Daimaru Enawin Co., Ltd. (9818) AI Stock Analysis

• Market Cap: ¥14.21B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.27
• Revenue Growth: 5.70%
• EPS Growth: -3.74%
• Country: JP
• Employees: 642
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 37.80
• Shares Outstanding: 8,046,500
• 10 Day Avg. Volume: 1,230
• 30 Day Avg. Volume: 1,776
• PEG Ratio: 0.69
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 19.19
• 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: 78 Outperform
• Price Target: ¥2,126.00 ▲(43.65% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is driven primarily by strong financial performance (growth, improving profitability, low leverage, and solid operating cash flow) and supportive bullish technical momentum. Valuation is the main offset, with a moderate P/E and modest dividend yield.

Positive Factors

Sustained revenue growth

An 11.7% year-over-year revenue increase reflects durable demand for the company’s energy distribution and services. Sustained top-line expansion supports scale advantages, recurring customer relationships, and ability to invest in operations and service capacity over the next several quarters.

Very low leverage and strong equity base

A high equity ratio and a debt-to-equity around 0.10 provide long-term financial flexibility. Low leverage reduces refinancing and interest-rate risk, enabling the company to fund capex or weather commodity price swings without materially impairing operations or requiring distressed financing.

Healthy operating cash generation

Rising operating cash flow and a free-cash-flow-to-net-income ratio near 0.75 indicate efficient conversion of earnings into cash. This supports sustainable investment in infrastructure, predictable service delivery, and the capacity to fund maintenance capex and working capital needs over the medium term.

Negative Factors

Elevated capital expenditures

Sustained, meaningful capex reduces free cash flow and constrains liquidity available for discretionary uses. Over a multi-quarter horizon, high investment intensity can pressure cash buffers, limit capacity for shareholder distributions, and require careful prioritization of projects to preserve financial stability.

Relatively high total liabilities

Although leverage metrics are low, the company’s elevated total liabilities create structural obligations that must be managed. Persistent liabilities raise refinancing and counterparty exposure over time and require sustained cash generation to avoid liquidity stress in adverse operating conditions.

Modest profitability and returns

A net margin under 3% and roughly 6% ROE indicate limited profitability buffers typical for commodity-linked distribution. Low margins reduce capacity to absorb input cost increases or regulatory shifts and constrain reinvestment or margin expansion absent structural operational improvements.

Daimaru Enawin Co., Ltd. Business Overview & Revenue Model

Company Description

Daimaru Enawin Co., Ltd. sells LP gas and petroleum products in Japan. The company offers petroleum products, such as kerosene, and light and heavy oil. It also sells gas appliances, housing equipment, air conditioning equipment, home appliances, and solar power generation systems; medical gases, home medical, and medical equipment; and industrial gases, welding and cutting equipment, welding materials, and industrial equipment. In addition, the company manufactures and sells mineral water. Daimaru Enawin Co., Ltd. was founded in 1951 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daimaru Enawin Co., Ltd. generates revenue through the sale and distribution of energy-related products, primarily focusing on liquefied petroleum gas (LPG) and petroleum products. The company earns money by supplying these products to a broad customer base, including residential, commercial, and industrial clients. Additionally, it offers related equipment and services, such as installation and maintenance, which also contribute to its income. The company's strategic partnerships with suppliers and its established distribution network enhance its ability to meet market demands efficiently, supporting its overall financial performance.

Daimaru Enawin Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by solid income statement performance (revenue up 11.7% YoY and improving margins), a stable balance sheet with high equity ratio (~67.4%) and low leverage (debt-to-equity ~0.10), and healthy operating cash flow generation (FCF-to-net income ~0.75) despite meaningful capex and elevated liabilities.

Income Statement

Daimaru Enawin Co., Ltd. has demonstrated a strong performance in its income statement with consistent revenue growth, especially notable with a 11.7% increase from 2024 to 2025. The gross profit margin has remained robust, and the net profit margin improved from 2.4% in 2024 to 2.7% in 2025, indicating enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, reinforcing operational efficiency.

Balance Sheet

The company's balance sheet reflects stability with a healthy equity ratio of approximately 67.4% in 2025, which implies strong equity backing. The debt-to-equity ratio has improved to 0.10, showing reduced leverage and risk. Return on equity has increased to 6% in 2025, highlighting better returns on shareholder investments. However, the relatively high total liabilities could be a concern if not managed prudently.

Cash Flow

Cash flow analysis shows a positive trajectory with an increase in operating cash flow from 2024 to 2025, despite a decrease in free cash flow. The free cash flow to net income ratio stands at a solid 0.75 for 2025, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio remains healthy, underscoring strong cash flow management. Nonetheless, capital expenditures remain significant, which could impact future cash reserves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.70B	33.42B	29.91B	30.64B	26.51B	21.42B
Gross Profit	10.14B	9.82B	9.96B	9.53B	8.64B	8.21B
EBITDA	3.09B	3.01B	2.71B	2.66B	2.39B	2.28B
Net Income	895.92M	888.73M	733.71M	660.79M	755.39M	670.98M
Balance Sheet
Total Assets	21.38B	22.13B	21.83B	21.81B	20.22B	19.44B
Cash, Cash Equivalents and Short-Term Investments	3.30B	3.22B	3.69B	3.59B	3.07B	4.79B
Total Debt	1.70B	1.56B	2.01B	2.03B	2.04B	2.24B
Total Liabilities	6.37B	7.22B	7.69B	7.58B	6.86B	6.77B
Stockholders Equity	15.01B	14.91B	14.13B	13.80B	13.37B	12.68B
Cash Flow
Free Cash Flow	0.00	667.22M	810.80M	1.13B	-568.08M	548.64M
Operating Cash Flow	0.00	2.02B	2.28B	2.26B	1.06B	1.70B
Investing Cash Flow	0.00	-1.67B	-1.45B	-1.49B	-2.25B	-1.56B
Financing Cash Flow	0.00	-858.37M	-980.63M	-290.59M	-530.67M	-444.73M

Daimaru Enawin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1480.00
• 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:9818, the sentiment is Positive. The current price of 1480 is below the 20-day moving average (MA) of 1832.65, below the 50-day MA of 1815.20, and below the 200-day MA of 1671.10, indicating a bullish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9818.

Daimaru Enawin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9818	78 Outperform	¥14.21B	14.71	―	1.73%	5.70%	-3.74%
9543	75 Outperform	¥112.86B	11.41	8.29%	3.89%	1.08%	37.11%
9534	74 Outperform	¥81.03B	6.47	―	2.88%	2.77%	10.64%
9537	69 Neutral	¥21.64B	6.96	―	2.18%	6.66%	―
3361	66 Neutral	¥19.42B	12.77	―	2.75%	-1.42%	6.10%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9539	62 Neutral	¥45.31B	13.92	―	1.81%	0.93%	1212.45%