8.67B	8.38B	6.52B
Balance Sheet
Total Assets	114.24B	113.64B	108.64B	100.14B	99.26B	95.76B
Cash, Cash Equivalents and Short-Term Investments	29.66B	30.92B	29.16B	27.85B	34.45B	34.26B
Total Debt	5.68B	6.03B	5.03B	3.29B	3.15B	4.11B
Total Liabilities	20.05B	19.78B	19.21B	15.72B	15.82B	15.04B
Stockholders Equity	84.26B	84.33B	80.61B	76.49B	75.95B	73.99B
Cash Flow
Free Cash Flow	0.00	5.58B	7.52B	3.75B	8.34B	7.12B
Operating Cash Flow	0.00	13.82B	13.79B	9.92B	11.70B	9.78B
Investing Cash Flow	0.00	-7.28B	-8.25B	-8.30B	-3.83B	981.00M
Financing Cash Flow	0.00	-5.32B	-4.14B	-8.03B	-7.62B	-3.05B

Daiseki Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9793, the sentiment is Positive. The current price of 3420 is below the 20-day moving average (MA) of 3712.60, below the 50-day MA of 3517.81, and below the 200-day MA of 3434.08, indicating a bullish trend. The MACD of 111.42 indicates Negative momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9793.

Daiseki Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9793	73 Outperform	¥185.52B	20.45	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥28.23B	15.38	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥383.09B	27.65	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5699	62 Neutral	¥5.16B	8.35	―	1.80%	-0.27%	0.09%
2195	56 Neutral	¥5.78B	18.57	―	1.36%	3.68%	-24.83%
4657	56 Neutral	¥2.14B	50.22	―	1.93%	-1.19%	-89.91%

Daiseki Co Corporate Events

Daiseki Raises Full-Year Dividend Forecast on Stronger Performance and Plan Progress

Daiseki Co., Ltd. has revised its cash dividend forecast for the fiscal year ending February 28, 2026, deciding to raise the planned year-end dividend from 36 yen to 40 yen per share, bringing the total annual dividend to 76 yen including an interim dividend of 36 yen. The board’s decision, which will be submitted for approval at the May 2026 ordinary general meeting of shareholders, reflects stronger performance in the current fiscal year, progress under the mid-term management plan, and the company’s policy of returning profits in line with results while maintaining sufficient internal reserves, signaling a modest but clear enhancement of shareholder returns compared with the previous year’s 72 yen total dividend.

The most recent analyst rating on (JP:9793) stock is a Buy with a Yen3964.00 price target. To see the full list of analyst forecasts on Daiseki Co stock, see the JP:9793 Stock Forecast page.

Daiseki Posts Higher Sales but Slight Profit Decline, Lifts Dividend Outlook and Confirms Full-Year Guidance

Daiseki Co., Ltd. reported consolidated net sales of ¥54.47 billion for the nine months ended November 30, 2025, an 8.8% year-on-year increase, while operating profit edged up 1.6% to ¥11.31 billion and ordinary profit was flat at ¥11.57 billion. Profit attributable to owners of parent slipped 3.1% to ¥7.06 billion, with basic earnings per share declining to ¥148.75, against a backdrop of a higher equity-to-asset ratio of 77.5% despite a reduction in total assets and equity versus the previous fiscal year-end. The company raised its dividend outlook for the current fiscal year to a total of ¥76 per share, up from ¥72 in the prior year, signaling continued emphasis on shareholder returns, and maintained its full-year forecast, projecting ¥70.0 billion in net sales and a 6.3% rise in profit attributable to owners of parent to ¥9.9 billion. There were no changes in the consolidation scope or forecast revisions, though Daiseki implemented changes in accounting policies reflecting updated standards, and reduced the number of issued and treasury shares, indicating active capital structure management alongside steady, if modest, profit growth.

The most recent analyst rating on (JP:9793) stock is a Buy with a Yen3964.00 price target. To see the full list of analyst forecasts on Daiseki Co stock, see the JP:9793 Stock Forecast page.