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

• Market Cap: ¥13.78B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.29
• 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: ¥2,118.00 ▲(43.11% Upside)

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

Stable regulated gas business model

Operating in the regulated gas distribution sector yields structurally stable demand and recurring revenue from fuel sales and services. Regulation and long-term service contracts support predictable cash flows and underpin durable earnings visibility versus cyclical commodity-only businesses.

Consistent revenue growth and rising margins

Double-digit revenue growth with sequential margin improvement indicates expanding sales and improving operational leverage. Sustained top-line expansion plus rising gross and net margins suggest strengthening pricing or cost control that can support longer-term profitability and reinvestment capacity.

Strong balance sheet with very low leverage

High equity backing and minimal financial leverage materially reduce solvency and refinancing risk. Low debt levels give flexibility to fund capex, withstand commodity swings, and maintain operations during stress, supporting long-term financial resilience and strategic optionality.

Negative Factors

Significant capital expenditures

Sustained high capex consumes free cash flow despite healthy operating cash generation. Over the medium term, large investment needs can strain liquidity, limit discretionary allocations, and may necessitate external funding if capex persists, reducing financial flexibility for operations or dividends.

Relatively high total liabilities

Although leverage ratios are low, elevated total liabilities raise potential liquidity and counterparty risks if liabilities are short-term or rising. Management must manage working capital and obligations carefully to avoid stress during demand slowdowns or commodity price shocks.

Modest profitability and returns

Low net margins and a modest ROE indicate the business generates limited returns on capital. That constrains equity value creation and leaves less buffer against adverse commodity or demand shifts, meaning growth must be sustained to materially lift long-term shareholder returns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive

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 1883.20, below the 50-day MA of 1734.74, and below the 200-day MA of 1651.12, indicating a neutral trend. The MACD of 45.21 indicates Positive momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, 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	¥13.78B	14.26	―	1.73%	5.70%	-3.74%
9534	74 Outperform	¥76.96B	6.15	―	2.88%	2.77%	10.64%
9543	70 Outperform	¥93.74B	9.56	8.29%	3.89%	1.08%	37.11%
9537	69 Neutral	¥18.46B	6.13	―	2.18%	6.66%	―
9539	68 Neutral	¥38.43B	11.79	―	1.81%	0.93%	1212.45%
3361	66 Neutral	¥18.17B	11.95	―	2.75%	-1.42%	6.10%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%